Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Penny stocks might not be the safest investment vehicles, and many traders will advise staying away from that. But the fact is they can be worthwhile trades if you do your research. It is true that a vast majority of penny stocks should be avoided, but certainly not at all. Here, we dive into the top penny stocks to buy in the month of October.
Top Penny Stocks to Buy
What makes investors so prudent about penny stocks? Well, due to a number of factors, penny stocks are often volatile. With volatility comes risk of course — but within risk, there is also opportunity.
An investor must perform excellent due diligence when it comes to penny stocks, due to their added risk. If such measures are practiced, and the best tools offered by the top brokers for penny stocks are utilized, good things can happen.
The markets are likely going to experience a rocky road heading into October and November. The U.S. Presidential election is already having an impact on the markets, with some stocks presenting opportunities if Trump wins, others seeing advantages if Biden wins.
If you’re an avid penny stock investor, the following top penny stocks are worth looking into. Here’s why:
MicroVision Inc. is an optics company that builds laser scanning technology for projection, 3D sensing, and image capture. The technology it builds includes applications such as mobile projection, head-mounted displays, and virtual retinal displays.
The company’s Q2 report for 2020 showed a revenue of $600,000, down from Q2 2019’s $1.2 million. Net loss for Q2 2020 was $2.3 million or $0.02 per share. Compare this to a net loss of $9.0 million, or $0.08 per share for Q2 2019.
MicroVision announced a potential sale in Q1 2020, looking at offers from the automotive and augmented reality industries, dispelling analysts’ doubts about business performance.
The company’s IP has been recognized by the Patent Board as a top 50 IP portfolio among global industrial companies.
Currently, EPS stands at $-0.14, which marginally missed estimates; This is still in line with the company’s growth, and would have likely beaten projections had it not been for the pandemic.
Express Inc. is a fashion retailer that operates mainly in the United States. The company has over 600 stores in the United States, Puerto Rico, Mexico, Costa Rica, Panama, El Salvador, and Guatemala.
The company has had a tough 2020, as indicated by their quarterly reports for the year. Earnings per share decreased by 1038.46%, as the company produced higher than expected losses. Revenue declined by 48.03% year-over-year.
The company announced in January 2020 that it would close 100 stores to save costs of up to $80 million, which testifies to the company’s efforts to restrategize amidst the pandemic.
Express Inc. launched a GoFundMe powered charity campaign called The Dream Big Project as part of a branding initiative.
EPS for Q3 2020 is $-1.67, diverging from estimates by $0.32; both Q2 and Q3 profit’s shares are low compared to pre-pandemic values, but are healthier compared to industry counterparts.
CBA Energy Technology, formerly the China BAK Battery Inc, is a company that specializes in the R&D, manufacture, and sale of high power lithium batteries. These include rechargeable batteries for mobile phones, digital cameras, and laptops.
In September 2020, CBAK won the bidding for Haier project in the smart home market, and will help Haier build an intelligent manufacturing information system.
CBAK signed an investment agreement with the Gaochun EDZ, which will see it develop more high-powered lithium batteries.
The stock price has experienced a significant jump since mid-September, growing from $0.9 to over $3.00, resulting from several new deals.
Penny stock trading has benefits, but it does ask you to be very cautious. It asks for a different kind of trading strategy and can be profitable for those who do their due diligence.
In volatile times like these, there is definitely an opportunity to short sell. Remember never to invest more than you can afford to lose, and you will find that penny stocks have the potential to be rewarding.
💡 Do you have a smartphone? There are a number of top stock trading apps you could use to trade stocks directly from your phone.
Do you have any penny stock recommendations of your own? What will the markets look like at the end of October? Let us know in the comments below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.