Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Penny stocks can be lucrative for those who take the time to do their research. Many of today’s stocks were once low-valued stocks themselves. Those who managed to purchase those stocks early are doing very well.
Robinhood has several advantages, as it makes penny stock trading easier for younger people, through simple, commission-free, seamless stock trades. It also offers access to options and cryptocurrencies, which is another huge advantage.
Houghton Mifflin Harcourt is a publishing company that deals with textbooks, reference works, fiction, non-fiction, and other instructional technology materials. It is 188 years old and handles multiple media brands. They include Carmen Sandiego and The Oregon Trail, as well as distributing Lord of the Rings in the US.
Online learning has become the de facto method of education in the current climate. It looks to cement this position going into the near future. Houghton will benefit from the eLearning surge, as several fundamentals point to that happening.
On October 1, Houghton Mifflin Harcourt announced a restructuring of its business, saving money in the long-term; the stock rose by 13% as a result.
The digital platform saw usage increase by 486% in student assignments.
SaaS billings grew by 127%, indicating strong digital product growth.
And the company has a user base of 50 million students and three million educators in 150 countries.
ADMA Biologics is a biopharmaceutical company that manufactures, develops, and markets plasma-based drugs. These products are used for the treatment and prevention of infectious diseases in immunocompromised individuals. Some of its biggest products are Asceniv, Bivigam, and Nabi-HB.
Medical care devices and projects in the general domain have benefitted from the pandemic. People have turned to such devices that can help conditions while reducing the need to visit hospitals. ADMA Biologics’ general position in the market indicates that it could be a decent investment.
In its Q2 2020 report, ADMA Biologics reported sales of $7.79 million with a return on capital employed of -0.22%.
While the earnings may not suggest growth, healthcare and the leading biotech stocks in general show potential in the current climate.
More funds have been buying ADMA Biologics, with an all-time high of 21 hedge funds invested in the company.
CHF is a company that commercializes medical devices and distributes multiple health care products to that end. These devices include those for the treatment of fluid overload, heart failures, and other cardiac diseases. The most coveted product in its catalog is the Aquadex SmartFlow™ System, which helps treat hypervolemia.
There is not much in the way of substantial developments. However, CHF Solutions has had a variety of middling events happen to it in the past few months. This includes larger than usual levels of trading volume.
The company demonstrated the effectiveness of its Aquadex therapy on October 7, showing some positive results.
In its Q2 2020 report, CHF Solutions recorded a revenue of $1.9 million, an increase of 14% from Q1 2020.
Pacific Drilling is an offshore ultra-deepwater drilling company that was founded in 2006. The company’s drillships conduct offshore drilling internationally, with ships in Nigeria, the Gulf of Mexico, and Brazil. It also has partnerships with companies in Nigeria and Ghana.
Pacific Drilling has had a topsy-turvy 2020, but recent news provides some cautious optimism. The company was awarded a ten ship drilling contract in the Gulf of Mexico. CEO Bernie Wolford said that more contracts were expected in 2021.
The net loss for Q2 2020 was $87.4 million, as opposed to $61.0 million in Q1 2020.
Moody’s downgraded Pacific Drilling, saying that a “near-term improvement of offshore fundamentals is unlikely”.
There’s value in penny stocks if you approach them cautiously. A good portion of the investment is able to control your emotions, which is a difficult prospect for most. With penny stocks, you’ll have to look carefully into the company’s financials and their general potential in the domain. But the rewards are there for those who do their due diligence.
Of course, there are several other stocks worth looking at as well, but these are good places to start. You can also examine other investment vehicles in addition to the penny stocks Robinhood offers.
What penny stock recommendations do you have? How will these stocks perform in the months to come? Let us know in the comments below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.