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Best Penny Stocks to Buy Next Week? Check These 3 Out

Three penny stocks to add to your watchlist this week
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3 Penny Stocks to Watch Next Week 

After a rather volatile week of trading penny stocks and blue chips, investors have high hopes for the end of November. Right now, there are several factors that penny stocks traders have to contend with. 

This includes high inflation rates in the U.S., which have resulted in substantial volatility in the past few months. But, as we slowly move toward what could be the end of the pandemic, traders are hopeful that the future of trading penny stocks could be overwhelmingly bullish. Now, no one can predict the future. 

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But, we do know that investors would like to see more bullish price action occur in the coming months. As a result, the time to find penny stocks to buy is now. With that in mind, here are three that could be worth adding to your watchlist this coming week. 

3 Penny Stocks For Your Watchlist This Coming Week 

  1. ReTo Eco-Solutions Inc. (NASDAQ: RETO
  2. Digital Ally Inc. (NASDAQ: DGLY
  3. Asia Broadband (OTC: AABB

ReTo Eco-Solutions Inc. (NASDAQ: RETO)

ReTo Eco-Solutions Inc. is a penny stock that has seen a large amount of volatility in the past few days. After spiking by more than 10% on November 19th, shares dropped by over 40% the following day. If you’re not familiar, this company creates construction materials for the Chinese market. ReTo is involved in the manufacturing and distribution of its products. These construction materials are used to absorb water, control floods, and maintain water retention. In addition, the materials are used by gardens, roads, bridges, and more.

On October 27th, ReTo reported its financial results for the first half of 2021. During this period, its revenue fell 27% year over year. The company’s machinery and equipment sales went down 13% as well. In addition to these negative results, its construction materials sales went down 33%. This took place because of the COVID-19 pandemic, which caused ReTo’s sales to drastically slow down.

“We have increased our investment in ecological restoration, ecological governance technology, and market development, and have launched such projects in a few counties in Shanxi Province.

This will enable us to improve the company’s performance in the second half of the year. We have also increased our investment in the research and development of new equipment and technologies in solid waste utilization.”

The CEO and Chairman of ReTo, Mr. Hengfang Li

It will be interesting to see how RETO stock performs as the pandemic slows down all over the world. For now, will RETO be on your penny stock watchlist this month?

Penny_Stocks_to_Watch_ReTo_Eco_Solutions_Inc_RETO_Stock_Chart

Digital Ally Inc. (NASDAQ: DGLY)

Digital Ally Inc. is a tech penny stock that has climbed by over 20% in the past five days. This is quite a substantial gain especially considering its YTD loss of around 45%. If you’re not familiar with Digital Ally, it is a corporation that manufactures and sells digital video imaging and storage products. These are frequently utilized in law enforcement, security, and commercial settings. It features digital audio/video recording, storage, as well as in-car recorders for law enforcement.

[Read More] 5 Penny Stocks To Buy Now According To Insiders In November 2021

On November 17th, the company announced its operating results for the third quarter of 2021. The company’s total revenues went up by 29% in the third quarter to $4,639,822 from $3,588,640 year over year. This took place because of a 421% increase in services and other revenues from its 2020 levels. Back in September, the company formed a wholly-owned subsidiary called TicketSmarter Inc. in which it acquired Goody Tickets LLC and TickerSmarter LLC. These are ticket resale markets that sell seats at over 125,000 live events. These numbers are very substantial and reflect the company’s commitment to growth during that period.

“We are very pleased to report a 29% increase in total revenues for the third quarter of 2021 as compared to 2020. Importantly, we were able to report improvements in revenue and net income margin regardless of the challenges to our legacy business caused by the COVID-19 pandemic during 2021 and 2020.”

The CEO of Digital Ally, Stanton E. Ross

With the sizable bullish sentiment surrounding DGLY stock right now, does it deserve a spot on your penny stocks watchlist?

Penny_Stocks_to_Watch_Digital_Ally_Inc

Asia Broadband (OTC: AABB)

One sector that has shown tremendous growth and volatility in the past couple of years is cryptocurrency. Asia Broadband Inc. primarily operates in the field of precious metals. It works in both the production and supply of precious and base metals in Mexico, which is then distributed to various countries in Asia. Despite this, it has developed its business to include cryptocurrency in the past few months. For its resource business, it uses its specific geographic and market expertise to help provide a distribution network from production in Mexico to sales in Asia. This is a unique vertical integration approach that has led to much of its past success with shareholders. 

Currently, AABB is working on providing freshly minted mine-to-token gold-backed cryptocurrency alongside the development of its own digital exchange. It expects this token to become the standard for worldwide exchange because of its secured and trusted backing with gold. So far, this project looks to be quite feasible as it has recorded over $1.1 million in AABBG Gold Token sales in the past 4 week period ending on November 15th. Most of its market is in North America and Europe with plans to expand globally in other predominantly and high-growth markets. 

Its unique Mine-to-Token vertical integration operation is planned to be independent of FIAT currency. Today’s market price of the one-tenth gram of gold backing of its AABBG token price is around $5.96. Considering the recent push towards online digital currency exchange, what do you think of AABB’s gold backing concept? Is this a potential company to add to your penny stocks watchlist?

