Why These 4 Penny Stocks Exploded, Are They Worth It?
Right now, there is a lot of bullish sentiment with both penny stocks and blue chips. While the most popular stocks right now include Digital World Acquisition Corp. (NASDAQ: DWAC) and Phunware Inc. (NASDAQ: PHUN), plenty of penny stocks are seeing the bullish price action.
In the stock market, we see natural periods of ebb and flow. And as a result of the very volatile trading in the past two months, investors are pushing for positive movement as Covid cases slow down and the economy gets back to normal. All of these signs show that traders are excited about the near and distant future.
And as a result, making money with penny stocks could be entirely possible in 2021. Right now, there are plenty of penny stocks that are exploding in value. With the Dow Jones Industrial Average hovering near record highs, it all comes down to knowing where to find the most valuable stocks to buy.
One thing to consider right now is that big-tech earnings are coming up this week. This includes companies such as Facebook, Apple, Amazon, and Alphabet. While this should have an effect on tech penny stocks, it may also have a broader effect on the stock market given the sheer size of these companies. So, taking all of this into consideration, let’s look at four penny stocks that exploded today.
4 Penny Stocks to Watch Right Now
- Farmmi Inc. (NASDAQ: FAMI)
- Progenity Inc. (NASDAQ: PROG)
- Camber Energy Inc. (NYSE: CEI)
- Northern Dynasty Minerals Ltd. (NYSE: NAK)
Farmmi Inc. (NASDAQ: FAMI)
One of the bigger gainers of the day so far is FAMI stock, pushing up by over 9% at midday. This gives it a one-month gain of over 35% which follows a less-than-stellar YTD performance. While it’s hard to say with certainty why FAMI stock is shooting up right now, it is likely due to its role as a meme stock. These are stocks that are discussed frequently online, and rise as a result.
In addition to this, Farmmi has made some big strides in the past few weeks. Last week, it announced that it has continued its expansion into North America through its subsidiary Zhejiang Fammi Biotechnology Co. Ltd. This subsidiary recently received a major order for dried Shiitake mushrooms from a Canadian international trading company.
“Our team is doing an excellent job building brand momentum with larger customers that have greater international reach to complement our strong foothold in the domestic China market. We believe this ongoing geographic diversification will be a multi-year growth driver.”The Chairwoman and CEO of Farmmi, Ms. Yefang Zhang
This is exciting news for the agricultural company, and something that could continue to be a benefit moving forward. Whether this makes FAMI stock worth adding to your list of penny stocks to buy or not is up to you.
Progenity Inc. (NASDAQ: PROG)
Progenity is a penny stock that we’ve covered numerous times in the past few weeks. And during that time, it has risen substantially in value. With its over 15% gain by midday on October 25th, shares of PROG stock are up by a staggering 278% in the past month.
Recently, the company has been working on a diagnostic test known as Preecludia, that can diagnose preeclampsia in pregnancy-related blood pressure disorders. On the more traditionally biotech side of its business, Progenity produces GI drugs and oral biotherapies. One of the other reasons for Progenity’s major rise comes as it is the latest victim of those looking for a short squeeze penny stock.
Despite its meteoric rise in the past few weeks, Progenity could use some work on its balance sheet. With earnings down by over 70% in 2020, the company has shown a solid losing streak during that time. And, with revenues of only $463,000 in Q2 2021, the company is banking on Preecludia to turn its luck around. It states that this test could have the potential to bring in $3 billion per year given the market size. But, the majority of that is speculation right now. While PROG stock is highly volatile, it remains an interesting big gainer to keep an eye on moving forward.
Camber Energy Inc. (NYSE: CEI)
Camber Energy is a penny stock that has been discussed very frequently over the past few months. During that time, CEI stock has witnessed major rises and subsequent corrections in its pricing. Up by around 2% today, shares of CEI stock have climbed by over 90% in the past six months. From September 1st to September 30th, shares climbed by almost 480%, bringing CEI heavily into the public spotlight.
The underlying reason for this gain comes as CEI is a major part of the most recent meme stock mania. In addition to this, its business has grown substantially, offering a new carbon capture technology that could be big news in the future. On top of this, the current environment surrounding the energy industry is extremely bullish. This is the result of high demand and low supply globally, leading to higher prices for oil and gas around the world. All of this has put CEI stock on a very bullish path in the past few weeks.
It’s worth noting that CEI is very volatile, if not one of the most volatile stocks in the market right now. While this shouldn’t serve to incite fear, it should give insight into how to trade CEI stock. With its subsidiary Viking Energy producing sizable amounts of oil (over 620,000 barrels in 2020), Camber has a very large exposure to the energy industry. And as a result, it could be worth considering for your list of penny stocks to watch.
Northern Dynasty Minerals Ltd. (NYSE: NAK)
Another big gainer of the day so far is NAK stock, pushing up by over 10% at midday. The main news for NAK stock comes as the company completed a PEA or preliminary economic assessment of its Pebble Mine project in Alaska. The goal with this mine is to begin producing a wide range of metals including copper, gold, and silver. The potential of this mine seems to be what is igniting the bullish interest in Northern Dynasty right now.
“The 2021 PEA forecasts strong economics for the Proposed Project and also demonstrates significant optionally for future potential developments.”The CEO of NAK, Ron Thiessen
Outside of this, we see that the company is still waiting on the various approvals in order to begin mining at this location. And while this may take some time, there is a lot of excitement surrounding the Pebble Mine right now. It’s worth noting that there is also the U.S. EPA review that needs to occur alongside a lawsuit regarding the project. So, as a result, investors seem to be betting on the long term with NAK. Considering this, does it deserve a spot on your penny stocks watchlist or not?
Are Penny Stocks Worth Buying Right Now?
Finding the best penny stocks to buy in 2021 can be challenging. With so much going on in the stock market, it takes a strong commitment and a breadth of research to find penny stocks that could be worth buying.
But, with the right information by your side, making money with penny stocks in 2021 is completely doable. With that in mind, do you think that penny stocks are worth buying right now or not?