Top Penny Stocks That Scored Big This Year
One thing that we can say about the last 21 months is that penny stocks are getting their time in the spotlight. Thanks to the pandemic’s onset, the market’s downturn, and the thirst for volatility from retail readers, these cheap stocks are some of the most sought-after. Why? One of the reasons has to do with the upside that penny stocks offer.
The other is more related to the fact that so many “leading companies” fell to the depth of sub $5 levels, which inherently introduced an entirely new crowd to this world of cheap stocks. Whether you’re talking about some of the vaccine stocks that skyrocketed over the last year or companies like GameStop (NYSE:GME) or Nio Inc. (NYSE:NIO), which clawed back from big breakdowns in share price, the result has been the same. Traders are hungry for more.
What Are Penny Stocks?
Before we get into this list of penny stocks, I understand that this may still be a new phenomenon to some readers. So let’s define a few things first. Penny stocks are shares of companies trading for less than $5. That’s according to the Securities and Exchange Commission’s definition. Some traders will have their own idea of what these cheap stocks are. But, for this article, we’ll use this as the threshold.
Next, it’s important to understand that these are very risky stocks to trade. Not all penny stocks will go on to run hundreds or thousands of percentage points. In fact, many will do the exact opposite, with some companies failing entirely. But that doesn’t mean these aren’t worth it. Just understand that volatility requires attention and an understanding of how to trade properly. For those that had a handle on this, the last 9 months have been some of the best for these penny stocks. In fact, as you’ll see, in some cases, even $500 could’ve turned into nearly $10,000 during that time. So let’s take a look at some of the best penny stocks in 2021 so far.
Best Penny Stocks To Buy 2021?
Some of the best penny stocks to buy this year have been “meme stocks.” These companies have grown in popularity among retail traders and have become the focus for meme-makers on popular social media outlets like Reddit, Twitter, and Facebook. Regardless of their name, these stocks have a few things going for them. These few things are a source of both risk and reward.
The biggest driving force is the massive audience chatting and posting about these stocks. While some of these were big winners so far this year, the choice some traders are grappling with is whether or not these are still the best stocks to buy right now. That’s something I’ll leave up to you to decide.
Best Penny Stocks In 2021 #1: Ferroglobe Plc (NASDAQ:GSM)
One of the hot trends in the stock market has been clean energy. That’s also wrapped in the growing market for electric vehicles, renewable energy, and the like. With that, the entire supply chain has come into focus. Ferroglobe Plc (NASDAQ:GSM) provides silicon metal and specialty alloys for customers across numerous markets. These include solar, automotive, consumer product, construction, and energy.
With the growing demand for things encompassing all of these niches, it makes sense that the company has experienced a banner year so far. In fact, just a few days ago, GSM stock reached fresh 52-week highs. That came following the company’s latest round of earnings. These not only showed significant earnings per share growth, year over year, the company also reported strong sales growth. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “The second-quarter results reflect a strong improvement in our overall performance and marks the return to profitability, an important goal for this year…As we look towards the back half of the year, we will keep the momentum going on all fronts to capitalize on the market opportunities and successfully execute some critical initiatives underpinning the strategic plan.”
The GSM stock price at the beginning of 2021 was $1.68. This week shares reached early highs of $10.06, signaling a year-to-date move of 499%. Hypothetically speaking, that means a $500 position at the start of the year is now worth nearly $2,500.
Download: GSM Stock Report
2. Moxian Inc. (NASDAQ:MOXC)
Next on this list of former penny stocks, Moxian Inc. (NASDAQ:MOXC) has experienced a strong move of its own this year. The start of 2021 saw shares of MOXC stock trading at$1.36 on January 4th. This week, the former penny stock hit a high of $7.65. The crazy part is that this isn’t the highest the stock has been this year. Earlier this quarter, shares reached highs of $31.38. Needless to say, even with the pullback, a $500 position at the beginning of the year is worth over $2,300 at this point.
So what’s been a source for MOXC stock’s massive rally? There haven’t been many headlines coming from the company over the last 9 months. It recently completed a reorganization, but details weren’t more than stating its new “home” in the British Virgin Islands. However, thanks to interest stemming from low float stocks as well as “the reopening trade,” Moxian has been at the center of attention throughout the year.
