While large market pullbacks can be disheartening, there has been plenty of opportunities to be had with penny stocks this year. The great Warren Buffet has stated that investors should “be fearful when others are greedy and greedy when others are fearful.” This quote continues to hold meaning daily.
As with any large market drop, investors should identify the root causes. Once we do this, we can then examine how to potentially profit in the long term or along the way. The recent pullback, illustrated by trading in the latter half of February, is seen across both blue-chip and penny stocks. While there isn’t one main cause, we can identify several contributing factors. On the one hand, the looming threat of the pandemic has resulted in unparalleled trading conditions. With massive uncertainty and a geopolitical environment to match, the last twelve months have been an anomaly.
If all that wasn’t enough, the Gamestop (NYSE: GME) trading fiasco of the past few months, has resulted in a complete paradigm shift in the market. With more retail traders than ever, it appears as though the stock market is fundamentally changed. But, because of the massive speculation, there is plenty of opportunities to be had. And given that penny stock traders tend to like volatility, now may be a perfect time to find penny stocks to watch.
So, in short, despite the recent market pullback, penny stocks still look like they could have a great deal of potential. Whether or not this pullback continues remains to be seen. But if we find solid penny stocks with bullish potential, the chances of seeing profits can be much higher. Here are 3 penny stocks that have proven the momentum in penny stocks is alive and well.Penny Stocks That Went Big In 2021CPS Technologies Corp.
If we look back to December 1st, shares of CPSH stock were trading at just over $2.15. As of late February, shares are now teetering around $21. Unlike some stocks in that period, CPSH has followed a relatively bullish trajectory in that time frame. And after hitting an intra-day high of over $22.50 on February 25th, investors have continued to track CPSH stock. This incredible gain is a mixture of its business model and its commitment to innovation. Since December, it looks like CPSH has been working to shift its business model to stay competitive.
This involved the hiring of Michael McCormack as its new Chief Operating Officer. Only a month after this announcement, the company made big news for receiving a large purchase order from HybridTech Armor Panels. As a producer of high-performance energy management components, CPS Technologies has its hands in many budding industries. This includes 5G, electric vehicles, smart grids, renewable energy and more. If you’re a frequent reader at pennystocks.com, these terms should be quite familiar.
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In 2021, those four sectors alone have climbed tremendously in value. And while no one can predict the future, CPS continues to show that it may be in the right place at the right time. It announced its Q4 earnings only a day ago, bringing in revenue north of $4.2 million. While orders decreased due to the impact of Covid, CPSH explained its optimistic outlook for the year. The company explained that “CPS products play critical roles in the electrification of the green economy. Green energy generation, electric vehicles, the smart grid, aerospace, and satellite communications all represent significant growth markets for our products.”Chromadex Corp.
When we talked about CDXC stock back in October of last year, the nutraceuticals company was working off of a recent sell-off. Since then, the nutraceuticals producer has shot up to around $18.74 as of late February. If we look at the chart, we see the majority of this momentum has occurred in February alone.
Since February 1st, shares of CDXC stock have shot up by over 290% to its current price. Attention began focusing on the company when it was working on clinical studies to show its Niagen compound’s efficacy. With a high amount of intellectual property protection, this substance has become its flagship product. Chromadex has continued work toward entering into key global markets. This includes a partnership it announced back in November with Watsons Hong Kong, which called Tru Niagen the #1 selling supplement in Watson’s pipeline.
Along the way, Chromadex has studied this compound to find that it could be beneficial in everything from breast milk production to reducing liver fat. Only a week ago, the company engaged in a $25 million equity offering to advance the growth of Tru Niagen® global brand, clinical research on NAD+ precursors, and support general corporate purposes.
This week, momentum continued after the company’s most recent update involving a potential for treating Covid with its pipeline treatments. A Phase 3 study demonstrated that patients with mild-to-moderate COVID-19 receiving standard of care experienced a 3.5-day reduction in recovery time when receiving an added nutritional protocol.
“Our Phase 3 data shows that the nutritional protocol significantly improves the recovery, liver health, and markers of inflammation of patients with COVID-19,” explained lead investigator Dr. Adil Mardinoglu, professor at KTH—Royal Institute of Technology in Sweden & King’s College London.Gevo Inc.
One of the penny stocks that we’ve covered the most over the past few months is Gevo Inc. From October of last year until December, shares of GEVO stayed in the $1-2 range. Despite small bullish sentiment in that time, shares managed to remain quite stable. In mid-November, attention began focusing on alternative fuel companies and renewable energy.
As a biofuel company, GEVO was poised perfectly to take advantage of this sector’s massive bullish sentiment. Due, in part, to the new Administration in the U.S., alternative fuels are gaining ground in 2021. This rally has brought GEVO stock to over $12 earlier in the month.
Additionally, GEVO has made several key announcements in that period. This includes several fundraising opportunities (one raising $350 million) and agreements with several major companies, including Scandinavian Airlines and a recent memorandum of understanding with HCS Group.
The MOU with HCS was announced earlier this week. It calls for HCS to use Gevo’s low-carbon sustainable aviation fuel technology. Moreover, the deal anticipates a first project that is expected to produce approximately 22 million gallons per year of renewable hydrocarbons, advanced renewable fuels, and low-carbon SAF at HCS Group’s Speyer site by the end of 2024.Penny Stocks Carry Risk; Remember That
While these are huge moves for these former penny stocks, you can’t forget that this isn’t the norm. Remember, not all penny stocks experience such huge jumps. Regardless, we have seen plenty of these smaller names explosively gain this year. Whether you’re brand new or have been trading for a while, understanding how to trade volatile stocks and establishing a proven strategy is key.