3 Penny Stocks to Watch During Today’s Market Crash
With the broader market taking a dive during midday trading, many penny stocks are still showing potential. And, when there are larger market crashes it presents a sizable number of opportunities for investors to use as an advantage.
While it may seem easy to benefit from market crashes, there are a few things that all penny stock traders should know. First and foremost is having a complete understanding of your trading strategy. This can be broken down into two main categories; short-term and long-term trading.
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On one hand, short-term traders could have an easier time making money with penny stocks during a market crash. This is due to the rate at which stocks move during heightened momentum in the market.
On the other hand, those who trade in the long term may want to look for devalued assets that could have potential in the coming months. Regardless, a market dip presents potential to both types of investors. The next thing to consider is why the market crashed.
Why Is the Stock Market Down Today?
Today, the reason behind the dip comes as the yields on the benchmark 10-year note jumped up by around 5 points to over 1.54%. This is its highest level in a few months. The Chief Market Analyst at the trading platform IG, Chris Beauchamp, stated that “The prospect of higher energy prices, fueling inflation, and rises in bond yields appear to be pre-empting tighter monetary policy by central banks, have prompted widespread selling across global stock markets.”
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While there are still winners today like Digital Brands Group Inc. (NASDAQ: DBGI) which pushed up by over 36%, there’s no doubting the lacking confidence in the next few months. However, with October only a few days away, we could see the effects of a clean slate on the stock market. Considering all of this, let’s take a look at three penny stocks to check out during today’s market crash.
3 Penny Stocks to Watch Right Now
- Cinedigm Corp. (NASDAQ: CIDM)
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Denison Mines Corp. (NYSE: DNN)
Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is an entertainment company that distributes and holds the rights to independent movie, television, and short-form content. It currently has a library of distribution rights to digital, physical, and home mobile entertainment platforms among others.
In addition to this, Cinedigm services digital cinema assets on 12,000 movie screens. Some of its distribution partners include big names such as the NFL, NHL, Scholastic, Hallmark, and many more. In the past five days, shares of CIDM stock have shot up by over 12% and in the past month and six months by over 38% and 66% respectively. This brings its YTD gain to over 288%, which is no small feat.
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On September 21st, Cinedigm announced that it has acquired one of the internet’s more popular horror content destinations, Bloody Disgusting. This is a part of the company’s plan to make its way to the top of the horror genre in terms of acquisitions. Just earlier this year, Cinedigm acquired the horror genre streaming service Screambox. Cinedigm’s streaming channels will now be refreshed monthly with content from both libraries. Updates like these are important for investors to consider as they show the steps that Cinedigm is taking to stay on top.
“By acquiring Bloody Disgusting, we hope to create a larger, more accessible user experience for enthusiasts to discover, stream and discuss the genre with the objective of becoming the number one global streaming destination for horror fans everywhere. In addition, this acquisition should be immediately accretive for Cinedigm.”
Chairman and CEO of Cinedigm, Chris McGurk
Since the company made this announcement, shares have continued to move in an upward trajectory. Noting this new info, will CIDM stock make your penny stocks watchlist right now?
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a penny stock that we have been covering extensively for quite some time. Despite a major 89% drop YTD due to regulatory changes in China, it looks like EDU stock has reached a bottom. And now, we are seeing some bullish sentiment begin to resume with its pricing. For some context, New Oriental is a company that provides private educational services in China. These educational services are offered primarily for test preparation and K-12 AST. Its programs, services, and products are offered in 104 schools, 1361 learning centers, and 12 bookstores.
On September 26th, New Oriental announced that it has filed its annual report on Form 20-F for the fiscal year ended May 31, 2021, with the SEC. It also published its annual report for Hong Kong purposes pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Despite the regulatory shifts surrounding for-profit tutoring in China, its total net revenue increased by 29% YoY to over $1.19 billion for Q3 2021. It’s worth noting that we’ve mentioned EDU stock a lot on this site because of its trending nature in the market. Currently, EDU stock’s average volume is extremely high. Keeping this information in mind, will EDU make your list of penny stocks to watch?
Denison Mines Corp. (NYSE: DNN)
Denison Mines Corp. is a penny stock that has climbed by over 18% in the past month. This sizable gain is a reflection of the positivity on the energy industry right now. YTD, shares of DNN stock have shot up by a very solid 108%, further indicating this bullish sentiment. If you’re not familiar with Denison Mines, it is a uranium exploration and development company. The company’s main project is the Wheeler River uranium project in which it owns a 95% interest. This project is located in the Athabasca Basin region in northern Saskatchewan.
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On September 22nd, the company announced its decision to advance its Wheeler River project to the feasibility study stage. This study is for the In-Situ Recovery mining operation proposed for the Phoenix uranium deposit. It also announced that Wood PLC will lead and author the feasibility study in accordance with Canadian Securities National Instrument 43-101.
“Taken together with the selection of globally recognized engineering firm Wood, the decision to launch the formal Feasibility Study process for Phoenix represents another important step towards achieving our objective of bringing low-cost ISR mining to the high-grade uranium deposits of the Athabasca Basin.”
President and CEO of Denison Mines, David Cates
With much greater than average volume, DNN remains an interesting choice for your list. However, to understand it further, it’s worth taking a deep dive into the current state of the uranium industry. With that in mind, do you think that DNN stock is worth watching right now?
Can You Make Money With Penny Stocks Right Now?
Making money with penny stocks in 2021 can be challenging. And with so much momentum right now, it does not look like it’s getting easier anytime soon. However, because there is so much movement in the stock market, there are plenty of opportunities to take advantage of. Considering all of this, which penny stocks are you watching right now?
