3 Energy Penny Stocks To Watch Right Now
In the past few months, we have seen energy penny stocks make a big comeback. This makes sense given how affected the industry was by the pandemic. Early during the pandemic, energy usage including fossil fuels and renewables shot down to very low levels. With people commuting and traveling much less, the prices of many leading energy stocks dropped down substantially as a result.
Moving further into 2021 we see vaccine distribution is rolling out. This could trigger a bit of a rebirth for things like travel as well as manufacturing. Now, we are nowhere near the pre-pandemic levels when it comes to energy consumption. But, many penny stocks have started rallying once again. This could be a sign that the market believes the pandemic could be getting more under control.
One thing to keep in mind is that it may be a more gradual recovery. People are still cautious of travel especially in light of virus numbers remaining near all-time highs. Needless to say, with numerous vaccines out right now, trading has resumed in many beaten-down energy names. Within the group of stocks under $5, there are quite a lot of penny stocks to choose from especially when we’re talking about energy companies. With this in mind, here are three energy penny stocks that are making big moves.
Energy Penny Stocks to Watch
- Southwestern Energy Company (NYSE: SWN)
- Camber Energy Inc. (NYSE: CEI)
- American Battery Metals Corp. (OTC: ABML)
Southwestern Energy Company
One of the more modest movers of the day on January 15th is Southwestern Energy Company. With a 2.6% gain by midday, shares of SWN stock approached the $4 level. Now this gain may seem small, but it is also indicative of some stability in its trading. In the past month, shares of SWN stock are up by around 20%, and since October, it’s up by over 70%. This is a perfect illustration of the gradual growth that we are seeing in the energy sector. We can also see trends in SWN’s chart that correlate with positive news released in relation to vaccine optimism.
On January 14th, Morgan Stanley analyst Mark Carlucci, announced a “hold” rating for SWN stock. In addition, the analyst stated that SWN has a price target of $4. One of the benefits of SWN is that it is quite a broad energy penny stock. The company operates as an explorer, developer, and producer of both natural gas and oil.
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Its focus is on the Northeastern U.S., including Pennsylvania and West Virginia. Based out of Texas, the company also deals in the transport and marketing of its natural gas and oil products. And with a market cap of around $2.5 billion, Southwestern Energy is by no means a small company. So if Covid can continue to get on the right path, will SWN be a penny stock to watch?
Camber Energy Inc.
One of the more volatile energy penny stocks to watch is Camber Energy Inc. on Friday, January 15th, shares of CEI stock shot up by a solid 16% during intraday trading. In the past month, shares are up by over 50% and since September, by almost 200%. One of the potential reasons behind this gain is that the company announced a day earlier that it had extinguished almost $19 million worth of debt. The announcement comes as it purchased around $19 million worth of common stock of its subsidiary, Viking Energy Group Inc., With this, Camber also received around 1900 shares of Viking, which results in the extinguishing of the $19 million in debt. Now, this may sound a little convoluted, but it is a common practice to help reduce debt on balance sheets.
The goal is to post a healthier financial statement when the end of the next quarter comes around. James Doris, CEO of both companies, states that “this transaction further strengthens the relationship between Camber and Viking, and moves us one step closer toward a full combination of the two entities. Moreover, extinguishing the $18.9 million of debt improves the equity position of both companies. This is a great start to 2021.”
Now, this is exciting news but it should also be taken with a grain of salt. With its 15% gain on Friday, we can see that CEI is highly affected by speculation. As you’ll see, CEI pulled back from its intra-day high, finishing red from the open but still up 6.5% from its previous close. Will Camber be on your list of penny stocks to watch fter the long holiday weekend?
American Battery Metals Corp.
Another decent gainer on Friday was American Battery Metals Corp. By midday, shares of ABML stock shot up by around 7.3% to $1.27 per share. In the past month, shares of ABML have shot up by a staggering 504% including today’s gain. If that isn’t enough, in the past six months, shares are up by almost 1,000%. Before we go into why let’s discuss what American Battery Metals does. The company operates as an exploration, mining, and recycling business specializing in battery-related metals. It does this through its 13,000 acres of land in Nevada as well as several other mines and recycling facilities in the state. If we look at it from a broader perspective, the huge jump could be tied to the increase in interest in electric vehicle penny stocks.
With the election of Joe Biden, America could move toward being renewable energy-dependent in the future. Because of this, many investors believe that electric power will be the future. Thus, the rising interest in companies like ABML. Additionally, a few weeks ago the company announced that it had reached a critical milestone at its lithium-ion battery recycling plant in Fernley, Nevada. In the announcement, the company stated that it had purchased 12 acres of land for use in a pilot program.
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Furthermore, it secured water rights as well as a construction and design firm. Now, the company is working toward receiving approval from the local government in order to commence operations. The goal when this facility is fully operational is to recycle roughly 20,000 tons of feedstock a year. This feedstock will then be used to produce new EV and consumer electric batteries. With all of this work going on, is ABML on your list of penny stocks to watch?
Energy Stocks In 2021
We’ve discussed the idea of epicenter stocks in the past. These are ones that took the brunt of the pandemic sell-off. But, according to Fundstrat’s Tom Lee, they could be just the stocks to benefit even greater from an economic reopening. The vaccine has become a linchpin for this. In light of a recent roll out, we’ve begun seeing positive sentiment in the energy sector specifically. What’s more, is that I think in 2021, the conversation about “energy” in general will likely include more than just oil and gas. Alternative fuels and renewable energy may also have its day in the sun. With that in mind, energy stocks could be a larger focus especially considering so many are still at or near record low levels.
