Penny stocks continue weathering the storm in the stock market today. Various small- and micro-cap names have become the trade of choice instead of broader market indexes. The S&P 500 (NYSE:SPY), Nasdaq (NASDAQ:QQQ), & Dow (NYSE:DIA) all continue their choppy trends. Uncertainty surrounding inflation and interest rates has remained a point of focus for investors as broader markets pull back from their all-time highs.
Furthermore, we’re heading into another earnings season, with banks beginning to report this week. Some expect this to be a rocky period as supply chain issues persist, energy costs are rising, and guidance is what investors are focusing on right now. How will companies either maintain or continue to grow with higher costs?
This might impact big-box retailers, shipping companies, and others, one niche in the market that tends to follow its own path includes emerging growth & development stage companies. Most of these tend to be penny stocks or stocks under $5.
They’re already well-known for volatility. So anyone approaching this niche should already prepare for wild swings in the market. Regardless, over the last few months, as markets chop, some penny stocks are hitting it big, some even to the tune of hundreds of percentage points (See: Best Penny Stocks To Buy Now? 3 That Turned $1,500 Into Over $8,600). In today’s article, we’re not only looking at cheap stocks but penny stocks trading for literal pennies right now.Penny Stocks To Watch [Under $1]
- Alpha Esports Tech (OTC:APETF) (CSE:ALPA)
- Molecular Data Inc. (NASDAQ:MKD)
- Solar Integrated Roofing (OTC:SIRC)
One of the emerging niches in the tech industry is esports and online betting. The uptick of interest in digital versions of entertainment during the pandemic helped accelerate interest in things like Esports and iGaming. With that has come a few new companies focused on globally expanding market reach and userbase.
Alpha Esports is one of the newer entrants. However, since making its public debut, it has done nothing but focus on growing its reach. What’s more, the company has all of the exciting aspects you might think of when it comes to a virtual sports ecosystem. Alpha has built out its gaming portal, GamerzArena, to foster professional gamer development and casual gameplay. Alpha has also gone beyond offering just a competition-based model as well.
Read more: Esports Industry Set For Massive Growth
The company has built relationships and partnerships with a growing roster of notable names. For example, Alpha recently became the Official Online Gaming Portal of Nets Gaming Crew, the NBA 2K League affiliate of the Brooklyn Nets. This allows Alpha to directly connect with NetsGC’s network of fans and the NBA 2K League community.
This week, the company formalized its entry into the sports betting & adult gaming arena as well. Alpha signed a definitive agreement to acquire Heavy Chips Casino and Sports Betting from Gamesoft Ltd. The C$300,000 deal allows Alpha to access Heavy Chips’ 240,000+ registered players, 800+ casino games, and more than 5,000 sports betting opportunities daily. Thanks to this, Interim CEO Matthew Schmidt expects this deal to deliver revenue, expanded userbase, and operational growth, especially in Europe.Molecular Data Inc. (NASDAQ:MKD)
Thanks to a spike in Bitcoin prices, everything from cryptocurrency mining to blockchain technology stocks have gained momentum recently. Molecular Data is part of the latter, and instead of a blockchain specific to crypto, recent dealings have it focused on logistics. Thanks to supply chain disruptions and concerns over addressing bottlenecks, companies focused on logistics are seeing added attention.
Molecular Data, in particular, focuses on China’s chemical trade. The company offers supply chain technology to help with everything from warehousing and wholesaling to e-commerce and efficiency software. The blockchain technology aspect comes into play thanks to a new partnership with Wanxiang Blockchain.
The goal of the partnership is to digitize the chemical supply entirely. Molecular and Wanxiang plan on building a blockchain platform to address bottlenecks and build upon eCommerce. Molecular Data also inked a deal with an investment firm to build blockchain data centers. Thanks to the link between blockchain technology and cryptocurrencies, bullishness in Bitcoin has become a catalyst of sorts over the last few weeks for MKD stock.Solar Integrated Roofing (OTC:SIRC)
Another niche market gaining traction this year is renewables. Everything from low-carbon fuel to green energy solutions has taken the spotlight. Solar Integrated has had a great 2021 so far. That’s even considering pulling back from its Q1 highs. Year-to-date, the penny stock is still up roughly 100% so far. Some of the latest bullish activity is due, in part, to industry sentiment and continued discussions on addressing climate change by using clean energy.
Solar Integrated specializes in solar power and roofing system installation in the US. It also offers battery backup and electric vehicle charging stations as well. Earlier this month, the company engaged a firm to help with, among other things, uplisting its shares to a national stock exchange. In response, Solar Integrated Roofing Corp Chairman and CEO David Massey said, “Given the Company’s significant developments over the past year, we are at an exciting inflection point and felt the need to retain an established and well respected corporate advisory firm with a veteran presence, to assist the company with this next phase of its evolution.”
In many cases, when the topic is broached, some traders begin speculating. As we discussed in an article I noted above, an uplifting from the OTC to a major exchange can be a pivotal moment for any company. In this case, since the update, SIRC stock has become one of the names to know in October.Don’t Forget Your Penny Stock Basics
These are just a handful of penny stocks under $1 to watch right now. With each, industry momentum and speculation have helped play a leading role. However, as with all penny stocks, weighing risk and reward is important. With some of the lowest-priced names, volatility is a key component. The slightest move of even a few pennies can equate to a change in value of 10% or more. Keep this in the back of your head when putting together your watchlist.
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