3 Penny Stocks to Watch During Today’s Meme Stock Rally
With meme stocks rallying once again, plenty of penny stocks investors are looking for the best companies to buy. Now, to understand which stocks could have value, there are a few important steps that all investors should take.
Right now, the sheer amount of volatility in the stock market means that investors need to pay close attention to what is going on in terms of news and announcements. While Covid is front and center, several other pressing issues are making their way into the media. This includes high energy demand and an oil and gas shortage, geopolitical issues, and a few others.
But, all of this has led to the market we are witnessing right now, which is ripe with opportunity. To take advantage of the large movements with penny stocks right now, investors should also have a consistent strategy. When looking at meme stocks, we see that it is difficult to predict price movement. But, we can use tools like social media to find penny stocks before they pop off.
One prime example of a meme stock right now is Camber Energy Inc. (NYSE: CEI). Camber has climbed by over 630% in the past month, including a five-day gain of over 150% and a gain today of over 23%. This staggering rise reflects the investing environment more so than Camber itself.
So, with this prime example, we see that investing in penny stocks in 2021 is not easy. However, the potential to make money with penny stocks right now is palpable. Considering all of this, let’s take a look at three penny stocks to watch in October 2021.
3 Penny Stocks to Watch As Meme Stocks Rally Again
BEST Inc. (NYSE: BEST)
One penny stock that we’ve discussed several times this month is BEST Inc. The China-based company isn’t overly vocal on its newswires. However, momentum has been very apparent since the end of August. BEST specializes in supply chain and logistics technology solutions for its customers in China. As reopening efforts continue, related stocks, especially those involved in supply chain management, could be on the watch list.
Right now, upcoming earnings could be a source of speculation. This comes after a mixed quarter last quarter. An upbeat outlook from management shed some brighter light on the potential outcome of the year’s operations. Specifically, CEO Johnny Chou explained, “Our Global business continued its growth momentum, with parcel volume in Southeast Asia increasing 140.7% year-over-year…Given the supportive industry regulatory environment and continued strong e-commerce growth, we are optimistic that our strategic refocusing plan will position us to deliver improved operating and financial results in the coming quarters.”
Despite lack of frequent info, BEST stock has also become one of the “short squeeze stocks to watch.” That’s because most data shows a percentage of the float short, sitting just shy of 30%. The company’s Annual Meeting is coming up on October 20th. With that, it will be interesting to see if BEST stock continues this bullish trend.
Paltalk Inc. (NASDAQ: PALT)
One of the largest gainers of the day on September 29th, is PALT stock. By midday, shares of PALT had climbed by a staggering 134% to over $12.44 per share. While this clearly brings it out of penny stock territory, it was under the $5 mark only one day ago. In the past five days, shares of PALT stock have shot up by an even more impressive 311% and in the YTD and one-year periods by over 675% and 1,000% respectively. These exciting gains reflect the purely speculative nature of the stock market right now.
With no news coming out in the past two months, shares of PALT seem to be rising on speculation alone. But, we can look at its second-quarter 2021 financials to get a better glimpse into the company. In early August, Paltalk reported a 50% increase in its Q2 2021 net income over the previous year. In addition, it ended the quarter with cash in hand of around $6.5 million. With no long-term debt on its books, PALT does look like it is in a financially advantageous position right now.
For some context, Paltalk Inc. is a communications software provider. It powers various social media applications and offers products such as Tinychat and Vumber. In addition, it holds 18 patents that it has gained in its more than 20-year history in the tech industry. So, while today’s gain is an example of high volatility and speculation, PALT stock could be worth looking into.
Bimi International Medical Inc. (NASDAQ: BIMI)
Up by around 13% at midday, shares of BIMI stock have climbed by over 20% in the past five days. While previous yearly performance is nothing to write home about, the recent bullish momentum could be worth exploring.
Only a few weeks ago, the company announced that it had entered into a stock purchase agreement with Chongqing Zhuoda Pharmaceutical Co. Ltd. Chongqing is a supplier of wholesale pharmaceuticals and medical equipment in China. This includes over 1,200 different pharmaceuticals and more than 50 different types of medical equipment.
“We are encouraged and excited about the planned acquisition of Zhuoda, as we believe this transaction will be transformative for our Company and our shareholders. Zhuoda has established long-term strategic cooperation with 14 local hospitals, which account for most of the grade-A Terry hospitals in East Chongqing. It will greatly boost the Company’s local market expansion.”The CEO and President of Bimi, Mr. Tiewei Song
This is great news as acquisitions are always exciting for investors to consider. And on its own, Bimi already provides a broad range of medical products and services alongside operating five private hospitals in China. Considering all of this, does BIMI stock deserve a spot on your penny stocks watchlist?
Are These Penny Stocks Worth Watching?
Finding the best penny stocks to buy can be challenging. But, with so many different stocks to choose from, research can help to narrow down your watchlist.
Considering the vast amount of market momentum right now, making money with penny stocks is entirely possible. However, it all comes down to knowing where to look. Considering all of this, do you think that these penny stocks are worth watching or not?