October marks the beginning of the final quarter of the year. The “Golden Quarter” as some may say and penny stocks are in a very bright spotlight. By now, we’ve seen the rise of the retail trader and how “dumb money” isn’t so dumb anymore. The driving force behind new trends like short squeeze stocks, low float breakouts, and meme stocks is fueled by the tidal wave of new traders entering the market since the 2020 pandemic.
Now that there are just a few months left until the end of the year, traders are searching for the next big trend for retail traders and they may have found it in some of the cheapest penny stocks today. Since the definition of penny stocks includes any trading below $5, there are thousands of companies to choose from. However, something that we can see materializing is a more prominent focus on penny stocks under $1. These are literally stocks trading for pennies and they’ve grown in popularity.
Thanks to the massive breakouts of companies like Camber Energy (NYSE:CEI) and others, traders have gotten a taste of how gains can quickly compound thanks to these cheap stocks. CEI stock, for instance, managed to jump an initial 80% within only a few weeks on a price move of fewer than 25 cents.
Obviously, since then, the penny stock has gained more than 1,000% but it’s because of this potential that traders are seeking out the next round of penny stocks under $1 to watch right now.
Penny Stocks Under $1 To Watch Right Now
It’s no secret that there’s plenty of risks to achieve these types of rewards. A few cents can equate to just as big a loss as it can the gains. However, a little bit of sound research and due diligence can help cut through the noise when it comes to finding top penny stocks to buy. In today’s article, we’ll look at a few more of these cheap stocks to watch. Then you can decide if the potential reward outweighs the current risk factors.
- Alpha Esports Tech Inc. (OTC:APETF)(CSE:ALPA)
- Good Gaming Inc. (OTC:GMER)
- Borr Drilling Limited (NYSE:BORR)
- Gran Tierra Energy Inc. (NYSE:GTE)
1. Alpha Esports Tech Inc. (OTC:APETF)(CSE:ALPA)
One of the increasingly popular areas of the tech and entertainment space right now is esports. Believe it or not, global awareness of esports rose to 1.95 billion people in 2020. This was compared to only 1.1 billion who knew of esports as a spectator sport in 2016, according to Forbes. With this rise in overall awareness, esports companies have begun popping up to capitalize on the rapid growth.
Alpha Esports Tech is one of these companies. It went public earlier this year and has wasted no time in expanding its reach to support its esports initiatives. At the center of its model is Alpha’s GamerzArena platform. It’s based on building an active community of dedicated gamers. Not only can they play and watch games alongside their peers. They can compete in tournaments to earn prizes through daily tournaments. According to the company it boasts over 100,000 active users and a rapidly evolving ecosystem.
Alpha has gone beyond the basics of offering a competition-only model. It evolved that into enhancing the esports ecosystem in general. For example, the company recently became the Official Online Gaming Portal of Nets Gaming Crew, the NBA 2K League affiliate of the Brooklyn Nets. This gives Alpha an opportunity to directly connect with NetsGC’s network of fans and the NBA 2K League community.
What To Watch With Alpha Esports
This week the company announced a partnership with Esports Entertainment Group’s newly rebranded subsidiary EEG Labs (NASDAQ: GMBL). The two will develop a new computer vision tech system that allows GamerzArena to conduct automated scoring for popular games such as Call of Duty and Fortnite. The new computer vision tech simplifies match scoring and allows GamerzArena to detect many common types of fraudulent activity, such as falsifying game outcomes.
“Partnering with EEG Labs Analytics to design a computer vision tech will push GamerzArena to the next level,” said Interim CEO, Matthew Schmidt. “The automated scoring system and anti-cheating software will give GamerzArena an added level of trust and security, which will help us continue to increase our userbase.”
With the rising adoption of esports, viewership, and the like, Alpha has begun gaining attention in the market recently. Over the last few weeks, APETF in the US has jumped from $0.19 to highs of $0.37 last week. In Canada, which has a longer-established trading history as Alpha went public on the CSE first, shares of ALPA have jumped from C$0.235 to C$0.375 during the same period.
2. Good Gaming Inc. (OTC:GMER)
Another esports and gaming company that has gained some momentum recently is Good Gaming. The company specializes in collaboration platforms for gamers as well as some newly developed initiatives this year centered around blockchain technology.
