Top 10 Penny Stocks On Robinhood To Watch For December 2019
What Are The Top 10 Penny Stocks On Robinhood For December?
When it comes to penny stocks you’ve got to know the basics of trading. This is an obvious fact but there’s something else that’s just as important to buy penny stocks; a good broker. As the popularity of web-based trading grew over the last few decades, the days of picking up a phone to place a trade have slowly disappeared. Fast-forward to today and we’ve not only seen competition increase for market share but also the rise of no-fee options.
A Quick History Of “Penny Stocks on Robinhood” on PennyStocks.com:
The company that’s made this option popular was Robinhood. Users cantrade penny stocks, options, and blue chips with a few taps on the app and incur no fees to trade. That compared to other brokers charging fees for each time a client buys and then sells a security.
But thanks to Robinhood, penny stocks on many platforms can be bought and sold without fees. Also, thanks to Robinhood’s industry-defying model, the mergers and acquisitions climate has heated up this quarter as well. Charles Schwab agreed to acquire TD Ameritrade in a multi-billion dollar deal.
But even so, when it comes to popular platforms for trading penny stocks Robinhood has continued to captivate its user-base. A “cool” mix of easy access and innovative features still keeps its users happy. No matter your flavor, the other interesting thing about the platform has to do with the data it provides. You can actually search for penny stocks on Robinhood and see how many users have the stock in their portfolio’s
Top 10 Penny Stocks On Robinhood For December
This has become a very popular segment on PennyStocks.com. Though these aren’t reasons to sell or buy penny stocks on Robinhood, this is simply a list of penny stocks on Robinhood that are in order of popularity. Last month, the most popular penny stock on Robinhood based on the number holding it was Aurora Cannabis (ACB).
Keep in mind what I said above, just because they’re popular doesn’t mean they’re good penny stocks to buy. Case in point, Aurora was most popular and starts December under $2.50 a share. Last month the pot penny stock started its Thanksgiving month above $3.50. Needless to say, some of the other penny stocks on that list ended up doing pretty well.
Plug Power (PLUG) started November under $3 and this month it will begin above $3.80 a share. Others that are still on the Top 10 Robinhood Penny Stocks list have also clocked a nice 30-day move. So, with all of this in mind, let’s take a closer look at what’s popular for December.
Robinhood Penny Stocks #10: Yamana Gold (AUY)
This could become a trend this month as we’ve seen gold prices start to creep back up again. Yamana Gold (AUY Stock Report) was one of the companies listed last week in “5 Penny Stocks To Watch As Gold Prices Attempt To Reverse.” It’s been a solid second half of the year for the gold company. Yamana hit 52-week lows in May of $1.78. This week we see AUY stock trading just shy of $3.60 in a channel it has held for a few months.
Thanks to the price of gold, companies in the mining sector like Yamana have seen strong financials. On top of this, it has also supported a reason to seek out new areas to mine. Last week the company announced that it had found new high-grade mineralization at its El Peñón property. The company stated that it has the potential to further extend the mine’s life as well. Further to this, Yamana’s exploration of its Minera Florida location has defined new veins at what it calls a “better than life of mine grade.”
With just over 35,000 users on Robinhood holding shares of AUY, there’s no shortage of people watching this penny stock. What was announced later last week is also likely music to their ears as well. “We are considering another dividend increase and believe that we can support an increase that is at least 50% higher than our current dividend and potentially 100% higher,” executive chairman Peter Marrone said, “We are in the process of creating a reserve cash balance that would help ensure that our dividend remains sustainable even if the price of gold declines.”
Robinhood Penny Stocks #9: J.C. Penney (JCP)
Holding the number 9 spot again was J.C. Penney (JCP Stock Report). Since last month’s top 10 Robinhood penny stocks list, shares of JCP stock have climbed about 13% to finish November at $1.13. The company has been hit hard over the year by increasing pressure from e-commerce competitors who’ve won several battles that brick & mortar retail stores haven’t found ways to combat yet. Mounting debt also hasn’t helped the cause for one of the oldest retailers in America.
But even so, the short term performance hasn’t gone unnoticed either. Over 40,000 people on Robinhood hold shares of JCP in their portfolios at the start of December. Upbeat sentiment for several retail names has actually helped boost confidence for companies like J.C. Penney. After reporting earnings for the last quarter, performance for this penny stock has faired well.
The retailer reported a smaller than expected loss for Q3 as well as lower cost of goods sold and improved margins. However, J.C. Penney missed the consensus mark when it came to sales and other comps like Kohl’s and Macy’s have hurt brick and mortar retail after they guided lower for the end of the year. With Black Friday and Cyber Monday ending November and started December, could this help or hurt JCP for the end of the year?