Penny_Stocks_to_Watch_Asia

Can These Penny Stocks Continue to Make Gains?

As we move forward into the next few weeks, investors are hopeful that market sentiment can remain bullish. And, with so many penny stocks to choose from, the potential to make money with small caps right now is more than palpable.

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As always, having a proper trading strategy in line with well-thought-out portfolio goals, will both be major assets to your investing. Considering all of this, do you think that penny stocks can remain bullish moving into the future?

The post Best Penny Stocks to Buy Next Week? Check These 3 Out appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.



Author: D. Marie

Precious Metals

Palantir Is Forming a Pattern That Bullish Investors Should Love

Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. The company is an unquestioned leader in the field…

Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. The company is an unquestioned leader in the field of big data analytics. Bears say its close association with the United States government, along with an executive compensation structure that has caused share dilution, make PLTR stock overvalued. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years.  

Source: rblfmr / Shutterstock.com

The truth probably lies somewhere in between. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. 

Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 it’s presented investors with a buying opportunity. If history repeats itself, then PLTR stock could set up as a profitable trade.  

What About Commercial Growth? 

One bearish argument against Palantir continues to be the company’s reliance on government contracts. These contracts accounted for approximately 56% of the company’s revenue in the third quarter. But this is a statistic that requires context.  

First, the company is growing its commercial revenue. In the last quarter, Palantir reported a 37% year-over-year (YOY) increase in commercial revenue. And the company’s overall revenue was up 36% YOY at $392 million. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. 

Commercial revenue accounted for 44% of the total in Q3. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter.  

If Palantir was growing its government side of the business at the exclusion of its commercial side, it would be concerning. But it’s hard to find fault when the company is growing both sides of the business.  

Investing in Gold and Bitcoin 

In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. It also announced it would accept payment in Bitcoin (CCC:BTC-USD), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. 

Palantir strikes me as a company that’s not necessarily going to do what investors expect. And I can certainly understand if investors might wonder why the company chose to deploy capital in this way as opposed to buying back shares.  

Perhaps it would be easier for investors to accept Palantir’s dabbling in gold and bitcoin if it wasn’t for the continuing dilution of shares that is happening as management exercises warrants. It’s a perfectly legal practice, it’s just not something investors like to see. 

Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. These options were set to expire on Dec. 3, 2021.

Not surprisingly, Karp has sold a lot of these options recently. But the good news is that Karp was by far the biggest holder of options. So while there will likely continue to be some selling in the next few years, investors may have to find something else to object to.  

What to Do With PLTR Stock 

With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. As for me, I have to admit that PLTR stock is starting to look a lot more attractive at this price. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore.  

In fact, based on the company’s FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. And as Hake notes, even if investors have to wait two years for the stock to hit that target, they would still get an average annual return of 29.54%.  

On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.  

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. 

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Author: Chris Markoch

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Energy & Critical Metals

3 Rare Earth Stocks on Watch as Talk of a Chinese Mega-Merger Grows

At a time when both the global supply chain crisis and U.S.-China relations hang hotly in the balance, China has announced an important decision that threatens…

At a time when both the global supply chain crisis and U.S.-China relations hang hotly in the balance, China has announced an important decision that threatens to affect both matters significantly. Today, the Wall Street Journal reports that China is planning to create a new rare earth mining company that will be owned by the state. While there’s no question that the forming of such a company will directly affect rare earth stocks, so far the reactions from the sector have been mixed.

Source: LuYago / Shutterstock.com

What’s Happening With Rare Earth Stocks

The rare earth sector has been an interesting one to follow this year, particularly as the electric vehicle (EV) boom has highlighted a new market for its companies. The news out of China today hasn’t done much to affect Nevada-based MP Materials (NYSE:MP), a company that has seen more than its fair share of turbulence this past year but has remained overall in the green for most of it. As of this writing, MP stock is up 2.16% for the day, although it has declined slightly from the peak it saw this morning. While it’s down more than 6% for the week, the stock is in the green for the month by more than 2%.

In a state not too far away, though, things aren’t looking so rosy. Texas Mineral Resources Corp (OTCMKTS: TMRC) has seen its shares fall by more than 4% today, demonstrating a fairly turbulent pattern. Despite being up by more than 12% for the week, TMC is down for the month by almost 19%.

Many miles away in Australia, a similar company is experience similar patterns. Lynas Rare Earths (OTCMKTS:LYSCF) is down by more than 2% for the day with losses for the week just shy of that figure. For the month, though, the small stock has seen shares rise by more than 18%.

Why It Matters

China’s new firm, titled China Rare Earth Group, will be based in the country’s southern province of Jiangxi, an area rich in resources. It will be built through the merging of assets of several prominent state-owned mining firms. According to WSJ, part of the mindset behind this massive industry consolidation is the goal of gaining the clout necessary to “undercut Western efforts to dominate critical technologies.”

