Relating to Robinhood shares, traders are liable to consider these “meme” shares that stay an ongoing phenomenon. However the buying and selling app has additionally raised the profile of many penny shares, not simply these well-beloved by the Reddit crowd.
The definition of a penny inventory has modified drastically through the years. These days, it usually means shares that may be bought for beneath $5. Nonetheless, the unique which means of the time period was referring to shares that you would purchase for lower than a greenback and infrequently for considerably lower than that (i.e., for pennies).
These are usually small-cap and even micro-cap firms which are hoping traders will purchase into their potential. And whereas there have been some notable firms that began off as penny shares, many penny shares are penny shares for a purpose.
With that in thoughts, listed below are 7 trend-worthy Robinhood shares that traders should buy for lower than $1.
- Almaden Minerals (NYSEAMERICAN:AAU)
- Nice Panther Mining (NYSEAMERICAN:GPL)
- Superior Drilling Merchandise (NYSEAMERICAN:SDPI)
- Camber Vitality (NYSEAMERICAN:CEI)
- Oragonics (NYSEAMERICAN:OGEN)
- Cyren (NASDAQ:CYRN)
- Inuvo (NYSEAMERICAN:INUV)
Penny shares stay probably the most speculative asset lessons. However, you probably have some room in your portfolio for a bit of playing, you may make cash in penny shares which are in keeping with current traits.
Robinhood Shares to Purchase Below $1: Almaden Minerals (AAU)
The primary of our Robinhood shares is a Canadian mining inventory, Almaden Minerals. The bullish case for AAU inventory comes all the way down to its capability to efficiently launch its Ixtaca undertaking in Mexico. With mining shares it’s all in regards to the math. And the mathematics of the Ixtaca undertaking could be very favorable given the present worth of metals.
At the moment the undertaking is slowed down in authorized points which are delaying Almaden from receiving a allow. And that delay is weighing on AAU inventory. A choice isn’t anticipated till late 2022 and even into 2023. And whereas a damaging ruling wouldn’t essentially be a deadly blow to the undertaking, it will delay improvement for a few years.
Analysts counsel that Almaden might earn an after-tax internet current worth (NPV) of 5%, which works out to over $800 million. Almaden at present has a market cap of roughly $69 million. If the corporate is profitable in acquiring the mandatory permits, the AAU inventory worth and market cap would seemingly transfer considerably greater, which might offset doubtlessly excessive CAPEX spending.
Nice Panther Mining (GPL)
The subsequent inventory on our record can also be a Canadian mining firm. Nice Panther Mining was buying and selling above 90 cents a share at the start of the 12 months. However the firm is experiencing a delay at one in every of its key initiatives and isn’t anticipated to restart mining operations till at the least the third quarter.
That’s information traders in mining shares are loath to listen to. However, that information broke in late Might. If GPL inventory has discovered a backside, this can be an intriguing play on the best way again up. The corporate is mining gold on the mine in query and gold costs are on the rise as uncertainty within the greenback stays excessive.
With that in thoughts, it could be greatest to depart Nice Panther in your watch record. Nonetheless, for what it’s price, the three analysts that cowl GPL inventory give it a “purchase” score with the potential for the inventory to rise over 200% above present ranges.
Superior Drilling Merchandise (SDPI)
Shifting to drilling and exploration of a unique type convey us to Superior Drilling Merchandise. Our present financial restoration is being pushed (at the least partially) by conventional fossil fuels. And as oil costs rise, so do the fortunes of oil and gasoline exploration firms.
Superior Drilling Merchandise has been making main strikes for the reason that begin of the 12 months. SDPI inventory is up greater than 58% in 2021 and up almost 8% within the final month making it a robust momentum play.
The chance-reward proposition is straightforward. Bigger oil firms will generate extra income, however will probably be offset by the price of operations. Nonetheless, with a market cap of $24 million, SDPI inventory has an opportunity to generate outsize positive factors so long as there may be sturdy demand for oil. And analysts imagine that’s more likely to occur, with revenue projected to develop 40% on this quarter and 57% within the following quarter.
Camber Vitality (CEI)
One other of the Robinhood shares making strikes as an vitality penny inventory is Camber Vitality. The catalyst for Camber Vitality’s development was an announcement that it’ll merge with Viking Vitality Group (OTCMKTS:VKIND).
Camber already owns a 62% interest in Viking Energy. And Viking simply posted a strong quarter with over $10 million in income. As of this writing, no date had been set for the finalization of the merger.
Penny shares that commerce under $1 can face the specter of delisting. And so, regardless of the optimistic bump CEI inventory acquired from the merger announcement, it gave up many of the positive factors after it acquired a delisting notice in late Might.
Nonetheless, with oil costs climbing to $75 per barrel, it seems that traders are taking a renewed curiosity within the inventory: CEI inventory is up over 10% within the final month. Merchants ought to take care when opening a place given a current spike briefly curiosity within the inventory.
Should you nonetheless have some curiosity about the way forward for Covid-19 vaccines, chances are you’ll wish to make a speculative guess on Oragonics. This small-cap biotech firm has a Covid-19 vaccine candidate Terra CoV-2 that contains an adjuvant that might enhance the vaccine’s effectiveness whereas with the ability to administer a smaller dose.
The chance-reward setup for this penny inventory is fairly easy. If a big share of People stay unvaccinated, there could also be a chance for Oragonics to ship another that will alleviate among the present considerations. It’s much less clear if Terra CoV-2 can be a possible booster shot different for people who’ve already acquired an current vaccine, however that may be a chance.
At the moment, Oragonics doesn’t have some other merchandise in its pipeline, so there might be sizable threat if Terra CoV-2 doesn’t obtain FDA approval as soon as it will get by means of the scientific trial stage.
OGEN inventory is up 31% for the 12 months up to now.
Cybersecurity might be an investable theme for the following decade. And a serious catalyst might be distant work. Whereas what the distant/in-office stability will appear like stays unknown, you might be positive conserving data safe might be high precedence. And Cyren, headquartered in McLean, Virginia, gives the e-mail safety and menace intelligence options companies are in search of.
Up to now in 2021, we’ve seen the significance of the form of companies that Cyren gives. The collection of cyberattacks that began in March uncovered electronic mail and different communications data at a number of authorities businesses.
However I’d warning traders interested by leaping on CYRN inventory. You’re seemingly by yourself. Whereas penny shares usually draw solely a small fraction of curiosity from institutional traders, Cyren isn’t drawing a lot consideration in any respect.
CYRN inventory is down 31% for the 12 months. Nonetheless, it’s up over 11% within the final month, suggesting that the inventory could have discovered a backside.
The final of the Robinhood shares to make my record is Inuvo, a play on the substitute intelligence (AI) sector. This firm delivers AI-driven commerce options by means of its IntentKey, a programmatic media resolution powered by patented AI-generated proprietary viewers knowledge. The patented know-how gives manufacturers the flexibility to achieve incremental audiences producing extra high-quality leads.
In late February, Inuvo introduced an settlement between subsidiary Vertro and Alphabet’s Google (NASDAQ:GOOGL). This may permit the corporate to make use of Google’s WebSearch Service and AdSense For Search on choose web sites.
Though INUV inventory didn’t maintain that transfer over $1, it’s nonetheless up 100% in 2021. And though the inventory is calmly lined by analysts, the 2 analysts give it a purchase score with a consensus worth goal of $1.75 that may be a acquire of over 86% from its present worth.
On the date of publication, Chris Markoch didn’t have (both instantly or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a contract monetary copywriter who has been protecting the marketplace for seven years. He has been writing for InvestorPlace since 2019.