When it comes to penny stocks, Robinhood has become a popular platform to use among new traders. This gamified trading tool allows easy access to the stock market. Today, with so many new events influencing the way investors buy and sell, a mobile-friendly option has broken down even more barriers to investing. Just think about how far things have come in just a few years. Where most would have never thought of day trading as a true means of income, now we’ve got entire communities discussing the next YOLO opportunity.
Say what you will about Robinhood but it had opened doors to a whole new generation. While it has had its fair share of problems – and big ones at that – it has become one of the fastest-growing platforms for younger traders. Furthermore, according to most public reports, the penny stock broker has amassed some 13 million users; 3 million of which came earlier this year. While there’s still a lot to be desired from the app in comparison to other options, Robinhood has achieved the goal of making it easy to trade penny stocks.
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However, if you’re a new trader looking to find penny stocks on Robinhood before you jump headfirst, it’s important to get a bit of education. “They encourage people to go from training wheels to driving motorcycles,” said Scott Smith, who tracks brokerage firms at the financial consulting firm Cerulli. So if you are brand new to trading, it might not be a bad idea to get your footing first.Top 5 Penny Stocks On Robinhood For September
Another important thing to understand is that many who are trading penny stocks on Robinhood look for trends. Sometimes, these trends have merit and other times I see traders basing ideas on sheer speculation. The goal, in the simplest form, should be to find the right information from the right sources.
In today’s new world of traders, places like social media including Facebook, Twitter, and even Reddit have become hot spots for discussion. Many times, users will post information after having done limited research. So keep in mind that no matter if you trading penny stocks on Robinhood, ETrade, TD Ameritrade, or other platforms, research is key and education is a huge asset.
Understand what you’re buying and selling and know how to spot opportunities or signals to avoid loss. At the end of the day, it’s about weighing risk and reward. Penny stocks are obviously some of the higher risk assets you can buy but they also come with the potential for more near-term rewards. Here’s a list of the most popular penny stocks on Robinhood heading into September.Robinhood Penny Stocks To Watch #5: Kosmos Energy
Among the most popular penny stocks on Robinhood, Kosmos Energy (KOS Stock Report) comes in at #5. The company focuses on oil and gas exploration and production. For most of the last few quarters, KOS stock has traded relatively sideways. Obviously, the oil and gas sector hasn’t been the top dog this year. Prices slumped to some of their lowest in recorded history as global shut-downs saw demand plummet this year. In a similar fashion, Kosmos Energy stock dipped with the sector, back in March. Shares were trading above $6 previous to that and ended up slumping to a low of $0.50.
What has become a point of focus for traders is the company’s most recent earnings report. Kosmos beat on earnings per share but missed on revenue. The company reported an EPS loss of $0.23 per share compared to estimates of a $0.33 per share loss for the quarter. Sales came in at $127.31 million which fell far-short of the $170.18 estimates that Wall Street had. But this doesn’t mean things have been all bad for Kosmos. This month several big developments suggest that the company continues captivating the market.
For starters, BlackRock, Inc. reported a 10.7% stake in the company in late July. Furthermore, even after reporting these results, some analysts remain bullish on the company. Renaissance Capital upgraded Kosmos Energy. It boosted its previous Hold rating to a Buy in August. However, the firm did trim its price target slightly from $2.30 to $2.20.Robinhood Penny Stocks To Watch #4: Nokia
Shares of Nokia (NOK Stock Report) continue flirting with the upper limits of the penny stock range. In August, NOK stock fluctuated between $4.88 and $5.14. The biggest jump actually came as the month was getting started and after Nokia reported its Q2 earnings results. If there’s one thing that has become increasingly popular this year (besides COVID-19) it’s been 5G stocks. In light of this, NOK has remained a prevalent name on the list when it comes to this topic.
In any case, Nokia reported strong earnings for the quarter. It beat on earnings per share by a wide margin. The company recorded earnings of $0.07 per share, which was over 100% higher than estimates of $0.03. However, Nokia did miss on sales. The company reported $5.61 billion, which was under the $5.70 billion estimate. Regardless, Nokia continues to pursue its goal of establishing itself as a top name in communications infrastructure.
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Some of the key developments recently have seen the company working with notable names. In June, it signed a data center infrastructure deal with Tencent and Baidu. It also ran a successful trial of the “RAN Intelligent Controller” over AT&T’s commercial 5G network. The companies are co-developing this software platform to boost interoperability and enable rapid service deployments. In addition to it strong earnings in July, August saw Nokia ink a few more deals and even win a patent injunction against Daimler in Germany. The company has several patent disputes against Daimler as well.Robinhood Penny Stocks To Watch #3: TherapeuticsMD Inc.
