Penny stocks are well-known for their high risk, but what about the potential rewards? Unless you’ve been living under a rock this year, you’ve seen how big these “little guys” can run. What began with AMC Entertainment’s (NYSE:AMC) massive short-squeeze has given rise to a slew of additional short squeeze penny stocks to watch.
Heading into the end of September, there’s a new trend emerging. It has a lot to do with the actual prices of these stocks. Now, a basic definition of penny stocks refers to equities trading below $5 per share. But this new trend focuses on the cheapest penny stocks to watch. I’m talking about stocks under $1. Literally, for pennies a share, you can take ownership in emerging companies.
The bellwether for these sub $1 stocks right now is Camber Energy (NYSE:CEI). We’ve discussed this energy company and carbon capture stock in-depth since August when it was only trading at $0.35 (See: Hot Robinhood Penny Stocks For Your Watchlist Right Now). Since then, the CEI stock price has exploded to highs of more than $4.70 this week (so far). That’s right, in a little over a month, CEI stock has jumped nearly 1,300% on significantly higher daily average trading volumes.
Inherently, moves like this have brought sympathy trading to the table. Other small-cap energy stocks have experienced intermittent spikes in trading activity. But the resounding trend that has stemmed from this move in CEI stock remains “penny stocks under $1”. With that in mind, we’re looking at five more stocks the fit these criteria and have also been gaining momentum in the stock market this week.
Penny Stocks Under $1 To Watch Right Now
- Alpha Esports Tech (OTC:APETF)(CSE:ALPA)
- High Wire Networks (OTC:SGSI)
- Molecular Data Inc. (NASDAQ:MKD)
- China Evergrande Group (OTC:EGRNF)
- United States Antimony Corp. (NYSE:UAMY)
1. Alpha Esports Tech (OTC:APETF)(CSE:ALPA)
Esports is quickly becoming one of the hottest niches in the tech and entertainment space today. A mix of interactivity, excitement, prizes, and virtual access are just a few of the myriad hot buttons helping boost interest in this emerging industry. Supported by the pandemic’s stay-at-home orders, companies within this arena (no pun intended) got a leg up, and that leg up has turned into a hyper-growth phase. This tidal wave of momentum has helped given a boost in the public markets as well.
Alpha Esports is one of the newest companies to go public this year, focused on a multi-pronged approach to driving revenue from this. The cornerstone of its growth is explicitly focused on building a massive userbase. In line with that, according to Alpha, it has already partnered & worked with HUGE names in sports, entertainment, and education, including Barstool Sports, ESPN Radio, Devil Child, Oxygen Esports, Notre Dame, Syracuse University, Penn State, University of British Columbia, University of Rochester, and Western Michigan University, among others.
Just a few weeks ago, Alpha added to this roster in a deal to become the Official Online Gaming Portal of Nets Gaming Crew, the NBA 2K League affiliate of the Brooklyn Nets, providing Alpha the opportunity to directly connect with NetsGC’s network of fans and the NBA 2K League community.
What To Watch With APETF/ALPA Stock
Of course, this focus on growth has a purpose. That purpose is to drive awareness and use of Alpha’s platforms. These include its GamerzArena, GamerzArena+, GamerzArcade, and GamerzYouth have all been designed to extend the company’s reach across all skill levels and age groups.
With over 100,000 users, 4,000+ days of stream time, five million+ spectators & representations of 96 countries, according to Alpha, the company has gained ground. With the esports trend beginning to advance, Alpha has become one of the penny stocks under $1 to watch right now.
2. High Wire Networks (OTC:SGSI)
Another one of the small-cap tech stocks to watch is High Wire Networks. The OTC-listed company has turned heads over the last few weeks thanks to significant developments and new initiatives that we’ll discuss in this section.
High Wire develops communications networks including wireless, cabling, infrastructure, and electrical systems. They also provide security services aimed at address today’s growing need for new cybersecurity offerings. It’s important to note that High Wire only recently went public through a merger with Spectrum Global Solutions (another communications network provider).
High Wire gave the public a glimpse into its books in an update on current business activities this month. In particular, High Wire’s Overwatch Managed Security division reported a 22% increase in monthly recurring revenue and a 41% boost in total contract value month over month from June to July 2021. On a year-over-year basis, this service’s growth in new managed service provider partner acquisitions jumped 418% and is up 69% since the beginning of 2021. Why is this important?
What To Watch With SGSI Stock
The hook that brings all of these things into perspective came earlier this week. High Wire announced the hiring of a new EVP of finance. While this might seem mundane, the reason behind it isn’t. The company did this to speed up its uplisting to the NASDAQ exchange.