The company’s offerings focus on targeted advertising campaigns and promotions to attract potential customers for their clients. As reopening trends have taken hold, so have different forms of marketing and awareness. Moxian’s digital advertising suite serves content across myriad platforms. These include mobile phones and smart TVs.
Download: MOXC Stock Report
3. Vinco Ventures (NASDAQ:BBIG)
One of the more recent meme stocks making its presence known is Vinco Ventures (NASDAQ:BBIG). Attention began focusing on the company thanks to a pending merger and proposed acquisition of a TikTok competitor in Asia, Lomotif. In Vinco’s recent quarterly update, the company said that it achieved a record number of Monthly Active Users (MAUs) with over 30 million MAUs, according to Data Analysis Firm Sensor Tower. The company also recently launched recording Artist Tory Lanez album “When It’s Dark” on the E-NFT .com platform. “When It’s Dark” is the first album to go platinum on the blockchain with over 1,000,000 units sold.
Aside from the business side of things, Vinco has also become the focus of retail traders thanks to higher levels of short interest in BBIG and traders looking for potential “short squeeze stocks” to watch. If you look at the last few weeks of trading, you’ll see that BBIG stock has experienced a strong move higher as the “short squeeze” trend has taken hold.
Since the start of the year, BBIG has managed to run from $1.38 on January 4th to highs this week of $8.41 so far. That means the hypothetical $500 position we keep referencing would be worth over $2,500 at this point.
Download: BBIG Stock Report
4. Peabody Energy (NYSE:BTU)
If you’ve been a reader of PennyStocks.com, you’ll likely remember Peabody Energy (NYSE:BTU) from late last year. At the time, shares of BTU stock weren’t trading nearly as high as they are now. In fact, if you look back at the start of the year, Peabody’s shares began the year at $2.46. Fast-forward to this week, and we’re now looking at fresh 52-week highs of $18.77. That means the $500 position at the beginning of the year would be worth roughly $3,300 right now.
Peabody is an energy company. But instead of renewables, solar, nuclear power, or other popular niches, the company produces coal. While this may be seen as “dirty energy,” Peabody has tasked itself with providing fuel baseload electricity for emerging and developing countries while also creating steel to build foundational infrastructure.
Growth over the past quarter (Q2) has helped boost sentiment in the stock. It has also become justification for analysts to grow bullish. B. Riley raised its price target for the stock 2 times within the same 30-day period. As of right now, that sits at $15, up from $11 in August and $7 previous to that.
Download: BTU Stock Report
5. AMC Entertainment (NYSE:AMC)
This year, no other penny stock seems to epitomize the rise of the retail trader better than AMC Entertainment (NYSE:AMC). As one of the original “meme stocks,” shares of AMC started 2021 trading at $2.20 a share. While it went on to see an explosive move to highs of $72.62, the former penny stock is sitting around $47 to start this week. Despite that pullback, the movie theater company’s shares are still up nearly 2,100% year-to-date. That means a $500 position at the start of the year would be worth over $10,300.
Aside from this being in the “reopening” category, AMC has grown a cult following. Those staunchly believing in its potential to rise to levels never seen by the stock have helped fuel momentum for months. What’s more, the company has begun gaining ground thanks to moviegoers coming back to theatres.
The holiday weekend saw Labor Day Admissions revenue hit new records. According to the company, more than 2 million people watched movies at AMC’s U.S. theatres from September 2nd through the 5th. Roughly 800,000 also visited AMC’s international theatres in Europe and the Middle East. AMC shares surged to start the new week thanks to this mix of fundamental optimism and retail-driven momentum.
Download: AMC Stock Report
Are Penny Stocks Worth It?
Clearly, penny stocks are worth it if you know what to look for. This article discussed how just 5 companies performed on a year-to-date basis starting on January 4th, 2021. Compared to early morning highs on September 7th, 2021, these have all experience massive jumps in just 9 months and a few days. In this hypothetical example, using a total of $2,500 spread across all 5 penny stocks at the start of 2021, that would now be more than $21,000 as of morning highs on September 7.