Since mid-April, TherapeuticsMD Inc. (TXMD Stock Report) has held a general uptrend so far. Back then, the penny stock had just hit a 52-week low of $0.85 and has managed to climb from there. Between mid-April and the end of August, however, TXMD stock saw a lot of volatility. At the end of April, shares jumped to highs of $2.24 before dropping to around the $1 level in May. The penny stock then mounted a rally from May to late-July, reaching highs of $2.43. Similar to May, TXMD stock saw another slide.
This most recent drop stemmed from the company’s last earnings report. its Q2 GAAP EPS came in at a loss of $0.19. This missed estimates of a $0.17 EPS loss. However, TherapeuticsMD beat sales estimates reporting $10.7 million for the quarter. This beat estimates bout roughly half a million dollars. The company focuses on women’s therapeutics and obviously felt some strain due to COVID-19. However, it did experience an increase in prescriptions for several of its products.
For instance, its contraceptive, ANNOVERA® saw prescriptions increase roughly 100% for the eight weeks ended July 24, 2020 over the previous eight week period. Its estrogen therapy, IMVEXXY® saw new prescriptions increased by 33% during that period as well. In late August, Knight Therapeutics Inc. and TherapeuticsMD announced today the approval of IMVEXXY® by Health Canada.Robinhood Penny Stocks To Watch #2: Aphria Inc.
One of the mainstays in the most popular penny stocks on Robinhood seems to be Aphria Inc. (APHA Stock Report). We’ve reported on this company recently as attention continues building on cannabis legalization. New proposals in states like Florida, New Jersey, Nebraska, and recently, Pennsylvania, have brought heightened interest to the sector.
Specific to Aphria, the penny stock experienced a strong move from mid-march to the end of August. It briefly traded above the $5 mark on several occasions. However, both were followed by a pullback to around its 50 Day Moving Average. During that period, APHA stock jumped as much as 215% after reaching highs of $6.15 in July.
While there hasn’t been much news recently, Aphria kick-started August with a significant update. The company announced that it entered into a Strategic Supply Agreement with Canndoc Ltd., a subsidiary of InterCure Ltd. This is one of Israel’s largest medical cannabis producers.
Under the terms of the agreement, Aphria will supply Canndoc with dried bulk flower over a two-year period. It also has the option to extend for two additional terms of two years each, and an option for an additional year after that if the parties agree to terms. During the term, Aphria will provide Canndoc with 3,000 kgs. of bulk dried flower, which will be processed into finished product, co-branded under the Aphria and Canndoc brand names, and sold exclusively within the Israeli market.Robinhood Penny Stocks To Watch #1: Catalyst Pharmaceuticals Inc.
Catalyst Pharmaceuticals Inc. (CPRX Stock Report) is not only one of the most popular penny stocks on Robinhood, but it is also the most popular stock, overall. Based on the top 100 most popular stocks on Robinhood, CPRX stock sits at the top of the heap. While you might think this would mean CPRX stock is skyrocketing, a look at its chart paints a much different image. The penny stock saw a big rally back in April after shares hit lows of $2.55 in March. CPRX traded between $4 and $5 for most of the second and early third quarters. However, at the end of July, the penny stock began its descent. Shares dropped below $3.30 for the first time since March.
Even in light of the drop, the company saw Q2 results beat Wall Street estimates. Revenue growth increased to $29.6 million from $28.8 million from Q2 2019. Furthermore, Catalyst ended its quarter with over $115 million in cash and investments. Catalyst also received a Notice of Allowance of the U.S. Patent for “Methods of Administering 3,4-Diaminopyridine”. According to Dr. Steven Miller, Chief Operating Officer and Chief Scientific Officer, “The receipt of this Notice of Allowance from the USPTO represents an important milestone in expanding our Firdapse® intellectual property portfolio and adds to Catalyst’s options for further developing the Firdapse® franchise.”
At the end of August, Catalyst and KYE Pharmaceuticals Inc. filed a proceeding in Canadian Federal Court challenging Health Canada’s issuance of a Notice of Compliance (NOC) on August 10, 2020 for Medunik’s New Drug Submission for the drug Ruzurgi® (amifampridine) for the treatment of Lambert-Eaton Myasthenic Syndrome despite the fact that Catalyst’s Firdapse® (amifampridine phosphate) was issued a NOC on July 31, 2020 and was granted data protection as an “innovative drug” as it was the first amifampridine product to be approved in Canada. Data protection is supposed to prevent Health Canada from issuing a NOC to a drug that “directly or indirectly references an innovative drug’s data,” for eight years.