A Short Week Brings New Opportunities For Penny Stocks
If you’re looking for hot penny stocks right now, you looked in the right place. There are plenty of trends to follow especially when it comes to retail traders. While your traditional investment style may focus on fundamentals, that day trading portion of your portfolio is all about short-term risk/reward.
Technical indicators and chart patterns tend to take president over a company’s earnings per share growth. Take short squeeze penny stocks, for instance. The chances that someone looking to invest for 5+ years is low if you’re talking about stocks with high short interest. But for traders, this could present a very timely opportunity in the short term.
The same goes for some of the industry trends that have sent shares of companies flying. Take the electric vehicle and renewable energy industries, for example. While both could become sound investments down the road, the wild volatility has favored short-term traders over long-term investors right now.
Last week, for example, the newest solar EV company, Sono Group (NASDAQ:SEV), went public. In less than 48 hours of the IPO, SEV stock surged from around $20 to highs of more than $47. Just days later, the EV stock is now trading below $20. It’s instances like these that support the idea that having a strategy in place is essential no matter if you’re trading or investing in penny stocks.
In this article, we’re looking at a handful of names that’ve turned heads in the stock market today. Whether it’s from volatility spikes or becoming a recognized name in a notable industry, high volume and momentum are in play during the first half of the short week.
Penny Stocks To Watch Right Now
Penny Stocks To Watch 1. Birks Group Inc. (NYSE:BGI)
Luxury and general retail stocks are becoming hot-ticket items right now. Just look at companies like Signet Jewelers (NYSE:SIG) or Capri Holdings (NYSE:CPRI). Both of these luxury retailers have soared to fresh, record 2021 highs this quarter. As the market looks for sympathy momentum in similar companies, Birks Group may have subtly benefited recently.
After free-falling at the beginning of the month, BGI stock has been on a steady rebound. More robust earnings and a return to profitability were among the key drivers for renewed interest in the fine jewelry company’s shares. Birks reported an increase of 48.4% in sales for the 26-week period ending September 25, 2021, for its fiscal 2022. This yielded a gross profit of $34.9 million and equated to a jump of over 50% compared to the same period in fiscal 2021.
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Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, explained, “Our return to profitability is a significant milestone that is indicative of the success of the strategies we implemented to overcome the challenges brought about by COVID-19…The Company is off to a positive start in fiscal 2022 with sales growth in all channels, including the continued expansion of our e-commerce channel and the momentum created in our Bijoux Birks wholesale business, underscoring the progress made in the implementation of our omni-channel strategy.”
Thanks to this rebound in performance and an uptick of interest in luxury retail, BGI could be one of the penny stocks to watch this week.
2. OLB Group Inc. (NASDAQ:OLB)
OLB Group is one of the short squeeze stocks that broke out earlier this month. this was thanks, in part, to the surge of interest in cryptocurrency and blockchain technology stocks. OLB specializes in fintech and bitcoin mining services. When the market went crazy for the penny stock, OLB had just reported that it would be able to process Mastercard Bitcoin payments for its merchant partners. This news helped spark enough excitement to see OLB stock jump to highs of over $12. Since returning to earth, the company has remained one to watch, albeit during a continued decline.
This week kicked off with cryptocurrencies mixed across the board. Over the weekend, the price of Bitcoin flip-flopped between the mid to high $50k range. Other leading cryptos, including Ethereum, Litecoin, and even Shiba Inu, mirrored this trend. Even with this as the case, shares of OLB saw a bit more volume on November 22 than they had in previous sessions. Though there were no headlines to point at, the depressed price could be the underlying catalyst as traders await a more prominent move (up or down) in cryptocurrencies.
In many cases, speculation plays a significant role in crypto-related stocks. Traders place their bets on how the underlying price of things like Bitcoin could influence certain stocks. With OLB part of the crypto niche, it could be interesting to watch if things like Bitcoin begin moving.
3. Taseko Mines Limited (NYSE:TGB)
One industry that has come back into focus as of late is mining. With the recent volatility in precious and energy metals prices, the market seems to have turned its focus on raw materials companies. Taseko specializes in mining copper and molybdenum, both hot ticket items in the EV market. In addition, you can’t forget the massive amounts of money set for deployment to rebuild or further enhance infrastructure globally.
The company is coming off of a solid Q3 earnings beat announced earlier this month. Taseko came in 100% higher in EPS than estimates and reported sales of $132.56M for the quarter compared to just $106.49M that analysts expected.
“Higher metal production led to lower unit costs as Total operating costs (C1) fell to US$1.57 per pound produced, 22% lower than the previous quarter…We now have approximately $300 million in available liquidity and are well positioned to move into our next phase of growth with construction of the Florence Copper commercial production facility.”
Stuart McDonald, President and CEO of Taseko
To this end, Taseko said it received an initial draft of an underground injection control permit from the EPA for its Florence Project. In light of these latest milestones, TGB could be one of the penny stocks to watch.
4. NewAge Inc. (NASDAQ:NBEV)
Sometimes it isn’t company headlines driving momentum. NewAge is a prime example of that. The penny stock has been under noticeable pressure for months, but this week saw shares trade some of the highest single-day volumes since February. The catalyst didn’t stem from a new sales deal or big product reveal. NBEV stock surged following a Form 4 filing that showed Director Ed Brennan picked up half a million shares at the end of last week. His average price was $1.2155 per share.
This purchase came just a few days after NewAge had announced that it discovered a new method for fighting the effects of aging. In connection with this, the company also filed a patent to protect this latest discovery.
Deanna Latson, NewAge’s Chief Product Officer, explained, “This is the first time that scientists have ascertained how to simultaneously address these specific pathways by which HGH declines in the body. As a result, we can now trigger the body’s natural regeneration process and support cellular health. No other product to our knowledge can improve cell regeneration, inhibit cellular apoptosis, support physical resilience, boost energy and stamina, and combat other adverse effects of aging.”
Thanks to these two developments, it looks like there is a bit more optimism at the beginning of the week. Will that last through the holiday for NBEV stock?
Hot Penny Stocks To Watch Right Now
No matter what, it’s important to understand that penny stocks have plenty of risks involved. They are some of the most volatile equities to trade. Yet because of that, they can offer some of the highest potential for short-term gains. Given the latest milestones from some of these companies, will any join your penny stocks list this week?
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