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Quick Summary: Robinhood has a phenomenal selection of stocks available to trade on its platform. However, there are some notable stocks not supported on the app. These include many OTC stocks as well as international stocks that do not have US-listed exchange equivalents.
Introduction: OTC and International Exchange Stocks Lacking
While Robinhood has a wide range of stocks, ETFs and closed-end funds available across all the major US stock exchanges, there are some notable stocks not supported on Robinhood.
The vast majority of these stocks not available on the platform fall within two categories: OTC (over-the-counter) stocks and stocks on international exchanges that do not have ADR or OTC equivalents.
While OTC penny stocks are very popular with day traders who prize them for their volatility, there are also a wide variety of OTC stocks that are non-penny stocks which have real earnings and could potentially be suitable for long-term investing. While Robinhood carries many popular OTC international shares such as Nestle and Nintendo, there are quite a few US-based and international OTC shares that it does not carry.
Additionally, there are some international stocks that trade on exchanges such as the London Stock Exchange that do not make their shares available OTC and do not have a US equivalent ADR available on Robinhood. In these cases, the only option is to buy these stocks directly on an international exchange, a feature Robinhood does not yet support.
Below we profile some notable stocks not supported on Robinhood to give you an idea of the types of companies that live beyond the reach of Robinhood and how to invest in these stocks if you are interested in them.
List of Notable Stocks Not Supported on Robinhood
- Pershing Square Holdings (PSHZF) – Not to be confused with Pershing Square Tontine Holdings, a SPAC company that is available on Robinhood, Pershing Square Holdings is a British Investment Trust that gives investors direct exposure to the portfolio and performance of Pershing Square Capital, the hedge fund run by Bill Ackman. The investment trust holds companies that the hedge fund invests in which recently has included Hilton Worldwide, Domino’s Pizza and Chipotle Mexican Grill. Recently, Ackman made a large investment in Netflix after the shares sunk following a disappointing earnings result. Investors should be aware that the success of this investment relies heavily on the skill of Ackman who has had both major wins and notable losses. PSHZF was a sluggish performer until the 2020 market crash when it began a strong rally, rising from about $13.70 per share to more than $40 per share by late 2021. The stock currently trades at $37.31 at the time of writing and is scheduled to pay a quarterly dividend in 2022.
- Third Point Investors (TPNTF) – A similar vehicle to Pershing Square Holdings, Third Point Offshore Investors Limited is a closed-end fund that trades on the London Stock Exchange but also has an OTC version under the ticker TPNTF. The success of this investment ultimately relies on another well known professional investor, Daniel Loeb, who employs an event-driven and activist approach to global investing, including going long and short stocks and also investing in credit. Some of the current top holdings include Amazon, Danaher and Prudential. TPNTF has also benefited from its position in Activision Blizzard, which is subject to a takeover bid from Microsoft. After hitting a low of $10.85 during the depths of the pandemic the stock tripled since then and now trades for about $26 per share at the time of writing.
- Lindt & Sprungli Chocolate (LDSVF) – Proof that not all OTC shares are penny stocks, LDSVF trades for $10,745.51, one of the more expensive share prices we have ever seen. The famous Swiss chocolatier has shares that trade in its home market of Switzerland and like many international companies also have OTC shares available for US investors. Robinhood is typically quite good about carrying name brand international OTC shares such as Lindt, but in this case they are not currently available on the app. According to Yahoo Finance, the stock has some attractive attributes, including a P/E ratio under 10 and a consistent dividend yield of more than 1%, which when accounting for the price of the shares, represents significant income.
- Luckin’ Coffee (LKNCY) – Luckin’ Coffee is an example of a stock that used to be available on Robinhood, but has dropped off since it was delisted from a major exchange. The troubled coffee maker once known as the “Starbucks of China” was found to be engaged in fraudulent accounting practices, which tanked the stock (originally under the ticker symbol LK) and many assumed it was the last we would hear of the company. However, the stock seems to have found a new lease of life on the OTC markets and according to a recent report in the Financial Times, new management is angling to bring the company back to a US listing in the near future. After plumbing into penny stock territory for most of 2020 and 2021, the shares now trade for more than $12 at the time of writing as some speculative traders bet on the potential for a second life for the company.
- Charlotte’s Web Holdings (CWBHF) – There are numerous OTC stocks involved in CBD and cannabis that are not available on Robinhood. One of the best known in the space is Charlotte’s Web, as it has a strong consumer brand and is available in many major retailers. Despite seeming to have a strong product, the stock has mostly struggled in recent years, reflecting a broader bear market for CBD-related stocks. Despite trading for more than $20 in 2019, CWBHF is now firmly in penny stock territory, trading at just $1.36 at the time of writing. The shares have lost nearly 90% in the past five years and represent a good warning about the perils of investing in even well-known consumer brands that trade OTC.
- The Monarch Cement Company (MCEM) – On the other end of the spectrum from Charlotte’s Web is The Monarch Cement Company, an OTC stock that represents a non-trendy business and has attributes that make many value investors swoon. A cash-flow positive business with a single digit PE ratio and a solid, consistent dividend yield of about 2% shows that even amid the mostly speculative world of OTC stocks, there are some potential gems out there. For example, Monarch seems to be an inflation beneficiary and has returned 47% over the past 12 months and 145% over the past five years. It currently trades for $112 per share at the time of writing. Monarch Cement is part of a group of stocks often referred to as “oddball stocks,” which are typically heavily owned by insiders, often are family run business and have low liquidity, sometimes not trading for days or weeks at a time. While the low liquidity can be a concern, investors committed to a long-term buy and hold strategy can find potential opportunities in this space. Some other examples of these types of companies include George Risk Industries (RSKIA) and Alaska Power & Telephone (APTL). These are real business, with real profits and very limited coverage on Wall Street, which can be a good hunting ground for enterprising value investors. Unfortunately, none of these oddball OTC stocks are currently available to Robinhood investors.
- Man Group (EMG.L) – Man Group is an example of a notable overseas stock that is not available to US investors through OTC equivalent shares and therefore not available on Robinhood. Trading on the London Stock Exchange, the firm is one of the largest hedge fund companies in the world and is known for its quantitative, absolute return strategies. The stock pays a hefty 4% dividend and has performed reasonably well as of late, returning more than 30% to investors over the past 12 months.
- Hon Hai Precision Industry (HNHPF) – We covered this well-known Taiwan stock, also known as Foxconn, and why it is not available on Robinhood, in this article.
Where to Buy Stocks You Can’t Find on Robinhood
If your curiosity has been piqued by any of the above stocks and you want to research where you can buy them, most major traditional brokers give their clients the ability to buy OTC shares, international stocks directly on their exchanges or both.
If you are interested in adding these capabilities to your investing or trading then check out the following brokers and see if the stocks above are supported on their platforms.
- Interactive Brokers
- TD Ameritrade
While Robinhood has the vast majority of stocks available on its platform, it doesn’t have them all. Many are not worth owning, but some could be. Do your own research to understand the unique risks of stocks such the ones listed above before investing.
For a list of OTC stocks that Robinhood does support, check out our article: Robinhood OTC: What Stocks Are Available?