best penny stocks to buy government shutdown

3 Penny Stocks to Watch Amid The Potential of a Government Shutdown 

With penny stocks, we often see speculation as the root cause of movement. This speculation can come from geopolitical events, government announcements, or even a press release pertaining to a specific company.

As a result, it is extremely important to fully understand all that you can about what is going on in the stock market. And right now, a major factor is the government passing a bill to extend gov’t funding through December 3rd.

How the Congress Government Shutdown Will Affect Penny Stocks

on September 30th The House voted in favor of the stopgap funding bill that was passed by the Senate earlier. This bill effectively continues government funding through early December. The current funding was set to expire on September 30th at midnight, however, by late in the day, the vote had passed, extending the funding through December 3rd. While the anticipation behind this vote is gone now that it has passed, we may continue to see effects felt in the stock market. 

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Often, when events like these occur, we see certain industries that can benefit, and others that may do the opposite. Thankfully, the shutdown today was avoided, however, with the first day of October only a day away, it’s important to work this news into your investing strategy. Considering this, let’s take a look at three penny stocks to watch that could be affected by the government shutdown. 

3 Penny Stocks to Watch Right Now 

  1. Globalstar Inc. (NYSE: GSAT
  2. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP
  3. Ideanomics Inc. (NASDAQ: IDEX

Globalstar Inc. (NYSE GSAT) 

Globalstar Inc. Is a penny stock that we have discussed plenty of times over the past six months. And again on September 30th, GSAT stock is in the news following a 4% gain by EOD. This brings GSAT’s six-month gain to around 20% with a YTD and one-year gain of over 390% and 440% respectively. There is a great deal of speculation surrounding the satellite communications company right now that has been around for the past few weeks. 

Following an announcement that Apple would include satellite service in its latest iPhone, investors flocked to GSAT for its potential opportunity. However, the news did not come to fruition, and GSAT did not get a contract with Apple. Many believe that today’s gain for GSAT is the result of a ‘dead cat bounce.’ This occurs when large short positions open up against a stock, and the resulting buy orders cause the stock to increase. 

And, it’s worth noting that many investors are showing little faith in the future of GSAT following the announcement that Apple would not include satellite comms in its latest products. So, while this is disheartening, Globalstar does still have an interesting business model that’s worth looking into. Whether GSAT deserves a spot on your penny stocks watchlist, however, is up to you. 


Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) 

Another penny stock that we’ve been covering for quite some time is SHIP stock. In the past month, shares of SHIP have increased by almost 20% and in the YTD period by over 180%. This is a sizable gain and reflects both Seanergy’s business model as well as the environment surrounding the shipping industry right now. 

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One of the reasons for the bullishness around dry-bulk shipping companies like Seanergy is higher shipping rates. In a letter from H.C. Wainwright, analysts stated that “Dry bulk equities are up more than 100% in the past year and spot rates are at their highest level in over a decade.” 

As a result, Seanergy and others are showing very high operating profit margins near 20%, which is quite substantial. In addition, if we consider the lower rates of Covid, we see that more goods could be in demand in the near future. This includes the resurgence of building projects and large-scale operations that require dry bulk goods. With all of this in mind, will SHIP stock make your list of penny stocks to watch in October?


Ideanomics Inc. (NASDAQ: IDEX) 

Ideanomics Inc. is another popular penny stock right now with over 100% in gains in the last twelve months. Again today, shares of IDEX popped by around 3% by EOD on September 30th. The majority of this momentum comes from a deal the company announced only a day or two earlier. The company states that its subsidiary, Wireless Advanced Vehicle Electrification or WAVE, will be participating in the U.S. Dept. of Energy’s program to develop a one-megawatt wireless charging system for Class 8 electric trucks. This is a big deal and will be done in conjunction with Kenworth. 

“At the megawatt power levels required by Class 8 EV’s, there are significant advantages to eliminating mechanical movement and human contact associated with current charging technologies. The work we are doing with Kenworth and Utah State University willful help enable fleet operators to extend the range of heavy-duty EV’s, making the industry’s zero-emission goals more attainable.” 

The CTO of WAVE, Michael Masqulier

While this project may take some time to complete, there’s no doubting that it is an exciting prospect for both companies involved. And, there is also a large amount of positivity surrounding the electric vehicles market right now. While IDEX is not a major player in the EV market as of yet, it is working to find its place in the industry. So, as an interesting EV penny stock to watch, will you be adding it to your watchlist this coming month?


Are Penny Stocks Worth Buying Right Now?

Finding the best penny stocks to buy right now can be challenging. But, with so many to choose from, there is no doubt that there is a lot of momentum in the stock market. To take advantage of this momentum, investors need to stay up to date with all the latest that is going on.

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And while the Government shutdown may have been avoided, investors should still be on the lookout for its aftershocks. Considering this, do you think that penny stocks are worth buying right now or not?

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