Though all penny stocks don’t go on to perform like these, there are more than a handful of names that see double and even triple-digit moves daily. Some may only run for that single session while other moves go on for months at a time. The important part for you is to know how to trade and profit from what the market gives.steel
Can Deep-Sea Mining Solve The Battery Metals Supply Crisis?
Can Deep-Sea Mining Solve The Battery Metals Supply Crisis?
Authored by Tsvetana Paraskova via OilPrice.com,
The key metals necessary to…
The key metals necessary to advance the global energy transition will likely drive the next commodity supercycle.
Soaring demand for lithium, copper, nickel, cobalt, and aluminum could lead to a battery metal supply crunch as early as this decade, while surging prices could reverse a decade of cost declines, analysts say. In a world increasingly focused on sustainability and ethically-sourced raw materials, some players in the metal mining industry believe that deep seabed mining operations in remote ocean areas could have a lower impact and lower costs than the land mining of key battery minerals - minerals associated with child labor in the Democratic Republic of Congo, for example, the world’s top producer of cobalt.
However, deep seabed mining is years away from commercial operations, at best, due to a lack of international regulations and concerns about the environmental impact of mineral extraction from the seabed in areas and ecosystems that are yet to be studied by marine biologists.
Some companies are betting on starting deep-sea mining in a couple of years. The Metals Company, for example, which just began trading on the NASDAQ, said last week it is working to “move the world’s largest estimated source of battery metals into production.”
“We believe we have a solution that is more scalable, secure, lower cost and lower impact than mining these minerals on land: We can produce battery metals from high-grade polymetallic nodules found on the seafloor in the international waters of the Clarion-Clipperton Zone,” Gerard Barron, Chairman and CEO of The Metals Company, said.
Polymetallic nodules contain four essential battery metals—cobalt, nickel, copper, and manganese—in a single ore, and they have been formed over millions of years by absorbing metals from seawater. Those nodules lie unattached to the seafloor, and The Metals Company plans to use a robotic collector to gently dislodge the metal-containing rocks from the seabed with minimal disturbance to the ocean floor.
TMC has exploration and commercial rights to three contract areas which host an estimated 1.6 billion tons (wet) of polymetallic nodules containing high-grade nickel, copper, cobalt, and manganese, in the Clarion Clipperton Zone of the Pacific Ocean—between Mexico and Hawaii—regulated by the International Seabed Authority.
The company says its studies have estimated that the polymetallic nodules within its exploration areas are enough to electrify a quarter of the world’s passenger vehicle fleet, or would be enough for around 280 million EVs.
TMC says its proposed method of retrieving battery metals generates much less carbon dioxide than conventional mining and is more environmentally friendly.
“It’s like picking up golf balls on a driving range,” CFO Craig Shesky told the IEEE Spectrum magazine edited by the Institute of Electrical and Electronics Engineers.
With access to funding and the listing on the NASDAQ, TMC expects to be able to complete pilot nodule collection trials in 2022, complete environmental impact studies by 2023, and file to move from exploration phase to exploitation phase in the third quarter of 2023, CEO Barron said in the statement last week.
Yet, TMC and other companies vying for deep-sea mining face strong opposition from environmental organizations that say disrupting the ocean would lead to losses of biodiversity and change the carbon cycle in the waters.
Moreover, the International Seabed Authority (ISA) has not yet agreed upon regulations on how to manage and supervise the exploration and extraction of minerals from the ocean floor.
The Clarion-Clipperton Zone (CCZ) is a “biodiversity hotspot,” Craig Smith, an oceanography professor at the University of Hawaii at Manoa, told IEEE.
Smith has led research expeditions to the CCZ, which have found species new to science. It’s not possible to mine polymetallic nodules without causing ecological damage “over tens of thousands of kilometers,” the oceanography professor says.
“Deep-sea mining may irreparably harm ocean ecosystems before we even have a chance to fully study its impacts,” the Center for Biological Diversity says.
Even some potential customers of metals extracted from the ocean supported earlier this year a call for a moratorium on deep seabed mining.