Robinhood Penny Stocks #8: Nokia (NOK)
Also holding its spot (at #8) again this month was Nokia (NOK Stock Report). It’s been a rough year for the telecom company’s stock. The battle over 5G raged on in November and saw shares of NOK stock tumble yet again. In fact, since the start of the 4th quarter, anyone holding Nokia stock since October first are down big right now. I don’t even think you can talk about performance in any positive light whatsoever. When traders thought the bleeding was over, Nokia didn’t do much besides say “Hold my beer.”
The company not only missed estimates for the quarter but also guided lower for both 2019 and 2020. They even said that its profit will likely be lower based on the competitive climate for 5G. It would be a safe assumption that if you’re trying to be a market leader, you’d have some ducks in a row before throwing a hat in the ring. For Nokia, they missed the memo.
But after all of this, the company has begun to reshuffle its leadership team. The company will split Chief Operating duties among others at the company. Additionally, the company reported on November 29 that the company submitted a proposal to resolve long-standing patent licensing fee issues with companies like Daimler who’ve complained to the EU about the fees. Will NOK stock ever recover are should investors prepare for more tough times ahead?
Robinhood Penny Stocks #7: Groupon (GRPN)
Coming in at #7, Groupon (GRPN Stock Report) hasn’t had a terrible 3rd quarter despite getting hit hard during the first 3 quarters of the year. Since the start of October, shares of GRPN stock rallied by as much as 15%. This could be another bullish case for companies like Groupon who thrive on eCommerce deal-flow. Cyber Monday kicks off the first trading day of December and could help sector stocks.
Groupon, specifically, had a topsy turvy last few weeks but held a trading channel between $2.73 and $3.03 with the former acting as a relatively accurate support level during the period. Groupon missed earnings estimates and saw downgrades by analysts. Despite this, the time of year to watch companies like Groupon has typically been during the holidays.
According to Deloitte, retail sales are expected to increase between 4.5% and 5% during the holidays. This suggests a jump from 3.1% in 2018. In addition to this, Deloitte things eCommerce sales will reach between $144-$149 billion. That figure isn’t a total for the year but a total during the holidays alone. Can Groupon capitalize on this growth?
Robinhood Penny Stocks #6: Aphria (APHA)
A new name on this list of Robinhood penny stocks, Aphria (APHA Stock Report) hasn’t had the worst quarter among pot penny stocks. But that doesn’t mean it hasn’t been rough for the cannabis company. Since the start of Q3, APHA stock tumbled by as much as 27%.
One of the reasons we didn’t see APHA on last month’s list was simply due to the fact that it wasn’t in the penny stock price range of $5 and under (based on the SEC definition of penny stocks). In fact, the marijuana stock hasn’t traded this low since last December. That was right before pot stocks rallied big at the start of 2019.
Could this be the case for APHA again? Positive sentiment around the cannabis industry was few and far between this year thanks to some very rough patches. Questionable business practices, illegal grows, supply shortages and other events helped pour gas on the dumpster fire that is marijuana stocks.
But recently, the glimmers of hope have shown after a new bill could make its way through the wings of Congress. It would essentially legalize cannabis on a national level. It’s still very early in the process but preliminary hearings have slowly pushed the MORE Act along.
Robinhood Penny Stocks #5: Nio Inc. (NIO)
One of the top penny stocks on the list from November was Nio Inc. (NIO Stock Report). Now, before we say anything remotely positive about “China’s Tesla,” know that it hasn’t been all unicorns and rainbows for the company this year. Nio was hit very hard by lower guidance, trouble in China, and severe misses on numerous earnings reports. Despite this, NIO stock had a great month of November and starts December 52% higher.
Nio has two EV models for sale right now. These include the ES6 launched in June and its ES8 model, which is a bit older. But compared to previous quarters, Nio management seems a bit more upbeat heading into the end of 2019. “Spring for electric vehicles is near” as more manufacturers are “educating the market” according to Nio’s CEO.
What’s also important to note has been Nio’s push to do more strategic deals. Apart from better external factors, the company has announced a collaboration with Intel Corporation’s (INTC Stock Report) Mobileye. This collab focuses on technology for driverless consumer cars in China. Will this finally rev the engines of those who hold NIO stock?
Robinhood Penny Stocks #4: Chesapeake Energy (CHK)
Moving up a few spots this month was Chesapeake Energy (CHK Stock Report). The energy stock was the 6th most popular penny stock on Robinhood at the start of November. It’s obviously grown in popularity over the last month but does that mean it’s one of the penny stocks to buy this month?
