Why Investors Are Watching These 3 Penny Stocks Right Now
There are plenty of ways to find the best penny stocks to buy right now. And, one method that many penny stocks investors use is looking at what top investors are buying alongside other metrics. While this can be a good strategy, investors should always remember to do their own research into every company on their watchlists.
In 2021, the stock market is highly volatile. This is reflected in both penny stocks and blue chips. So, to take advantage of this, investors can use factors such as volume, social media sentiment, news, and fundamentals to create a penny stock watchlist that rivals even the best investors out there.
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Additionally, having an individualized trading strategy is pertinent to seeing gains with penny stocks. While investing in penny stocks in 2021 is unlike any other time, there are plenty of ways to make money in the stock market right now. With that in mind, here are three penny stocks that top investors are watching right now.
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3 Penny Stocks That Top Investors Are Watching in September
- Safe Bulkers Inc. (NYSE: SB)
- AzurRx Biopharma Inc. (NASDAQ: AZRX)
- Ambev S.A. (NYSE: ABEV)
Safe Bulkers Inc. (NYSE: SB)
Safe Bulkers Inc. is an industrial penny stock that has climbed by over 18% in the past five days. In the past month, that number shoots up to over 40% for a YTD and one-year gain of 262% and 353% respectively. These numbers are very solid and show that there is a sizable amount of bullish sentiment behind SB stock right now.
If you’re unfamiliar, Safe Bulkers is a company that provides marine dry bulk transportation services. When it comes to dry bulk, many products can be transported by the company. Primarily, Safe Bulkers transports coal, iron ore, and grain. As of March 15th, 2021, the company had 43 dry bulk vessels with an aggregate carrying capacity of 3,937,000 deadweight tons.
On August 2nd, the company entered into a bareboat charter agreement with a purchase option for a capsize class dry-bulk vessel. The company entered the 12-month agreement with a down payment of $4.5 million and a $4.5 million payment upon delivery scheduled in the fourth quarter of this year. The deal also includes a daily charter rate of $14,500. Later on, Safe Bulkers will have a purchase option in favor of the company at the end of the charter period for $18 million to acquire the 2012 Japanese –built dry-bulk Capesize vessel.
Dr. Loukas Barmparis, the President of Safe Bulkers stated, “Selective second-hand acquisitions and newbuild orders are within the context of our fleet renewal strategy.” In the last 5 days, SB stock has gone up substantially as mentioned above. It’s worth noting that SB stock’s volume is also more than 5 times its average in the past few trading days. On September 13th alone, shares of SB stock climbed by more than 16%, which is no small feat. Noting this info, is SB going to make your penny stocks watchlist in mid-September?
AzurRx Biopharma Inc. (NASDAQ: AZRX)
AzurRx Biopharma Inc. is a biotech company that creates products for treating gastrointestinal diseases. The company’s main focus is developing recombinant proteins for treating a wide range of GI disorders. Its lead product is MS1819 which is for treating exocrine pancreatic insufficiency.
The company also has other clinical programs for treating COVID-19 gastrointestinal infections which is what many investors have been focusing on. While biotech penny stocks are hot right now, companies working on a Covid-related treatment are seeing greater attention on average.
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On September 13th, the company announced the acquisition of First Wave Bio. The company will now rename itself to First Wave BioPharma and trade under the NASDAQ ticker symbol “FWBI”. This was done in a stock and cash transaction valued at $229 million including development, regulatory, and sales milestones.
The company will begin trading as FWBI beginning on Thursday, September 23rd. Acquisitions like these are always exciting and important for investors to consider. With biotech, they allow for accelerated growth and new potential for both companies involved.
“The acquisition of First Wave Bio, and the creation of First Wave BioPharma, Inc. is a transformative event that significantly expands our GI development pipeline and positions our company for new growth opportunities in the inflammatory bowel disease therapeutic space.”
Chairman, President, and CEO of AzurRx, James Sapirstein
Now it will be interesting to see how this company performs amid this large update. So will you add AZRX to your list of penny stocks to watch in September?
Ambev S.A. (NYSE: ABEV)
Ambev S.A. is a penny stock that we have discussed frequently throughout the pandemic for a few reasons. Before we get into them, it’s worth understanding what Ambev does. This is a company that sells soft drinks, beer, and food products around the world. The company’s brands include Bud Light, Corona, Lipton, Pepsi, Seven Up, and many more.
These products are offered to third-party distributors and a direct distribution system as well. Both in times of economic hardship and prosperity, we often see alcohol sales climb. And, this has been the case over the past year or so. Despite some troubles that ABEV has faced in regard to production during Covid, the company has prevailed with a six-month gain of around 12%.
A few months ago, Ambev released its second-quarter earnings and operational results for 2021. The company announced net revenue growth of 36% year over year in this quarter. It also announced a much higher normalized profit, at an increase of 116%. These numbers are encouraging, and reflect the heightened demand for beverage products during that time. While it’s unclear as to how demand will continue to shift in the near future, there’s no doubting that Ambev is a major player in the beverage industry.
“I’m happy to see that the choices we made in the past 12 months continue to deliver results. We achieved the highest consolidated volumes in a second-quarter on record, which led to an all-time high rolling 12 months volumes, 5 million hectoliters above the peak back in 2015.”
CEO of Ambev, Jean Jereissati
\While its gains in the past year are nothing to write home about, ABEV stock does present an interesting opportunity for investors to consider. Noting all of this information, will ABEV be on your penny stock watchlist this month?
Which Penny Stocks Are on Your Watchlist Right Now?
While 2021 is a banner year for volatility, many investors have taken advantage of this and found solid profits with penny stocks this year. Although it can be challenging, with the right strategy and research, it is completely possible to make money with penny stocks.
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So, with such a great amount of movement, how will you take advantage of the stock market in 2021? And in tandem with this, which penny stocks are on your watchlist right now?
