5 Penny Stocks On Robinhood To Watch This Month
Investing in penny stock can often prove to be the most rewarding class of stocks for investors. Why? Over the years, these stocks have generated a lot of wealth for investors, quickly. One of the most important things that need to be pointed out is the fact that investors can do this through relatively small capital outlays.
If these words weren’t enough, just look at some of the most popular penny stock trading apps like Robinhood. Penny stocks traded on this app are restricted to ones listed on major U.S. exchanges. However, there are still plenty of names to choose from in that regard. Needless to say, Robinhood has helped to embody the notion of turning small investments into big windfalls.
There are even entire groups dedicated to trading penny stocks on Robinhood. There are also other groups focused on exploiting some of its loopholes. Last year, one such loophole was discovered. Though it wasn’t for stock traders, those trading options were essentially allowed unlimited leverage to place trades.
Robinhood Penny Stocks To Watch
No matter the case, the fact remains, Robinhood has opened the door to new traders. That’s thanks to the ability to place orders without the larger fees that some of the other brokers required. Obviously that has changed and even the bigger houses like ETrade and TD Ameritrade have yielded to a low or no-fee model.
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Since this is the case, if you do trade penny stocks on Robinhood, you need to know how to find them. Some of the tools are helpful such as the ability to see how many portfolios hold a given stock. This is something we talk about each month in our edition of the most popular penny stocks on Robinhood.
However, technical analysis tools are a bit lacking. Despite this, you should at least know which penny stocks you can and can’t trade. Also keep in mind that when it comes to swing trading, for example, consistent volume is key; not just price spikes. Keep this in mind when putting together your list of penny stocks.
Penny Stocks On Robinhood:
Wah Fu Education
The first Robinhood penny stock to watch is Wah Fu Education (WAFU – Free Report). It made impressive gains yesterday after the company reported a major announcement. Wah Fu announced that its subsidiary, Nanjing Suyun Education Technology Co. Ltd, in which it has a majority stake, signed a major agreement.
The agreement is a service agreement with a duration of 5 years for Jiuzhou Polytechnic Vocational College. The deal is a significant one for the Wah Fu. But you might have just looked at the stock chart and begun wondering why it would be on this list. Shares hit an opening high of $4.15 on Wednesday and promptly declines as low as $2.01 on January 9.
The important part to note is that since hitting those lows, WAFU stock is back on the move. Despite having dropped after the news, shares not only trade 40% higher right now than on January 2, but the move has been relatively consistent. Can Wah Fu continue this move or has volume started to dry up? That’s definitely something to keep in mind when looking at certain penny stocks to add to a watch list.
Penny Stocks On Robinhood:
Verastem Oncology
Unlike Wah Fu, Verastem Oncology (VSTM – Free Report) has continued to move higher on January 9th. Earlier in November of last year, shares broke out after hitting 52-week lows of $0.83. The penny stock traded relatively sideways from late-November to the beginning of this month. The range-bound trade saw shares flip between $1.12 and $1.46.
However, a few days ago, that changed. The company announced inducement grants for options to purchase roughly 111,000 shares of its common stock to 8 new employees. Though this news wasn’t ground-breaking, it was the first in a series of updates that seems to have stoked a fire for its market.
January 8 was when the company put out its second update this month. Verastem announced that it has signed an agreement with Chugai. The company is going to license a medicine that targets KRAS-mutation positive cancers. Dan Paterson, President and Chief Operating Officer of Verastem Oncology said that “The exciting early clinical results led to our decision to enter into a partnership with Chugai for CH5126766 and accelerate the combination development program for patients with KRAS mutant cancers.”
“We plan to initiate discussions with regulatory authorities about our development plans and to define the registration path early this year.”
The company is going to pay $3 million for the worldwide development and sales rights for the therapy. The stock rallied strongly after the news broke and VSTM stock soared by a much as 36%. This move continued on January 9 with shares reaching early highs of $2.01. This has marked a move of over 50% from the start of the week.
Penny Stocks On Robinhood:
Adamas Pharmaceuticals
The next company on this list of penny stocks on Robinhood, Adamas Pharmaceuticals (ADMS – Free Report) emerged as one of the major penny stock gainers yesterday. The company announced that it expects the sales for its product Gocovri to be around $16.3 million in the fourth quarter.
Neil F. McFarlane, Chief Executive Officer of Adamas said, “In 2020, we intend to further strengthen our operations to benefit Parkinson’s disease patients with dyskinesia as well as OFF. Additionally, the recently announced settlement agreement with Sandoz demonstrates the strength of Adamas’ intellectual property. We are well-positioned to optimize the opportunity for GOCOVRI and to invest strategically in the growth of Adamas.”
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Adamas added that the full-year sales figures are going to be around $54.6 million. Both figures represent a significant rise in sales. After the announcement came out, ADMS stock rallied. On January 9, the stock reached highs of $5.46 and marks a jump of more than 50% after dropping like a rock in December.
Penny Stocks On Robinhood:
Aurora Cannabis
One of the most popular penny stocks on Robinhood for months now has been Aurora Cannabis (ACB – Free Report). It’s no secret that the cannabis industry has gotten smoked over the last few quarters. Some call it growing pains and others call it re-valuation of a bloated industry. No matter what your definition is, you can’t ignore the sheer amount of trading activity across the sector as a whole. Some of the most actively traded stocks, in general, have been marijuana stocks.
As far as Aurora’s concerned, the last few days have been bright spots for the company. Initially, the stock got off to a rocky start to the week. This came after reports showed that one of the company’s greenhouses was found in an online sale listing. Obviously a company that grows cannabis might not want to sell off something like a greenhouse. That’s especially considering it’s a tool used to cultivate crops. Regardless of that fact, the market seems to have shrugged that off quickly on January 9.
The stock has managed to recover by about 9% from yesterday’s lows. One of the big reasons why, potentially, was that the market had a chance to step back and fully analyze such a move. Many cite that this could benefit the company as it was an inherited asset from a previous acquisition, Medreleaf 2 years ago. Given this, it would appear as though the market may be turning slightly more bullish in the interim. But of course, that’s yet to be confirmed.
Penny Stocks On Robinhood:
Hexo Corp (HEXO)
Closing the list, Hexo Corp (HEXO – Free Report) has managed to attract attention on January 9. This comes just one day after the marijuana penny stock hit new 52-week lows of $1.25. It was one of the leading bears in cannabis this week. Despite this being the case, it’s important to keep in mind several things with Hexo.
First, as we discuss “growing pains,” the company both refiled its financial statements for the 3rd quarter of 2019 while also closing a $25 million registered offering for $1.67 a share. If there were ever a time to “pull the band-aid off,” that seems to be the day. Hexo got a lot of lackluster news out of the way at once. Of course, the result after those updates was a downturn in shares.
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But now that the dust has settled, Hexo has both money for operations and updated financial statements. Now we see shares heading back up. As of January 9th’s early afternoon high, HEXO stock already broke above $1.50 a share. Can this continue through the remainder of the week?