In particular, Good Gaming has been developing its MicroBuddies game. It involves everything from blockchain tech and cryptocurrency, to non-fungible tokens (NFTs) and decentralization. According to the company, MicroBuddies is designed for players to collect “microbes” that can self-replicate and passively produce their own cryptocurrency “GOO”. The players can then trade this “GOO on third-party crypto exchanges.
What To Watch With Good Gaming
Good Gaming has been building its MicroBuddies game in phases. Last week the company completed Phase 2 and announced entry into Phase 3 preparing for the official launch of MicroBuddies.
David B. Dorwart, Good Gaming, Inc. CEO explained, “The recent release of our Game Documentation for MicroBuddies™ is a really big deal for us, as it now gives us considerable depth and abilities to market our product to the right consumers in the NFT and gaming space…We are confident it will be well received by NFT collectors, gamers, and the general public…We will now take an aggressive approach with finalizing the game and bringing as much exposure to our brand in an effort to make MicroBuddies™ a recognized name in the NFT gaming industry.”
With the rise of online gaming and, of course, the crypto ecosystem, GMER stock has been on the watchlist of some traders recently.
3. Borr Drilling Limited (NYSE:BORR)
As you’ll see with these next few penny stocks, energy sector momentum has taken hold. It has also helped propel several of the cheapest energy penny stocks to watch. Borr Drilling is one that we’ve discussed over the last few weeks. In fact, since late August, BORR stock has climbed from under 60 cents to just under $1 this week.
The move has come as energy stocks continue rebounding on the back of higher commodities prices. Wholesale gas prices have gotten a bump ahead of the upcoming OPEC+ meeting. The expectations are for the conglomerate to stick to its current output policy with an additional 400,000 barrels per day in November. Obviously, reopening efforts have boosted the demand side of the equation with more energy resources being required to both meet pre-pandemic demand and supply new industrialization efforts, globally.
What To Watch With Borr
Borr provides drilling services to the oil and gas exploration and production industry. It operates and owns jack-up rigs used by its customers. Growth has been a big focus for the company. For example, its recently reported second-quarter results showed that Borr increased its revenues by 13% over the first quarter. It also realized a boost in its adjusted EBITDA.
In its last business update CEO, Patrick Schorn explained, “Based on ongoing negotiations expected to be concluded in the coming weeks, we anticipate having 17 rigs operating and generating revenue by year-end. Against a backdrop of elevated oil prices, rig demand reverting to and outpacing pre-pandemic levels, and rig supply naturally reducing, we are well-positioned to benefit from the current environment, and on the way to having all of our 23 delivered rigs working by the end of 2022.”
As energy demand continues to grow, even the cheapest energy stocks have benefited. Borr has continued to echo this trend and could be one of the penny stocks under $1 to watch in October.
4. Gran Tierra Energy Inc. (NYSE:GTE)
Another one of the names on this list of penny stocks gaining momentum right now is Gran Tierra Energy. There haven’t been many new updates from the company. But considering its business model, sector momentum has likely played a big role.
Gran Tierra Energy focuses on oil and gas exploration and production. Right now it’s developing a portfolio of assets in Columbia and Ecuador. As we’ve discussed in the past with Gran Tierra, the company has strong tailwinds giving a boost from its latest round of operational highlights.
These include a 14% increase in average total production for the second quarter on a year-over-year basis. The company also reaffirmed its full-year production guidance of 27.5k to 28.5k barrels of oil per day with a capital program range of $130 million to $150 million.
What To Watch With Gran Tierra
Similar to Borr Drilling, Gran Tierra could be one of the companies gaining steam from sympathy sentiment. As long as oil and gas stocks remain hot GTE has become one to watch. Whether or not that is the case later in October is to be seen. But if it is on your watch list, then keeping a close eye on the industry, overall could be something to make sure you’ve got covered.
Are Penny Stocks On Your Watch List Right Now?
Whether you’re looking for the best penny stocks to buy under $1 or not knowing how to actually trade these cheap stocks is the most important thing to master. Volatility plays a big role. If you’re not prepared with the right strategy, it can make things much more difficult. So if you’re new to these low-priced stocks, take a look at some of these articles to get you up to speed on the basics of making money with penny stocks:
- Penny Stocks & 5 Stats To Know If You’re Trading Or Investing In 2021
- How to Buy Penny Stocks In 2021
- Investing In Penny Stocks in a Bear Market, 3 Tips and Tricks
- Best Penny Stock Brokers For Trading & Investing In 2021
- Penny Stocks & Frequently Asked Questions From New Traders
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