Are These Penny Stocks on Your Watchlist This Week?
Making a list of penny stocks to watch this week? Well, before digging any deeper, there are a few things that all investors should consider. First and foremost, we have to understand that the pandemic is still around, and impacting the stock market in a big way.
While some expect case numbers to drop in the near future, for now, this is a big factor for the entire stock market. And with penny stocks, any big news will always result in swift price action. Next, we have to consider the current state of the U.S. economy. With inflation reaching high levels, many investors are turning toward safeguard stocks.
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This can be a good way to hedge against inflation and other potential volatility swings. The retail trading crowd can also play its own part. Last week we saw that come to light when so-called “Robinhood traders” fixated on the latest high-flyer, Regencell Bioscience Holdings (NASDAQ: RGC). Whether it was speculation on the latest low float stock or Regencell’s biotech platform, traders flocked to this issuer late Friday afternoon (See: Is RGC Stock Rallying On Mistaken Identity?).
One of the specifics to note when it comes to Robinhood and similar apps is the fact that only certain types of stocks are accessible. In this case, typically Nasdaq and NYSE penny stocks are tradeable; not OTC stocks. But with a long list to choose from, there are plenty of options out there. Which one will be the next high-flyer this week? Let’s take a look at three hot penny stocks to watch right now.
3 Robinhood Penny Stocks to Watch This Week
- LM Funding America Inc. (NASDAQ: LMFA)
- Farmmi Inc. (NASDAQ: FAMI)
- Yamana Gold Inc. (NYSE: AUY)
LM Funding America Inc. (NASDAQ: LMFA)
LM Funding America Inc. is a company that that many investors have been watching over the past few months. At a few cents over $5, LMFA stock is technically no longer in penny stock territory. And, in the past month, shares of LMFA have added more than 30% in value which is quite substantial.
If you’re unfamiliar, LM Funding is a finance company that gives funding to nonprofits and engages in the purchasing of delinquent accounts. In 2021, this company has experienced a lot of positive performance in the stock market. At the start of the year, LMFA stock was at $3.45 per share on average, and now it is at $5 per share.
On August 16th, the company reported its second-quarter results for 2021. During this period, its net income total came in at around $11.1 million. Interestingly enough, the company managed to increase its cash balance to $22.2 million compared to $11.6 million in December 2020.
“In the first two quarters, we originated, structured, and monetized our problem-buying business operations to generate $2.96 in net income per basic and diluted share. As our balance sheet has grown our opportunities to buy problems has increased. With a stronger balance sheet, we could also take larger participation in the deals we put together.”
Chairman and CEO of LM Funding, Bruce M. Rodgers
This is exciting news for the company and investors alike, as growth always is. And for this reason, investors should stay up to date with what LMFA stock is doing as these results only came out a few days ago. As the results were announced, shares of LMFA stock witnessed a 9% increase, indicating sizable bullish sentiment. Considering this, will LMFA make your list of penny stocks to watch?
Farmmi Inc. (NASDAQ: FAMI)
Farmmi Inc. is a penny stock that we have covered numerous times over the past few months. After reaching a one-year high of over $2 per share, FAMI stock quickly corrected, bringing it to its current price of around $0.40. This is obviously a major decline, and one that should not be taken lightly. However, there does seem to be bullish sentiment regarding the future of the company.
If you’re unfamiliar, Farmmi processes and sells edible fungi products in a variety of countries. Its products include shiitake mushrooms, bamboo fungi, and Mu Er mushrooms among many others. These products are sold to restaurants and distributors around globally.
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On August 17th, the company announced its success from its international expansion in North America. Only recently, Farmmi made some big moves into the North American food market by way of a Canadian order. This involves an order for Shiitake mushrooms from a Canadian international trading company. Orders like this are important for investors to consider as expansion is always a positive. This is especially true when we consider the international expansion of its edible mushroom products.
“We are pleased with our growth in international markets. Demand is being driven by consumers’ desire for more healthy and nutritional options, which mushrooms fulfill as one of nature’s true superfoods.”
Ms. Yefang Zhang, the Chairwoman, and CEO of Farmmi Inc.
Keeping this new info in mind, will FAMI be on your penny stocks watchlist in August?
Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is a mining company that produces a wide variety of precious metals. Its primary focus is on the production of gold and silver. Yamana owns various exploration properties, development-stage projects, as well as land in several countries around the world. During the pandemic, many investors have set their eyes on mining stocks due to their relative stability and as a hedge against market volatility.
On August 16th, the company announced that it has repurchased an initial 1,736,776 common shares under its share repurchase program for CAD 10 million. Yamana feels like its common share market value doesn’t represent its full value and growth prospects. The company purchased these common shares as an investment for its portfolio. In addition, this could help with issues such as share dilution and others.
In the past month, shares of AUY stock have increased by around 5%, which does indicate bullish sentiment around AUY right now. It’s also worth noting that Yamana Gold is heavily correlated to the price of the underlying materials that it mines. This includes gold and silver, which tend to move slowly and infrequently. With this latest update from Yamana Gold Inc. in mind is AUY stock worth adding to your list of penny stocks to watch?
Which Penny Stocks Are You Watching Right Now?
Right now, there is a lot going on in the stock market that investors need to pay attention to. To stay ahead of the game, it’s best to consider everything individually, and deduce how it may impact your portfolio. And, with any big events, there are always ways for investors to benefit.
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While Covid cases are still high, many scientists expect cases to begin to slow down in the coming future. If this occurs, there could be plenty of value for investors to discover. With all of this in mind, which penny stocks are you watching right now?
