3 Hot Penny Stocks That Retail Traders Are Watching in October
October 2021 has been quite a wild ride for penny stocks so far. And considering that we’re only at the halfway point in the month, it doesn’t look like this volatility is going anywhere anytime soon. But, typically we see that retail traders thrive off of large fluctuations with penny stocks. This is due to most leaning toward the swing trading method. If you’re unfamiliar, this is buying and selling penny stocks in a short time frame based on chart signals and speculative events.
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With penny stocks, speculation is the key driver of most movements. This includes news, press releases, and company-specific/industry-specific events. Because of this, the best traders are always the ones that are the most informed. In addition to understanding specific news about the company or industry you’re interested in, it’s a good idea to consider what’s going on in the world.
Right now, this includes inflation, the pandemic, and the general uncertainty of the near future. All of this may help to make your strategy more bulletproof moving forward. Now, we also have to consider the effects that retail traders have on penny stocks and the general stock market.
While this may have not been a major factor a few years ago, now, retail traders have a large impact on the market. This means that investors need to keep a close eye on what stocks are being discussed and what the latest trends are. So, keeping all of this in mind, here are three penny stocks that retail traders are watching right now.
3 Penny Stocks That Retail Traders Are Watching Right Now
- Cemtrex Inc. (NASDAQ: CETX)
- Yamana Gold Inc. (NYSE: AUY)
- Ebang International Holdings Inc. (NASDAQ: EBON)
Cemtrex Inc. (NASDAQ: CETX)
One of the biggest gainers of the day so far is Cemtrex Inc. By midday, shares of CETX stock had jumped by over 20% to $1.26 per share. While no company-specific news came out today for Cemtrex, it did make an important announcement only a few days ago. On Tuesday, October 12th, the company released a corporate update on its business operations.
“Throughout the second half of CY 2021, we have continued to see demand improvement as the economy has reopened and businesses are returning to pre-pandemic operations. In response, we are investing in sales and marketing staff across the board to grow our business and increased R&D to drive innovation. We expect these investments to drive topline growth over the next two to three years.”
The CEO of Cemtrex, Saagar Govil
If you’re not familiar with Cemtrex, it is a provider of industry-leading technology. This includes products in the IoT (internet of things), AI, VR/AR, and consumer product industries. Because it is such a broad player in the tech industry, Cemtrex has a large market reach to take advantage of. As stated earlier, the company was affected by the pandemic, but it does look like it is working to overcome this. Considering this corporate update and the variety of businesses that Cemtrex represents, it could be worth keeping a close eye on.
Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is a mining penny stock that has been climbing in several recent trading sessions. In the past five days, shares of AUY have jumped by over 5% which is quite substantial for a gold mining stock. If you’re not familiar, the company produces precious metals in Brazil, Chile, Canada, and Argentina. Yamana holds an interest in development stage properties, exploration properties, and land positions. At these locations, the company produces both gold and silver.
Yamana recently announced promising exploration results at its operating mines. For all of its actions, it selected new zones and targets. In addition, the company recently released preliminary exploration drill findings from its Wasamac project. All of these results were rather positive, but are they the reason that AUY stock is going up in the market? Well, AUY stock is often impacted by the price of gold and silver themselves. This means that investors should keep a close eye on the precious metals industry at large.
Moving forward, the company will provide its third-quarter results after the market closes on October 28th, 2021. Yamana will also provide an operational update on the same date, and hold a conference call the following day. It will be interesting to see how these new updates affect AUY’s stock price. Based on this recent info, will AUY stock make your October penny stocks watchlist?
Ebang International Holdings Inc. (NASDAQ: EBON)
In the last few trading days, shares of EBON stock have begun to show a bullish turnaround. While its performance over the past year is nothing to write home about, the company does have a large role in the budding crypto industry. And with interest in crypto continuing to rise, EBON could be at top of mind for investors.
For some context, Ebang International is a company that creates app-specific integrated circuit chips and sells bitcoin mining machines. The China-based corporation researches, designs, and develops these products, and also provides routine maintenance services. Ebang also sells fiber optical telecommunication products such as PDH fiber optical multiplexers.
On October 1st, the company reported its unaudited financial results for the first six months of the fiscal year 2021. The company experienced a gross profit of $5.64 million during this period. This was a massive increase over the gross loss of $0.96 million that it posted just one year prior. Overall, Ebang’s net loss fell year over year from $6.96 million to $4.26 million. The company’s total computing power sold increased by 220% year over year as well. All of these numbers are very encouraging and reflect both EBON’s business and the crypto/blockchain industry at large.
“To achieve long-term stable growth, the company plans to vigorously develop financial technology (FinTech) business, while steadily carry out research and development as well as sales business of mining machines of Bitcoin and other cryptocurrencies such as Litecoin and Dogecoin.”
Mr. Dong Hu, the Chairman and CEO of Ebang
With a company like EBON, we see that the correlation is extremely high to crypto market. This means that EBON stock can be quite volatile in addition to following price movements of common cryptocurrencies. Noting all of this info, will EBON be on your list of penny stocks to watch?
Why Penny Stocks Are Worth It in 2021
Penny stocks present an opportunity that many blue chips just can’t match. That opportunity being the large price movements and the under $5 price tag. Because of this, the opportunity to make money with penny stocks is palpable.
However, making money with penny stocks is not easy, and involves a great deal of research and dedication to your trading strategy. Considering all of this, do you think that penny stocks are worth it in 2021 or not?