3 Penny Stocks For Your October Watchlist Right Now
With a new month here, investors are looking for the best penny stocks to buy. Although it is difficult to predict which penny stocks may be big gainers, if we look at what’s going on in the world, it can be much easier to find small caps with potential. Right now, there are a few aspects that investors should contemplate for their strategies.
First and foremost is Covid and the effects of the pandemic as case numbers decline. While cases are dropping in some areas of the world, investors have not yet felt fully comfortable with investing in a post-covid world. And as a result, we are still seeing high rates of volatility in the stock market. But, on the other hand, Covid has highlighted certain industries that are showing major gains right now.
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If you’ve invested in penny stocks or blue chips in the past few weeks, you’ve likely seen the rise of energy penny stocks. This is the result of shortages in some areas of the world, and discrepancies between demand and OPEC’s production guidance. The situation has led to higher than average oil prices, and gas lines in countries like the U.K.
And while we don’t know how long this will go on, we do know that in the short term, energy penny stocks could be worth watching. Aside from this, it may be time to start looking at some reopening penny stocks as case numbers begin to decline. So, considering all of this, let’s take a look at three penny stocks to watch in the first week of October.
3 Penny Stocks You Need to Know About in October
- Meten Holding Group Ltd. (NASDAQ: METX)
- Gran Tierra Energy Inc. (NYSE: GTE)
- Iamgold Corp. (NYSE: IAG)
Meten Holding Group Ltd. (NASDAQ: METX)
Meten Holding Group Ltd., previously known as Meten EdtechX Education Group Ltd., is an education company based in China. This company offers adult and junior English language training services in China. These services are offered under the ABC, Likeshuo, and Meten brand names. As of December 31st, 2020, the company had 105 self-operated learning centers and 13 franchised learning centers.
On September 7th, the company closed a $60 million underwritten public offering of ordinary shares. It also closed pre-funded warrants to purchase ordinary shares. The offering included 22,500,000 of its ordinary shares at $0.30 per share and 177,500,000 pre-funded warrants.
The pre-funded warrants were offered at $0.2999 per share, with a $0.0001 per share exercise price each. Meten plans on using the net proceeds from the offering for general corporate and working capital needs, as well as capital expenditures. Aegis Capital Corp. was the sole book-running manager for the offering.
Offerings like these are used to bring in new capital, and after months of struggling with economic sanctions on for-profit tutoring, this could be a good move for Meten Holding. With higher than average volume right now, it’s clear that METX is at top of mind for many investors. Considering this, will METX stock be on your October watchlist?
Gran Tierra Energy Inc. (NYSE: GTE)
Gran Tierra Energy is one of the more consistent gainers of the past few months. In the last five days and one month, shares of GTE stock have shot up by around 23% and 36% respectively. This brings its YTD and one-year gains to over 100% and 200%, which is no small feat.
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This major gain is a reflection of both the energy industry at large and Gran Tierra’s business model. In its second-quarter report posted at the beginning of August, GTE reported 14% growth YoY in its average total production. In addition, the company stated that it forecasts free cash flow of $120 million on the high end for the second half of 2021.
“Despite the challenges with blockades during the Quarter, we are very pleased that we have now safely and diligently ramped operations back up throughout our Colombia portfolio…With production restored, we expect Gran Tierra to generate second half 2021 free cash flow of $100-120 million.”
The President and CEO of Gran Tierra, Gary Guidry
This is all great news for the company and shows that both it and the oil industry are growing right now. And, following the major bullish sentiment we’ve witnessed so far this past week, it makes sense that shares of GTE have continued to rise. Whether this is enough to make GTE stock worth watching or not is up to you.
Iamgold Corp. (NYSE: IAG)
Iamgold Corp. is another penny stock that has been making big waves in the stock market recently. After a 4% gain on September 28th, some investors are showing a heightened interest in gold stocks. Right now, there is a lot of movement in the stock market.
This volatility is causing both panic and a move toward potentially more stable stocks such as those in the resource industry. Beyond this, Iamgold did make an announcement recently that could be part of its recent gains. On Monday, September 28th, the company stated that it is committed to achieving net negative greenhouse gas emissions by no later than 2050.
“In our view, reversing the effects of climate change does not mean stabilizing emissions; it demands that we reduce the total volume of greenhouse gases going into the atmosphere and the world’s oceans year over year. We know that we are losing habitat at an unsustainable pace. We believe that the mining industry must do its part to be a driver of habitat creation.”
The CEO of Iamgold, Gordon Stothart
While this goal is far out in scope, it is interesting to consider nonetheless. With that in mind, do you think that IAG stock is worth adding to your list of penny stocks or not?
Which Penny Stocks Are on Your October Watchlist?
Finding the best penny stocks to buy in October can seem challenging. However, with the right research on hand, and a commitment to a trading strategy, it can be much easier than previously imagined.
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Right now, there is a lot of movement in the stock market to keep track of. But, if you stay up to date with all the latest news, making money with penny stocks in 2021 can be much easier than previously anticipated. Considering this, which penny stocks are on your October watchlist?
