hot penny stocks
Momentum & Growth

4 Hot Penny Stocks: CORZ GAME MULN SOFI

The US stock market is still under bearish pressure, with the Fed raising the interest rate by 0.5% on Wednesday to the highest benchmark rate in 15 years and retail sales coming in weaker than expected, signaling a possible recession. Still, many stocks have great potential, especially some hot penny stocks. We discussed this in our recent video and the stocks covered in this article.

This article looks at four hot penny stocks listed on Nasdaq. They are Core Scientific Inc (NASDAQ: CORZ), Engine Gaming and Media, Inc (NASDAQ: GAME), Mullen Automotive Inc (NASDAQ: MULN), and SoFi Technologies Inc (NASDAQ: SOFI).

Penny stock #1 CORZ

Penny stock #2 GAME

Penny stock #3 MULN

Penny stocks #4 SOFI

Penny Stocks #1 CORZ

Nasdaq-listed cryptocurrency miner Core Scientific Inc has seen some light at the end of the tunnel. The $90 million company’s share price doubled over the last five trading sessions to recover from the lowest level in its short public history. CORZ is now trading at $0.25, although it used to trade above $10 in the year’s first quarter.

Crypto mining stocks (most companies, including Core, focus on Bitcoin mining) have had a terrible year given the bearish pressure on Bitcoin, which has lost over 60% YTD. Nevertheless, CORZ and other mining stocks are expected to recover quickly once the ‘crypto winter’ ends. The point is to survive the prolonged and painful bearish trend in the crypto market.

Unlike other mining companies, some of which have no other option than file for bankruptcy, CORZ has solid support to survive.

On December 14, B. Riley Financial, Inc. (NASDAQ: RILY), a financial services platform that is one of the largest creditors of CORZ, said that it had engaged with the mining company to restructure its debt and provide liquidity to avoid a potentially unnecessary and value destructive bankruptcy proceeding. The fact that the activist investor, the largest creditor of CORZ, still believes in its potential is a strong bullish signal for shareholders.

This seems a good opportunity to buy the dip and wait for the crypto recovery in 2023. The letter to shareholders says:

“B. Riley has proposed to Core Scientific’s Board of Directors that it would provide $72 million in new, non-cash pay financing on favorable terms, providing more than two years of runway for the Company to achieve profitability.”

Now that B. Riley is saving CORZ, shorts may be squeezed out, providing additional fuel to the rally that took off earlier this week.

Penny Stocks #2 GAME

Engine Gaming and Media, Inc is another Nasdaq-listed company that saw its share price more than double during the last five trading sessions. The share price surged from $0.51 on Friday, close to the lowest level on record, to the current $1.2, breaking above the $1.5 mark on Thursday for the first time since April.

The price recovery and volume figures started to gain momentum after GameSquare Esports Inc. (CSE: GSQ) (OTCQB: GMSQF), a digital media and entertainment company focused on gaming and esports, announced last week that it would combine with GAME, which is a $19 million gaming, media, and influencer marketing platform company. The two businesses will combine via an all-share deal, whereby each common share of GameSquare will be exchanged for 0.08262 Engine Gaming common shares.

Thus, former GameSquare Esports shareholders are expected to own about 60% of the combined entity, and current GAME shareholders are expected to own about 40% of the combined entity on a fully diluted basis. Engine Gaming Shares will continue to trade on Nasdaq and TSX Venture Exchange and keep its ticker, although under the ‘GameSquare’ brand.

It’s worth mentioning that Jerry Jones, owner of the Dallas Cowboys, and John Goff, Chairman and Founder of Goff Capital, Inc. will continue to be the largest investors of the combined entity and will hold significant board roles.

The new company will mix GameSquare’s award-winning content, advertiser, and influencer businesses with Engine’s market-leading data, analytics, advertising and marketing technology platforms. The transaction results in a market-leading, end-to-end platform with reach across esports, sports, influencer, publisher, and advertising networks for brands to connect with the increasingly difficult to reach youth culture audiences.

Dallas Cowboys owner Jerry Jones is a big investor that knows his stuff. He is invested in Comstock Resources, Inc (NYSE: CRK), which has increased over 80% YTD to reach a market cap of over $3.5 billion.

Penny Stocks #3 MULN

Nasdaq-listed Mullen Automotive Inc has had a challenging year, but the company is gaining traction and may take short sellers by surprise. A lot is going on at MULN, whose share price has jumped over 75% during the last five trading sessions to peak on Thursday at $0.35. This is still a discount since MULN used to trade near $5 at the beginning of the year.

