3 Penny Stocks to Watch During The First Full Week of October
With October in full swing, the time to make a penny stocks watchlist is now. But, to do so, investors need to consider a few different factors. While many investors are hoping for a bullish turnaround, there are some events that could keep the market in volatile waters.
It’s worth noting that attention has shifted away from the pandemic slightly and onto more pressing economic and political tensions. This includes inflation in the U.S., jobs reports, and more. However, hopes still remain high that October could be a better performing month for penny stocks and blue chips than September was.
One aspect that is brightening the outlook right now is the potential of Merck & Co. Inc.’s (NYSE: MRK) new Covid pill. Early studies are showing that this pill could have potential to reduce deaths in those with Covid by half. And, the company plans to apply for EUA or emergency use authorization within a short time frame.
Dr. William Schaffner, an infectious disease expert the Vanderbilt University stated that the pill “would allow us to treat many more people much more quickly and, we trust, much less expensively.” Overall, it looks like the U.S. has turned the corner on Covid for now, with cases continuing to decline over their previous month highs. So, with this in mind, let’s take a look at three penny stocks to watch this week.
3 Penny Stocks For Your Early October Watchlist
- Ault Global Holdings Inc. (NYSE: DPW)
- Sonnet BioTherapeutics Holdings Inc. (NASDAQ: SONN)
- Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Ault Global Holdings Inc. (NYSE: DPW)
Ault Global Holdings Inc. is an industrial penny stock that has climbed by over 8% in the past five days. If you’re unfamiliar, Ault is a holdings company with hands in several different industries. This includes the design, development, and sale of power system solutions.
The company manufactures these products for medical, military, and industrial companies all over the world. Some of its products include customer power system solutions, power rectifiers, AC-DC power supplies, EMC filters, and much more. As a whole, Ault invests in breakthrough technologies that act as disruptors in several industries.
On September 23rd, the company announced an investment in Unique Electric Solutions Inc. Unique is a privately-held developer of EV propulsion systems for commercial trucks and school buses. Ault invested $2.25 million for a 7% stake in the company, which could increase to 10% upon the exercise of warrants acquired by the company.
“We are pleased to invest in UES, which has a proven track record of delivering efficient solutions to premier fleets like UPS and Logan. We expect this strategic investment and partnership will dramatically accelerate UES’ production and catalyze numerous high-growth synergies with TurnOnGreen, unlocking significant value for our stockholders.”
The CEO of Ault, Milton “Todd” Ault
In the past few trading days, volume for DPW stock has been much higher than average. This signifies heightened popularity with DPW right now. With this in mind, will DPW stock be on your penny stocks watchlist this month?
Sonnet BioTherapeutics Holdings Inc. (NASDAQ: SONN)
Sonnet BioTherapeutics Holdings Inc. is a biotech penny stock that went up over 7% in the market on October 1st and is up by around 7% in premarket trading today. This company develops a platform for biologic medicines of a single of bispecific action. Its lead product is SON-1010 which is a candidate for treating lung, head, and neck cancer. It also has SON-080 which is for chemo-induced peripheral neuropathy and diabetic peripheral neuropathy.
[Read More] Best Penny Stocks To Buy Right Now? 3 to Watch
On August 30th, Sonnet announced the successful completion of its discovery phase for SON-1410, its next preclinical pipeline candidate. In the second half of 2022, an IND submission is expected for SON-1410. The target indicates that the drug will be for melanoma and renal cancers. This is its second bispecific compound integrating Interleukin 12 with its fully human albumin binding platform.
“Following our recently completed $30 million financing, we are excited to have identified this latest bispecific candidate, which is scheduled to enter the next stages of its development during the fourth quarter of 2021, with the objective of filing an IND in the second half of 2022.”
CEO of Sonnet, Pankaj Mohan
Following this announcement, SONN stock has gone up in the market. With this in mind, does SONN stock deserve a spot on your list of penny stocks to buy this week?
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Seanergy Maritime Holdings Corp. is a shipping company that offers seaborne transportation services. Primarily, Seanergy transports dry bulk commodities by sea. These dry bulk commodities include both iron ore and coal. Seanergy currently has an operating fleet of 17 Capesize vessels with an average age of 11.5 years. These vessels have an aggregate cargo-carrying capacity of about 2,829,630 deadweight tons.
