Can These Penny Stocks Continue to Bring In The Bulls?
Penny stocks present several interesting opportunities for investors. First, these cheap stocks can be quite volatile. Volatility can become a major factor in realizing short term gains. This means that there is a lot of potential for large daily swings in prices. Investors should always remember that the potential for big losses also comes with investing in penny stocks.
Second, penny stocks present new and potentially unknown investment opportunities. We are, in fact, talking about emerging growth companies in many cases. If investors do the research, they can find companies that may have not been discovered by the general public. Many penny stocks are listed on OTC market, that’s a given. However, there are quite a lot of NASDAQ and NYSE listed penny stocks.
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Due to the rules of the exchanges, these companies are required to offer investors a wide breadth of information. This includes financials, disclosure statements, and shareholder meetings. While penny stocks may not be for everyone, those able to handle a little risk might find them interesting. With this in mind, are any of these on your list of penny stocks to watch before October?
Penny Stock to Watch: Ambev SA
Ambev SA (ABEV Stock Report) is one of the beverage penny stocks to watch this quarter. Founded in Brazil in 1999, Ambev has been working to capitalize on the worldwide beverage market. After merging with Anheuser-Busch InBev (BUD Stock Report), the company quickly received a large amount of critical appeal from investors. As the largest publicly traded company in Brazil, Ambev has worked tirelessly to expand its market into as many as 14 countries. As of the third week of September, Ambev has a market cap of roughly $40 billion.
While it does produce a wide range of beverages, Ambev primarily is a producer of beer. The company’s latest quarter was highly impacted by COVID. With this, it posted a 50% drop in profit but only a 4% drop in revenue. Hopefully, we have seen the worst of the effects of COVID on the market. But I don’t know if that means it’s time to find some penny stocks to invest in just yet.
In light of this, companies like Ambev are looking to the second half of the year. A lot of this depends on what happens with the beverage industry in the next few months. But, as one of the largest beverage companies in the world, Ambev continues to be an interesting penny stock to watch. Even with this as the case, investors remain cautious about the Brazilian market in general. Fundamentally speaking, this has become increasingly evident in Ambev’s operating results.
Earlier this quarter the company reported Q2 results, which met Street expectations. On its earnings call, CEO Jean Jereissati, said, “We still have a long and bumpy road ahead of us, but we believe we are on the right track.”
Penny Stock to Watch: Akers Biosciences Inc.
Akers Biosciences Inc. (AKER Stock Report) is a biotech company working out of both the U.S. and China. The company reportedly develops several products including rapid screening and testing devices. Its product line includes breathalyzers, cholesterol tests, protein scanning devices, and more. More recently, the company has been involved in the race to find a viable COVID vaccine.
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Akers has been working with several partners to produce coronavirus antigens that could help build immunity in the body. The company reported that it will “now move ahead with purification and post-expression processing that will lead to a scaling up of the antigen.”
Shares dropped in late August after the company reported its proof of concept results for its COVID-19 candidate. Traders were unimpressed despite the company reporting positive results. Prabuddha Kundu, Co-Founder and Managing Director at Premas Biotech, said, “We are happy to report that the vaccine candidate study in mice has gone on well, and the results are positive and encouraging. We have engaged with the regulatory authorities in India and are working towards the next steps under their guidance.”
Penny Stock to Watch: Sunworks Inc.
Sunworks Inc. (SUNW Stock Report) is an energy penny stock that has returned over 100% to investors in the past 4 months. Through its subsidiaries, Sunworks produces photovoltaic power systems that are used in everything from agriculture to commercial uses. Its current markets include California, Nevada, Oregon, New Jersey, Washington, and more.
Since the company operates in both residential and industrial, many believe that it is a very diversified penny stock to watch. In addition, Sunworks is considered to be a vertical company. The company is involved in everything including design, permitting, construction and more. Based in California, Sunworks has been able to secure a large place for itself in the U.S. solar market.
With the world turning toward alternative energy at a higher rate than ever before, it looks like Sunworks is in a good position for the long term. While it does only have a market cap of around $14 million as of mid-September, it has performed quite well this year.
If you remember earlier this summer, when we began looking at this penny stock, Sunworks filed a Proxy Statement to call for a shareholder vote on several topics. One of these is to approve an amendment allowing the company to reduce its authorized share count. This was eventually approved at the end of the month last month.
Penny Stocks To Watch: Genius Brands
Genius Brands (GNUS Stock Report) was one of the cult penny stocks earlier this year. Shares went on an epic run from under $0.30 to highs of $11.73. But it ended up going parabolic at the end of the day. GNUS stock pulled in from those highs and back to recent lows this month of $0.95. Why is it on this list of penny stocks to watch?
On September 18th, GNUS stock caught a surge of late-afternoon momentum. The penny stock ended up jumping from around $1 to highs of over $1.30 before the closing bell. Whether or not this is just a technical trend is yet to be seen. But what we can say is that trading volume has become explosive on Friday. The entertainment company most recently announced the launch of the new Kartoon Classrom! This is the company’s stand-alone segment of its popular Kartoon Channel!
It will host STEAM-based content (science, technology, engineering arts and math), including programming from Genius Brands’ ‘content with a purpose’ library. There will also be content from third party creators worldwide and new original content with the first series in development, KC! Pop Quiz.
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However, that was the last update from the company, which came 8 days ago. Considering its trend up popping and dropping, if GNUS is on your list, be aware of the history of volatility that this penny stock has experienced this year.