Automakers BMW and Volvo, as well as Google and Samsung SDI, vowed not to buy metals produced from deep-sea mining until the environmental risks of the activity are “comprehensively understood.”
The Rise And Fall Of 9MM Ammo Prices During COVID; What’s Next?
The Rise And Fall Of 9MM Ammo Prices During COVID; What’s Next?
Op-Ed via The Machine Gun Nest (TMGN).
The Machine Gun Nest has been open…
The Machine Gun Nest has been open since 2015, but we've been in the firearms industry since 2013. Earlier than that, Rob (one of the owners) has been collecting guns since the early 2000s. We've seen panic buys, ammo prices fluctuate, and firearms banned and unbanned.
March of 2020. The COVID19 pandemic hits the United States. Many people (like myself) were aware of the situation in China and had time to prepare for the worst adequately. Many people were caught completely off guard.
Many things led to the recent panic buy, but most of it is related to COVID. Many people thought that the world was going to end. So many people "woke up" to the idea that they may have to fend for themselves and that no one was coming to save them. This change of mentality led to an explosion in firearms and ammo sales.
Weirdly enough, the price of ammo didn't have an immediate rise at the beginning of the pandemic. It was summertime before we started to see a real spike in price. Prices averaged $0.20 a round for 9mm until July. Then we began to see prices rise to an average of about $0.30/per round.
The price rise could be attributed to the BLM protests, counter and subsequent riots that followed, which were viewed widely across the internet and traditional media. There were depictions of innocent people getting hurt or worse, swarmed by protestors, with no police anywhere to help.
This led to a panic buy on top of a panic buy. Whereas previously, shelves had been scarce, they became empty. People started to hoard ammunition like they had been hoarding toilet paper. Since manufacturing companies were set up to meet the average demand of the "Trump Slump" of the previous years, where gun and ammo sales had been low, there started to be bottlenecks in ammunition production. Ammo manufacturers were not prepared for the sharp increase in buying.
In August 2020, we started to see prices increase even more as ammo became harder to come by. 9mm saw an average of $0.50/ per round. Major manufacturing companies started to report that they had accumulated millions of dollars in backorders. We tried to place a substantial order for ammo and were straight up told that there was no way that we'd get it within the year or next.
Speaking to some of our friends, we gathered that there was a shortage of primers. Primers are the component within ammunition that ignites the gunpowder to expel the projectile from the bullet & firearm when struck by the firing pin. For those that don't know, primers are incredibly dangerous to produce. The manufacturing process sometimes results in death. Primers are typically the bottleneck in the production process for ammunition. A shortage of primers caused by high demand and supply chain disruption continued to help drive up the cost of ammo.
We luckily found an importer who had bought 1M rounds of Turkish 9mm. We were able to work with him to import the ammo, and that saw us through the worst of the shortages. Unfortunately, we were victims of circumstance (like everyone else) and had to pay a high cost per round to acquire the ammo.
After the 2020 election, we saw prices rise again to an average of $0.60 per round. To give you an idea of what that means- a box of ammo is 50 rounds typically. That's about 3-5 magazines, depending on how many bullets you load. 9mm is meant to be an inexpensive round. It's relatively cheap to produce, and its popularity has a lot to do with that fact. When you have people paying $30 ($0.60 per round) for a box of 9mm, as opposed to $12 (0.24 per round) eight months prior, shooting starts to get expensive, especially since the average range trip equates to about 2-300 rounds per caliber.
Consider this as well; statistics show that in 2020 alone, 23 million firearms were sold, with 6 million of those guns being bought by first-time gun owners. Suppose each of those new gun owners wants to buy enough ammo for an average range trip, 200 rounds. In that case, those people would need 1,200,000,000 rounds of ammo to satisfy the demand, and that's not even including the 32% of Americans that own guns (According to Gallup polling.) That would be about 104,960,000 people if you were wondering.
So, to satisfy that market, if each of those 104.9 Million people wanted only 200 rounds of ammo for one firearm, the amount of ammo needed would be serious. (and we know that people, in reality, want thousands of rounds per firearm). That's not including law enforcement contracts and military contracts, which usually take precedence over the civilian market.
