3 Penny Stocks That Exploded During Today’s Trading
Right now, there is a lot of volatility with both penny stocks and blue chips. But, to take advantage of this volatility, investors need to have a thorough and consistent understanding of how to make money with penny stocks and how to trade.
Right now, there are quite a few factors for those who invest in penny stocks to look into. The most important of these is Covid and the Omicron variant. While the variant has been around for over a month now and anxiety has calmed, the overwhelming case numbers are wreaking havoc on world markets. Although the volatility is no where near what it was just a few weeks ago, it is still at a level that some may find uncomfortable.
But, with volatility also comes the potential to make money off of large price swings. So, understand fully what your trading strategy is and how to take advantage. And, consider how the market is moving in both the short and long term. While no one expects 2022 to be a year without volatility, investors do believe that there will be bullish sentiment in the market. Considering all of this, let’s take a look at three penny stocks that are climbing right now and why.
3 Penny Stocks to Watch That Are Climbing Right Now
- Comstock Mining Inc. (NYSE: LODE)
- CNS Pharmaceuticals Inc. (NASDAQ: CNSP)
- Denison Mines Corp. (NYSE: DNN)
Comstock Mining Inc. (NYSE: LODE)
One of the bigger gainers of the day so far is LODE stock, which shot up by over 27% at midday. This brings its five-day gain to over 35% which is no small feat. And, in the past year, shares of LODE stock have climbed by over 50%, which helps to show why investors are interested in it right now.
For some context, Comstock mining is an innovator in the extraction and production of natural resources. This includes strategic materials that could be used in the production of clean energy and natural products. With a major market focus on renewable and a cleaner future, many investors are looking for the next best stock to buy in this industry.
Why is LODE Stock Up Today?
Today, big news dropped when the company announced the acquisition of around 3.13 million common shares of LINICO Corp. in addition to the shares it already owns. This increases Comstock’s overall ownership in the company to around 90% from its previous 45%. LINNICO is a leader in the production and development of electrification products including graphite from lithium-ion batteries and more.
“Increasing our investment in LiNiCo was a natural extension of our plan to build high-cash generating processes that tap into massive markets and decarbonize the supply chains of increasingly scarce natural resources.
We believe that LiNiCo’s pioneering extraction technologies will quickly prove to be the best, most sustainable, and most valuable process for the production of lithium and other electrification products from both recycled batteries and virgin natural resources. ”The CEO of Comstock, Corrado De Gasperis
This is major news for the company and should help to bring it to the forefront of the ESG industry. Considering this, will LODE be on your list of penny stocks to buy this month?
CNS Pharmaceuticals Inc. (NASDAQ: CNSP)
One of the largest gainers of the day so far is CNSP stock, shooting up by over 55% at midday. This brings its five-day gain to over 75% despite a one-year drop of around 27%. If we look at the chart for CNSP stock, we see a clear bullish turnaround occurring in the last few trading days. But before we get into why, it’s worth understanding what CNS Pharma does.
CNS Pharmaceuticals produces a large range of anti-cancer drug candidates to treat different metastatic cancers in the brain and CNS system. This includes its leading drug candidate, Berubicin, which is a novel anthracycline that the company is developing right now.
Why is CNSP Stock Up Today?
While no news came out today to show why CNSP stock shot up, we can try and deduce a reason based on recent news and announcements. Today’s movement with CNSP is likely caused by its short float and market speculation. Occasionally, we will see large runs like this with little news to back it.
While it is out of the ordinary, it does happen regularly, especially with penny stocks. Right now, CNSP is still working on the development and approval process for Berubicin. So, with that in mind, does CNSP stock deserve a spot on your penny stocks watchlist?
Denison Mines Corp. (NYSE: DNN)
Another big gainer today is DNN stock, which shot up by around 8.9% at midday on January 5th. This brings its five-day gain to over 17%. While this may not seem like a lot, it is quite substantial for a mining stock.
It’s worth noting that we’ve covered DNN stock numerous times in the past few weeks due to the industry’s bullishness on uranium mining right now. And as a pure-play uranium mining company, DNN has a lot to potentially benefit from in the long term.
Why is DNN Stock Up Right Now?
One of, if not the main reason for Denison’s growth today comes off the heels of this week’s large move. On January 3rd, the European Commission proposed that it would begin classifying nuclear power as green energy in Europe. This would likely include uranium, thus making these companies, green energy stocks.
While this is not a material change for DNN per se, it is a great move in the right direction for the industry as a whole. And although uranium has been stigmatized, it remains an incredibly efficient and clean source of power. With that considered, do you think DNN stock is worth buying or not?
Are Penny Stocks Worth Buying in 2022?
If you’re considering buying penny stocks in 2022, there are quite a lot of opportunities to pick from. While Covid is still causing major market movement right now, we are also seeing a sizable amount of bullish market sentiment to take advantage of.
[Read More] Hot Penny Stocks For 2022 To Buy For Under $2
Trading penny stocks, however, is not for the faint of heart. And, investors need to have a full and complete understanding of how the market is moving and how to take advantage. So, make a trading strategy and stick to it no matter what occurs with penny stocks. Considering all of this, do you think that penny stocks are worth buying in 2022?
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