September was a wild month for penny stocks and blue chips alike. However, despite the volatility, plenty of new opportunities presented themselves. We saw meme stocks remain a core focus for retail traders. We also saw new themes come to light. One of these new themes came recently with a spike in penny stocks under $1.
With broader markets on tilt, some retail traders thought it wise to play the quick swings in cheap stocks like Camber Energy (NYSE:CEI). This company has become a bellwether for stocks to watch under $1 and showed just how possible it is for these low-priced equities to reach new heights.
Within four weeks, CEI stock rallied from lows of $0.33 to highs this past week of $4.85. Whether or not that trend continues is secondary to what it has meant for traders looking for penny stocks to buy. In the last few months, rarely was any weight placed on most stocks under $1, let alone under 50 cents. In many cases, you’d see shares trade in channel-bound trends. However, the move that CEI stock managed to make demonstrated that not all penny stocks are alike.
What’s Happening In The Stock Market Today?
I give this background for one reason: to show you that when it comes to penny stocks, they beat to the sound of their own drums. Case in point, broader large-cap indexes like the S&P are off their 2021 highs by over 5%. Meanwhile, you’ve got penny stocks like CEI and others etching new highs on multi-hundred and thousand percentage point runs.
Read more: 3 Hot Penny Stocks to Watch in October 2021
What’s a theme to follow in the stock market today? Cryptocurrencies like Ethereum and Bitcoin are back in the spotlight. They took a backseat as things sold off over the last few weeks. But now, a flight to safety in digital assets has become a focus. While not all penny stocks on this list will fall into this niche, it has sent a spike in momentum for many that could be on watch lists of traders heading into October.
- Alpha Esports Tech (OTC:APETF)(CSE:ALPA)
- Bitfarms Ltd. (NASDAQ:BITF)
- Bit Brother Ltd (NASDAQ:BTB)
- Sierra Metals Inc. (NYSE:SMTS)
Alpha Esports Tech (OTC:APETF)(CSE:ALPA)
When you think about cryptocurrencies like bitcoin and Ethereum, what comes to mind? In all cases, one of the first topics is digital transactions. In the new landscape of entertainment that now includes a growing niche within esports, digital currencies and tokenization has become prominent. Not only are esports companies focused on branching out into this arena for in-platform transactions, but the build-up of interest in iGaming (online betting) is also something to follow closely.
Alpha Esports may be a newer public company right now after making its public debut this year. But that doesn’t mean it’s been a slow start-up. Alpha has already built partnerships with countless companies. This is for both brand building and expanding its userbase. Most recently, Alpha became 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
Alpha’s GamerzArena platform has become the backbone of the company’s model. It is building a unique ecosystem that includes novice and professional gamers alike. It also folds in gamer development, offering players to be scouted and made into pro athletes. Something else attracting attention aside from company news is Alpha’s leadership and advisory board. It includes experienced names from leading companies, including Red Bull, Reel One Entertainment, The Golden State Warriors, Mount Sinai, Victory Square Technologies, Activision, and Atari, to name a few.
When it comes to cryptocurrency, Alpha is also undertaking an initiative to further monetize its platform through tokenization. Its Bitcoin pegged Alpha Coin has been created to allow users to enter contests and tournaments while also giving winners the ability to redeem their Alpha Token winnings for local currency or purchases in the GamerzArena store. With the latest jump in the price of Bitcoin, this could be another reason why some are watching APETF stock.
Bitfarms Ltd. (NASDAQ:BITF)
As its name might suggest, Bitfarms specializes in cryptocurrency mining. One of the unique roads that Bitfarms and other crypto miners are heading down right now involves more eco-friendly sources of power.
Last month the company signed a deal with the city of Sherbrooke in Quebec, Canada. The two created a plan where 96 MW of hydropower will be developed and paired with optimized mining equipment to achieve lower power consumption and higher output levels.
What To Watch With BITF Stock
When it comes to bitcoin mining stocks, there are a few things to pay attention to—obviously, overhead costs, including one of the most significant being power. You’ve also got hash rates at which miners are operating with. In simple terms, higher hash rates can increase a miner’s chance of “finding” the next block in a blockchain and receiving a Bitcoin reward. Then, of course, you’ve got the overall output of Bitcoin and other cryptocurrencies being mined.
