3 Penny Stocks to Watch Under $3 in July
While penny stocks by definition are any stock trading under $5 per share, there are plenty that are well below this threshold. And although there are many that sit right around the $5 mark, investors tend to look for low-priced penny stocks, such as those under $3.
With this price range, it’s important to consider a few factors. For one, what type of trader are you and what is your threshold for volatility? This will help to decide if a certain penny stock on your watchlist is right for you.
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Second, what do the company’s fundamentals look like? Does it have a sizable cash balance? Is it profitable? These are all important questions to understand fully before investing in penny stocks, let alone those under $3. And, under the $3 mark, there are hundreds of small caps to choose from. This includes both big-name and small name companies that could be worth taking a look at.
The last aspect to understand is what makes the stock move? Is it more speculative or are investors betting on its long-term potential? This alone will help to identify what time frame you may want to invest in. So, with all of these factors considered, here are three of the best penny stocks to watch under $3 right now.
3 Penny Stocks to Watch Under $3
- Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
- McEwen Mining Inc. (NYSE: MUX)
- Qudian Inc. (NYSE: QD)
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Seanergy Maritime Holdings Corp. is a shipping penny stock that we have discussed quite frequently over the past few months. This is due to its role both as a shipping company yes, but also as a provider of high-value commodities during the pandemic. Seanergy engages in international shipping and the transportation of dry bulk products by sea.
The main goods that Seanergy transports are iron ore and coal, which are both used globally for a wide variety of needs. The company has a fleet of 11 Capesize vessels that can carry about 1,926,117 deadweight tons. This is quite a substantial amount and makes Seanergy a large player in the international shipping market. On July 14th, the company announced a new time charter agreement, as well as a new financing agreement of $30.9 million.
“I am very pleased to announce these important transactions for our Company. The debt financings we have secured so far for our recent vessel acquisitions are competitively priced and conservatively structured, resulting in low break-even rates that enhance our significant free-cash-flow generating capacity.”The Chairman and CEO of SHIP, Stamatis Tsantanis
This is the latest update that has come from Seanergy Maritime Holdings. On one hand, the charter agreement should secure a solid amount of revenue for SHIP moving forward. And on the other hand, the financing agreement will help to capitalize any new ship purchases, as well as existing corporate needs. With this in mind, will you add SHIP to your list of penny stocks to watch?
McEwen Mining Inc. (NYSE: MUX)
McEwen Mining Inc. is a mining stock that explores for, develops, produces, and sells different resources. Gold, silver, and copper are McEwen Mining’s primary minerals, which make it a mostly pure-play gold penny stock. McEwen owns a 100% interest in the El Gallo project, Fenix project, Black Fox mine, and plenty more.
The company operates its properties in Mexico, Canada, Argentina, and the United States. Because of the broadness of its scope, MUX is not exposed to only one mining area in particular. This means it could be viewed as a more diversified play in the mining industry.
The company recently announced an $80 million Series B private placement to advance the Los Azules Copper Project. The company also recently released its production results for the second quarter of 2021. The amount totaled 40,800 gold equivalent ounces compared to 19,200 the previous year.
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While there is no announced reason for this sizable uptick in production, we can assume that the high price of gold right now could be the main driver behind this. McEwen has yet to release its financial results, as those will be released via its 10-Q Quarterly Financial Statements in the very near future. This is the latest that has come from this mining penny stock.
Many investors choose companies like MUX as opposed to investing directly in gold. This is due to the higher potential for volatility and therefore profits (or losses). It is important to consider what type of investor you are and whether MUX fits your threshold for risk. However, in the past six months, shares of MUX stock have shot up by a solid 29% or so to its July 15th price of around $1.25 per share. With all of this in mind, will MUX be on your penny stocks watchlist in July?
Qudian Inc. (NYSE: QD)
Qudian Inc. is a financial penny stock that is seeing solid bullish sentiment right now. QD operates a tech platform for online consumer financing. It sells credit products, offers loan recommendation services, and referral services in China. With the growing middle-class in China, many companies are working to capitalize on the new wealth generation. On June 15th, Qudian reported its first-quarter financial results for 2021.
“In the first quarter of 2021, we continued to execute a prudent operational strategy related to our cash credit business amid an evolving regulatory environment while making significant strides to advance our early childhood education business initiative.”The Founder, Chairman, and CEO of Qudian Inc., Mr. Min Luo
Qudian is an interesting company in that it not only works in the finance industry, but it also has hands in other markets as well. This includes as mentioned, the childhood education space, which has become a major market in the past few years. And, this is especially true considering the pandemic and the forthcoming return to schools.
YTD, shares of QD stock are up by a very respectable 48% or so to its current price of around $2.05. Since January however, shares are up by well over 70%, indicating solid bullish sentiment surrounding this penny stock. While shares are down in the past month, this is a common trajectory we’ve seen across the stock market, and not just with QD stock. Keeping this information in mind, will you add QD stock to your watchlist in 2021?
Which Penny Stocks Are You Watching Right Now?
Finding cheap penny stocks to buy is all about understanding both your risk profile as an investor and the penny stocks’ potential. These two factors remain the most important to making a profit with penny stocks in 2021.
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While investing right now is not the easiest given the extraordinary times we are living in, it is possible to make money with small caps. Considering all of this, which penny stocks are you watching right now?