Are These Big Gaining Penny Stocks Worth It?
Finding the best penny stocks to buy in July can be easy with the right amount of research and information by your side. But, given the sizable number of events going on in the world right now, investors should take into consideration that volatility is rampant.
Rather than scare you out of investing, this should serve to inform your penny stocks watchlist and which penny stocks you are buying and selling right now. In 2021, investors need to understand how the events going on in the world will impact certain industries and stocks in particular. This is the best way to get ahead and stay ahead. And with hundreds of companies on the list of penny stocks, the choice can at times be difficult.
On July 16th, many stocks climbed following better earnings results and higher-than-expected consumer spending reports. Despite fears of long term inflation, many investors feel confident in the future of the stock market as a whole.
However, many analysts state that inflation should not be as large of a concern as many investors feel it is. While it is pertinent, the effects may not be as drastic as traders predict. So, with all of this in mind, here are four high volume penny stocks to watch right now.
4 High Volume Penny Stocks For Your July Watchlist
- Aehr Test Systems (NASDAQ: AEHR)
- TD Holdings Inc. (NASDAQ: GLG)
- China SXT Pharmaceuticals Inc. (NASDAQ: SXTC)
- TDH Holdings Inc. (NASDAQ: PETZ)
Aehr Test Systems Inc. (NASDAQ: AEHR)
One of the largest gainers of the day so far is Aehr Test Systems, pushing up by around 30% or so in morning trading. While many sizable gains go without news, AEHR stock made an exciting announcement early in the day. The announcement came as it posted very strong fourth quarter 2021 results, beating estimates by a substantial amount.
For some context, Aehr Test Systems provides semiconductor tests and certification equipment. In its fourth quarter results, AEHR stock posted a 102% increase in net sales over Q4 2020, to $7.6 million. Additionally, it brought in a GAAP net income of around $0.02 per share, compared to a loss of $0.13 in the same quarter of the previous year. Additionally, its bookings increased by around 113% to $5.5 million, which is very substantial.
“We are pleased to report improved revenue and operating profit in the fiscal fourth quarter that reflect a return to above pre-pandemic levels. We are also encouraged by the strong increase in customer demand during the quarter, which is a positive turnaround from customer production ramp delays and push outs we experienced this past year related to Covid-19.”Gary Erickson, President and CEO of Aehr Test Systems
So, with these exciting results in mind, is AEHR stock worth adding to your list of penny stocks to watch?
TD Holdings Inc. (NASDAQ: GLG)
Another big gainer of the day so far is GLG stock, pushing up by around 31% at midday. Similarly to AEHR stock, TD Holdings made a sizable announcement during early morning trading. The company stated that it entered into a non-binding LOI to acquire two companies. These companies will allow it to move into the logistics and new energy vehicle industry respectively. Specifically, the company will acquire 100% of both Guangdong Jinbochuang Special Purpose Vehicle Co. Ltd. and Hunan Jinmeike New Material Co. Ltd.
“Over the past decade, we mainly focused on large-scale business transactions including non-ferrous metals trading and supply chain services which are inseparable from warehousing and logistics.
The planned acquisition of Jinbochuang and Jinmeike is not only in line with our growth strategy of improving our industrial chain, but also corresponds to the national strategy of ‘Made in China 2025’ and the industry trend of manufacturing lightweight vehicles.”The CEO of TD Holdings, Ms. Renmei Ouyang
These two acquisitions should allow GLG to move into two unique and burgeoning markets. While it may take some time before we see the fruits of this labor, in the meantime, GLG stock could be an interesting company to keep an eye on.
China SXT Pharmaceuticals Inc. (NASDAQ: SXTC)
Yet another big gaining penny stock to watch today is China SXT Pharmaceuticals, up by around 38% at midday. Shares of the biotech stock did not jump presumably on any news, as nothing was announced from the company. So, to figure out why SXTC stock pushed up, let’s take a closer look at what it does.
Based in China, SXTC is a pharmaceutical company developing traditional Chinese medicines. It manufactures, markets, and sells these products domestically, and is one of the only companies producing these types of compounds. The most recent news from China SXT came a few months ago when it announced a 4-1 reverse shares split. Since then however, not much news has come from the company.
So while today’s gain may be inexplicable with press releases, we could attribute it to SXTX’s placement as a meme stock. This means that it is frequently discussed on social media sites such as Reddit and Twitter. While this does make it highly volatile, it also adds potential for large gains (and losses). So, considering this, it may be best to take a second look if you are planning to add SXTC to your penny stocks watchlist.
TDH Holdings Inc. (NASDAQ: PETZ)
As its ticker symbol may imply, TDH is a provider of pet food products in China and abroad. Again, no news came from PETZ today to explain its over 13% gain, however we are seeing many China-based penny stocks push up today. The closest thing we can get to information for why PETZ shot up today is again, its placement as a trending penny stock.
But, we can also look at its most recent financial results which came back in April of this year. In the results, the company reported a revenue decrease of around 93% over the previous year. While this is very disheartening, it did manage to lower its gross loss from around $1.5 million in 2019 to $0.04 million in 2020.
During the pandemic, the number of pets being adopted has grown substantially. This means that there is a greater demand for pet food and associated products. While this may not explain the short term gain for PETZ stock, it could explain its almost 70% YTD gain. Additionally, shares of PETZ have shot up by over 105% in the past twelve months which is quite substantial. So, with this information in mind, it’s up to you to decide whether PETZ stock is worth watching right now.
Which Penny Stocks Are on Your July Watchlist?
With so many penny stocks showing high volume right now, picking the best ones for your watchlist can seem like a challenge. But, with so much information available to all the traders out there, it can be easy to be extremely informed about your portfolio.
To have the best chance at making a profit with penny stocks, investors should work hard to get all the information they can on a given company. Considering this, which penny stocks are on your watchlist?