Markets are tough right now, but this too shall pass. Just need to ride this out. In the meantime, it’s best to take profits when you can. Also, it’s important to look for penny stocks with long-term potential.
Smart investors know that if you want to make the big money off a small account, the place to be is in penny stocks. There are many good penny stocks that can boost your portfolio’s value in the long term. We preach the key to trading penny stocks for investors is finding momentum BEFORE it happens and ahead of the crowd.
We alert our subscribers with our best ideas before our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here.
In this article, we take a look at 4 penny stocks that can do well in the following weeks and months. They are Mullen Automotive Inc (NASDAQ: MULN), Blacksky Technology Inc (NYSE: BKSY), Houston American Energy Corp (NYSE American: HUSA), and BitNile Holdings, Inc (NYSE American: NILE).
PENNY STOCKS #1 MULN
Mullen Automotive Inc has seen some increased activity this week, with trading volumes returning to their March levels. The EV player released some encouraging results of its battery tests, sending the share price higher by over 23% since last Friday. Now you can buy this NASDAQ-listed stock for $1.23, which is still way below the $15 mark it hit at the end of last year.
We presented our bullish stance on MULN in a dedicated article when the share price was under $1, stressing that the company was working on a great EV car. Mullen FIVE EV has some impressive specs and an attractive design. In 2021, it won LA Auto Show’s ZEVAS Award for the “Top SUV Zero Emission Vehicle (ZEV)”, with Rivian R1S and Lincoln Aviator Grand Touring being on the list as well.
Nevertheless, the latest price spike has to do with MULN’s proprietary battery rather than its car. On Tuesday, the company announced the solid-state polymer battery testing results with the Battery Innovation Center (BIC) in Indiana. The results exceeded expectations and were in line with test tolerance from previous EV Grid test results.
Specifically, testing conducted at BIC show Mullen’s solid-state polymer cell coming in at 343.28 Ah at 4.2 volts, which is in line with previously quoted test results from EV Grid. The test data collected from both BIC and EV Grid have exceeded the expected test tolerance and show an impressive outcome and future for solid-state batteries.
With this technology, a 150-kilowatt hour solid-state battery can deliver over 600 miles of range on a full charge for the Mullen FIVE EV Crossover. In general, solid-state batteries offer higher energy density, faster charging time, smaller size, and safety compared to traditional lithium-ion cells.
CEO David Michery said:
“I’m impressed with the ongoing performance of the solid-state cell after going thru multiple intense testing sessions from accredited testing facilities. The battery has performed exceptionally well, and I’m pleased with the results from BIC in Indiana.”
We like that MULN has some great battery technology that proves the skeptics wrong. MULN has a significant group of haters and shorts. We are expecting an epic short squeeze in MULN stock just like we saw in AMC and Gamestop.
PENNY STOCKS #2 BKSY
Blacksky Technology Inc has had a great week, more than doubling in price since May 23, when the NYSE-listed stock was trading below $1.20. Now you can buy BKSY for $2.85 per share. During the last day of May, BKSY broke above $3.60 to hit the highest level since mid-January. The latest price increase, which came amid record volumes, is significant for a $300+ million company, and the rally may continue.
BKSY provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operations of satellite and ground systems to commercial and government customers worldwide. The company processes a range of observations from its constellation, as well as various space, internet-of-things, and terrestrial based sensors and data feeds.
Last week, the company announced that it had secured a contract with the National Reconnaissance Office (NRO), which includes a comprehensive set of imagery services from current and future satellite capabilities. The award demonstrates the commitment of the US Government to leverage the capabilities of next-generation commercial providers in support of its most critical missions.
Thus, BKSY secured a good portion of the US government’s multibillion-dollar award for supplying satellite imagery from space that the government can share publicly and with allies. The 10-year contract can bring the company over $1 billion.
The Electro Optical Commercial Layer (EOCL) contract creates a significant catalyst for the long-term utilization of BlackSky’s satellite imagery services.
The contract was awarded a five-year base and five 1-year options for additional services spanning a period of performance of base and options over 10 years. The award commences in Q2 and includes multiple options with additional growth potential for BlackSky through 2032.
