Penny Stocks To Watch This Month
Thanks to the latest trend in penny stocks, traders are on the hunt for catalysts. News headlines are one of the primary sources of market sentiment and for a good reason. Whether it’s the latest funding round in a series of financings or the latest revenue-generating deal, things like press releases are essential. They can become a source of bullish momentum and can act as a brick wall in what could otherwise be a massive breakout.
Needless to say, it’s essential to understand how to find penny stocks with news. Then it’s up to you to translate the info into something you can use to profit (or avoid loss) in the stock market today. I know it seems simple; look for stock market news, right? But what about the biotech company that reports positive data but the stock still drops?
How do you account for instances such as that? If you understand what to look for, the answer is much more apparent. In many cases, whether it’s a new deal, pipeline data, or something else, going beyond a headline and reading a full release can give you a better glimpse into how a news event can impact a company’s stock. Today, we’ll look at a handful of penny stocks to watch for October after releasing their latest corporate updates. Will they be on your list?
Penny Stocks To Watch For October 2021
- Alpha Esports Tech (OTC:APETF) (CSE:ALPA)
- NextPlay Technologies (NASDAQ:NXTP)
- High Wire Networks (OTC:SGSI)
- RR Donnelley (NYSE:RRD)
- Farmmi Inc. (NASDAQ:FAMI)
Alpha Esports Tech (OTC:APETF) (CSE:ALPA)
Tech has played a significant role in the stock market daily. It seems to have become a bellwether for the directional momentum of the broader indexes. However, that doesn’t mean that when tech is bearish, all tech stocks follow suit. If you look at particular niches, namely digital entertainment, trends are a bit different. Alpha Esports has managed to weather the recent market downtrend over the last few weeks.
In fact, since gaining DTC eligibility, allowing broader electronic trading from other brokers, APETF stock has jumped from under $0.20 to over $0.40 at times. What’s more, the esports company’s latest news seems to have stoked some attention as it expands the company’s reach beyond esports alone.
Recent Alpha Esports News
Since debuting in the public market earlier this year, Alpha’s primary focus has been growing its user base. It’s been able to accomplish this through several key partnerships. Alpha has built a track record of strategic dealmaking, whether it’s been a deal to enhance gameplay or inking a partnership to expand its global reach further. Earlier this month, the company signed a technology partnership with Nasdaq-listed Esports Entertainment Group’s (NASDAQ:GMBL) subsidiary, EEG Labs.
However, its latest deal has Alpha extending its model beyond esports and into more adult gaming. This week, the company announced 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. Considering these betting opportunities include currently active league sports like football, it will be interesting to see what comes next for Alpha.
Interim CEO Matthew Schmidt explained, “We will now be active in the adult gaming space, a space we feel has tremendous potential to help the Company increase shareholder value. Ultimately, we believe Heavy Chips certainly provides value in several ways including revenue, an expanded global userbase, and further operational expansion into Europe.”
NextPlay Technologies (NASDAQ:NXTP)
Another esports and digital technology company gaining momentum recently is NextPlay. Now, this isn’t your typical “pure-play” esports company. NextPlay doesn’t have a model that hinges on competitions or virtual events. However, in its tech portfolio, one of its assets uses the popularity of online gaming to generate revenue.
Specifically, its HotPlay platform allows for gaming and advertising to mesh together. A few examples are things like passively skinning an avatar in branded gear or indirectly including a micro-billboard in the background of a game. However, more recent events paint a bigger picture of NextPlay’s portfolio of tech assets.
Recent NextPlay News
If you look in the company’s filings, you’ll see a few more recently filed documents. One of these is an 8-K, which references a material event for the company. Filed on October 4th, NextPlay revealed that it entered into a stock exchange agreement with NextBank International (f/k/a International Financial Enterprise Bank). This is a new subsidiary that was initially acquired in July.
