Are These Penny Stocks Worth Buying Right Now?
With the first day of October starting on a strong note for penny stocks, there is plenty of momentum for investors to take advantage of. Following a positive vote last night to keep the government funded through early December, investors are excited about what October could bring. Historically, September is a poorly performing month for the stock market.
However, with many blue chips and penny stocks beaten down over the last four weeks, there could be some value to be had. It’s important to consider a few factors when it comes to investing in penny stocks in 2021. For one, the trajectory of the pandemic continues to have a sizable effect on the stock market.
And with a new pill to treat Covid-19 showing promise, investors are optimistic about the near future. In addition to this, we have to consider the current economic situation in the U.S. This includes treasury secretary, Janet Yellen, stating that the Federal debt ceiling should be abolished by congress to avoid the government running out of cash.
As we see with penny stocks, speculation is always the main driving factor behind price movement. This means that events like these can and likely will have a large effect on the current trajectory of the stock market. So, while no one can predict the future, we can look at the current ongoing events to see what could change in the coming months. With all of that in mind, let’s take a look at three hot penny stocks to watch in October 2021.
3 Penny Stocks to Watch in October 2021
Farmmi Inc. (NASDAQ: FAMI)
Farmmi Inc. is a penny stock that has climbed by over 115% in the past five days. During that time, we’ve covered FAMI stock extensively, however, it is worth noting that meteoric rises often result in large price corrections. For some context, this company offers agricultural products and has export orders to various locations around the world. Its offerings include edible fungi products such as Mu Er mushrooms and shiitake. In addition, its e-commerce platform, Farmmi Jicai sells products under the Forasen and Farmmi Liangpin brands.
On September 27th, the company’s subsidiary Zhejiang Forest Food Co. Ltd. won an additional multi-product export order. Its dried whole and sliced Shiitake mushrooms and dried black fungus have been ordered from Israel. Since this deal was made, FAMI stock has gone from $0.22 per share to $0.44 per share. But, this is likely also the result of high speculation and talk of FAMI stock online.
“We continue to execute on our business, and drive growth at existing and new customers. We are benefitting from robust demand in traditional geographies, including China, while developing new markets, including Israel. At the same time, we are leveraging our strengthened competitive and financial position to lay the groundwork for our future success, as we prioritize building increased value for shareholders.”Chairwoman and CEO of Farmmi, Ms. Yefang Zhang
Considering its major gains in the past week or so, will you add FAMI to your penny stock watchlist?
Cyren Ltd. (NASDAQ: CYRN)
Cyren Ltd. is a tech penny stock that creates information security solutions in various countries. While its five-day gain of over 15% is not nearly as much as FAMI, it is still a respectable rise in value. For some added context, Cyren’s services protect email, mobile transactions, and more. The company offers cybersecurity solutions to protect businesses, employees, and customers alike. Its services are offered under the Cyren brand name. Its Cyren threat detection services include email security, IP reputation, and virus outbreak detection services.
On September 30th, Cyren added support for ten languages to its Microsoft 365 anti-phishing solution. The goal was to better serve its customers around the world. All the threat scanning and reporting features supported by the Outlook and more can now be viewed in more user-preferred languages. It is important that security isn’t jeopardized due to misinterpretation or incorrect translations. This ensures user engagement to lower or completely get rid of phishing issues.
“As Cyren Inbox Security adoption has increased among multinational organizations, we needed to expand our language support to better serve customers with multinational workforces and global operations so they can more effectively engage their employees in the fight against phishing.”Chief Strategy Officer and EVP of Cyren, Lior Kohavi
On the day of the announcement, CYRN stock went up by 13% in the market. Its volume is also much higher than its average. With this in mind, will CYRN make your penny stock watchlist?
Grom Social Enterprises Inc. (NASDAQ: GROM)
Grom Social Enterprises Inc. is a media, technology, and entertainment company. In the past five-day period, shares of GROM stock have shot up by a staggering 98%, bringing its YTD gain to over 109%. If you haven’t heard of Grom Social Enterprises, it is a company that operates a social media network for people under 13 years old. Additionally, Grom produces animated films and television series. The company also offers web filtering services to schools and governments.
On September 15th, Grom closed a $4.4 million private placement. The investment is in the form of a 10% original issue discount convertible note in the amount of $4,400,00 which is an 18-month maturity. EF Hutton, a division of Benchmark Investments LLC acted as an exclusive placement agent for this offering.
The company intends on using the net proceeds for working capital, partnerships, joint ventures, potential acquisitions, and corporate purposes. Right now, digital entertainment, including social media and general media, are heating up. While the pandemic is lessening in severity, the demand for online content has only continued to rise. Considering all of this, does GROM stock deserve a spot on your list of penny stocks to watch?
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy in 2021 can be challenging. But, with so many different stocks to choose from, it can be much easier than previously imagined with the right tools by your side.
Keeping up to date with the latest news and events is a great way to stay ahead. Combine this with a proper trading strategy, and making money with penny stocks in 2021 can be very possible. Considering all of this, which penny stocks are you watching right now?