Renewable & Green Energy Penny Stocks To Watch Before Next Week
Throughout 2021 so far, investors have been focusing on renewable energy penny stocks. This is, of course, in addition to other burgeoning markets we’ve seen in the past few months. One of the main reasons for this is the current U.S. administration and its love for renewables.
This is led by Joe Biden, who has stated that he wishes to bring the U.S. toward a completely renewable energy-dependent within the next several decades. Given that we are a long way away from this, the potential for green energy penny stocks is almost unparalleled. Now, when looking for stocks in this niche, investors have to consider a few things.
What To Look For In Green Energy Penny Stocks
For one, is the company doing anything different than others? Competition in this market is high, and unicorns are hard to come by. But, there are plenty of innovative companies working to become a leader in the green energy marketplace. Second, investors should consider both the short and long-term prospects of the company. With most renewable energy penny stocks, investors tend to think in the long term.
Aside from this, keep in mind that there’s still plenty of hype around the future outlook, so valuations have gone out the window. When we see the market weaken as we have lately, overinflated sectors tend to take larger dips than others. But it looks like the market’s turnaround on Thursday has refocused some of the attention on these alternative energy stocks. With that in mind, here are five green energy penny stocks to watch in April 2021.
Green Energy Penny Stocks to Watch
- Denison Mines Corp. (NYSE: DNN)
- ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO)
- Ideanomics Inc. (NASDAQ: IDEX)
- Ault Global Holdings Inc. (NYSE: DPW)
- CBAK Energy Technology Inc. (NASDAQ: CBAT)
Denison Mines Corp. (NYSE: DNN)
Denison Mines is not a traditional green energy penny stock in the way that most investors consider. DNN is a mining company with a large focus on uranium ore. Recently, it announced that it is looking to construct a new uranium mining project. After the announcement a few weeks ago, shares of DNN sharply rose by over 15%. The project, known as Wheeler River, could see some progression in the next few months if all goes to plan.
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This year, the goal is beginning the formal Feasibility Study and submitt a draft Environmental Impact Statement early next year. These are both essential steps needed for Denison to make a development decision for the property. One of the reasons traders are focusing on this uranium company right now is the future potential of this project. According to Denison, Phoenix is the world’s highest grade undeveloped uranium deposit.
What is equally interesting is that the company announced it would be included in the S&P/TSX Composite Index. As Denison is now included in one of the largest Canadian equity indexes in the market, this is a big deal. This is not truly a fundamental change for Denison Mines, but it should bring more notoriety to the company. Also, this announcement could help to offer the company broader awareness in the market itself.
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO)
ElectraMeccanica Vehicles Corp. is a Canadian company that builds efficient electric vehicles. Its flagship vehicle, SOLO, is a single-seat EV with three wheels. The interesting part about this electric vehicle penny stock is that it was one we had watched closely last year right up until November. That’s when we saw SOLO stock leave the penny stock range. The hype behind electric vehicle penny stocks was wide-reaching over the last several months thanks to big breakouts in Tesla (NASDAQ: TSLA) and Nio (NYSE: NIO), for example. But the latest sell-off in the stock market this week has brought SOLO back into sub-$5 territory (for now).
Needless to say, it isn’t all that had as we’ve now got a chance to follow up on a few recent developments. On March 23rd, ElectraMeccanica announced its fourth quarter and full-year 2020 financial results. In the report, it announced a new Mesa, AZ-based assembly facility which could produce up to 20,000 SOLOs per year.
CEO Paul Rivera, stated that “2020 was a transformative year for ElectraMeccanica, one that began with the launch of our first retail locations and ended with the arrival of the first production SOLO EVs onto U.S. soil. In a relatively short amount of time, we have expanded our geographic pretense across soon-to-be 20 locations in five U.S. states and made great progress building our order book to support our long-term scaling efforts.”
Financially, the company ended the quarter with roughly $129.5 million in cash. While revenue came in at $224,000, this makes sense given that it has only begun working to mass-produce its cars recently. ElectraMeccanica’s large cash balance should help it to continue growing. The biggest question now is, will EV penny stocks regain some steam now that things have settled down a bit?
