3 Penny Stocks On Robinhood Hitting New September Highs (2024)

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These Penny Stocks On Robinhood Are Catching Special Attentions Due To Big Gains This Month

It’s true that you can make a lot of money with penny stocks. But if you don’t know the basics, it doesn’t always work that way. There are certain penny stocks which are subject to pump and dump schemes from unscrupulous characters.

Though that isn’t the norm there are still other penny stocks that simply have failing business models. I’m not trying to be “doom and gloom,” but we’re talking about investing. There are risks involved and with penny stocks, there are other factors to understand before you decide to buy them.

Furthermore, you need to know the good and bad about different ways to buy penny stocks. You can use an old system of having a physical broker, picking up the phone, and calling your orders in. The risk here is that by the time this process is complete, the price of the penny stock you want to buy could be much higher. On the flip side, online brokers may not allow access to certain penny stocks.

On Robinhood, penny stocks that trade on the NYSE and NASDAQ are the only ones you can purchase. If they are OTC penny stocks, Robinhood will not offer access. Don’t fear though, ETrade, TDAmeritrade, Fidelity, and a few of the other top online penny stock brokers do.

Therefore, in such a situation it is necessary for the investor to be diligent with research. That’s not only from a company perspective but from a brokerage perspective as well. The Robinhood trading app is a great tool especially if you want to save money on trading fees. But the obvious downside is less access. Either way, you can buy some of the best penny stocks on Robinhood if you know where to look On that note, here is a look at three penny stocks on Robinhood (and other apps) that have continued higher in September.

Penny Stocks On Robinhood #3: electroCore (ECOR)

As far as penny stocks are concerned, electroCore, Inc. (ECOR Stock Report) has been one of the biggest gainers over the past month. Since September 3, it has gained as much as 282% after hitting post-market highs of $5 on September 18. The reason behind this massive rally may have something to do with its second-quarter financial results. The bioelectronics company performed admirably in the quarter and generated a 52% sequential growth in sales.

Net sales for the quarter came in at $623,000. In addition to that, the company also provided an important business update with regards to its shipments related to the Federal Supply Schedule contract. Naturally, there was a lot of optimism among investors after that and the stock has rallied considerably since then. BUT KEEP THIS IN MIND, electroCore has also filed and effectuated an S-3 which registers additional securities to raise money for the company.

In that S-3, the company stated that it plans to raise “up to” $50,000,000 and with an “indeterminate number of shares of common stock and preferred stock of the registrant.” With situations like this and such a static move upward, it’s important to know that companies with plans to raise capital may do so at a discount to market. The discount may or may not be a steep one depending on the company’s need for cash. It also doesn’t force the company to raise the money but essentially registers the necessary shares to do so in the event they’d want to act. Either way, keep this in mind when looking at ECOR stock.

Penny Stocks On Robinhood #2: Avadel Pharmaceuticals (AVDL)

The second Robinhood penny stock to watch is Avadel Pharmaceuticals PLC (AVDL Stock Report). This is one of the penny stocks that has been gaining impressively since last week. Since then, AVDL stock has gained 55% and on Wednesday this week, the stock recorded gains of 17%. That trend has continued into the second half with new highs on Thursday.

This week the company announced that later on this month, Avadel is going to make a presentation on the Investigational Once-Nightly Sodium Oxybate. This will be doneat the World Sleep Congress event. It is a significant development for the company and could lead to a lot of buzz for its medicine after the presentation.

Penny Stocks On Robinhood #1 ReneSola (SOL)

The last on this list of penny stocks is ReneSola Ltd. (SOL Stock Report). It has been one of the bigger gainers among penny stocks this month with a move of over 70%. On Wednesday, the company got another massive boost and an even bigger jolt Thursday. ReneSola announced this week that Shah Capital Opportunity Fund LP has shown willingness to buy freshly issued shares.

Shah Capital is the biggest shareholder in the company and the latest share issue could potentially raise as much as $11 million for the company. ReneSola is engaged in developing solar projects.

[Penny Stock Basics] How To Buy Penny Stocks On Robinhood