For a company like MP Materials, there will very likely be negative implications if the firm is indeed constructed. The company has emphasized that its goals involve helping restore the rare earth supply chain and helping reduce the sector’s heavy dependence on China. The international economic superpower that MP has focused on challenging is about to get considerably stronger and more powerful. That’s bad news for MP and most other rare earth stocks.

While some reports have framed it as a company well-positioned to accomplish an important task, the picture painted for investors hasn’t always been so positive. In October 2021, a report from Grizzly Research staked the claim that the company had issued unattainable projections. While the stock was down during that month, it’s been rising fairly steadily since. Earlier this year, InvestorPlace’s Joseph Nograles touted the upside potential he saw in MP stock as a key component of the emerging EV market.

What It Means

As TRMC and LYSCF trade at much lower levels than MP, it’s hard to gauge just how much they stand to be affected. What is clear, though, is that China is clearly furthering its quest to dominate the section of the global supply chain that concerns strategic metals. The construction of a state-owned giant to help the country gain further control of highly valuable rare earth materials certainly won’t do any favors for the U.S.

This story is certainly worth watching as it unfolds, but this is likely not the time for a bullish play on rare earth stocks.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Author: Samuel O'Brient

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Articles

Big River Gold’s Brazil plans buoyed as interest in sector runs hot

Special Report: Big River Gold’s Borborema project is on track according to a recently completed water study which de-risked the … Read More
The post…

Special Report: Big River Gold’s Borborema project is on track according to a recently completed water study which de-risked the supply of process water to the operation, and also identified a way to double production up to 4Mtpa. All at a time of heightened interest in the Brazilian gold sector.

Big River Gold (ASX:BRV) has received a shot in the arm with encouraging results from a water study derisking the highly prospective Borborema Gold Project in Brazil for what was initially considered to be a 2-million-tonne-per-annum (Mtpa) production operation. The study identified a water source that could support production expansion up to double the previously forecast production to 4Mtpa.

The positive results from studies completed by SRK Consulting come at a time of hot mergers and acquisitions (M&A) action in the gold sector in both Brazil and Australia. There’s also renewed interest in the safe haven metal due to uncertainty over the Omicron COVID variant following a slide in prices from its all-time high of around $US2,070 per ounce in August last year.

Confirming that Big River Gold’s optimism on the 29sqkm project’s water security is well founded, the water study established that minimal additional external water will be required to support a 2Mtpa operation.

“Borborema has always suffered from the perception that there is a lack of water,” executive chairman Andrew Richards told Stockhead. “The completion of the water studies has been a big step forward in de-risking the project in that regard, but also provides us opportunities to look at different size production scenarios.”

Richards said that as the project in northeast Brazil progressed towards production the water study results were an important part of the larger engineering study update.

“Any upscaling we were looking at had to be considered in conjunction with the water issue. Water has always been an integral part of the development of Borborema,” Richards said.

“The study results mean we can either stay at 2 million tonnes per annum without any additional water for most of the time but, if we’re looking to expand up to say 4 million tonnes per annum, we can base that more on the underlying economics given that process water supply is no longer the bottleneck it was.”

View to the south west over the Borborema pit showing the exposed ore zone and infrastructure

A hot mining jurisdiction

As Brazil emerges from the pandemic with a more optimistic economic outlook, the latest data shows M&A activity in the South American powerhouse grew eightfold to $56.8 billion in the first half of 2021, compared to the same period last year.

Banks expect activity to remain buoyant into 2022 as economic activity recovers and interest rates remain low, while increasing COVID vaccination rates boost Brazil’s profile as an investment destination.

And there are some glittering pickings for investors in the gold-rich nation.

Thanks mainly to its Tucano gold mine in Brazil, Great Panther Mining’s revenue soared a whopping 2,947.1% in 2020. Like Borborema, Tucano is in Brazil’s northeast and it contributed $US234m, or 85% of total revenue, to the Canadian listed miner.

While Great Panther’s world-leading leap in revenue was a definite standout, gold miners in general have been buoyed by the renewed, COVID-induced interest in the safe haven metal. This has led to some major deals in the sector in both Australia and Brazil.

Last month, Amarillo Gold, owner of the Posse gold project in Brazil, agreed to a $US128.36m takeover offer from UK’s Hochschild Mining, a $US1.5bn cashed up South American mining house looking to invest more outside of Peru.

The deal values Amarillo Gold at A$/165 per reserve ounce, and A$65/resource ounce.

As part of the deal, Amarillo shareholders will also receive shares in a newly formed company, Lavras Gold Corp, which will hold a stake in the 22,278-hectare Lavras do Sul gold project in Brazil’s south.

FTSE 250 miner Hochschild affirmed Brazil’s reputation as a solid location for resources projects, saying the deal “enhanced its portfolio by adding a long-life asset located in a mining-friendly jurisdiction”.

The heightened interest in the South American nation and the yellow metal, alongside the highly encouraging results just out from the all-important water study, bode extremely well for Big River Gold.

“These results really just derisk the project and give us the ability to go to a bigger scale operation to achieve economies of scale,” Richards said.

 


 

This article was developed in collaboration with Big River Gold, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Big River Gold’s Brazil plans buoyed as interest in sector runs hot appeared first on Stockhead.


Author: Special Report

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