A New Surge Of Interest In EV’s Could Put These Penny Stocks On Watch
Penny stocks are well-known for their volatility, that’s a given. However, something else they’re well-known for is speculative trading. For stocks under $5, these are typically companies that people invest in based on their future potential. They usually don’t invest based on current business performance.
Similar to buying into a start-up, penny stocks offer investors an opportunity to buy shares of early-stage companies. The hope is that these same companies end up hitting it big. No industries have demonstrated the epitome of “ground floor opportunities” than tech and biotech. These niches of the stock market are all about “the cutting edge” – making something out of nothing.
A recent surge of interest has grown around the electric vehicle (EV) industry. A mix of tech and autos, these companies are aiming to benefit from a thirst for alternative energy transportation. When you have names like Tesla reaching record highs in the stock market, it’s hard not to notice. It’s also easy to understand what the commotion is all about. In light of this, adding more fuel to the fire has been darling reverse merger stocks like Nikola and soon, Hyliion Inc. They’ve made headlines as the next companies to test the mighty Tesla.
You may know about Nikola, which went public through a reverse merger with blank check company VectoIQ Acquisition Corp. But the next company causing a stir is Tortoise Acquisition Corp. for its proposed merger with Hyliion Inc., a leader in electrified powertrain solutions for Class 8 commercial vehicles. However, given the fact that these stocks trade much higher than $5, are there opportunities to buy penny stocks with some exposure to the EV boom?
EV Penny Stocks To Watch: Ideanomics Inc.
Shares of Ideanomics Inc. (IDEX Stock Report) have been trending this month. Since the start of June, IDEX stock has jumped from under $0.40 to highs of $3.98. While this skyrocketing move is notable, the recent breakdown has been a reason for concern among some investors. In fact, a statement made last week has shed some light on the dark side of trading, which benefits from the drop in the price of shares.
In its statement, Ideanomics said, “The Company refutes entirely the claims that it has less than three months operating cash. On the contrary, the Company has sufficient cash to maintain its current operations for at least 12 months…Our sales center in Qingdao, along with our partners (including the City of Qingdao, a 10% owner of our subsidiary in Qingdao), has a free rental agreement backed by the local government for up to 15 years and for up to 100k square meters.”
Whether or not this will have a positive impact on Monday is to be seen. However, Ideanomics has announced several key developments that have put the company in the EV spotlight. First, the company reported that its subsidiary Mobile Energy sold 2,139 vehicles for a total value of $33 Million. This was quickly followed up with the news that its subsidiary selected several manufacturers to fulfill its EV taxi sales orders. This included BYD, Dong Feng Nissan, Chery, Kia, Geely, and Tesla.
What Happened With Ideanomics So Far?
After announcing a 300 unit order from Didi City CPon worth some $4.2 million, the company had even more good news on a 400 unit EV order from Jiudao Group. This second order was valued at $5.1 million. Then, last week, Ideanomics said it’s preparing for the phase 2 opening of the MEG Center in Qingdao in China’s Shandong. This will see another 20,000 square meters come online to accommodate participating partners.
The phase 1 launch last month opened 20,000 square meters of space used by the company’s new and used sales business unit and the fleet sales, division. The second phase, which is set to commence in the summer of this year, will involve the construction of the MEG welcome center and executive offices, Ideanomics said. How will investors digest this latest development? With July starting this week, I’m sure we’ll find out. The big question right now is can IDEX stock recover or will short-sellers win this war?
EV Penny Stocks To Watch: Blink Charging Co.
Not all EV stocks need to be car manufactures or resellers. Some can fall into what’s known as the “picks and shovels” of the industry. This phrase comes from the times of the California gold rush days.
Where most who panned for gold never got rich from it, they needed pans, picks, and shovels to try their hand at striking gold. Obviously, the ones selling these picks and shovels prospered whether their customers stuck gold or not. Similarly, when you look at growing industries, it doesn’t hurt to find companies focused on “picks and shovels”.
Blink Charging Co. (BLNK Stock Report) focuses on electric vehicle charging equipment. According to the company, it has deployed over 23,000 charging stations, many of which are networked EV charging stations. This allows EV drivers to easily charge at any of its charging locations worldwide. The Company’s principal line of products and services is its Blink EV charging network, EV charging equipment, and EV charging services.