On September 8th, the company took delivery of its 17th Capesize vessel, the M/V Worldship. This is a 181,415 deadweight ton bulk carrier built in 2012 in Japan. This vessel has entered a time charter at a gross fixed rate of $31,750 per day for 12-16 months from the delivery. This purchase was funded via cash on hand.
“I am pleased to announce the addition of the seventeenth Capesize vessel to our fleet and the concurrent commencement of her period employment. Including this delivery and the sale of the M/V Leadership, 94% percent of our fleet is employed under period time charters, 87% of which are index-linked T/Cs.”
The Chairman and CEO of Seanergy, Stamatis Tsantanis
Over the last month, SHIP stock has gone up by around 19% and YTD by over 180%. This is a sizable gain, and one that reflects both Seanergy’s business and the shipping environment right now. Keeping this information in mind, will this company make your list of penny stocks to watch?
Which Penny Stocks Are You Watching This Week?
Right now, there is a sizable amount of momentum in the stock market. This is due to the large number of external factors impacting both penny stocks and blue chips.
And as prudent investors, it is our job to take advantage of these events and use them as a way to predict price movement. Considering that October presents a clean slate after a less than stellar September, which penny stocks are you watching this month?
Monsters of Rock: Lithium shares flush with positive sentiment to dominate the gains
Lithium miners were the kings, queens, jacks and aces of the bourse on an avalanche of positive news around the … Read More
The post Monsters of Rock:…
Lithium miners were the kings, queens, jacks and aces of the bourse on an avalanche of positive news around the sector.
The biggest trigger was probably the incredible rise in value for Tesla overnight, which soared beyond a US$1 trillion valuation on news Hertz would order US$4 billion worth of electric vehicles from the automaker.
As the leading electric vehicle maker in the western world, and with a big presence also in China and energy storage, Tesla is one of the biggest end users of lithium products globally.
Its boss Elon Musk, now the richest man ever, has a fair bit of sway on the market as well.
— Elon Musk (@elonmusk) October 25, 2021
On top of that Pilbara Minerals (ASX:PLS), up 525% over the past 12 months since spodumene prices bottomed out at under US$400/t (it sold a batch for upwards of US$2000/t last month), gained 7.66% after formally announcing plans to develop a lithium chemical plant in a JV with South Korea’s POSCO.
Core Lithium (ASX:CXO) declared the start of construction on its Finniss Lithium Mine in the Northern Territory. That will be shipping concentrate from the end of 2022.
$550 million capped Neometals (ASX:NMT) was up 14% after announcing its battery recycling demonstration plant in Hilcenbach, Germany, had been fully commissioned.
The one time lithium miner is up 405% over the past year.
On the flippity flip, iron ore miners were weak with Fortescue (ASX:FMG) and Rio Tinto (ASX:RIO) cancelling out a gain from BHP (ASX:BHP), while Mineral Resources (ASX:MIN) cancelled out the gains it made with yesterday’s announcement the Wodgina lithium mine would be coming back online with news it ate a 48% price discount on iron ore sales in the September Quarter.
MinRes’ average realised prices fell from US$178/t to around US$78/t between the June and September Quarters.
Base metals inventories falling, but can it be sustained?
Base metals were back up on Monday, with production cuts in energy starved China and Europe hitting primary supply.
Inventories held by the major exchanges are being chewed up.
While price moves among the miners was muted, nickel rose 3.2% to climb back over US$20,000/t overnight after hitting US$21,000/t briefly last week.
“Nickel rallied after Eramet disclosed a 19% drop in ferronickel production from its operations in New Caledonia,” ANZ analysts said in a note.
“The market is also showing signs of tightness, with cash contracts closing at their biggest premium to futures in two years. LME inventories are down nearly 50% since April.”
LME stockpiles for copper hit their lowest level since 1974 last week, but Commbank analyst Vivek Dhar says it is too early to say whether the market is as tight as it seems, or whether some traders are hoarding to capitalise on high prices.
The market is expected to be in a small deficit at the end of this year to a 328,000t surplus in 2022 on rising supply (about 1.3% of global demand).
Mined supply is expected to increase 2.1% this year and 3.9% in 2022, but Dhar warned copper miners had a history of underwhelming.
