3 Hot Penny Stocks to Watch as October Comes to an End
With October coming to an end, there are plenty of penny stocks that investors are watching right now. Thanks to the massive surge in the market boosting share prices of companies like Digital World Acquisition Corp. (NASDAQ:DWAC) and Phunware Inc. (NASDAQ:PHUN), penny stocks and other small-cap companies have gained attention from investors. To understand which penny stocks could have the most potential, it’s best to consider the overarching environment in the stock market, including sentiment-based trends.
For one, we have the pandemic to consider. While it is not as much of an issue as it was only a few months ago, it is still a major driver for shaky price action. And as a result, investors have turned to biotech penny stocks, and also toward more stable penny stocks such as those in the mining industry.
The next aspect to consider is the high rate of inflation we are witnessing right now. This has led many to precious metals stocks, as they often provide a less volatile option in times of economic turmoil. So, while there are a lot of positive signs with the economy right now, there is also a great deal of fear abound. This fear is causing major volatility and large intraday fluctuations. But, with the right trading strategy on hand, investors can learn to take advantage of this volatility, and make money with penny stocks.
Too often, traders will turn to stocks simply because they found them online and without doing the proper research. While this can be profitable for some, those who consistently see gains are the ones that put in the time. With all of this in mind, let’s take a look at three penny stocks to add to your watchlist right now.
3 Penny Stocks to Watch Right Now
Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is an entertainment penny stock that has climbed by over 27% in the past five days or so. This shows just how popular the company is and how large the bullish interest in it is as well. For those unfamiliar, Cinedigm is a company that owns rights and distributes movies, television, and other forms of content. It distributes its products to the NFL, NHL, Konami, and many more. It also distributes its products to home entertainment platforms such as Netflix, Hulu, Vudu, and more.
Recently, Cinedigm announced the acquisition of Bloody Disgusting. Following this announcement, the company has announced that it will be offering horror-based NFT trading cards branded as Bloody Disgusting Blood Packs. The company has commissioned multiple horror artists such as Luke Chueh and Rick Dienzo to create original paintings on their favorite death scenes from iconic horror movies.
In addition to these cards, it will offer an exclusive trading card from the Standard Edition series as a free “welcome gift” to new subscribers as its recently acquired Screambox subscription service. The momentum with CIDM stock is strong right now, and it continues to push its unique growth agenda. With its move into the NFT marketplace also offering potential for the company, it could be worth keeping an eye on. With all of this in mind, will CIDM be on your list of penny stocks to watch?
Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is a mining stock that has climbed by around 5% in the past month. While this may not seem like a lot, it is substantial as mining stocks tend not to move very frequently. IF you’re not familiar with Yamana Gold, it is a company that produces precious metals in the Americas. Yamana actively searches for gold and silver at its development stage properties, land positions, and exploration properties.
On October 4th, Yamana released its latest update. The company disclosed that it will be releasing its third-quarter 2021 operational and financial results after the market closes on October 28th, 2021. The following day, a conference call and webcast will take place at 9 A.M. EDT.
Financial results can often have a big impact on mining stocks like Yamana Gold. The prices of gold and silver also have a sizeable impact on Yamana Gold, the stock will usually follow the trajectory of the underlying metals it mines. In the last month, AUY stock has experienced a lot of positive momentum in the market. Noting this information, is AUY going to make your penny stock watchlist as we continue through October?
IAMGOLD Corporation (NYSE: IAG)
IAMGOLD Corporation is another mining penny stock that has been performing well in the market. This company explores for, develops, and operates gold mining properties. These mining properties are located in the Americas and West Africa. It currently has an interest in the Rosebel mine, Essakane mine, Westwood mine, and many more.
On October 19th, the company provided its preliminary operating results for the third quarter of 2021. All of its mines delivered very positive results during this period. The company’s Essakane mine delivered production numbers in line with the prior quarter and achieved an average recovery of 83% at 3.3 million tons. The Rosebel mine produced positive results during this time as well.
“We achieved attributable production of 153,000 ounces during the third quarter and are pleased that our total attributable production is trending towards the upper end of the guidance range.
Essakane continues to deliver strong results and Rosebel is performing in line with the updated plan. Production at Westwood was lower than plan, although underground mine productivity is improving while we continue to prioritize implementing safety measures as part of the business recovery plan.”
Gordon Stothart, the President, and CEO of IAMGOLD
In the past month, shares of IAG stock have climbed by almost 30%. This is quite substantial and should be considered if you’re interested in IAG stock.
Are Penny Stocks Worth Buying in 2021?
The short answer to this question is that it completely depends on you and your trading strategy. While no two traders are alike, investors can come together to find value in certain industries depending on what is going on in the broader stock market.
If we consider that there are hundreds of penny stocks to choose from, we see that the options are plenty. As a result, it all comes down to putting in the time and understanding what type of trader you are. Considering all of this, do you think that penny stocks are worth buying in 2021 or not?