Are These The Best Penny Stocks To Buy Now?
If you’re like most who’re trading penny stocks today, premarket is an important time for you. It’s also a busy one. Not only do you have to digest all of the broad market news, but you’ve also got to see which penny stocks and sectors are trending. Also, when I talk about trending, high volume is one resource to use as a gauge.
This week is only at its halfway mark, however, we’ve already seen some big waves being made. One of the most active industries triggering momentum in the stock market today is energy. I’m not talking about oil and gas but renewable energy stocks. It’s also worth mentioning that this trend has been a force to reckon with since Tesla’s Battery day.
Penny Stocks & Sympathy Trades
As Billionaire Chamath Palihapitiya said earlier this week, “The value of [Tesla’s] business is about deregulating energy. That’s about batteries and battery storage, and it’s about disrupting utilities. It is about the combination of hardware and software that will give all of us individuals the ability to be energy independent, and I think that is a fundamentally disruptive thing.”
- 5 Penny Stocks To Buy, Sell, Or Hold Right Now According To Analysts
- Making A List Of Penny Stocks? 4 To Watch In October 2020
With that, we’re seeing an entire ecosystem evolve around this idea. Tesla is only one company. However, there are plenty of more initiatives being undertaken to echo a similar sentiment. Not only are we seeing a rise in fuel cell stocks but also solar and other fossil-free alternatives. This morning, one of the penny stocks that moved in sympathy a few weeks ago with the likes of SPI Energy (SPI Stock Report), may have actually become an anchor catalyst for sector sympathy momentum today.
While all of this is great, it’s also important to note that the premarket can be tricky. Since there’s a lack of access to certain retail platforms, the “true market” is generally seen after the opening bell. As many know already, pre-market gapping stocks can dramatically move in 1 of two ways. Will the bull be in control of these penny stocks at today’s open?
Pre Market Penny Stocks To Buy [or avoid]: Sunworks Inc.
The company I’ve referenced above is Sunworks Inc. (SUNW Stock Report). The solar manufacturer caught a nice surge at the end of September in the wake of renewed interest in alternative energy. It was also caught amid two sympathy catalysts. First, was SPI Energy sparking interest in any penny stock with a low float and exposure to supplying power. The other was more sector-specific with Jinko Solar (JKS Stock Report) delivering a surprise earnings beat. As you can see on both Jinko and SPI’s charts, that momentum hasn’t subsided either.
While SUNW stock enjoyed a nice surge from a sympathy move, today’s a bit different. Prior to the opening bell, the company made headlines of its own. Sunworks announced that it won $10 million in third quarter projects. Not only could this become a boost to the bottom line, it also represents something potentially bigger. I’ll let Sunworks Chairman, Chuck Cargile explain:
“The increased sales activity positions us well for 2021 and demonstrates the continued demand for our solar solutions, particularly among agriculture and commercial customers. This momentum is important as we advance our efforts to finalize the previously announced business combination with The Peck Company (PECK Stock Report), as detailed in the preliminary joint proxy statement/prospectus, filed by The Peck Company with the Securities and Exchange Commission on October 1, 2020.”
Sunworks has been one of the top penny stocks to watch for weeks now. In fact, before this latest move, SUNW stock was experiencing a strong and consistent move during the early third quarter as well.
Pre Market Penny Stocks To Buy [or avoid]: Polar Power Inc.
Polar Power Inc. (POLA Stock Report) is another one of the energy penny stocks we’ve watched for quick some time. While we were a little early on it back in June, POLA stock has experienced a strong move, overall, since then. The initial spark came after the company reported strong earnings with a 226% bump in quarterly revenues compared to its previous quarter.
As far as where it fits into the grand scheme of things, Polar’s product portfolio hits all the hot penny stocks topics right now. Its products include DC generators, Back-up DC generators, hybrid power systems, Li-Ion battery systems, and Marine DC generators. Following Tesla’s Battery Day, there’s been plenty of attention on the “food chain” for EV production.
However, keep in mind that much of the recent surge has stemmed from sympathy momentum. Polar Power hasn’t reported any news or updates in quite some time. Furthermore, there haven’t been any new filings made since August.
Premarket Penny Stocks To Buy [or avoid]: American Resources Corporation
Aside from energy, we’re also seeing a rise in interest for rare earth stocks. This has become a more active niche following recent moves by the U.S. President. Late last month President Trump issued an executive order targeting rare earths minerals. Specifically, The order states that the county’s “undue reliance on critical minerals, in processed or unprocessed form, from foreign adversaries constitutes an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security, foreign policy, and economy of the United States.”
These rare earth elements are a grouping of 17 minerals vital to the defense industry’s manufacturing of weapons and electronics. Prior to the order, the U.S. imports of these elements from China stood at 80% according to reports. Where does American Resources Corporation (AREC Stock Report) fit into this equation? The thinly traded penny stock may have not had much action over the last few months. However, Wednesday’s premarket saw a big uptick in momentum.
This came after American Resources’ latest update. The company unveiled its wholly owned subsidiary, American Rare Earth LLC. Through its acquisition of multiple mining complexes over the past five years, American Resources said that it has established American Rare Earth to “organize, consolidate, evaluate and develop” its owned portfolio of high-quality, low-cost rare earth mineral sites. The company also made it a point to say that it’s exploring strategic opportunities to gain exposure to rare earth assets without a dilutive event to shareholders. As this story develops we’ll be sure to update. Needless to say, shares of AREC stock have jumped early on Wednesday morning.
Premarket Penny Stocks To Buy [or avoid]: Ocean Power Technologies
Similar to many on this list of penny stocks, Ocean Power Technologies (OPTT Stock Report) has been one to watch for months. We first began watching this year in August when the penny stock moved higher after attention on its Power Buoy product sparked momentum.
Ocean Power focuses on renewable wave-energy technology. It’s engaged in developing systems that generate electricity by harnessing the renewable energy of ocean waves. It offers the PowerBuoy technology which integrates with hydrodynamics, electronics, energy conversion, and computer control systems to extract the natural energy in ocean waves.
In light of the recent surge in energy penny stocks, OPTT has gotten a nice boost so far this week. However, keep in mind that with Tuesday’s momentum and Wednesday’s gap up, there could be possible profit taking depending on if Tuesday’s trader’s have reached their targets once the opening bell rings. Needless to say, premarket momentum is holding OPTT stock above $3 for now so we’ll see what happens once the bell rings.