4 Top Penny Stocks to Add to Your October Watchlist in 2021
If you’re making a penny stocks watchlist for October, there are a few things to keep in mind. Although it may seem too soon with October still a week or so away, many of the best investors work to get ahead and stay ahead by building out a concrete trading strategy. And with the high volatility of penny stocks, having a game plan can help to both make money with penny stocks, and avoid incurring losses. Right now, there is a lot on the table that investors should look out for.
First and foremost is Covid and the economic and geopolitical factors that have come as a result. While case numbers are showing small signs of decline, the pandemic is still hanging around and bringing major uncertainty with it. Over the past few weeks, we’ve seen this uncertainty play out with large market upswings and large losses as well. It’s worth noting that September is on average, one of the worst months in the stock market.
Over the past eighty years or so, data shows that September is in general, a month with poor market performance. Add in Covid and economic inflation and we begin to have a greater understanding of where the stock market is right now. So, with all of this in mind, let’s take a look at three interesting penny stocks to watch right now.
4 Penny Stocks For Your October Watchlist
- IAMGOLD Corp. (NYSE: IAG)
- Denison Mines Corp. (NYSE: DNN)
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Gaotu Techedu (NYSE: GOTU)
IAMGOLD Corporation (NYSE: IAG)
IAMGOLD Corporation is a mining company that explores for, develops, and operates gold mining properties. All of IAMGOLD’s properties are located in North and South America, as well as West Africa. Currently, this company has an interest in the Essakane mine, Westwood mine, the Diakha-Siribaya gold project, and many more. In addition to gold, some of its projects also include the mining of silver and copper. Despite a less than stellar trend over the past year, it does look like IAG has taken a bullish turn in the past few trading days.
On September 21st, the company reported positive assay results from its 2021 resource delineation drilling on the Gosselin zone discovery. Back in March, the company reported results from the remaining nine diamond d drill holes as a part of the delineation program completed in the fourth quarter of last year. Now it is reporting results from 31 more diamond drill holes that total 11,735 meters.
“These additional drilling results continue to demonstrate the continuity and strength of this wide mineralized system. The Gosselin zone remains open to the northeast and southeast as well as at depth.”Executive VP of Growth at IAMGOLD, Craig MacDougall
IAG stock’s volume is much higher than its average after the release of these results. In addition, it’s worth noting that with gold stocks, it’s important to keep a close eye on the price of gold itself. This is a great way to gain insight on the momentum that correlating gold stocks could have. Considering this information, will IAG make your penny stock watchlist?
Denison Mines Corp. (NYSE: DNN)
Denison Mines Corp. is another mining stock, however, it is working on the exploration of uranium assets. The development-stage company owns a 95% interest in the Wheeler uranium project located in the Athabasca Basin region in northern Saskatchewan. It’s worth noting that we’ve discussed DNN stock plenty of times in the past few months. This is the result of both the bullishness on uranium and Denison’s business model. In the past month, shares of DNN stock have shot up by a solid 28%. This brings its YTD and one year gains to 110% and 243% respectively.
On September 17th, the company received $20.45 million from UEX Corporation to settle a loan from JCU Exploration Company Limited. So now, UEX has repaid the interest-free 90-day term loan provided to it by Dension in connection with UEX’s purchase of JCU. Denison has agreed to release its security for the Term Loan, including the pledge of all of the shares of JCU owned by UEX.
“Denison congratulates UEX on their recent financing and repayment of the Term Loan. We are looking forward to working with UEX on Denison’s flagship Wheeler River project and the various other projects that make up JCU’s unique and valuable portfolio of strategic Canadian uranium interests.”CEO and President of Denison Mines, David Cates
In the last month, DNN stock has significantly climbed in value as mentioned above. And the story remains the same when we look at the longer term trends. With this in mind, will you add DNN to your penny stock watchlist today?
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a penny stock that we have been discussing for quite some time now. Despite some regulatory upsets in China, shares of EDU stock have climbed by over 11% in the past month. If you’re unfamiliar, New Oriental is a company that offers private educational services in China. Its products include test preparation, K-12 AST, and other educational courses. As of May 2020, the company offered its programs and services in 1,361 learning centers, 104 schools, and 12 bookstores.
In mid-August, New Oriental provided an update on its regulatory development. This came after the Beijing Municipality Government and the Beijing Municipal Committee of the Communist Party of China jointly issued a new ruling. The measures are effectively known as the “Beijing Municipality’s Measures to Further Reduce the Burden of Homework and After-School Tutoring on Students in Compulsory Education in Beijing”. In short, these are being called the “Beijing Measures”.
The measures state that the company can no longer provide its services during weekends, break periods, national holidays, and other weekday restrictions. It also can’t offer classes that are not in or ahead of the current school curriculum. The company now must comply with these guidelines in order to continue its operations. EDU stock currently has a very high average volume when compared to its average only a few months ago. Considering all of this, will EDU make your list of penny stocks to watch right now?
Gaotu Techedu (NYSE: GOTU)
Another one of the Chinese tech education penny stocks to watch today is Gaotu Techedu. Shares have dipped recently amid all of the uncertainty surrounding the for-profit education industry in the People’s Republic. However, with an uptick in EdTech stocks, GOTU has been able to benefit.
This week, the company announced its second-quarter financial results, which have helped give a boost in the market. Revenues increased while, which were helped by a boost in gross billings for online K-12 courses. This revenue figure was also a record for the company. CEO Larry Xiangdong Chen also made mention of this milestone in the company’s business update. Chen said, “In order to support the equality of education, ever since May, we have successively collaborated with multiple non-profit organizations such as the China Charity’s Aid Foundation for Children, the China Youth Development Foundation, the China Next Generation Education Foundation, and the Henan Normal University through cash donation or free course offerings, to aid the revitalization of rural area education and achieve the goal of equal access of education for everyone.”
In addition to K-12 education, the company also offers professional education. Shannon Shen, the company’s CFO explained that this will become a focus of the company as they are strongly supported by the government. In light of this progress, GOTU stock has made an early move higher during mid-week trading.
Which Penny Stocks Are on Your October Watchlist?
Making a list of penny stocks to buy can be challenging in today’s stock market. However, there are plenty of factors that are increasing momentum, and therefore presenting opportunities for investors to take advantage of.
Considering this, it’s up to you and your strategy to find ways to make money with penny stocks. So, with all of that in mind, which penny stocks are on your October watchlist?