Are These Reopening Penny Stocks on Your May Watchlist?
In the last few weeks, penny stocks have seen high volatility across the board. This has encouraged higher volumes with penny stocks as people look to take advantage of large price fluctuations. The high speculation of a reopening market has produced high volatility and large margins for growth of penny stocks under $5.
Businesses have been allowed to re-open and in-person restrictions have been lifted. Investors of reopening penny stocks are eager to see the upcoming financials certain companies produce. It is known that most penny stocks trade highly off of speculation, so it’s no surprise to see price increases from companies predicted to benefit from the reopening economy.
In other words, even if a penny stock’s financials do not show current net positive growth, it does not mean a given penny stock to buy will not perform in the coming months. But it’s also important to consider thats speculation works both ways.
One example of this right now is the energy penny stock Peabody Energy Corp. (NYSE: BTU). We covered BTU stock several times in the past few months and only two weeks ago it was trading under $5 per share. After a 33% gain on May 17th, shares of BTU stock trade at around $8.33. This is a perfect example of how volatility is extremely present with certain penny stocks to watch.
Reviewing a company‘s financials is an important instrument in an investor’s toolbox. It’s inclusive of earnings reports, current debt, and allocation of liquidity. Recent news articles, as well as statements from company representatives, can be just as important as well.
These, however, are more speculative in nature because they typically reference future perspectives and can contain bias. Risk is a known component of penny stock trading, but it also means there could be greater rewards.
As investors looking for reopening penny stocks, it’s important to stay informed as to what penny stocks to are the best to buy right now and in the future. Making a penny stocks watchlist helps to make it easier to keep up to date as we move into the potential of the end of Covid-19. With all of this in mind, here are four penny stocks to keep an eye on.
4 Reopening Penny Stocks That Are Must Adds in May 2021
- Castor Maritime Inc. (NASDAQ: CTRM)
- Ashford Hospitality Trust, Inc. (NYSE: AHT)
- Ebang International Holdings Inc. (NASDAQ: EBON)
- Drive Shack Inc. (NYSE: DS)
1. Castor Maritime Inc. (NASDAQ: CTRM)
Castor Maritime is a worldwide shipping-based company operating dry bulk vessels for global shipping purposes. Having acquired over 26 vessels, and planning on buying more, CTRM specializes in the shipment of major and minor bulks. These include iron ore, coal, grain, steel products, fertilizer, scrap metal, and sugar.
As the economy reopens, the manufacturing of goods will increase tremendously. This will heavily scale up the demand for raw materials such as those carried by CTRM’s ships. As an international shipping company, this also extends CTRM’s business to other countries, where much of its business is derived from. Interested investors see this as an opportunity for a potential penny stock to watch in the coming months, making it no surprise that CTRM’s value has risen over 100% since the beginning of 2021.
“We are happy to announce the acquisition of two additional Panamax vessels. Following the delivery of M/V Magic Vela, our fleet consists of 14 vessels, and after the completion of all our announced acquisitions, our fleet will consist of 26 vessels across the dry bulk and tanker segments.”
CEO of CTRM, Petros Panagiotidis
Considering its role in the retail and shipping industry and the large emphasis on industrialization right now, will CTRM be on your list of penny stocks to buy?
2. Ashford Hospitality Trust, Inc. (NYSE: AHT)
Analysts often give their predictions on both quarterly gains and losses. Zacks Consensus Estimate generates a consensus EPS estimate based on the average of many current brokerage analyses. While these analyst recommendations are important, they should only be in use as one part of an investing strategy.
This past quarter Ashford Hospitality Trust was predicted to present a quarterly loss of $0.75 per share. Instead, it presented only a fraction of this prediction, only losing $0.30 per share. This is the second time it has beat consensus estimates in the past four quarters.
In the past month, AHT has increased by nearly 60% and continues to climb in share value. AHT is a penny stock under $5 that invests in the hospitality industry. The trust includes investments such as hotels, mezzanine financing and first mortgage financing through organization or acquisition, and sales-lease back transactions. With a rising real estate market, AHT’s portfolio continues to flourish.
In addition, AHT offers the Ashford APP which allows REIT investors to connect on an all-in-one platform. This is another value point that investors could consider for Ashford Hospitality. As vaccine rates ramp up, AHT could see more business in its hotels. Whether this makes it a reopening penny stock to watch however, is up to you.
3. Ebang International Holdings Inc. (NASDAQ: EBON)
Ebang Internation Holdings is a tech penny stock that specializes in blockchain technology. In the digital age, cryptocurrencies have made a huge comeback due to their high speculation. Blockchain technologies have been a highly sought-after investment for many and EBON is a penny stock to consider. EBON engages directly with this market, with an R&D team working with ASIC chip technology used in blockchain technology.
EBON also manufactures a large range of bitcoin and other cryptocurrency data mining rigs. These machines are high cost and very complex, which makes them extremely valuable. Doung Hu founded EBON in 2010, prior to the first highs of bitcoin seen in 2017. As digital currency becomes more integrated into our financial systems, EBON stands in a strong position.
“We are committed to our mission in strengthening the technological innovation in our products and services to ensure their competitiveness in the global cryptocurrency market. As previously noted, in 2021, we will increase investments in high-performance ASIC chips and mining machines.
Our abundant cash reserve allows us to expand the revenue sources from our current business and optimize the development of our blockchain industry chain. We believe our current businesses have solid potential and we are working hard to deliver results going forward that will demonstrate sequential improvement in operating and financial metrics.”
Dong Hu, CEO of EBON
Right now, cryptocurrencies such as Bitcoin and DogeCoin are driving a lot of attention toward penny stocks. And on their own, they present a new and intriguing investment tool for traders to capitalize on. Considering this, will EBON be on your penny stock watchlist?
4. Drive Shack Inc. (NYSE: DS)
With people feeling more comfortable returning to in-person activities, entertainment stocks like Drive Shack are looking to be a big hit. DS is a company that engages directly with the managing of social entertainment venues, courses, and golf-related leisure. There are three main parts to DS: Entertainment Golf Venues, Corporate, and Traditional Gold Properties.
Its Entertainment Golf Venues section plans to re-open its chain of venues specializing in competition, dining, and fun. Meanwhile, its Traditional Gold Properties specializes more so in the property management of golf courses. Its Corporate segment is made up of securities and other types of executive management.
As of March 2021, DS has a debt of $62.8 million, having increased from $51.4 million as of last year. However, since it has cash valued at $89.2 million this debt is of little consequence, giving DS net cash of $26.4 million.
Golf has been an integral part of the entertainment industry during quarantine. As a socially distanced activity, many were encouraged to join the masses on the course. This has led DS stock to sore of over 120% this past year with much promise as the other third of its business will open soon. So as a pure play reopening penny stock, DS could continue to see momentum moving forward.
Are Reopening Penny Stocks Worth It?
Reopening penny stocks have many investors excited. It’s a time where high volatility in the market presents many opportunities for high gains, but also great losses. Risk will always be involved when trading in general. However, by using the proper tools, such as understanding financials and staying up to date, one can minimize it.
By creating a reopening penny stock watchlist, you are preparing for what promises to be a couple of interesting coming months of trading. And, because we are only now witnessing the potential of the reopening economy, there are plenty of penny stocks to put on your watchlist.