“Finding a proven finance leader to join us has been a top priority to strengthen our executive team with the competencies to grow quickly,” said Chief Financial Officer Dan Sullivan. “Chris’s broad experience is a perfect match to support continued growth as we set our expectations of uplisting to a national exchange.”
With a proposed uplist to keep an eye on, some have put SGSI stock on their watch list.
3. Molecular Data Inc. (NASDAQ:MKD)
Shares of Molecular Data have seen an uptick in trading activity this week. After hitting new 2021 lows of $0.2714 on Monday, MKD stock has been on the rebound. Highs have already surpassed $0.31 on Wednesday, a 14% jump. The initial drop was triggered by a recent financing round done at a discount to the market at the time.
However, now that the round was closed, Molecular Data has fresh capital in hand. According to the company, it plans to use these funds for working capital. One of the recent initiatives that it has focused on is its logistics tech platform for China’s chemical industry. It aims to connect participants in the supply chain to help connect different customers with e-commerce solutions, financial solutions, and even warehousing.
But there’s something else to keep in mind with MKD stock, and it has everything to do with the cryptocurrency ecosystem, specifically blockchain.
What To Watch With MKD Stock
Earlier this quarter, the company announced a partnership with Wanxiang Blockchain. The focus is digitizing the chemical industry as a whole. Addressing things like supply chain bottlenecks, enhanced eCommerce, and the like, The two plan to establish a digital platform build on the blockchain.
Furthermore, earlier this month, inked a partnership with an investment firm to establish blockchain data centers. The company’s press release was vague and didn’t say which US investment firm. Nor were there any other details revealed other than “The partnership will address bottlenecks in the Chemical space and establish commercial-scale Blockchain data centres in America.”
With the hype surrounding blockchain technology and things like Bitcoin, this latest initiative could be one of the things to keep in mind if you’re watching MKD stock right now.
4. China Evergrande Group (OTC:EGRNF)
This is a company that is now infamous across global markets. China Evergrande is one of the largest real estate companies in China. However, the Chinese property developer was a crucial catalyst in the latest stock market selling pressure this month. It came to light that it had two trillion yuan ($310 billion) in liabilities on its desk right now. One thing that analysts are looking at right now is if or how the Chinese government will intervene in this process. Is China Evergrande going to end up the same as the Lehman Brothers catastrophe during the financial crisis?
So far, that is a developing story. However, new initiatives are being made by the company, which has helped boost bullish sentiment in the stock market today. Evergrande announced plans to sell its $1.5 billion stakes in Shengjing Bank. The stock rallied 15% in pre-market trading and has continued higher since. Markets are also closely monitoring the company to see if it can meet its $47.5 million interest payment due.
What To Watch With EGRNF Stock
Looking ahead, the debt payments have become a sticking point for the company. It missed a payment of over $80 million that was due last week. But with new money in toe from this recent sell-off of assets, could that lend a helping hand in the near term?
Since the company has 30 days to pay the first missed payment, all isn’t lost just yet. Some are cautious, but bullish speculation has seen EGRNF stock jump over 30% on September 29th.
5. United States Antimony Corp. (NYSE:UAMY)
Finally, United States Antimony remains one of the penny stocks under $1 to watch right now. How long that will be is up in the air as UAMY stock pushed the upper limits during the afternoon session on Wednesday.
One of the hot topics of discussion this year and in 2020 has centered around alternative energy, green power, and renewables. This includes things like battery power over fossil fuels, electric vehicles, and the like. US Antimony mines precious metals as well as antimony. This raw material has different uses, but one of them is in batteries.
However, with no leading source of antimony in the United States, this presents an interesting opportunity. Right now, Russia, Tajikistan, and China control the majority of the world’s antimony. US Antimony has pushed for new agreements with companies like Perpetua Resources and is actively pursuing additional JV partners to expand its footprint to achieve a leading role in North American antimony supply.
What To Watch With UAMY Stock
Earlier this year, US Antimony announced that, with Perpetua, they would study the feasibility of processing Perpetua Resources’ antimony concentrates at facilities owned by US Antimony. In response, Laurel Sayer, CEO of Perpetua Resources, explained, “America has the brainpower, spirit of innovation, and work ethic to continue to solve some of the world’s toughest problems. However, we lack the minerals and materials we need to bring those solutions to life.”
Thanks to rising Antimony prices, UAMY could be one of the penny stocks under $1 to watch right now.
Are Penny Stocks Worth It?
Learning how to buy penny stocks is exciting. There aren’t many places where $100 turns into $1,000 in less than a decade. However, as we’ve seen with CEI stock and plenty of others, the sought-after “10x trade” has become more frequent. Does this mean all penny stocks respond like this? No, but even a 20% gain, which is quite frequent, penny stocks can easily outperform the stock market as long as you understand how to trade correctly.
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