3 Robinhood Penny Stocks For Your Watchlist in September
Over the past few years, finding penny stocks on Robinhood has become a favorite pastime among investors. While there are hundreds of penny stocks on Robinhood, not all of them will be winners. We have to remember that Robinhood is just a brokerage which means that it is a place to buy and sell stocks.
However, it has become something of a cult among retail traders. There are a few reason why Robinhood is such an influential player in the stock market right now. First and foremost, Robinhood was one of the first brokerages to offer no-fee trading. This meant that trading could be done by a much larger group of people.
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Second, Robinhood is extremely accessible. This meant that even more people could use the app to buy and sell penny stocks or blue chips. As a result of all of this, Robinhood is more or less responsible for the major paradigm shift we’ve seen with the stock market in the past several years. It’s worth noting that not all penny stocks are listed on the platform.
In fact, Robinhood does not allow access to the OTC market, which is where hundreds of penny stocks exist. However, the term penny stocks itself implies any stock trading under $5 per share. So within that range, there are still hundreds to choose from. With all of this in mind, let’s take a look at three penny stocks on Robinhood to watch right now.
3 Penny Stocks on Robinhood to Watch in September
Sonim Technologies Inc. (NASDAQ: SONM)
Sonim Technologies Inc. is a tech penny stock that has begun to see slight signs of a bullish turnaround during the past few days of trading. If you’re unfamiliar, this company sells ruggedized mobile phones and tablets, along with related accessories. Its products include the Sonim XP8, XP5s, RS60, and more. These products are primarily sold to wireless carriers in the U.S. and Canada. Its accessories include waterproof headphones, portable communications kits, barcode scanners, and more.
On September 14th, the company announced a reverse stock split. This one-for-ten reverse split began trading on this basis when the market opened on September 16th. Stockholders approved the amendment for the reverse stock split at its 2020 Annual Meeting.
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SONM stock will continue being traded under this ticker although it does carry a new CUSIP number. Stock splits like these are common in the market, as they allow for better liquidity and the potential for more funding. However, they can lead to share dilution which is something that investors are wary of.
In other news, Sonim recently launched its XP3 plus flip phone. This product is now available for T-Mobile customers. The XP3 device is an ultra-rugged…