3 Penny Stocks That Climbed During Today’s Trading Session
Right now, there is a lot of momentum for penny stocks traders to take advantage of. And to understand how, we have to consider what’s going on in the stock market right now. While the overarching theme is Covid, there are several things that have come from the pandemic.
First and foremost is inflation. With billions in stimulus given out in the past year and a half, inflation is at a very high point right now. This means that some investors have turned to mining stocks, gold stocks, and other similar companies as a way to avoid this high inflation rate.
The next thing to consider is the major economic growth we are experiencing right now. With Covid cases beginning to decline, business is resuming, people are going back to work, and industrial projects can begin once more. This means that some analysts expect economic growth to resume, potentially surpassing pre-covid levels.
Lastly, we also have to understand the current trend of social media and retail trading. This has to do with retail investors buying and selling penny stocks that are frequently mentioned online in places such as Reddit and Twitter.
The phenomenon of ‘Reddit penny stocks’ is something we’ve witnessed this year, and could continue to increase volatility in the stock market. So, considering all of this, let’s take a look at three penny stocks that are climbing during today’s trading session.
3 Penny Stocks To Watch Right Now
Denison Mines Corp. (NYSE: DNN)
Denison Mines Corp. is a penny stock that managed to climb by almost 6% during trading today. This brings its six-month and YTD gains to over 38% and 126% respectively. And, over the past twelve months, DNN stock has racked up more than 330% in gains, which is quite substantial. If you’re unfamiliar, Denison explores for uranium and develops various properties relating to it. Its main asset is the Wheeler River uranium project, in which it owns a 95% stake. This project is located in the Athabasca Basin region in northern Saskatchewan.
On September 28th, the company announced an at-the-market offering agreement with Cantor Fitzgerald and Scotia Capital. This is an equity distribution agreement that will allow Denison to offer and sell common shares with an aggregate offering price of up to $50 million in the United States and Canada.
These sales, if any, would be made up of ordinary broker’s transactions on the TSX or NYSE American. This establishes the at-the-market offering as a potentially valuable tool for future access to the public market. With this new information to note, is DNN a contender for your penny stock watchlist?
Globalstar Inc. (NYSE: GSAT)
Globalstar Inc. is another penny stock that gets mentioned a lot online due to its up and down movements in the market. In the past YTD period, shares of GSAT stock have jumped by a staggering 347%, indicating solid bullish sentiment. For some context, Globalstar is a communications company offering two-way voice and data products. These products are used for remote businesses, recreational use, safety use, and emergency response purposes. It also offers its SPOT products for satellite GPS messaging and personal tracking as well as emergency location.
Recently, shares of GSAT rose tremendously with rumors that the next iPhone could contain satellite technology in partnership with Globalstar. Unfortunately for investors, this rumor turned out to be false for the time being. Shares of GSAT stock understandably began to correct shortly after.
This is a perfect example of how speculative penny stocks can be. This rumor resulted in a major spike for GSAT stock, however, when the rumor was found out to be untrue, shares dropped significantly. Because of this, investors should always stay up to date with the latest news and do their own research to have a full understanding of a company. Despite all of this, its YTD and one-year gains show that GSAT is growing notwithstanding its rumor-related bearish momentum. Noting this info, will GSAT stock be on your October penny stocks watchlist?
Borr Drilling Limited (NYSE: BORR)
Borr Drilling Limited is a penny stock that has climbed by almost 50% in the past month and over 109% in the past twelve months. This company operates as an offshore drilling contractor that is based in Bermuda. The company owns various jack-up rigs that it contracts and operates in shallow-water regions. It also sends out related equipment and work crews to conduct oil and gas drilling services.
Back in August, the company provided its preliminary results for the second quarter of 2021. Borr’s total operating revenues went up 13% quarter over quarter during this period. It experienced an increased net loss quarter over quarter because of a decrease in income from equity method investments. Borr’s adjusted EBITDA rose by $14.4 million quarter over quarter, representing a huge increase for the company.
“We have seen a steady improvement in operations during the second quarter of 2021 with 13 rigs working at quarter-end. Following our significant contract wins year to date, we have added approximately $542 million in revenues to our backlog. In our fleet, we have an additional ten delivered rigs that can be deployed in an improving market, and a further five rigs still to be delivered by the Keppel FELS shipyard.”CEO of Borr Drilling, Patrick Schorn
Since these results were released, BORR stock has gone up about $0.30 per share in the market. In addition, its volume has increased substantially during that time frame. With all of this in mind, does BORR stock deserve a spot on your list of penny stocks to watch?
Are Penny Stocks Worth Buying Right Now?
Finding the best penny stocks to buy right now can be challenging. With so much movement in the stock market, there are plenty of ways to make money with penny stocks.
However, understanding exactly what the company does and what its plans are for the future is a crucial step that should not be avoided. In addition, having a thorough concept of your own investing style will help to keep your portfolio on track. Considering all of this, do you think that penny stocks are worth buying right now or not?