California-based MULN is an emergent electric vehicle company that manufactures and distributes EVs. It has its own battery technology and emergency point-of-care solutions. Investors are excited that MULN will finally launch its commercial EV lineup soon.

On December 13, MULN announced Randy Marion Automotive (RMA) as the first dealer group partner for its commercial EV lineup, which is scheduled to launch in the US next year. The first commercial EV lineup includes Class 1-3 cargo van, cab chassis offerings, and Bollinger Motors Class 4-6 chassis products.

On Wednesday, MULN announced that it had entered into an agreement with Loop Global Inc to build the next generation of public and private EV charging technology, infrastructure, and network solutions. The company’s EV Charging Network Powered by Loop will support both level 2 and level 3 DC fast charging. The turnkey solution will include everything from site assessment and design to installation and ongoing operation.

On top of that, the collaboration will see the two companies finance and/or own and operate EV charging infrastructure through Loop’s unique financing program, the Loop Impact Fund.

MULN CEO David Michery said:

“Our partnership with Loop will not only enable us to provide turnkey EV charging solutions to our customers, but also the Loop Impact Fund commitment is an opportunity to provide our customers with potential cash flow-positive alternative financing when implementing the Mullen EV Charging Network Powered by Loop. In addition to being highly strategic, this partnership aligns with our goal of end-to-end efficiency to make owning a Mullen EV much more user-friendly.”

On Thursday, investors discovered that MULN’s partnership with RMA is already paying off. The company announced a purchase order for 6,000 Class 1 EV cargo vans from Randy Marion Isuzu, LLC (RMI), a member of RMA. The firm order agreement is valued at about $200 million, which is enormous considering that MULN is a $600 million company.

RMA founder and CEO Randy Marion said:

 “We see a tremendous opportunity with the Mullen commercial portfolio, and the launch of the commercial van could not come at a better time. There’s significant pent-up customer demand for Mullen to fulfill. I have many customers looking at me to find product for their companies.”

MULN looks even more solid, and its share price undervalued. Recently, David Michery shared his take on the price manipulation of MULN.

Penny Stocks #4 SOFI

Yet another Nasdaq-listed stock showing signs of recovery is SoFi Technologies Inc, which has gained about 5% over the last five trading sessions, although it’s still down 20% on the month. SOFI has been heavily shorted this year, dropping from over $16 in February to $4.58.

The $3.6 billion company, which has been around for over a decade, provides digital financial services. It operates through three segments: Lending, Technology Platform, and Financial Services. The company’s lending, financial services, and products allow its members to borrow, save, invest, and protect their money. It offers a wide range of debt services, including student loans, personal loans for debt consolidation, home loans, and home improvement projects. SoFi also provides cash management, investment, and technology services. In addition, it operates the following platforms:

  • Galileo, a technology platform that offers services to financial and non-financial institutions;
  • Apex, a technology-enabled platform that provides investment custody and clearing brokerage services;
  • Technisys, a cloud-based digital multi-product core banking platform.

The latest price spike came after SOFI CEO Anthony Noto disclosed a significant stock purchase. Specifically, according to a Tuesday filing with the SEC, he purchased $5 million in SoFi shares from December 9 to 13.

This is not the first time when the CEO buys SOFI shares, and other insiders have also increased their stake in 2022.

This shows that the top management is confident about SoFi, and that the current price might be undervalued.

BOTTOM LINE

As we keep saying, there are always opportunities in the markets, and it’s our job to find hot penny stocks to buy. Huge gains can be made in such a short amount of time.

It’s essential to look for penny stocks that have yet to run. There are plenty of opportunities, and we look at hundreds of penny stocks to buy each week to find the best alerts for our subscribers.

Remember, all it takes is one or two to become a winner, and you’ve crushed the market indices (and Jim Cramer) for the year.

Good luck to all (except the shorts and Cramer)!

WHEN INSIDER FINANCIAL HAS A STOCK ALERT, IT CAN PAY TO LISTEN. AFTER ALL, OUR FREE NEWSLETTER HAS FOUND MANY TRIPLE-DIGIT WINNERS FOR OUR SUBSCRIBERS. WE SPECIALIZE IN FINDING MOMENTUM BEFORE IT HAPPENS!

Disclosure: We have not been compensated for this article/video. Insider Financial is not an investment advisor; this video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This video is not a solicitation or recommendation to buy, sell, or hold securities. This video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

4 Hot Penny Stocks: CORZ GAME MULN SOFI
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