Top Penny Stocks to Watch in August 2021
Are penny stocks worth it? This is a question that many investors ask before putting any money into the market. And, the short answer is that they can be, depending on what type of trader you are.
First and foremost, penny stocks are any security trading under $5 per share. While many think that penny stocks are only stocks trading for pennies on the dollar, hundreds sit right around the $5 mark. And while the low price is very enticing for many investors, this cost also can come with increased risk over blue chips.
Because prices do tend to be quite low, it is common to see large intraday fluctuations in value. Otherwise known as volatility, these daily moves can be either extremely profitable or cause for major losses. Again, it all comes down to what type of trader you are and whether or not penny stocks fit into your investing style.
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Most investors tend to use the swing trading method when it comes to buying and selling small caps. This means purchasing a stock and selling it usually within a short time frame (a few minutes to a few days). While some investors do hold penny stocks for the long term hoping for a large price swing over time, the majority of investors use them as short-term financial instruments.
So, if your tolerance for risk is higher than the average trader, buying penny stocks could be right for you. However, knowing what type of trader you are will always be the best strategy in your toolkit. Considering this, let’s take a look at three penny stocks for your August watchlist.
3 Penny Stocks to Watch; Worth It Or Not?
- NanoVibronix Inc. (NASDAQ: NAOV)
- Camber Energy Inc. (NYSE: CEI)
- Yamana Gold Inc. (NYSE: AUY)
NanoVibronix Inc. (NASDAQ: NAOV)
Up by a solid 16%, or so at EOD are shares of NAOV stock. In the past month, NAOV stock has shot up by a staggering 189%, and to understand why, let’s take a closer look at the company. NanoVibronix is a medical device company working on products that utilize its patented low-intensity surface acoustic wave technology. The technology can be put to use in the disruption of biofilms, and for pain management among others.
In line with this, it has several products including the PainShield and the UroShield. Today, the company announced that it completed the application process with the Centers for Medicare and Medicaid to allow its products to have a reimbursement code. Essentially, this means that its devices could become the primary choice for physicians that work with patients that have either Medicare or Medicaid.
“We took the first opportunity in 2021 to apply for a CMS reimbursement code for UroShield and PainShield Plus as a next step towards seeking to materially increase the number of providers who may prescribe our proven effective devices as therapies for patients, particularly the many millions of Medicare beneficiaries.”
Brian Murphy, CEO of NanoVibronix
This is major news for the company and something that may not play out fully until the near future. Considering this, will NAOV be on your penny stocks watchlist?
Camber Energy Inc. (NYSE: CEI)
Camber Energy Inc. is a penny stock that we have discussed numerous times in the past few months. If you have not yet heard of the company, let’s get you up to speed on what it does and its latest updates. Camber Energy acquires and develops land for oil and natural gas in the United States. Then, the company sells the resulting products, including crude oil, natural gas, and natural gas liquids.
As a pure-play energy penny stock, Camber Energy is subject to the increased demand for gas due to more people traveling in the past few months. While the Delta variant has put a strain on the energy industry, it does look like CEI stock could still be considered a reopening penny stock.
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On July 14th, Camber Energy announced that it has received a $15 million investment from an institutional investor. These funds are going to be used for working capital and new acquisitions, as well as other corporate purposes.
“These transactions serve as significant catalysts for advancing Camber’s growth initiatives. The $15M commitment by the institutional investor is encouraging and seemingly reflective of the confidence in Camber and our operations both short and long term.” This is big news for the company and should help to fund its future projects in the energy industry.
President and CEO of CEI, James Doris
In other recent news, Camber Energy acquired $11 million worth of common stock in Viking Energy Group Inc. Viking is one of Camber’s majority-owned subsidiaries, of which it currently owns more than 60% of. With all of this new info in mind, will CEI be on your list of penny stocks to watch?
Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is a mining stock that is up by over 5% in the past month or so. While this may not seem like a lot, it is an encouraging gain considering the relative stability of the mining industry. If you’re unfamiliar with Yamana Gold, it primarily explores for and produces gold and silver ores. Yamana operates mines that are located in Canada, Chile, and Brazil.
The company owns many development-stage projects, exploration properties, and other land throughout these countries. Because of its wide range of mineral assets and exploration properties, many consider Yamana to be quite a broad player in the mining industry. And, this could be one of the reasons that it has seen increased bullish attention in the past few weeks.
On July 29th, Yamana Gold reported its second-quarter production results for 2021. Its Jacobina and Canadian Malartic projects achieved all-time high quarterly production during this time. In addition, its Minera Florida and El Penon properties posted positive results as well during the quarter.
AUY stock often follows the price of gold itself in the market, meaning that investors should pay attention to how gold is performing. Currently, AUY stock’s volume is much higher than its average, which could indicate heightened investor awareness. With this in mind, is AUY stock worth adding to your watchlist?
Are These Penny Stocks Worth It?
Finding the best penny stocks to buy is all about understanding where to look. With so many to choose from in 2021, it can be difficult to make money with penny stocks without the proper know-how.
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However, with a commitment to education and a thorough understanding of how to trade penny stocks, making money with small caps can be entirely possible. Considering this, do you think that penny stocks are worth it or not?
