3 Top Penny Stocks To Add To Your Watchlist Right Now
Although penny stocks and blue chips rebounded from yesterday’s sell-off, many investors fear the future. The inflation that has occurred as a result of the pandemic, billions of dollars in stimulus and an economic recovery, is causing major market volatility with stocks quoted in cents.
“We’re going to have that push and pull where we get these numbers that shock the markets a bit, like with inflation yesterday.” And although inflation wreaks havoc in global markets, many investors in penny stocks tend to thrive in stormy waters.
Yung-Yu Ma, Chief Investment Strategist at BMO Wealth Management
This is due to the common strategy of day trading or swing trading. Since swing traders seek both high volume and large price swings, volatility is the key to making money with penny stocks.
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So while it may seem scary at first, having a developed strategy can pay off for some. Considering that, let’s take a look at three penny stocks to watch that could be inflation proof.
3 Penny Stocks to Watch Right Now
- New Oriental Education & Technology Group Inc. (NYSE: EDU)
- Genius Brands International Inc. (NASDAQ: GNUS)
- McEwen Mining Inc. (NYSE: MUX)
New Oriental Education & Technology Group Inc. (NYSE: EDU)
New Oriental Education & Technology Group Inc. is a China-based education company. This company offers test preparation services, K-12 AST and other educational services. Its test preparation courses are often taken by students who wish to take the necessary entrance exams in the United States, China and several other countries around the world.
Recently, the Wall Street Journal reported that China wants to issue more than a dozen licenses to educational companies. These licenses would allow companies to continue tutoring after school. This follows news four months ago of a ban on for-profit tutoring that has prompted Chinese education companies to shift to a non-profit business model. This new policy will end the confusion that has cost businesses billions of dollars.
This new licensing proposal states that these companies still cannot operate their after-school tutoring services on a not-for-profit basis. But, the proposal also says that companies can offer other courses on a lucrative basis, such as adult tutoring. The government will set a cap on how much these businesses can charge for services. It will be interesting to see the impact of this new proposal on New Oriental. It’s also worth noting that EDU shares managed to climb around 7% during today’s trading. Given this new information, will EDU be on your list of penny stocks to watch in November?
Genius Brands International Inc. (NASDAQ: GNUS)
Genius Brands International Inc. is an entertainment company that offers various forms of content. Primarily, Genius offers multimedia content for the toddler to tween age group. The company is involved in the creation and licensing of this content. Currently, Genius offers Rainbow Rangers, Llama Llama, Space Pop and more. This content is offered to broadcasters, manufacturers, etc. During the pandemic, the demand for new and original digital content has skyrocketed. This is especially true for younger people, as home schooling has become the norm.
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Recently, the company announced its acquisition of WOW! Unlimited media on October 27. The companies have entered into an agreement whereby Genius will purchase all of the outstanding shares of WOW !. This transaction will cost approximately $ 53 million in cash and stock. WOW! shareholders will receive 0.271 of a Genius Brands common share for each WOW! share they own.
“The acquisition of WOW! Significantly accelerates the financial growth of Genius Brands, delivering on our promise to shareholders to make meaningful and profitable acquisitions, as we seek to rapidly consolidate the market and become the leading producer, broadcaster and licensor of consumer entertainment products for high-quality children around the world. ”
President and CEO of Genius Brands, Andy Heyward
With over 5% gains over the past month, will GNUS be on your list of penny stocks to watch?
McEwen Mining Inc. (NYSE: MUX)
McEwen Mining Inc. is another winner of the day so far. If you are not familiar, McEwen is a company that searches for gold and silver deposits located in the Americas. McEwen is involved in the exploration, production, development and sale of these products. The company operates primarily in the United States, Canada, Mexico and Argentina. Currently, it operates the Gold Bar mine, the Black Fox mine and the El Gallo project, among others.
On November 3, McEwen released its third quarter results for 2021. The company said it is currently on track to meet its 2021 production targets. McEwen says it has made significant progress from an operational standpoint and financial. As of September 30, 2021, McEwen had cash and liquid assets and working capital of $ 72.7 million and $ 45.8 million respectively.
Today, the company continues to “aggressively” invest $ 6.2 million in exploration and $ 4 million in advanced projects. The company said, “These investments in our future growth and profitability accounted for a large portion of our reported net loss of $ 17.4 million, or ($ 0.04) per share, compared to a net loss of $ 17.4 million, or ($ 0.04) per share). $ 9.8 million, or ($ 0.02) per share in Q3 2020. ”
Over the past month or so, MUX shares have risen by around 7.8%. While it may not seem like much, we don’t often see mining stocks moving at such a speed. With many investors turning to more stable stocks to avoid inflation, will MUX be on your penny stock watch list this month?
Which Penny Stocks Are On Your Watch List?
If you think it is difficult to invest in penny stocks in 2021, you are not alone. But, due to the large number of factors that impact penny stocks and blue chips, it may be possible to make money with intraday movements.
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Considering that there are hundreds of penny stocks to choose from, it all comes down to which ones might be worth it. With that in mind, which penny stocks are on your watch list right now?