Are These Robinhood Penny Stocks On Your List This Week?
Whether you’re trading penny stocks on Robinhood, Webull, Etrade TD Ameritrade, or others, your work is cut out for you. The whole idea is buying cheap stocks and leveraging their volatility to make a buck or two. However, it’s all about managing your risk. Being able to buy penny stocks and sell for a profit is the goal. Heading into this week, the whole focus is on finding low priced names to follow.
However, when it comes time to find the top penny stocks to buy, there are a few things to keep in mind. First, you’ll want to understand that there are high-risk/reward scenarios to ponder. One of the most important things to understand about penny stocks is that many of these will rally quickly then pull back swiftly.
Trading Penny Stocks On Robinhood
Since one of the most popular penny stock trading apps right now is Robinhood, it’s important to keep your strategy in mind. Regardless if you’re a pattern day trader or not, the same goals are kept in mind. Making money with penny stocks requires your full attention especially if you’re looking to day trade these volatile names.
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Why mention penny stocks on Robinhood? The simple reason has to do with the millions of new traders who’ve accessed this platform this year alone! Even during the1st quarter, the Robinhood platform won acclaim from the millions of new traders looking to gain access to the public markets. Say what you will about it, but trading penny stocks on Robinhood is synonymous with anything else you would consider a “mundane” task.
Whether these traders are still using the app or not is up in the are. As we know, there’ve been plenty of issues over the last few months. Needless to say, in light of the increasing popularity of penny stocks on Robinhood, here are three that’ve captivated some attention in October 2020.
Robinhood Penny Stocks To Buy [or sell]: Electrameccanica Vehicles Corp. Ltd.
Shares of Electrameccanica Vehicles Corp. Ltd. (SOLO Stock Report) have been off and on the list of penny stocks to watch this year. Initially sparked by rumors, SOLO stock has found a home among the growing list of EV penny stocks to watch. It’s true that the Battery Day festivities from Tesla sparked a renewed interest in battery-powered vehicles. Furthermore, it sparked a new interest in companies dealing with alternative energy as a product offering. Needless to say, SOLO stock has experienced its share of volatility and big moves in the stock market this year. June to July saw shares rally explosively from around $1.10 to highs of $6. It was mostly from speculative hype surrounding its new electric vehicle model.
Fast-forward to currently and SOLO stock remains volatile. Just not as volatile as it was during the summer (for now). On Friday, shares of the EV penny stock jumped from around $2.44 to highs of $2.68 before the closing bell. One of the points of focus for traders right now is on the company’s pending launch of its EV, SOLO.
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Last week the company announced the remaining two finalists, Arizona and Tennessee, were proposed sites for the company’s U.S.-based assembly facility and engineering technical center. CEO Paul Rivera said that “When fully operational, our facility should contribute hundreds of jobs to the local economy as well as have a positive impact on the community at-large. We are excited to be a part of the catalyst for local and state initiatives to drive growth for the U.S. economy and the EV sector.”
Robinhood Penny Stocks To Buy [or sell]: Iamgold Corp.
Any list of penny stocks would be incomplete without at least one of the top gold stocks to track this week. The increasing pressure for fiscal easing remains a focus for traders this week. With that, we’ve seen, first hand, stimulus talks dilute the value of the dollar, which has further resulted in a flight to safe havens. Iamgold (IAG Stock Report) stock took a breather for the last few weeks. During the Thursday and Friday sessions last week, shares of IAMGOLD stock recharged. The penny stock ended up jumping 8% by Friday’s closing bell. The gold stock continued higher immediately after the close as well.
Aside from the company benefitting from the surge in gold price, IAG stock has also climbed after recent company catalysts. Toward the end of last week, Iamgold announced that all of its outstanding 7.000% Senior Notes due 2025 were redeemed. The redemption had been previously funded on September 29, 2020. This was with net proceeds from the company’s recent issue of $450 million 5.750% Senior Notes due 2028.
“With the redemption and the issuance of New Notes with an extended maturity date of October 15, 2028, our capital structure continues to support our ability to fund our growth pipeline,” commented Carol Banducci, Executive Vice President and CFO. “By extending the debt maturity to 2028, the Company has significantly enhanced its flexibility during the construction build phase of the Côté Gold Project, as well as its ability to fund its pipeline of internal growth opportunities.”
Needless to say, gold penny stocks remain a topic of heated debate right now. Based on the discussions over the weekend regarding the recent stimulus debate, it will be interesting to see if gold stocks continue higher on Monday.
Robinhood Penny Stocks To Buy [or sell]: Highway Holdings Limited
Finally, shares of Highway Holdings Limited (HIHO Stock Report) scrambled after Friday’s closing bell. The thinly traded penny stock jumped from a close of $3.79 to highs of $5.17 after-hours. One of the biggest points of interest wasn’t on headlines but on recent filings. Last week, a 13G revealed a larger stake in the company made by Peter Abrahamson – 5.9%.
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This sparked a move in the penny stock after-hours last week. However, it was a continuation of the move that began after the company reported its results of its fiscal 2021 second quarter and six months ended September 30, 2020. Net sales for the quarter were $2.7 million compared with $ 3.2 million a year earlier. Net income for the same period was $229,000, or $ 0.06 per diluted share. This was compared with a net loss of $94,000, or $0.02 per share, a year earlier. “We remain optimistic about the future and believe the trade friction between the United States and China may actually be to our benefit because of our ability to manufacture in Myanmar,” said Roland Kohl, chairman, president and chief executive officer.
Highway produces a wide range of products for original equipment manufacturers. The company’s administrative offices are located in Hong Kong, and its manufacturing facilities are located in Shenzhen in the People’s Republic of China and in Yangon in Myanmar. Its operating segment includes Metal stamping and mechanical OEM and Electric OEM.
We’ll have to see if this momentum carries through into Monday’s opening session. The big surge in trading from Friday was one of the largest since August.
