Are These Robinhood Penny Stocks Worth The Risk To Buy?
In this article, I’m going to go over a few penny stocks. Why highlight penny stocks on Robinhood in particular? This is a question we get semi-frequently so I wanted to give some color to the topic. Robinhood has a lot going on in the eyes of traders. Many good, many bad but at the end of the day, the focus is on trading penny stocks. While Robinhood may have helped usher in the age of “fee-free” trading, other brokers have since echoed a similar approach.
One of the main differences, and why I highlighted “Robinhood penny stocks”, is based on which stocks can actually be traded. Platforms such as Think Or Swim, ETrade Pro platform, or even Interactive Brokers have access to all penny stocks. Robinhood, however, limits the types of stocks that can be traded. For the most part and with some exceptions, only listed penny stocks can be purchased on the app. This means, again for the most part, that only Nasdaq & NYSE stocks are accessible. When it comes to OTC penny stocks, for instance, there are only a handful of names allowed to users.
Now, are all penny stocks on the OTC banned from apps like this? No, and actually, if you pull up a few of the dually listed names like Rolls Royce (RYCEF Stock Report), you’ll see that some are tradeable. This is why I say that “for the most part” only listed stocks are allowed.
Robinhood Penny Stocks To Buy #3: Rolls Royce Holdings
I discussed it briefly above. Rolls Royce Holdings is one of the few OTC penny stocks that can actually be bought using Robinhood. Whether or not that’s the case for you, personally, is something that you’ll have to decide. Needless to say, it has become one of the penny stocks to watch before 2021. A big reason for that is based on the company’s outlook for its engineering business.
Against popular opinion, Rolls-Royce isn’t the “car company” many think it is. It’s actually one of the larger aerospace engineering firms in the world. We’ve discussed the company in the past and one of the risk factors right now is the company’s hurdles due to COVID. The pandemic obviously all but shut down travel. A company that manufactures jet engines, for example likely has a hard time advancing business in such an environment.
Some of the excitement stemmed from news that the company would be making a return to its narrow-body jet business. “We want to be in a position that when someone launches a new product we’re credible, whatever that market may be. We don’t rule ourselves out of any part of the market today because evolution in the 2020s could be really quite exciting,” engineering and technology chief Simon Burr said in an interview.
Furthermore, some recent news highlighted companies like Airbus and Boeing and their narrow-body jets. This has traders looking at manufacturers like Rolls and GE (GE Stock Report) right now.
Robinhood Penny Stocks To Buy #2: IZEA Worldwide Inc.
If you’ve been a reader long enough, you might recall when we first discussed IZEA Worldwide Inc. (IZEA Stock Report) this year. Since early May, IZEA stock has been on our watch list. We’ve seen shares jump from around $0.30 to as high as $3.13. There was a pullback into the early 4th quarter and now IZEA stock is back on the move in December. I think some of the reasons for the pullback aside from profit-taking was the uncertainty of its business model. IZEA provides influencer marketing and data. With a mixed year due to COVID, traders have continued raising questions on how the marketing industry could evolve.
Fast-forward to the latest quarterly update and IZEA has shown its strength. In fact, in the company was able to beat EPS. What’s more, during the last few weeks, IZEA has also managed to secure significant business and more than doubling its Managed Services customers between Q3 and Q4. The company also nabbd a “mid-six-figure” contract deal with one of its existing Fortune 500 clients.
“I cannot remember a time in our 14-year history when the cadence of customer contracts has been this strong,” said Ted Murphy , IZEA’s Chairman and CEO. “Not only have we seen our new customer counts for Managed Services more than double from Q3 to Q4, we have also seen our loyal customer base return with strength. Many of them are not only increasing their commitments for the 2020 holiday season, but also kickstarting their 2021 influencer marketing initiatives.”
With somewhat of a renewed spirit, it’s going to be interesting to see how IZEA fairs heading into the new year. Can it continue along this path of strong growth in 2021?
Robinhood Penny Stocks To Buy #1: Color Star Technology Co
Color Star (CSCW Stock Report) is another one of the penny stocks you might’ve come across over the last few months. When we had first begun discussing it, the company was trading under the symbol “HHT”. It first hit the watch list thanks to excitement stemming from the stay at home orders. What could be so exciting? In this case, Color Star was focusing on eLearning and with the stay at home orders and school closures becoming a factor, industry stocks like CSCW were on the move.
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While the penny stock has been relatively flat in recent months, December appears to have sparked some renewed interest from traders. Earlier this month, the company announced the launch of an international version of its Color World App for December 31st.
“Color World International will become another pillar for our entertainment infrastructure and facilitate online and offline integration. In 2021, we will promote our Color World App to more countries and regions and host a variety of offline performances. We expect to use the App to provide more vibrant and diversified contents to our ever-growing number of users,” said Luke Lu, Chairman and Chief Executive Officer of Color Star.
Since COVID is still much a part of everyday life, eLearning stocks remain a focus. Additionally, I think that the entertainment side of Color Star could also become a point of focus even as coronavirus vaccines roll-out.