NGD - Investing in Penny Stocks Right Now? Here's 3 You Need to Know
3 Penny Stocks That Investors Need to Know About in 2021
When it comes to penny stocks, there are hundreds of options to choose from. And for some, this can make the task of finding penny stocks to buy rather difficult. But, with a few tips, making a penny stocks watchlist can be much easier than previously imagined.
The first aspect to understand is the current state of the stock market and what’s going on in the world. While this may seem like a lot, we have to understand that penny stocks are highly speculative.
And this overwhelmingly speculative investing environment means that any event can have a major impact on the price of certain penny stocks. With this, investors should look for both industry-specific and non-industry-specific events. That includes company updates, governmental policies, news relating to Covid, and so on.
The next thing to look at and understand is the financials that the company puts out. In quarterly filings, investors can glance at information such as profitability, revenue, outstanding debt, cash balances, and so on.
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Using this info will help to give you a solid understanding of what the company looks like from a financial perspective. You might be thinking, well if speculation is so important, why do fundamentals matter? And while that is a valid question, the short answer is that it is always a combination of both.
Even if speculative momentum results in a short-term spike, prices will likely correct without the fundamentals to back it. So, always understand both of these factors, and use them to your advantage. With that in mind, let’s take a look at three penny stocks that investors need to know about in 2021.
3 Penny Stocks For Your October Watchlist
- New Gold Inc. ( NYSE: NGD )
- Harmony Gold Mining Ltd. ( NYSE: HMY )
- American Battery Metals Corp. ( OTC: ABML )
New Gold Inc. (NYSE: NGD)
New Gold Inc. is a mining penny stock that is up 5.4% in the market today. If you’re not familiar, NGD is a company that explores for gold, silver, and copper deposits at locations in Canada and Mexico. It owns a 100% interest in the New Afton Mine in Canada, the Rainy River mine in Canada, as well as the Cerro San Pedro mine in Mexico, and the Blackwater project in Canada.
On September 13th, New Gold provided an update to its 2021 operational outlook for the Rainy River Mine and the consolidated operational outlook. Rainy River’s gold equivalent production for 2021 is expected to be between 240,000 and 255,000 ounces. This is a decrease because of a variance experienced in the East Lobe zone of the project. The company found out the realized gold grade from the area was below the modeled gold grade in the period.
“While the reduction in our near-term guidance at Rainy River is unfortunate, I remain confident the mine has reached an inflection point, as evidenced by the free cash flow generated in the second quarter and the mine is on track to deliver an improved second half of the year.”
Renaud Adams, President and CEO of New Gold Inc.
On October 14th, shares of NGD stock saw volume of over 8.3 million, which is above its average of 6.3 million. With all of this in mind, is NGD stock a contender for your watchlist in October?
Harmony Gold Mining Company Limited (NYSE: HMY)
Harmony Gold Mining Company Limited is another mining penny stock that is performing well in the market on October 4th. This is a mining corporation focused on exploration, the extraction of metals, and the processing of precious metals. The company mainly searches for gold, silver, copper, and uranium. Moreover, it has active deposits in South Africa and Papua New Guinea. Because of the wide breadth of materials that it mines, HMY can be considered more diversified than some other mining stocks.
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Back in August, Harmony released an operational update for the year ending June 30th, 2021. The company’s revenue went up 45.2% year over year during this period. Additionally, its net debt drastically decreased year over year, by 52%.
These results were very good for the company, however, there are other factors at play that are causing HMY stock to move. HMY stock often goes up or down in the market in tandem with the price of gold. This means that if you’re interested in HMY stock, it’s prudent to stay up to date with the gold industry itself. Keeping this in mind, will you add HMY stock to your penny stocks watchlist this month?
American Battery Metals Corporation (OTC: ABML)
American Battery Metals Corporation is a materials processing and mining company based in the United States. The company actively owns 647 placer mining claims on 12,940 acres in the Western Nevada Basin. At these claims, the company engages in the exploration, mining, extraction, and recycling of battery metals.
On September 28th, the company entered definitive agreements with a US-based institutional asset manager for the purchase and sale of $39,100,000 in securities before deductions. This transaction was completed at a 5.8% premium to the 5-day Volume Weighted Average Price. As a result, American Battery Metals expects this to fund the company through the construction and commissioning of its battery recycling plant.
“Not only does the capital raised more than fully finance the construction and commissioning of our commercial demonstration plant, but comes from a great partner at a pricing structure expected of a company with plans to be a Nasdaq listed security.”
CEO of ABML Ryan Melset
Since this update was released, ABML has had higher than average volume in the market. It’s worth noting that EV penny stocks are extremely hot right now. And companies like ABML are working to take advantage. So, whether this makes ABML stock worth adding to your watchlist or not is up to you.
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy in 2021 is challenging. With so much going on in the stock market, it is arguably very difficult to keep up with everything at once.
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But, if investors focus on a few industries and spend the time doing the proper research, making money with penny stocks can be much easier than previously imagined. Considering all of this, which penny stocks are you watching right now?