3 Top Penny Stocks For Your Mid-October Watchlist
Blue chips and penny stocks are in highly volatile waters right now. With the Dow Jones Industrial Average shedding around 200 points on Wednesday, there are several things that all investors should be watching right now. For one, we are in the middle of earnings season.
Despite strong results, shares of JPMorgan Chase & Co (NYSE: JPM)., fell by roughly 2% at midday. Additionally, shares of Apple Inc. (NASDAQ: AAPL), were down by around 1.5% following the recent trend of blue-chip tech stocks. And with inflation nearing high levels (5.4% YoY on the consumer price index), many investors are taking a more conservative approach to the stock market right now. And while blue-chip investors may not be used to these large fluctuations, those who invest in penny stocks are.
Stocks under $5 are known for being quite volatile, and this is something that investors work to take advantage of. Large price swings can often result in large gains if investors use a proper trading strategy. However, without the right information on hand, big movements can also lead to big losses. So, consider everything that is going on in the market, and attempt to find an advantage. With that in mind, let’s take a look at three top penny stocks that are moving in today’s session.
3 Penny Stocks to Watch in Mid-October 2021
9 Meters Biopharma Inc. (NASDAQ: NMTR)
9 Meters Biopharma Inc. is a biotech company that creates products for those with rare and unmet needs in gastroenterology. Currently, it is developing Larazotide, which is in Phase 3 clinical trial to treat celiac disease. 9 Meters is also developing NM-002 which is in Phase 2 clinical trial to treat SBS. Additionally, the company has NM-102 which is a small molecule peptide.
On September 27th, the company announced a partnership with Mend Hunger. Mend Hunger is a non-profit gluten-free food pantry organization. This partnership will help Mend Hunger’s Pantry Direct program to fulfill gluten-free hunger relief box requests to U.S. families. The program aims to help people living with conditions that require them to have a gluten-free diet, such as celiac disease.
“We believe this strategic alignment will strengthen our ability to serve those who are struggling with food insecurity and health-related issues. With millions of Americans out of work and struggling to put food on the table, Mend Hunger is more determined than ever to get gluten-free food into the hands of those who need it.”
Executive Director of Mend Hunger, Aleksa Hacker
In the past few trading sessions, the volume for NMTR stock has been much higher than its average. With this in mind, will NMTR be on your list of penny stocks to watch?
Ring Energy Inc. (NYSE: REI)
Ring Energy Inc. is an energy penny stock that we have discussed numerous times in the past few months due to its trending nature. And in the past five days and one month periods, shares of REI stock have shot up by over 10% and 44% respectively. This shows a YTD gain of over 459%, which is quite substantial. If you’re not familiar, Ring Energy is an oil and gas company that is based in Texas.
Primarily, Ring acquires, explores, develops, and produces these resources at its various locations throughout the state of Texas, and is a mid-sized player in the industry. As of December 31st, 2020, the company had interests in around 62,000 net acres of land in Texas alone. At the same time, the company also had 76.5 million barrels of oil equivalent.
Back in August, the company released its second-quarter 2021 financial results and upped its drilling objectives for the second half of the year as well. The second quarter of 2021 saw significant growth in Ring’s sales volumes. In addition, the company’s free cash flow and adjusted EBITDA improved significantly from the prior quarter and year.
“We were pleased with our overall results for the second quarter, including another period of generating free cash flow and further paying down long-term debt.”
Chairman and CEO of Ring, Mr. Paul D. McKinney
In the last month, REI stock has gone from about $2.50 per share to over $3.80 per share on average as of October 11th. The majority of this growth has to do with the overall state of the energy industry right now, and over the past few months. And with demand only continuing to move up, REI should remain on your watchlist. With that in mind, do you think that REI stock is worth keeping an eye on?
SOS Limited (NYSE: SOS)
If you read pennystocks.com frequently, there is a good chance that you have heard of SOS Limited. The main reason behind this comes as SOS stock is consistently trending and has been over the past year and a half. If you’re not familiar, SOS is a tech company that offers data mining and analysis services in China.
These services include marketing, data, solutions for insurance corporations, EMS solutions, insurance product portals, and more. SOS also engages in cryptocurrency mining and blockchain-based insurance. As a result of its crypto ventures, SOS has a high correlation to the blockchain and cryptocurrency industry.
At the beginning of September, SOS reported its six months interim financial results for the period ending June 30, 2021. The company’s net revenue was 17 times higher year over year at $184.5 million. Its gross profit also went up significantly during this time. These numbers are very positive, and are mostly due to the increased crypto mining operations during that time.
As for its cryptocurrency mining operations, SOS Limited said, “We begun generating revenue from our cryptocurrency mining operations since February 2021. We have mined an aggregate of 132.1 units of BTC and 1,853.1 units of ETH as of June 30, 2021, from our mining pools as compared to 42.2 units of BTC and 916.9 units of ETH as of March 31, 2021, which represents a 213% increase in BTC and 102% increase in ETH.” Moving forward, it will be interesting to see how SOS performs in the coming months. For now, will SOS be on your penny stocks watchlist?
Are Penny Stocks Worth Buying Right Now?
While there is a lot to keep track of in the stock market right now, the large movements also offer the opportunity to make money with penny stocks.
But, in order to do so, investors need to have a thorough understanding of the current market conditions and their own investing style. Considering all of this, do you think that penny stocks are worth buying right now or not?