Finally, in Jan. of 2021, we seem to reach the peak. With the Jan. 6th protests and Biden's inauguration, gun and ammo buying hit new highs. 9mm prices on average hit $0.71 per round. During this time, we regularly heard from customers that other spots were selling 9mm at $1/round.
At the time of writing this (September 2021), we're just now starting to see a drop in ammo prices and gun sales slowing down. 9mm is sitting at $0.31 per round for steel case and $0.34 per round for brass on the low end. Any well-known brand names are sitting at around $0.39 per round. Even with Biden's new "Russian Ammo Ban," prices seem to have steadily fallen, at least on 9mm.
The real question is, will the prices keep dropping? It's anyone's guess.
There's a ton of factors affecting the market right now, from unrest around the world. For example, earlier this month, a coup in Guinea sent Aluminum prices to a ten-year high. If you're unfamiliar, Guinea holds a quarter of the world's bauxite supply, a raw material that can be refined into alumina, which can then be smelted into aluminum.
This price change can affect the cost of firearms, as manufacturers will have to pay a higher price to acquire raw materials.
Shipping and transporting are another problem now, with sea containers fetching record-high prices because of a shortage and supply chains still seeing significant disruptions.
Since the panic buy for firearms has at least subsided a little bit, people have stopped hoarding ammo and are choosier. We're seeing this in gun sales right now where customers aren't coming in and just buying anything on the wall. People are starting to do their research and are becoming pickier about their buying. I think this is the same for ammo as well. The demand has subsided a bit. If supply continues to meet demand, I think we'll continue to see a drop in prices. Barring some mutation in covid that gives the virus a 50% CFR, more supply chain disruptions, or the Biden administration passing some severe gun control legislation, I think we will continue to see the price of ammo dropping slowly.
Supply Chain Shipping Hell: “Just Get Me A Box” Says Logistics Manager
Supply Chain Shipping Hell: "Just Get Me A Box" Says Logistics Manager
Authored by Mike Shedlock via MishTalk.com,
Two years ago, the cost…
Two years ago, the cost for a 40-foot container to transport goods from Asia to the U.S was under $2,000. Today it's as much as $25,000.
When I saw this Bloomberg headline I thought it was about cardboard boxes. Instead, 'Just Get Me a Box' is about shipping containers.
It’s mid-August, and logistics manager RoxAnne Thomas’s phone won’t stop pinging. Her faucets, sinks, and toilets are waylaid near Shanghai, snagged in Vancouver, and buried under a pile of shipping containers in a rail yard outside Chicago.
“Every step of the process, there’s still backlog,” said Thomas, 41, in one of several interviews from late July through August. “The beginning of the supply chain in China—I don’t think that’s going to get better for a year.” And the outlook more broadly? “A year and a half before things are truly back to normal.”
Although the pandemic has shuttered factories and shaken supplies of raw materials, Thomas’s chief challenge is freight, and it starts with what used to be cheap, plentiful commodities: shipping containers.
Two years ago, a 40-foot container cost less than $2,000 to transport goods from Asia to the U.S. Today the service fetches as much as $25,000 if an importer pays a premium for on-time delivery, which is a luxury.
“The fear is we’re ordering all this stuff for demand, and the demand is going to fizzle out before the product gets here,” Thomas says. With summer winding down, the big test of the global trading system’s resilience might still be ahead.
Commodity Shipping Rates Post Biggest Daily Gain in a Decade
Bloomberg also reports Commodity Shipping Rates Post Biggest Daily Gain in a Decade
Average rates for giant Capesize bulk carriers -- which can carry products like coal, iron ore and grains -- jumped by $6,700 a day on Monday, the most since 2010, as owners continue to benefit from strong demand for raw materials. The rally extended Tuesday, pushing the daily rate to almost $53,700, the highest level in 11 years, Baltic Exchange data show.
Parabolic Rise in Shipping Rates
Also consider this September 16 report: Ship Owner Genco Says Commodity Freight Rates Set to Spike.
Spot rates for container ships to move manufactured products have surged for 20 straight weeks and now stand 731% above their seasonal average over the prior five years, according to Drewry Shipping. John Wobensmith, the president and chief executive officer of Genco Shipping & Trading Ltd., said that prices to move commodities -- which have already rallied sharply this year -- may follow a similar cycle in the coming years with not enough ships being built to meet demand.
