May 3, 2021
6 minutes to read
This story originally appeared on PennyStocks
Are These Top Penny Stocks Worth Buying?
May is here, and so, another month for penny stocks. Because speculation is standard with the territory, all factors, including something as simple as the start of a new month, can have a positive or negative effect on penny stocks.
Now why are penny stocks so speculative? Well, the short answer is that due to their low price (everything stocks under $ 5), values tend to change very quickly. Additionally, most investors tend to trade these stocks, which in turn adds to their high volatility.
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Finally, most cheap stocks tend to move very quickly when news is announced. This includes everything from balance sheets to business records and company updates. So while none of this should be used to instigate fear, it should help shape your strategy into one that could pay off.
Being a profitable trader involves understanding different variables that can impact the price of a stock, as well as certain technical indicators that could indicate price movements. The best way to understand this is to have a good background in trading, but experience is also essential.
Additionally, the influx of retail traders to platforms such as Robinhood or WeBull has helped democratize commerce more than ever before. While this resulted in greater volatility in the stock market, it also brought billions of capital that was not there before.
Because there are thousands of stocks under $ 5, which penny stock watch list may seem like a daunting task. But, with the right research at your fingertips and the ability to find penny stocks on Robinhood or wherever you trade, it can be much easier than imagined.
3 Penny Stocks on Robinhood for May 2021
- Safe Bulkers Inc. (NYSE: SB)
- Abeona Therapeutics Inc. (NASDAQ: ABEO)
- NexGen Energy Ltd. (NYSE: NXE)
Safe Bulkers Inc. (NYSE: SB)
Safe Bulkers Inc. is a penny stock that we have hedged several times in the last few weeks only. Again on May 3, shares of SB rose double-digit percentage points. While this is largely speculation about its upcoming first quarter 2021 results, released on May 5, there are some additional factors at play. One of these happens to be the high expectations regarding the data from the first quarter of the business.
Analysts said the company could reverse its loss from the previous year, where it could then generate EPS of $ 0.10 on sales growth of around 27%. Additionally, that would indicate around $ 58 million in revenue.
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One of the data points supporting these predictions is the Baltic Dry Exchange Index (BDI). This index tracks the rates that shipping companies like Safe Bulkers receive for transporting dry bulk cargo. At the start of this year, the BDI stood at around 1,400. However, last week it surpassed 3,000, which is obviously more than double its January level.
Since the end of March, SB shares have jumped about 65%, and since January, more than 350%. While a gain like this isn’t unusual for penny stocks, triple-digit percentage gains are always worth noting. Thus, in order to view SB stock as a buy, investors must do their due diligence in addition to verifying its future results. And with all of that in mind, is SB worth adding to your watchlist?
Abeona Therapeutics Inc. (NASDAQ: ABEO)
Walk away from the expedition and enter a biotechnology penny stock, ABEO is clearly a candidate on the watch list. In a certain context, Abeona is a clinical stage biopharmaceutical company developing both gene and cell therapy candidates. In its pipeline are compounds such as EB-101, a phase 3 candidate for recessive dystrophic epidermolysis bullosa, ABO-102 / ABO-101, a novel gene therapy for Sanfilippo syndromes, and several others. Its aim is to treat serious illnesses with relatively unsatisfied medical solutions.
In March, Abeona released its 2020 financial results and several corporate updates to mention. This includes the assay of the fourth patient in his pivotal phase 3 study VIITAL on EB-101, following a successful Type B meeting with the FDA. Additionally, we find that ABEO is well funded, ending the year with approximately $ 95 million in cash and cash equivalents.
“In 2020, Abeona advanced our three clinical programs towards providing urgent treatment to patients with recessive dystrophic epidermolysis bullosa (EBRD) and Sanfilippo type A and type B syndrome, despite the macro-disturbances that have touched the world. We remain focused on executing our strategy and achieving the next steps. Our recent momentum is evidenced by a successful Type B meeting with the FDA where we aligned with the co-primary endpoints for the pivotal Phase 3 VIITAL study of EB-101 in the RDEB.
Michael Amoroso, CEO of Abeona Therapeutics Inc.
Due to its large pipeline and the breadth of its late stage pharmaceuticals, Abeona could be an attractive solution penny stock to watch. With that in mind, the choice is yours.
NexGen Energy Ltd. (NYSE: NXE)
NexGen Energy is, as the name suggests, a penny stock energy. Based in Canada, it focuses on the acquisition and exploration of uranium projects in the country. NexGen has a long history of discovering large deposits of uranium which can then be turned into large mining projects. This includes its large portfolio of assets in the Athabasca Basin, which is located in Saskatchewan, Canada. Inside is the Rook 1, in which it has a 100% stake; this is also where the famous Arrow deposit was back in early 2014.
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In March of this year, NexGen announced the exercise of over-allotment options worth $ 22.5 million. This coincides with its previously completed public offering of 33.4 million ordinary shares. This option alone will bring its total funding for the year to $ 172.8 million in revenue.
With any mining company, financing is always the number one concern of investors. Because capital is the primary necessity for any business and especially those in the mining industry, fundraising opportunities like these are always exciting. While there is concern about stock dilution, this likely won’t be a problem until the future.
One of the main reasons for the bullish interest in uranium is its potential as a renewable energy source. Due to the US focus on renewable energy development, pushed by President Biden, investors scramble to find the next best penny stock renewable energy. Although uranium is still stigmatized, its efficiency and potential are beyond doubt. Given all of this, will NXE be on your penny stock watch list?
Penny Stocks: Is It Worth It Or Not?
When it comes to penny stocks, the main thing to consider is whether or not a company fits into your portfolio. All investors have different goals. Whether it’s a short or long term investment, finding the right one penny stocks to buy is about understanding your own unique investing style. Additionally, having a background in trading can give you the best chance of making profitable investments. Considering these aspects, are penny stocks worth it?
