Are These Penny Stocks On Robinhood At The Top Of Your List This Week?
If there’s one thing consistent with penny stocks, it’s the number of new traders we’re seeing this year. If you take a look at Penny Stocks Brokerage Growth Statistics For 2020, you’ll see some revealing details. Other than Schwab’s acquisition of TDAmeritrade bringing in 14 million new accounts, Robinhood is one of the fastest-growing platforms in 2020. Whether it’s trading penny stocks, options, or even crypto, users are finding the mobile-friendly application a go-to right now. Despite the many technical shortcomings that the app has demonstrated, its ease of use has stood out among new traders.
How many traders are actually choosing Robinhood? As discussed over the weekend, this is one of the fastest-growing platforms for trading in 2020. Some cite users around 13 million, but according to CNBC, Robinhood saw a record 3 million new customers in the first four months of 2020. JMP Securities analyst Devin Ryan recently projected that the start-up’s account growth likely added 5 million accounts from the start of 2020 until the end of September.
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Those who’re trading penny stocks on Webull, TD, Etrade, Robinhood, Interactive Brokers, etc. all have a similar goal. That goal is to make money with penny stocks and repeat the process. Due to the fact that so many users are on the Robinhood platform, it’s interesting to see which names they’ve focused on. No matter the case, since these names are usually listed on the NYSE or NASDAQ, all brokers are able to access these companies. It’s only when it comes to OTC penny stocks that Robinhood and Webull users could be out of luck.
Penny Stocks On Robinhood To Buy [or sell] #1: Waitr Holdings
Waitr Holdings (WTRH Stock Report) is one of the penny stocks we’ve followed for nearly a year now. In my opinion, it evolved from just another one of the hopeful penny stocks to watch to a company actually trying to make a name for itself. When you think about the pandemic what comes to mind? Is it vaccines, biotech, healthcare, or is it something different?
For many, it’s access to everyday things. Look at groceries, food, drinks, etc. Waitr Holdings provides a restaurant platform for online food ordering and delivery services across the United States. Its niche has everything to do with its growing networks of independent local restaurants and regional and national chains in small and mid-size markets.
With the onset of country-wide lockdowns, Waitr found a bit of growth and success this year. What’s on deck this week? Waitr could be a high-risk penny stock to watch. The reason being has everything to do with the company’s upcoming earnings on November 9th. Considering these results come out after the close on Monday could give way to an interesting Monday session. Will this be a calm before the breakout or a “buy the rumor & sell the news” event?
Penny Stocks On Robinhood To Buy [or sell] #2: ToughBuilt Industries Inc.
ToughBuilt Industries Inc. (TBLT Stock Report) saw a big surge in trading activity late in the aftermarket session on Friday. While the overall trend has been sideways, TBLT stock jumped big before the weekend. After the closing bell, the penny stock jumped from around 70 cents to over 90 cents with above-average trading volume.
Last week the company announced gross sales through its U.S. & Canadian Amazon storefronts for the quarter ended September 30, 2020 were $2,070,000. In addition, gross sales for the 9 months ended September 30, 2020 through its U.S. & Canadian Amazon storefronts were $4,500,000. No matter how you feel about TBLT stock over the last few months, you can’t argue with the sales growth that it has seen.
“The last 9-months have been challenging but extremely rewarding for ToughBuilt and our partners. Not only have we increased sales, we continue to penetrate new geographical markets and support our customers with timely delivery of products. Our launch last year through our Amazon storefront has been a successful business plan that we believe is strategic in many facets, including but not limited to global market exposure for our products.”Michael Panosian, Chief Executive Officer of ToughBuilt.
With these strong results, the company’s shares soared late-Friday afternoon. If you pick apart some of the financials, you’ll see a few improvements. Revenues, net of allowances came in at $5.37 million compared to last year’s same quarter revenues of $2.53 million. What’s more, is that basic net loss per common share came in flat compared to a loss of 87 cents in the previous year’s same quarter. Heading into this week, it will be interesting to see what happens next in light of this latest financial report.
Penny Stocks On Robinhood To Buy [or sell] #3: Hexo Corp.
This week’s initial list of penny stocks on Robinhood to watch wouldn’t be complete without one of the more active marijuana stocks right now. Hexo Corp. (HEXO Stock Chart) has seen a surge in momentum along with hundreds of other marijuana penny stocks during election time. Though Hexo is a Canadian-based cannabis stock, momentum has certainly built up during the week. Whether or not is has to do with the limited number of pot stocks on Robinhood or not is obviously yet to be seen. One thing. we can say, however, is that traders are searching for ways to take advantage of the latest trend in legalization across the U.S.
Due to the fact that the majority of marijuana stocks on Robinhood are listed on the NYSE and Nasdaq, there’s limited access to MSOs or “multi-state operators”. In light of this, there are few paths to access. One route is taking a stab at the AdvisorShares Pure US Cannabis ETF (MSOS ETF Report), which is listed on a major exchange. It is a basket of marijuana stocks focused on operating in the U.S. Given the fact that most are OTC stocks, Robinhood traders can’t access these very easily.
On the other hand, Canadian companies like Aurora (ACB Stock Report), Aphria (APHA Stock Report), Tilray, Canopy Growth, and others are, in fact, accessible to traders means that the sympathy trade is more of a focus. One of the other things that have helped give this group of pot stocks a boost is what Aphria announced last week. The Canadian pot stock said that it acquired Sweetwater Brewing for $300 million. This was in an effort to establish a footprint in the U.S. As the next U.S. President becomes more clear, we’ll report on additional details.