“You do get to a point, and you’ve seen this in containers, where you hit a certain utilization rate and you start to go parabolic on rates,” he said in an interview. “I think we’re getting close to that period.”
Beige Book Comments
San Francisco Fed: Prices rose substantially over the reporting period. Although lumber prices have dropped significantly, prices for other building materials, such as metals, cement, and wallboard have continued to climb. Other price increases were noted for energy, information technology, textiles, airline tickets, and agricultural products, such as fruits, meats, and seafood. The reported biggest drivers of these price hikes included higher shipping and logistical costs, continued supply chain disruptions, and rising labor costs.
Atlanta Fed: District contacts continued to cite increasing nonlabor costs, especially for steel and freight, with multiple contacts referencing record increases in shipping container rates. The price of lumber stabilized but remained elevated relative to pre-pandemic levels, while mentions of increased food product costs became more widespread. Contacts cited the ability to pass through price increases with greater frequency, and with minimal resistance.
Richmond Fed: Demand for cars continued to exceed supply while inventories were low, leading to lower carrying costs and increased margins for auto dealers. Clothing sales rose, and demand for furniture and home goods remained strong. Retailers noted shortages of and increased lead times for merchandise, particularly on foreign-made goods. One contact reported refunding several bridal parties because dresses did not arrive on time for weddings. Many retailers were able to maintain margins despite increases in costs of products and shipping.
National Comments: The other sectors of the economy where growth slowed or activity declined were those constrained by supply disruptions and labor shortages, as opposed to softening demand. In particular, weakness in auto sales was widely ascribed to low inventories amidst the ongoing microchip shortage, and restrained home sales activity was attributed to low supply.
The Beige Book is a summary of economic activity in each of the Fed's 12 regions. It was released on September 8 and come out approximately 2 weeks before the Fed meets to set interest rate policy.
The Fed's FOMC rate-setting committee meets again on September 21-22 with the announcement on the 22nd.
What About Cardboard Boxes?
August 6 Fortune: Online Retailers Get Boxed in by Higher Cardboard Prices
April 6 Supply Chain Dive: Cardboard Prices Reach Record High Amid e-Commerce Demand
July 9 DC Velocity: Strong Demand, Rising Costs Affect Packaging Strategies
The price of corrugated products was rising through the spring, with some of the country’s largest producers of containerboard—the material used to make corrugated boxes—announcing increases of $50 to $70 per ton. The cost of packaging supplies in general was rising too, increasing by double-digits in many cases, according to government data and industry groups that track packaging demand. John Blake, senior director analyst with consulting and research firm Gartner, says changes in demand for packaging throughout the pandemic, combined with volatile supply chain activity last year, are driving the increases and shining a spotlight on the need for shippers to better manage sourcing strategies and packaging processes.
Shipping Rates Peaked?
In contrast to John Wobensmith's call for shipping rates to go parabolic, Hapag-LLoyd AG says Spot Rates Have Peaked.
One of the world’s biggest shipping lines has decided to stop increasing spot freight rates on routes out of Asia to Europe and the U.S. as it sees an end to the rally that has seen prices hit records.
Hapag-LLoyd AG thinks spot rates have peaked and further increases are “not necessary,” according to Nils Haupt, the Hamburg-based company’s head of corporate communications. The move comes after French rival CMA CGM SA last week froze rates, saying it was prioritizing long-term relationships following a rally that has seen some spot rates jump more than sixfold in the past year.
While many shipping lines have taken advantage of rising spot prices, the rally is expected to “come to an end at some point,” said Jim Bureau, chief executive officer of logistics digital platform provider JAGGAER.
“The supply chain is extremely fragile right now,” he said. “How much more cost can carriers practically take on without increasing financial risk on both buyer and supplier?”
Prices Already Went Parabolic
This setup reminds me of the spike in lumber.
Prices have already gone parabolic. The question at hand is when and how fast prices crash.
But even if shipping costs fall in half, they will remain very elevated June 2020.
* * *
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