Are These On Your List Of Penny Stocks To Buy Or Avoid Right Now?
Penny stocks are well-known for their volatility. The stock market this week has brought this to heightened levels. While the broader markets have broken down, it has brought most market sectors with it. With some exceptions, the vast majority of stocks slid this week. So is this one of the contrarian situations of “buy when there’s blood in the streets”?
A famous saying credited to Warren Buffett actually has its origins much further back. Baron Rothschild of the Rothschild banking family was noted as saying, “Buy when there’s blood in the streets, even if the blood is your own.”
He was lauded for his buying spree during the panic that came after the Battle of Waterloo against Napoleon. Warren Buffett has gone further to elaborate on this ideology, saying that people pay high prices for stocks when there’s a “cheery consensus.”
So after this latest market rout, is it time to buy penny stocks as there is evidently plenty of ‘blood’ in the street? I’ll leave this one up to you. However, there are plenty of names beginning to surge as hopeful bullish momentum has come into the market. The biggest thing to consider, in my opinion, is what has fundamentally changed with certain companies during this pullback? Most likely, not much. So aside from macro indications relating to specific industries, was this pullback warranted for some of these penny stocks?
Cheap Penny Stocks To Buy For Under $4
Again, I’ll leave that up to you to answer. However, as the market has rebounded slightly on Friday, there could be some beaten up names to watch. Will they be the best penny stocks to buy before next week?
- Aqua Metals Inc. (NASDAQ: AQMS)
- Auris Medical Holding Ltd. (NASDAQ: EARS)
- Ozop Energy Solutions Inc. (OTC: OZSC)
- Sify Technologies Limited (NASDAQ: SIFY)
Aqua Metals has been in the discussion along with electric vehicle penny stocks in many cases. The company specializes in recycling metals using its AquaRefining™ technology. This technology is said to emit less pollution. Furthermore, through this process, Aqua Metals can create 99.9996+% ultra-pure lead. It’s also extending its AquaRefining process to include lithium-ion batteries through different avenues. This includes its recent investment into LINICO Corporation, a cleantech startup focusing on sustainable lithium-ion recycling technologies. The investment was made in tandem with other companies, including Comstock Mining Inc. (NYSE: LODE).
This week AQMS stock did what most other stocks in the market did, which was sell-off. However, Friday, the penny stock made attempts at a recovery move. Much of this came after analysts at H.C. Wainwright started coverage on the company. H.C. gave AquaMetals a Buy rating and a price target of $8, over 100% higher than its current retail levels. Further to this, the company also announced that it had regained full compliance with Audit Committee requirements for continued listing on Nasdaq.
As we’ve seen, electric vehicle stocks have taken a big focus in the market this year. New start-ups, new IPOs, and plenty of SPAC action placed the spotlight on this industry. Now that there’s been a bit of a reset in the market as a whole, have valuations come down to palatable levels?
2. Auris Medical Holding Ltd.
Earlier today, we talked about a company with the ticker, EYES. Bring on another body part with Auris Medical and EARS stock. The company develops therapeutics for neurotology, rhinology, and allergy, in addition to central nervous system disorders. This year, the company began a clinical investigation of its AM-301 treatment in allergic rhinitis. The open-label study is set to enroll 36 patients with grass pollen allergies. AM-301 is a nasal spray, and the study will look to see if it outperforms comparable products.
What’s more, through its affiliate, Altamira Medica, the company is advancing the testing of the nasal spray as protection against infections from airborne viruses such as SARS-CoV-2. The company said it has an objective of introducing AM-301 in selected markets in late Q2 2021, so now the clock is ticking.
“Given AM-301’s mode of action and inherent broad spectrum, we are confident that the nasal spray will exert protective effects also in case of the new strains. For confirmation, we are planning to test AM-301 against them in reconstituted human nasal epithelia cells shortly.”
Thomas Meyer, Auris Medical’s founder, Chairman and CEO
3. Ozop Energy Solutions Inc.
One of the lowest-priced names on this list of penny stocks is Ozop Energy Solutions. While we don’t cover many OTC stocks, Ozop was one of the few standouts on Friday that also came with volume levels well-above average. It’s also worth mentioning that as some energy penny stocks were pulling back, OZSC was climbing. Before I dive in, I will say that it has been one of the more actively discussed penny stocks on Reddit. So there is likely a “hype-factor” to keep in mind. This can create higher-risk, volatile market conditions. Needless to say, it has been one of the top penny stocks to watch.
The company is conveniently involved in the green energy sector focused on renewables. Ozop recently formed a strategic alliance with Grid & Energy Masterplanning, an advisor for “behind-the-meter” customers in energy efficiency, solar, EV charging, and battery storage. These are obviously all very hot topics among traders right now.
Grid & Energy’s CEO Scott Sine said, “OES and GEMM represent the teaming of international supply chain logistics with best-in-class local execution, the necessary solution combination for the rapidly expanding Energy Transition economy. Accordingly, we are pleased to announce that we will be using OES and its supply chain expertise on a $3.7 million Near Net-Zero Office Retrofit Project GEMM is currently working on.”
While OZSC stock has aggressively pulled back since early February, Friday seems to have become a noticeable standout. Instead of continuing the multi-week slide, shares spiked over 45%.
4. Sify Technologies Limited
Sharees of Sify were on the move Friday thanks to Blackstone Group reumored to be in talks for acquiring a minority stake in Sify. The company reportedly sought a valuation between $1 billion to $1.2 billion. However, other financial terms are not disclosed.
Reports have also cited that Blackstone has signed multiple deals in India recently. This included the acquisition of the glass unit of conglomerate Piramal Enterprises Ltd. and real estate assets from developer Prestige Estates Projects Ltd.
Sify is a corporate network services provider in India and is part of India’s Fortune 500. The company recently won 2 awards for talent management and excellence in learning. Raju Vegesna, Chairman, Sify Technologies, commented, “The pandemic made us take a giant leap in our learning curve; from reskilling to laying an equal importance on automation. I am very proud of my team for having risen to the challenge and broadening our skill base through continuous improvement. As a skill pool, Sify is now right-sized for the opportunities ahead.”
With the latest speculation stemming from a potential investment by Blackstone, momentum has built in the market. Keep in mind that representative from both sides have refused comment. So until one of them comes out with a formal statement, this is just speculation for the time being in my opinion. Needless to say, it has been one of the penny stocks to watch on Friday.