Are you one of the many looking for penny stocks to buy this week? If so, you’re not alone and you certainly have your work cut out for you. Starting things off for this short holiday week is a rally in the stock market today. Broader sector trends are heating up as traders are buying the dip ahead of what could be another busy round of economic data and Fed speak this week.
Key events to keep in mind for the second half of June include plenty of FOMC members speaking Tuesday, Wednesday, and Friday with Fed Chair Jerome Powell testifying to Congress on Wednesday & Thursday. Expectations are the Fed Chair will echo the previously discussed hawkish tone. More jobs data and consumer sentiment round things out as investors weigh inflation against speculation of a recessionary period coming.
What this means for retail traders is to expect more volatility. Whether we’re talking about another bear market rally or a larger stock market crash, penny stocks have become the rising star of the day trading & swing trading arena. The main reason for this is that they tend to move irrespective of what the overall market is doing. Today we look at a handful of names trading higher after releasing big news this week.
Penny Stocks To Watch
- Mullen Automotive Inc. (NASDAQ: MULN)
- CEA Industries Inc. (NASDAQ: CEAD)
- AgEagle Aerial Systems Inc. (NYSEAMERICAN: UAVS)
Mullen Automotive Inc. (NASDAQ: MULN)
EV stocks are getting a nice recharge to start the week. Whether you’re looking at automakers like Tesla (NASDAQ: TSLA) or ancillary service providers like Blink Charging (NASDAQ: BLNK), the bulls are taking control early on Tuesday.
This has led to day traders seeking out cheaper stocks within the niche. Mullen Automotive has become a favored name when it comes to EV penny stocks. The company has continued reaching new milestones in 2022 including a market milestone being added to the Russell 2000 and 3000 indexes earlier this month.
Other than industry-fueled speculation and bullish sentiment, MULN stock is on the list of penny stocks to watch after another update this week. Mullen announced the extension of its senior secured. convertible note of $28 million. The note was originally set to mature next month. However, this latest extension places that 2 years out.
“This note extension with Esousa is important for us, as it preserves our cash flow at a time when the economy appears to be hitting some headwinds, and it provides the Company with a strengthened cash position, allowing us to execute on our EV plans,” said David Michery, CEO and chairman of Mullen Automotive.
In many cases, debt can quickly become a dilutive event and trigger bearish price action. Since this maturity date was extended, traders have taken this as a bullish sign for MULN stock.
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CEA Industries Inc. (NASDAQ: CEAD)
Food and food ingredient stocks have been red hot this year. In the wake of high inflation, sanctions, and supply chain constraints, food prices are rapidly rising. This has put a bright spotlight on companies with exposure to the arena. CEA Industries specializes in controlled environment agriculture and a portfolio of value-adding companies.
This week CEAD stock exploded thanks to news from one of its subsidiaries. Surna Cultivation Technologies entered into a letter of intent to provide products and engineering services to Greene Brothers Farm over 5 phases. According to the company, the contract revenue could come to roughly $10 million over 2-3 years, and an initial contract value of $1.2 million for the first phase. This initial phase is expected to be completed by early Q4.
Interestingly enough, this cultivation deal doesn’t have to do with global food supply but cannabis cultivation. The project creates a new indoor cannabis park for Greene Brothers.
“We are proud to have been chosen by Greene Brothers Farm for this multi-million-dollar, multi-phase development project…We expect this to be a winning relationship for both of us and we will strive to make this Greene Brothers Farm Cannabis Park an exemplary representation of these types of projects for others in this industry,” said Tony McDonald, Chairman, and CEO of CEA Industries Inc.
What has also come to light is CEAD stock’s float. Based on several outlets, this figure sits well below 15 million and could be a reason why retail traders are focused on the company. In general, lower float stocks can experience higher volatilityare and something day traders search for.
AgEagle Aerial Systems Inc. (NYSEAMERICAN: UAVS)
Drone company, AgEagle Aerial Systems is flying high on Tuesday after its latest update. The company announced that its eBee X was issued a Design Verification Report by the European Union Aviation Safety Agency. eBee X met Ground Risk Class M2 mitigation qualifications and is the industry is first drone to obtain this report on M2 mitigation.
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According to AgEagle, this “paves the way for European drone operators to seek approvals from their applicable National Aviation Authorities to use the eBee X to fly Beyond Vision Line of Sight missions.”
“This issuance of the DVR from EASA marks yet another major accomplishment, further distinguishing our eBee line of UAVs; and is a direct reflection of our team’s unwavering commitment to innovation, quality, and high performance,” explained Barrett Mooney, AgEagle Chairman, and CEO.
Penny Stocks to Buy Now
Low-priced stocks are very attractive to day traders and investors alike. The sporadic price action lends itself to quick profit opportunities. Meanwhile, the general consensus that most companies are “emerging growth” stage business offers speculation for longer-term potential. Whether you’re looking for penny stocks to buy right now or stocks to invest in for the long term, news can be a great asset.