By the look of the chart, that might be a bit of a stretch right now. CHK stock hasn’t had a great year at all. This quarter, that trend continued in extreme fashion. The stock dropped dramatically in November. Similar to Nokia, Chesapeake had its own “hold my beer” moment. Right when investors thought the bleeding was over, the company came out and said it may not be able to outlast low fuel prices. It issued a “going concern” notice to the market.
“While we don’t expect this move to come as a surprise given balance sheet issues, the going concern warning in the most recent 10-Q highlighted a declining leverage covenant that may be [to] difficult overcome in our view,” Tudor Pickering Holt & Co. said. This is a firm that follows CHK stock and lowered its rating to sell after the latest developments. The pull-back in oil prices hasn’t helped things either. Even this was the case, there are more than 114,000 who hold this penny stock on Robinhood at the start of December.
Robinhood Penny Stocks #3: Plug Power (PLUG)
One of the better performing penny stocks of 2019 and of the last month is Plug Power (PLUG Stock Report). Shares of the hydrogen power company rallied more than 50% this quarter alone. Since the start of the year, PLUG stock has also jumped by as much as 226% on a consistent bullish trend.
Plug was in the news in a very big way after it announced its plans to increase revenues to $1 billion from around $240 million, by 2024. So it’s no surprise that Robinhood saw a jump from 128,792 users at the start of November to over 140,000 at the start of December.
At the end of November, the company announced a new deal with Compañía Logística de Hidrocarburos. They are a Spanish hydrogen and distribution company that will develop production assets and other markets in Spain. It will be for the distribution of Plug’s customers across Europe.
“Finding and accelerating adoption opportunities in the Spanish material handling market is pivotal to the greater success of adopting clean energy mobility solutions,” said Andy Marsh, CEO of Plug Power. “Like Plug Power, CLH shares a value to sustainability, safety and collaboration. Our partnership is already providing fruitful work and we look forward to finding areas of collaboration in the future.”
Robinhood Penny Stocks #2: GoPro (GPRO)
Still at the #2 spot, GoPro (GPRO Stock Report) saw users interest jump from around 228,000 in November to over 240,000 in December. But again, just because it’s popular doesn’t mean it’s a great penny stock to watch. In fact, this year GPRO stock has gotten smashed after having such a great run at the beginning of 2019. Shares jumped from around $4 to over $7.60 but as you’ll see, GPRO trades just shy of $4 again.
A narrower loss for the quarter and better than expected revenue figures helped the stock recover in the 3rd quarter. Like other retail-focused companies, analysts are citing the 4th quarter as one to watch. The company’s release of its HERO 8 camera was also a key factor heading into the close of 2019.
But in the long-run, could this just be a flash in the pan? Analysts from firms like Zack’s cite the growing concern over the utility of GoPro compared to others like Apple. Pull out your phone and you likely have a camera that you can record things on-the-go with.
“GoPro is trading at extremely low multiples leaving room for opportunity if this company can make systemic changes in its operations, but I wouldn’t get my hopes up. I wouldn’t recommend any position on GPRO,” Daniel Laboe, Zack’s.
Robinhood Penny Stocks #1: Aurora Cannabis (ACB)
Finally, at #1 for another month, Aurora Cannabis (ACB Stock Report) remains incredibly popular among Robinhood users. Like Aphria, Aurora has suffered a big blow thanks to the cannabis industry’s pullback. It’s been a rough year overall for ACB stock. After a brief run in the first quarter, the overall trend has been a strong downtrend.
Recent warnings made by the FDA regarding CBD haven’t helped either. The Administration said, “CBD has the potential to harm you, and harm can happen even before you become aware of it. CBD can cause liver injury,” and, “affect the metabolism of other drugs, causing serious side effects.”
Even this being the case, Aurora hasn’t put a pause on operations. In fact, the company just opened up a flagship store. The retail store is located in the West Edmonton Mall, which is the largest mall in North America. “Aurora is proud to call Edmonton home. It’s here where we established our roots and built our business. There’s no better place for us to open the doors to our flagship store and to welcome consumers from all over the world to join us in celebrating how far the cannabis movement has come and how quickly it continues to grow,” Aurora CEO Terry Booth stated in a press release.
Given the fact that the industry is still very young, could this pullback simply be a bad growing pain? The cyclical nature of marijuana stocks has lent itself to many trying to time the market. Over the last few years, the sector has consolidated at year-end and rallied during the first quarter. Will that be the case again in 2020?
Top 10 Penny Stocks On Robinhood For December 2019