This week Bitfarms shed some light on current operating successes. Bitcoin production increased to 1,050 BTC. This figure is 38% higher than its second-quarter performance. Total Bitcoin holdings grew to more than 2,300 BTC. Looking ahead, management explained that “With scheduled monthly deliveries totaling 55,000 miners over the next 15 months and new high-power production facilities coming online, we are regularly increasing our hash rate towards our goals of 3 exahash per second (EH/s) in first-quarter 2022 and 8 EH/s by year-end 2022.”
If cryptocurrency prices continue rising, this could be something to consider if BITF stock is on your list right now.
Bit Brother Ltd. (NASDAQ:BTB)
Another one of the cryptocurrency stocks to watch is Bit Brother. Like Bitfarms, the company specializes in cryptocurrency mining as well as blockchain technology. While not much news has come out from the company in a few months, Bit Brothers has found ways of integrating its prior business (in hospitality and consumables – ref: Urban Tea) into this new digital currency arena.
Earlier this year, the company announced a letter of intent to acquire 51% of Angelo’s Pizza with plans for expanding the century-old brand. Bit Brother explained Angelo’s plans to grow in international markets, including Canada, Japan, South Korea, China, Singapore, and Australia.
Xianlong Wu, CEO of Bit Brother, said in its PR, “With Bit Brother’s experience in the catering industry, and Angelo’s Pizza’s rich history, we believe this opportunity will bring growth to all parties involved. Along with our plans to expand a restaurant with decades of success to have a global reach, we will be able to continue to grow our Bitcoin payment business.”
What To Watch With BTB Stock
With little information in recent weeks, BTB stock could be gaining ground based on sympathy momentum in the sector. Thanks to an uptick in the current price of Bitcoin, stocks with crypto exposure have started climbing. It’s important to keep in mind that things can shift rapidly when sentiment is driving the car. So if BTB stock is on your list right now, keep that in mind.
Sierra Metals Inc. (NYSE:SMTS)
Bitcoin has been compared to precious metals as the digital form. Meanwhile, Ethereum has become more akin to oil and energy commodities for its utility in the digital ecosystem. Right now, there seems to be a flight to safety as markets continue to stall. But that doesn’t mean investors have forgotten traditional safe-haven stocks.
Sierra Metals caught a surge of momentum this week as the S&P and Nasdaq continued their declines. The company mines precious and base metals from its mines in Peru and Mexico. Last quarter Sierra reported that its Bolivar Mine in Mexico began including iron ore concentrate production. In response to this, CEO Luis Marchese explained, “Additional to the iron ore project, the plan is to profitably develop and grow the Bolivar Mine through accelerating staged increases to a production rate of 10,000 TPD in 2024 from today’s capacity of 5,000 TPD, based on current analysts consensus metal price estimates.”
What To Watch With SMTS Stock
Precious metals stocks have had a rough year. SMTS stock resembles this trend after reaching new 2021 lows late last month. However, with a flight to safety, some precious metals stocks could be back on the watch list heading into the final quarter of the year.
This week, Sierra announced that it filed an updated independent technical report prepared in accordance with National Instrument 43-101 on the Bolivar Mine in Mexico. This is a compliance report mining companies file to validate their claims and offer proper disclosures.
With the progress made in Mexico and the new addition of iron ore Sierra has established some additional footing within the last few months. Infrastructure has become a core focus, and recently, raw materials (including iron ore) have gained attention in the stock market. With that, companies like Sierra could be ones on watch lists right now.
Are Penny Stocks On Your List Right Now?
One of the reasons traders look to penny stocks for opportunity is because they are so volatile. While broader market volatility can come as a shock to some, these cheap stocks are well-known for just that. Thanks to this point of focus, those who know how to buy penny stocks can make plenty of money in the short term. Then you’ve also got another side to low-priced stocks, and that’s the investment potential. Considering the higher risks, many of these companies are in the early stages of development and therefore present opportunities to see something from the ground up. Whichever your focus is, if you’re looking for penny stocks to buy, make sure you’ve got a plan in place and a strategy in mind to make money.
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