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Since the end of May, shares of BLNK stock have steadily climbed. This has seen a jump from $1.66 on May 29th to highs of $3.05 last Friday. This move hasn’t come without its own set of catalysts.
What Happened With Blink Charging So Far?
At the start of June, we talked about Blink and how it could be a penny stock to watch after the SpaceX launch. While SpaceX has nothing to do with electric vehicles, its founder, Elon Musk does. The event may have brought attention more on innovation of such companies than anything at all.
Needless to say, BLNK stock proved to be a top name to watch this month. On June 11th, the company announced a joint venture with Envoy Technologies Inc., a provider of shared on-demand, community-based EVs. The deal is designed to bring electric vehicles and charging to urban residents through the deployment of Blink charging stations across Envoy property locations.
BLNK stock also saw a surge after Apple added EV charge routing to its new Apple Maps. Blink said that it will include routing to Blink charging stations. Other than that, we’re still seeing that insiders are buying shares of the company. In a FORM 4 on June 26, Director Jack Levine acquired more shares of the company around $2.72 from purchases made on the 25th.
EV Penny Stocks To Watch: ElectraMeccanica Vehicles Corp.
ElectraMeccanica Vehicles Corp. (SOLO Stock Report) is somewhat of a newcomer to a list of high volume penny stocks. Up until late-May/early June of this year, SOLO stock was barely trading.
The Company builds the all-electric SOLO, a single passenger vehicle and recent attention has focused on the company’s proposed expansion. The first time we looked at SOLO stock, shares were hovering around $1.36 and speculative buzz started building around the company.
It was so “off the wall” that ElectraMeccanica actually came out with an announcement refuting certain statements. Needless to say, SOLO stock gained attention among retail traders. Earlier this year, ElectraMeccanica engaged BDO USA’s Site Selection & Business Incentives Practice to lead the search for an assembly facility location.
What Happened With ElectraMeccanica So Far?
Fast forward a few weeks and the company announced the accelerated expansion of its retail footprint for its flagship SOLO EV with new locations planned for Arizona and Oregon. ElectraMeccanica also currently maintains a SOLO EV storefront at Westfield Century City in Los Angeles with a second location under contract at Westfield Fashion Square, a premier shopping center in Sherman Oaks, CA.
Aside from the business operations side of things, ElectraMeccanic has also worked on its capitalization. While the initial announcement triggered a sell-off in SOLO stock earlier this month, the company recently closed $20 million in financing. It plans to use this money for sales and marketing expenditures, capital expenditures, and further product development among other items.
At the end of the day, it would appear SOLO stock, though down from June highs, has maintained a stock price above $1.60 for the last two weeks. Will July see SOLO stock continue higher?
EV Penny Stocks To Watch: Kandi Technologies Group
Similar to Blink Charging, Kandi Technologies Group (KNDI Stock Report) is in the “picks and shovels” business. The penny stock had a rough first quarter of the year as did many stocks. However, KNDI stock was in a funk ever since last summer. Shares dropped from highs of $5.79 to a low of $2.17 in March. However, since then, Kandi Technologies appears to have made strides to right the ship.
The company develops, manufactures, and sells various vehicular products. Furthermore, according to the company, in 2013, Kandi Vehicles and Geely Group, a Chinese automaker, jointly invested in the establishment of Fengsheng Automotive Technology Group Co., Ltd. in order to develop, manufacture and sell pure EV products.
What Happened With Kandi So Far?
One of the biggest catalysts of the year for KNDI stock came in April. Kandi announced that Fengsheng introduced its first pure electric SUV, the Maple 30x. The company said it would be available for immediate pre-order. After reporting Q1 2020 results earlier this month, KNDI stock continued to rise. Results included an EPS jump from a loss of $0.09 per share during Q1 2019 to a loss of $0.03 in Q1 2020.
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What’s more is that an 8K filing from June 5, shows that Kandi might be spreading its wings a bit to garner new business opportunities. Hu Xiaoming, Chairman, and CEO of Kandi commented, “Recently, we have been in discussions with Mr. Ying Jiawei, CEO of Hangzhou Chic Intelligent Technology Co., Ltd, a leading high tech company that is well-recognized as a major exporter in intelligent balance scooter sector. We have agreed to have Kandi to start using its power trains system to produce balance scooters for Hangzhou Chic.”