Are you looking for the best penny stocks to buy right now? I’m sure you’re not alone, and several catalysts can help when it comes to putting together a watch list. The first step is deciding on a plan. Are you looking to scalp, day trade, swing trade, or invest? Timing can become a significant determining factor when it comes to making money in the stock market.
Where there are instances of big industry updates, the catalysts can spark massive volatility. What’s the reason for this? Speculation and emotions tend to play a role when talking about “sympathy” trades. These involve stocks that tend to move up or down based on other companies or industry updates.
Nothing is going on with the sympathy stock specifically other than its exposure to a similar market, share structure, or even short interest. A clear example of this type of trading is when we saw all of the “meme stocks” breaking out and experiencing massive moves earlier this year. AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME) most notably saw huge spikes thanks to short squeezes. This ultimately gave other traders the idea to find similar stocks to buy.
What’s an event to watch in the stock market today? Rivian (NASDAQ:RIVN) will make its public debut. Indicated at an IPO price of $78 (so far), some call this the next Tesla (NASDAQ:TSLA). Meanwhile, others are paying attention to some of the backers Rivian has attracted. From leading automotive companies to tech giants like Amazon (NASDAQ:AMZN) have backed the newest EV company. With so much excitement and hype, this appears to have become a catalyst of its own. Today we’ll look at a few companies that could be on the watch list thanks to the RIVN stock IPO today.
Penny Stocks To Watch
- Kandi Technologies Group, Inc. (NASDAQ:KNDI)
- Metromile Inc. (NASDAQ:MILE)
- KULR Technology Group Inc. (NYSE:KULR)
- Platinum Group Metals (NYSE:PLG)
Kandi Technologies Group, Inc. (NASDAQ:KNDI)
Though Rivian is a vehicle make, its entry into the market doesn’t necessarily mean it’s bad for other EV makers. Kandi Technologies specializes in off-road and electric vehicles and has launched several new models this year.
Most recently, the company introduced its K32 luxury off-road vehicle. Johnny Tai, CEO of Kandi America, said that “Recognizing the growing enthusiasm for electric off-road recreational vehicles, Kandi is leveraging its automotive experience and EV technology to make a splash in the powersports industry.”
This came as a warm welcome for some traders who got stuck following not-so-impressive earnings earlier this month. Kandi reported lower than expected earnings per share and sales compared to last year. These latest results come after the company’s previous quarter’s results showed much more robust revenue growth and beat Wall Street estimates regarding this year’s second-quarter performance compared to 2020.
Metromile Inc. (NASDAQ:MILE)
Shares of Metromile remained in the spotlight this week after speculation ultimately turned into reality at the start of the week. Metromile specializes in auto insurance. Using its technology platform, the company’s pay-per-mile strategy has become an appeal for some. This includes other companies that use Metro’s cloud-based software-as-a-service solution.
This week that B2B appeal came to a head after Lemonade (NYSE:LMND) announced plans to acquire Metromile. According to the company, the all-stock transaction would suggest “a fully diluted equity value of approximately $500 million, or just over $200 million net of cash.”
Metromile shareholders will receive Lemonade common shares at a ratio of 19:1. The deal isn’t expected to close until next year. But that hasn’t put a pause on optimism around MILE stock. Shares continued higher on Wednesday as auto stock, and EV were in focus thanks to the Rivian IPO today.
KULR Technology Group Inc. (NYSE:KULR)
Sticking with that theme, EV supply chain stocks are also of interest. KULR Technology has been one of the penny stocks we’ve followed for weeks at this point. The company provides carbon fiber thermal technology for batteries and electronic systems.
This month the company announced that it joined Clarios in the U.S. Department of Energy’s lithium-ion battery lifecycle initiative. The focus is on developing manufacturing and reuse of lithium-ion batteries and their chemical elements in the United States. According to KULR, it will provide the safe transportation of lithium-ion batteries within the entire battery management lifecycle.
Looking ahead, if KULR is on your list of penny stocks to watch, next month could be an important one for the company. It presents several battery safety and testing products at the Advanced Automotive Battery Conference held between December 7-9. With the Rivian IPO in toe, EV penny stocks could be on the radar for some looking at the industry as a whole.
Platinum Group Metals (NYSE:PLG)
When you talk about EV supply chain, raw materials are the basis for the power plants that propel these “green tech” vehicles. Platinum Group Metals has been on a tear since the start of the fourth quarter. PLG stock jumped from under $2 to over $3 during that period.
The company has been quiet on the PR wires. However, the surge of interest in electric vehicle stocks has helped. Platinum Group Metals specializes in energy metals mining. Palladium, platinum, iridium, rhodium, and other metals are well-known for their unique catalytic properties. With the rise in production of EVs, it doesn’t seem uncommon that raw materials stocks could benefit.
In its October project update related to its Waterberg Project, Platinum Group gave details on new objectives and future outlook. In particular, the company explained, “At the present time Waterberg JV Co. is planning for pre-construction activities including the engineering and design of roads, power, and water infrastructure. Project technical personnel are in process to identify, test and delineate appropriate sources of aggregate material for roadways and infrastructure lay down pads.”
Furthermore, its Lion Battery Technologies Inc. initiative with Anglo American Platinum continues offering an opportunity to capitalize on lithium battery research and development. Platinum’s investment in Lion “creates a potential vertical integration with a broader industrial market development strategy.” Therefore, this is another aspect of PLG stock’s speculative momentum to take into account as well.
Will Penny Stocks Benefit From The Rivian (RIVN) Stock IPO?
Whether or not momentum triggers an action in EV-related stocks thanks to the RIVN stock IPO is to be seen. Though companies like Tesla, Lucid, and others remain a core point of excitement and interest for the market, there’s likely to be no shortage of sympathy sentiment. With that in mind, it’s never a bad idea to have some idea of which companies have exposure to this emerging industry.