“The rising forecasts for copper mine production reflect 5 major copper projects due to arrive by the end of 2022,” Dhar said.
“That compares with just two major copper projects in the last 4 years.
“Given the track record of mine disruptions (i.e. labour strikes, power and water scarcity and geopolitics) and the decline in copper grades, elevated copper mine production growth forecasts don’t tend to last long.
“We think it’s worth considering that new mine supply may take longer than currently expected to hit the market.”
The post Monsters of Rock: Lithium shares flush with positive sentiment to dominate the gains appeared first on Stockhead.
Resources Top 5: Investors pile into ASX stocks as global magnesium shortage bites
China is slashing magnesium production due to ongoing power crisis and buyers are getting desperate ASX magnesium stocks Korab, Latrobe … Read More
- China is slashing magnesium production due to ongoing power crisis and buyers are getting desperate
- ASX magnesium stocks Korab, Latrobe and Magnotec soar in early trade
- Emmerson hits visual copper in drilling, Aguia inks phosphate sales agreement
Here are the biggest small cap resources winners in early trade, Tuesday October 26.
(Up on no news)
There are only a handful of current or likely magnesium producers outside China, which is slashing production due to an ongoing power crisis. Buyers are getting desperate.
Another metal going berserk, courtesy of China’s energy crunch. Magnesium (a key element to produce steel and aluminum alloys) has gone up 225% since January. Europe, which buys 95% of its magnesium from China, will run out of the metal by late November https://t.co/Vzdupn4tNP pic.twitter.com/eD4V593IiZ
— Javier Blas (@JavierBlas) October 22, 2021
$20m market cap KOR is currently in a pause pending a further announcement after shooting up almost 100% in early trade.
This sleepy explorer has been trying to develop, or sell, the ‘Winchester’ magnesium project in the NT for over a decade.
Over the last few months, KOR says it has been approached by two separate groups expressing an interest in developing Winchester.
The latest unsolicited proposal would see the two parties “jointly develop the Winchester quarry where the other party will fully fund the development in exchange for sharing the future profits from the quarry”.
No commercial terms have been met as yet, KOR said September 30.
(Up on no news)
LMG plans to develop a 3000tpa operation which will convert fly ash from the Yallourn coal operations in the Latrobe Valley into magnesium and a host of other industrial products.
Latrobe still has engineering and other studies to complete before issuing tenders for construction of its plant in January next year but managing director David Paterson said end users facing supply woes out of China were already desperate to get their hands on mag product.
“That’s why we keep on talking about diversity of supply,” he told Stockhead on September 30.
“We’ve had probably at least three or four inquiries a week, probably one a day.”
“We’ve had two today just on can we supply mag at a price, at any price, because they can’t get supply.”
(Up on no news)
China and Europe-based MGL isn’t a miner, but it does sell primary and recycled magnesium alloys into the auto, power tool and electronics sectors.
In the first six months of 2021 the metals businesses experienced a ‘difficult period”. The principal constraint on Magontec’s metals business in China is the absence of raw material supply, it says.
“Auto sector output was constrained, logistics costs rose sharply, magnesium prices were volatile and Magontec’s key magnesium alloy cast house at Golmud, Qinghai province, PRC continued to source its raw material from regional Pidgeon producers pending resumption of supply from the Qinghai Salt lake Magnesium Co Ltd (QSLM),” the company says.
“Until this supply re-commences the MAQ business will continue to be unprofitable at the EBITDA line and, with depreciation charged on this currently non-performing asset, will continue to negatively impact reported profit.”
MGL’s other metals businesses — recycling of magnesium alloy scrap in Germany and Romania — is also challenged.
“A slowdown in the automotive sector due to chip shortages, among other issues, has reduced volume throughput for the European recycling facilities over the last 12 months and we don’t expect a recovery in the short-term,” the company says.
A maiden drilling program pulled up visual copper at ‘Hermitage’, one of a cluster of targets held by ERM in the 5.5Moz gold, 470,000t copper Tennant Creek Mineral Field (TCMF).
Drill hole HERC002 and HERC003 intersected thick zones of malachite (copper ore) chalcopyrite (copper ore), interspersed with native copper.