Ideanomics Inc. (NASDAQ: IDEX)
Ideanomics focuses on disruptive technologies. The company has taken up a strategic investment approach to its model. Divisions include everything from blockchain technology & tokenization to electric vehicles and charging. We most recently discussed IDEX as one of the potential NFT penny stocks to watch. That’s because its Liquefy business is all about tokenizing digital assets. Needless to say, it didn’t take off with the rest of the NFT stocks this week. But during Thursday’s session, the rally in green energy names seems to have given a boost to the penny stock
Aside from electric car charging, Ideanomics has invested in several EV companies including an electric tractor business as well as its most recent deal for a 20% stake in Energica Motor Company, a manufacturer of high-performance electric motorcycles. Alf Poor, CEO of Ideanomics stated that “Energica has combined zero-emissions EV technology with high-performance engineering synonymous with Italy’s Motor Valley to create a range of exceptional products for the motorcycle market. It also has proprietary EV battery and DC fast-charging systems that have applications and synergies with Ideanomics Mobility.”
The company states that the global high-performance electric motorcycle market has a CAGR of 34% from 2019 until 2024. Since the market pulled back significantly this week, it may be a reboot of EV speculation helping give stocks like IDEX a much-welcomed boost.
Ault Global Holdings Inc. (NYSE: DPW)
Similar to Ideanomics, Ault Global is a diversified company with a reach in a variety of industries. Ault gains exposure to multiple business segments and disruptive technologies through a strategic investment approach, as well. Through its subsidiaries, it provides products that support industries such as defense, industrial, automotive, telecommunications, and even biotech.
So why would DPW be on this list of green energy penny stocks to watch? One of its subsidiaries closed an 8-figure deal this month. On March 25th, Ault Global announced that its Coolisys Technologies Corp. received a $10.5 million purchase order. This order is for 30,000 7kW residential electric vehicle charging systems.
The CEO of Coolisys, Amos Kohn, stated that “We believe our EV residential charger product line will be well-positioned to address the expected rapid expansion of infrastructure required to support broad adoption of electric vehicles globally.”
While Ault is not on its own a renewable energy penny stock, its investments fall into this category. In addition to this, Ault Global mines bitcoin through its subsidiary, Ault Alliance Inc. It currently holds a 617,000 square foot facility which is extremely energy efficient. It states that its bitcoin mining operations should continue to grow once the initial buildout of a new 30,000 square foot facility is completed. Of course, this is a bit off-topic, but considering the attention that cryptocurrency has received recently, it could be a two-fold point of focus on DPW stock.
CBAK Energy Technology Inc. (NASDAQ: CBAT)
CBAK Energy Technology is a more pure-play renewable energy penny stock. Recently, it signed into a memorandum of cooperation with a European company that provides hydrogen energy. The goal will be to develop hydrogen fuel production, fuel cell stacks, hydrogen transport, and storage/refueling needs.
Given that hydrogen has so much untapped potential, this deal looks like it could be beneficial to both parties. If you’re not familiar, hydrogen energy has zero emissions, high energy conversion rates, and a slew of other major benefits.
In China, demand for hydrogen is expected to reach as much as 60 million tons by 2050. Additionally, CBAK wishes to have more than 10,000 hydrogen fuel locations across the country, with more than 5 million hydrogen vehicles produced each year. Obviously, this is a lofty goal, but we have to consider how much time is in between.
The CEO of CBAK Energy, Mr. Yunfei Li, stated that “as a result of the great importance placed upon the transition to more sustainable forms of energy and carbon neutrality by the Chinese government, there is currently an unprecedented number of development opportunities in the market for hydrogen fuel cells. By working together closely, the Hydrogen Energy Company and CBAK Energy will enhance their industry leadership positions as well as to attain new achievements in terms of providing basic research, tackling core technologies, and aggregating industrial resources.”
CBAK is also a developer and producer of batteries for electric vehicles as well. It is notably the first lithium battery manufacturer from China to be listed on the NASDAQ exchange.
Green & Renewable Energy Penny Stocks Gain Momentum
I mentioned above that the space went through a serious hype phase. Valuations were out the window, and speculative momentum ruled many of these stocks. So many rallied hundreds and even thousands of percentage points between early Q4 and mid-Q1 of this year.
Despite the recent market sell-off, it may have actually done some good by bringing things back down to earth, so to speak (sorry for those long at higher prices). Needless to say, with the latest glimmer of hope in the stock market today, many of these green energy stocks reversed course. Will that trend remain in play heading into April? Leave us a comment with your thoughts.