All of the excitement in penny stocks this year has traders looking for places to call home. The issues faced by Robinhood users recently, thanks to a massive spike in certain stocks, have some traders searching for a new broker.
If you search through some of the discussions on places like Reddit, penny stock traders are finding that brokers like Webull and Fidelity have come into focus. I’m not endorsing any single broker over another. But seeing different trends is important. One of the big reasons is that now we’ve got traders who’re used to only trading penny stocks on Robinhood that’ve never been able to access OTC stocks before. Other brokers, including Webull, have also followed this path.
However, Fidelity, TD Ameritrade, Etrade, Interactive Brokers, and others are different. They not only allow trading of Nasdaq and NYSE listed stocks, but they also allow users to buy penny stocks trading on the OTC. This opens up an entirely new set of companies that were once inaccessible.
So what now? Obviously, we’ve seen plenty of activity in the OTC recently. If you look at some of the trends from last week, stocks under $0.10 ruled the most-active list. And while retail may have found new opportunities with non-listed names, the bigger firms continue focusing on major exchanges. That doesn’t mean you can’t find cheap stocks there, however. Here’s a list of penny stocks under $1 that can be bought on most brokers. But due to the low price, are they worth the risk?Penny Stocks Under $1 To Buy [or avoid]
- Kelso Technologies Inc (NYSE: KIQ)
- Gran Tierra Energy Inc. (NYSE: GTE)
- Onconova Therapeutics Inc. (NASDAQ: ONTX)
- Acasti Pharma Inc. (NASDAQ: ACST)
- Luokung Technology Corp (NASDAQ: LKCO)
Kelso Tech may be a new penny stock on your list. Only recently has KIQ begun seeing stronger trading momentum. Needless to say, even with that as the case, shares are up more than 60% this year already. The company specializes in components for railway and roadway transportation. In fact, the company just raised $CAD 6.3 million to put toward its marketing and new product development last week.
James R. Bond, CEO of the Company weighed in on the latest milestone.
“This Private Placement is the first time since September 2012 that Kelso has sought to access new equity capital from the investment community to help finance the Company’s ongoing R&D and business development plans. The Company has generated over US$120 million dollars in revenue at above-average profit margins over the past decade.”
Bond further discussed the company’s new proprietary products, which he said are advancing toward revenue generation from new markets. Specifically, these include safeguards against accidental release of hazardous materials such as ethanol and propane. “These new market opportunities along with the Company’s established products are expected to grow revenues back to profitable levels once the negative impact of the COVID-19 crisis is behind us,” Bond concluded. So with fresh capital in hand and a brighter outlook, will KIQ manage to sustain this recent uptick in momentum for February?#2. Gran Tierra Energy Inc.
We discussed several energy penny stocks over the weekend, explaining the push for infrastructure spending by the Biden Administration. While the discussion most recently includes more green energy stocks than anything else, oil and gas still have the spotlight right now. One of the biggest reasons for this is that you still need fossil-fuel-powered machinery to build the infrastructure for green energy development. At least, this is what many analysts are citing right now.
In particular, Rystad Energy said earlier this year, “Any ‘green’ focus of the infrastructure bill will be mostly additive to overall short-term oil products demand due to construction activity, with risks mostly limited to medium-term oil demand, depending on the scope and success of the projects.”
With that, we’re seeing interest in names like Gran Tierra Energy and other oil & gas penny stocks. Shares of GTE stock are up nearly 70% year-to-date. While the company hasn’t put out any updates in February, it did gain momentum in January after announcing its year-end reserves and operational overview for 2020. With oil & gas stocks gaining attention, at least in the short-term, will GTE be one of the names on your list of energy penny stocks to watch in February?#3: Onconova Therapeutics Inc.
As of the time of this article, Onconova shares just peeked above the $1 mark. The company has been on our watch lists for months at this point, with a core focus on Onconova’s pipeline development. Back in December, we discussed the company as insiders were buying up shares. This was when the company had also filed for an Investigational New Drug application for its ON 123300 cancer treatment.
Why timing could be a factor has a lot to do with what Onconova set as an expectation for the treatment. In particular, the IND seeks to gain permission to start Phase 1 trials in the U.S. in patients with breast cancer, and the company expects that to start in the first half of this year. There is an ongoing Phase 1 trial in China with ON 123300, and it continues to enroll patients.
No further updates have made mention of this. However, during that time, ONTX has rallied in a big way. This week, the momentum continues with shares testing the $1 level for the second time in a week. What’s more, the company recently filed a proxy statement for a vote on a reverse split and a reduction in Authorized shares. This special meeting of stockholders is being held on March 4th, so there’s still about 1 month until that time.#4. Acasti Pharma Inc.
Another one of the biotech penny stocks on our list for a while is Acasti. The company focuses on its CaPre hypertriglyceridemia treatment. There haven’t been many positive developments with the treatment itself. In fact, last year, Phase 3 data didn’t show results that would justify the company moving forward with a New Drug Application with the FDA.
Since then, it’s been a story about “strategic alternatives,” and Acasti brought on Oppenheimer & Co to help. The aim is to identify potential “mergers, acquisitions, or other initiatives” that involve the company and/or its current pipeline, including CaPre.
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Last month, Acasti secured $28.5 million in funding at $0.3445 per share. This capital is expected to offer additional flexibility in its ongoing review of strategic alternatives. Aside from this, not much more has been said so far. Regardless, though, ACST stock continues pushing higher this month.#5. Luokung Technology Corp.
China’s Luokung Technology Corp. has experienced a volatile year in 2021 so far. However, if you look at the stock chart’s broader view, LKCO has been in a relatively clear uptrend since mid-November. The initial momentum began after the company acquired a majority stake in BOTBRAIN AI LIMITED. BotBrain is a platform that uses knowledge management and knowledge services to personalize certain content for consumers. Its major clients include the likes of FAQ-Volkswagon, Bank of China, and Tencent, among others.
The company also built upon its big-data services in signing a deal with Guangdong Yiting Information Technology in December. The pair will focus on location-based commercial marketing services for more than 90,000 gas stations across China. Furthermore, just last week, Luokung reported a partnership between acquisition candidate eMapgo Technologies and Beijing New Energy Automobile. The two agreed to collaborate on the development of autonomous driving projects for electric vehicles. As we know, electric vehicle stocks have been red hot, and despite Friday’s sell-off on financing news, LKCO stock has made a strong rebound Monday.
In light of these developments and fresh money in hand, will this be one of the cheap penny stocks on your watch list in February?Penny Stocks Under $1 Include Higher Risk
Penny stocks are significantly higher risk compared to other stocks in the market. But when you talk about lower-priced penny stocks, there’s likely more risk due to 1 fact. That is, small moves in prices can equate to larger percentage change. In the case of penny stocks under $1, even a move of just a few pennies can equate to a big shift in position value. So, if you’re looking for these types of stocks, no matter the broker, keep that in the back of your head.