These 4 Penny Stocks Are Starting August Strong
Penny stocks and blue chips are off to a great start in August. With the first day of the month showing solid bullish momentum, we could be in store for some positivity moving forward. While July was marked by uncertainty and fear surrounding the Delta variant, August could be marked by hope and the potential of the pandemic coming to an end.
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Although we like to think that penny stocks trade off of fundamentals, emotions, and symbolic moves come into play more so than the raw numbers. This is otherwise known as speculation and is the basis for most moves with either blue chips or penny stocks. So as investors, staying up to date with all the latest news can help to put you ahead of the competition. Considering this, let’s take a look at four penny stocks to watch in August.
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4 Penny Stocks to Watch in August
- Hut 8 Mining Corp. (NASDAQ: HUT)
- Senmiao Technology Ltd. (NASDAQ: AIHS)
- Ever-Glory International Group Inc. (NASDAQ: EVK)
- Alkaline Water Company Inc. (NASDAQ: WTER)
Hut 8 Mining Corp. (NASDAQ: HUT)
Hut 8 Mining Corp. is a cryptocurrency mining company that is growing in popularity at the moment. YTD, shares of HUT stock are up by over 59%, including an almost 3% gain today on August 2nd. The cryptocurrency market has become massive in the last few years, and especially so in the past year alone.
In 2021, a spotlight has been placed on blockchain technology and crypto due to the rise in value of certain coins such as Bitcoin and DogeCoin. Hut 8 has industrial-scale Bitcoin mining operations that correlate it highly with the cryptocurrency industry. The company also has 94 BlockBoxes in total, which increases the amount of cryptocurrency that it can mine.
On July 29th, the CEO of Hut 8 Mining, Jaime Leverton spoke on its innovation in the Bitcoin space on a video for ‘CEO Clips’. CEO Clips is the largest library of publicly traded CEO videos in the U.S. and Canada. Its videos are broadcasted on national TV and a variety of financial sites as well. This could explain why the day following the event, HUT stock shot up by around 4.4% in the market. Keeping this new development in mind, will you add HUT to your list of penny stocks to watch?
Senmiao Technology Limited (NASDAQ: AIHS)
Senmiao Technology Limited is a fintech penny stock that is trending in the market right now. For some context, the company offers the facilitation of automobile transactions and financing. This allows drivers to connect to financial institutions to get financing or buy cars for ride-sharing services.
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In addition to offering the finance side of the auto industry, Senmiao also sells vehicles and operates a ride-hailing platform. This allows it to be quite a broad player in the car industry in China. On July 30th, the company announced the signing of a framework agreement with BYD’s biggest dealer in China. This agreement is for the lease of 6,000 vehicles.
“We are pleased to expand upon our existing cooperation with BYD and Huapeng with the signing of this framework agreement. We have been leasing EVs from one of Baijiuyi’s subsidiaries in Chengdu since April 2021, which has provided us with the necessary capacity to support the development of our online ride-hailing platform and leasing business. Our mission is to make these vehicles accessible to individual drivers, allowing them to easily transition into a profession in the ride-hailing industry.”
The Chairman of Senmaio, Xi Wen
On the same day that this announcement was made, AIHS stock price increased by 3% in the market. Just 5 days ago, AIHS stock was at $0.65 per share, and now it has reached $0.73 per share on average. Considering this, will AIHS make your penny stock watchlist in August?
Ever-Glory International Group Inc. (NASDAQ: EVK)
One of the biggest gainers of the day so far is EVK stock, pushing up by over 130% at midday. This massive spike puts Ever-Glory International outside of penny stocks territory at over $5.30 per share. The main reason for this move comes as the China-based clothing supplier and retailer announced that it would be repurchasing roughly $5 million worth of its shares.
“We believe our stock is a good value, and the Board’s approval of this stock repurchase program is recognition of the long-term prospects in our Company’s intrinsic value and the undervalued price of our stock. Repurchasing stock underscores our commitment to enhancing shareholder value and demonstrates confidence in our business.”
The CEO of EVK, Mr. Yihua Kang
For some added context, Ever-Glory International is the first Chinese apparel company to be listed on a U.S. stock exchange. It offers several brands that cater to middle-high end customer markets. As a vertical company in this market, Ever-Glory is able to control all aspects of its day-to-day operations. Considering this large and albeit speculative move, will EVK be on your list of penny stocks to watch this month?
Alkaline Water Company Inc. (NASDAQ: WTER)
Another sizable gainer of the day is WTER stock, pushing up by around 10% at midday. This move could be the result of its announcement last week regarding solid growth into the first fiscal quarter of 2022. Only a few days ago, it stated that its 3-liter and 1-gallon bottles will be new additions to five warehouses owned by Associated Wholesale Grocers, one of the largest cooperative food wholesalers in the country.
“The addition of Associated Wholesale Grocers five strategically located warehouses, comes at the perfect time for our company. Our supply chain has never been stronger, and our sales continue to accelerate in all channels. The 12 week SPINS ending June 13th, 2021, for total U.S. Mulo, Food, and Natural Channels, shows Alkaline88 sales have grown 33.7% year-over-year.”
The CEO and President of Alkaline Water, Ricky Wright
As a provider of premium alkaline water, WTER is showing a great deal of growth right now. In addition, the company is continuing to innovate with new products such as balms, oils, bath salts, capsules, and more. With this in mind, WTER could be worth adding to your watchlist in August.
Can August Continue to Show Momentum for Penny Stocks
With August starting off strong, many investors are excited about what the future may bring. And although the pandemic is gaining in strength in parts of the country and around the world, there is some hope that we could soon see the other side.
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For now, however, investors should remain on their toes, staying up to date with all the latest news and events. Considering this, will penny stocks continue to show momentum in August?