Here’s what that looks like:
HERC003 terminated in mineralisation at 192m, ERM says.
Drilling continues, and first assay results are expected in the current December quarter.
Hermitage has not seen any systematic, modern exploration since the 1980s.
The first phase of this exploration is aimed at following up historic hits like 9m at 12.8g/t gold from 176m and 23m at 4.84g/t gold and 3.7% copper from 203m.
$37m market cap ERM has been treading water, up 7% over the past month and down 6% year-to-date.
This aspiring fertiliser miner has presold 30,000 tonnes per annum of natural phosphate fertiliser from the ‘Três Estradas’ Phosphate Project (TEPP) in Rio Grande do Sul, the southernmost state of Brazil.
The MOU — with well-known fertiliser and agribusiness distributor Tuch — potentially represents well over half of AGR’s projected first year of TEPP sales, estimated at 50,000 tonnes, the company said.
The sale price from AGR to Tuch is $74 per tonne FOB for the product in bulk. Operational expenditure has been estimated at just $11/t.
The project, which will cost just $8m to build, is expected to produce 306,000tpa over 18 years following a three-year ramp up, AGR added.
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Lefroy Exploration secures major nickel frontier land package in WA
Special report: In line with its multi-commodity gold and base metals strategy, Lefroy Exploration has pegged five exploration licence applications ……
In line with its multi-commodity gold and base metals strategy, Lefroy Exploration has pegged five exploration licence applications over a new nickel project named Glenayle.
The Glenayle Project covers a massive contiguous 2735sqkm of the Proterozoic age Salvation Basin that is intruded by multiple dolerite sills which extend over the entire land package.
These dolerite sills are part of the Warakurna Large Igneous Province (LIP), which extends west to the Bangemall Basin and east to include the Giles layered intrusive complex. More importantly, they are considered prospective for nickel mineralisation.
Glenayle represents a first mover approach by Lefroy (ASX:LEX) into a frontier nickel-copper exploration project with its stake over the Warakurna LIP.
New wholly owned subsidiary to list on ASX in 2022
The Glenayle tenement package is held by a new wholly owned LEX subsidiary, Johnston Lakes Nickel (JLN), which Lefroy aims to list on the ASX in 2022 subject to shareholder and regulatory approvals.
JLN will also hold other nickel assets currently held by LEX at Lake Johnston and at Carnilya South in the Lefroy Gold Project.
The company expects the tenements to be granted in Q4, 2022.
While the explorer aims to expand its portfolio in search for nickel, the focus remains on exploration at Eastern Lefroy and the Burns gold-copper prospect.
A rare opportunity
LEX managing director Wade Johnson said it is not often that an opportunity like this presents itself.
“It is a monster land package,” he said.
“We have taken the first mover approach into a new area that has seen very little exploration.
“We are very keen to further develop and apply knowledge learned about nickel mineralisation in large igneous provinces that will provide exploration targeting criteria for target selection,” he said.
“Glenayle adds another wholly owned project to the LEX greenfields exploration portfolio and complements our other nickel assets at Lake Johnston and Carnilya South.”
Identified in desktop assessment
The Glenayle nickel project was identified after a desktop assessment to identify new areas in Western Australia considered prospective for nickel mineralisation.
Prior geological knowledge of the area from a field reconnaissance trip in 1998 by Wade Johnson and the subsequent review of the research paper by Pirajno and Hoatson (2012) supported LEX’s acquisition.
Lefroy has kicked off compilation and assessment of previous surface geochemistry, geophysical and drilling data from WAMEX at Glenayle.
The location of drill core from the only three diamond holes drilled at Glenayle is being sourced, with two of the three holes being located.
Geophysics, and in particular interpretation of gravity survey data, will play a key role in guiding exploration targeting within the project.
Development of a detailed aeromagnetic and gravity dataset is underway and will be the primary exploration tool in the interpretation of the distribution of the mafic rocks such as feeder sills, layered intrusions and dykes within the Salvation Basin.
This will then be followed by targeted stratigraphic diamond drilling in 2023.
The company will apply for funding support through the WA State Governments Exploration Incentive Scheme (EIS) for this drilling where applicable.
LEX has also commenced land access negotiations with the determined Native Title group.
This article was developed in collaboration with Lefroy Exploration, 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.
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