This brought NextPlay into the financial technology space and, in turn, opened new opportunities for engaging in alternative asset management, including blockchain crypto securitization. Thanks to the uptick in things like Bitcoin and other digital assets, companies exposed to the niche have gained momentum. Thanks to the latest 8-K filing, NextPlay’s NextBank arm may have gotten a bit more attention since NXTP stock has managed to rally during the latest jump in cryptocurrency prices.
High Wire Networks (OTC:SGSI)
In line with the trend in digital access, you can’t forget about cyber security. High Wire Networks has taken a bit of a different approach to this service. Initially focused on providing communications networks including wireless, cabling, and telecom infrastructure, High Wire has also focused on a growing need for new cyber security offerings. Its Overwatch Managed Security Marketplace offers High Wire’s customers the ability to subscribe to cybersecurity services.
Recent High Wire News
Just before the start of October, High Wire launched its Overwatch Ransomware Kill Switch product. This is the company’s business-level solution for protecting clients against the threat of ransomware attacks. Furthermore, High Wire’s newest leadership addition has become a more significant focus for some traders recently.
According to the company, the main reason is that a new EVP of Finance was brought on to speed up its process to uplist to the Nasdaq exchange. When you’re talking about OTC penny stocks jumping to a major exchange, that tends to attract a bit of attention. Since that update, not much was reported from High Wire, so it will be interesting to see what October could have in store as far as any further updates are concerned.
RR Donnelley (NYSE:RRD)
On the higher-priced end of this list of penny stocks, RR Donnelley surged during premarket trading on Tuesday. While no immediate catalyst was seen, a bit of digging revealed what the company ultimately ended up announcing just before the open. RR Donnelley, for those unfamiliar, specializes in multichannel marketing and business communications.
The company reported strong earnings in its last quarter, helping give the market a boost. RR Donnelley beat on both EPS and sales, at $0.07 and $1.15 billion, respectively. The company has tens of thousands of clients across 28 countries. But it isn’t this earnings growth that’s in focus right now.
Recent RR Donnelley News
Its largest investor, Chatham Asset Management, has been making a play at buying the company. In the latest development, Chatham’s Anthony Melchiorre sent a letter to RR Donnelley offering to acquire it for $7.50 per share in cash. There was an offer to have no financing contingency and represented a 92% premium to RRD’s 365-day variable weighted average price. The proposal also included an option to reduce RRD’s total debt by 23% and annual interest expense by 33%. With this news, the market now awaits RR Donnelley’s response.
Farmmi Inc. (NASDAQ:FAMI)
When it comes to penny stocks under $1 to watch, Farmmi has become a frequent name on that list. In my opinion, it has one of the less “sexy” stories but, based on financial results, Farmmi continues reporting growth from its fungus-selling business model. Yes, the company specializes in the sale of mushrooms and fungi.
Though it does have a few other arms, that could be something to keep track of. These include its newly acquired Jiangxi Xiangbo Agriculture and Forestry Development company. New products like bamboo, Chinese fir trees, and Camellia oil came with this purchase. Farmmi also established several subsidiaries focused on health and wellness.
The main focus, however, has been on the mushroom business. In fact, the first half of this year saw revenue increase over 30% with a 41.6% jump in gross profit. But what’s come out this week has sparked a bit more momentum in the stock.
Recent Farmmi News
This week Farmmi announced something that touches on exactly why I say to keep Farmmi’s other businesses in mind. The company’s Zhejiang Farmmi Biotechnology Co., Ltd. and Zhejiang Farmmi Food Co., Ltd. received international certification. According to the company, “The Lishui ShanGeng international certification is an important brand validation for successful domestic and international business, as it strengthens the premium and competitive advantage of Farmmi’s products and validates the progress the Company is making in its health and wellness food products division.”
Final Thoughts On Penny Stocks
Penny stocks are high-risk, but the rewards can be significant. Not many places offer the potential to see an investment 1x or even 10x within a matter of days or weeks. It’s essential to understand why stocks are moving and what specific things like news can mean for the future of companies.
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