BlackSky CEO Brian O’Toole said:
“This contract is a pivotal moment in the expansion of the partnership between commercial space and the U.S. Government. We’re proud to be selected as a long-term trusted mission partner of the NRO. We will continue to enhance our Spectra AI platform and advance our satellite constellation in support of the NRO and our growing customer base around the world.”
The other two companies that were selected by the US government are Maxar Technologies Inc. (NYSE: MAXR) and Planet Inc. This is NRO’s largest-ever contract for commercial satellite imagery.
We think the deal with the US government makes BKSY a great stock to hold in the long term.
PENNY STOCKS #3 HUSA
Houston American Energy Corp is an NYSE American-listed stock that has surged by over 40% during the last five sessions alone, currently trading at $4.40. On Tuesday, it broke above $6.00 to hit the highest level since March, when it suddenly exploded from less than $2 at the beginning of the month to over $16.
HUSA is an oil and gas company that engages in the exploration, development, and production of natural gas, crude oil, and condensate in the US and Latin America. Its oil and gas properties are located primarily in the Texas Permian Basin, the onshore Texas and Louisiana Gulf Coast region, and in the South American country of Colombia. As of December 31, 2021, the company owned interests in four gross wells.
At the end of May, the company announced the acquisition of an additional interest in Hupecol Meta, LLC. Hupecol Meta owns the 639,405 gross acre CPO-11 block in the Llanos Basin in Colombia, comprised of the 69,128 acre Venus Exploration area, operated by Hupecol, and 570,277 acres which was 50% farmed out to Parex Resources by Hupecol. In total, the CPO-11 block covers almost 1000 square miles with multiple identified leads and prospects expected to support a multi-well drilling program. Through its membership interest in Hupecol Meta, Houston American now holds an approximately 11% interest in the Venus Exploration area and an approximately 5.5% interest in the remainder of the block.
Drilling operations on Houston American’s first well in the Venus Exploration area are now ongoing.
Besides the acquisition of the additional interest in Hupecol Meta, HUSA’s share price has been supported by surging costs of oil and gas. Earlier this week, the European Union approved the proposed partial ban on Russian oil imports. Initially, the European Commission proposed a total ban on all oil imports from Russia, but the EU leaders have their nod for a ban on seaborne imports by the end of 2022 in an effort to intensify sanctions against Russia after it invaded Ukraine in February of this year.
$HUSA 2 days ago $HUSA gapped from 3.70 to 4.80s On strong vol and increasing oil price – Crude is back at the same price watch for possible big gap again AM also THIS HUGE News! https://t.co/VT1sSTGE0g
— TheTradingStockLounge.com (@ThePennyLounge) June 2, 2022
PENNY STOCKS #4 NILE
BitNile Holdings, Inc has been showing clear signs of recovery. The share price of the NYSE American-listed stock has been in free fall since the beginning of 2021, when it was trading near $7. NILE bottomed out in mid-May below 25 cents, and is currently trading at $0.41, up 36% over the week.
NILE is a diverse company. Through its subsidiaries, it designs, manufactures, and sells power system solutions for the defense/aerospace, industrial, automotive, telecommunications, healthcare, medical/biopharmaceutical, and textile industries in North America, Europe, the Middle East, and internationally. The company also provides power conversion and display solutions; residential and commercial high-speed EV charging solutions; commercial loans, convertible notes, and revolving lines of credit; and virtual training courses through the LightSpeedVT platform, as well as creates various media, communications, and content, including web development, corporate communications, social media, and scripted and unscripted television.
NILE also engages in Bitcoin mining and crypto-related activities.
BitNile got its new name at the end of last year, as it was previously known as Ault Global Holdings Inc.
After months of bearish pressure, NILE showed signs of recovery at the end of May, after the company released its financials for the first three months of the year. NILE said that revenue had increased 148% to $32.8 million year on year. Revenue from crypto mining alone was $3.5 million versus $130,000 in the first quarter of 2021.
The uptrend extended as the company announced a public offering to raise about $3.6 million. NILE will sell 144,000 of its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock at a price of $25.00 per share. The shares of Series D Preferred Stock will be listed on the NYSE next week under the ticker NILE PRD.
NILE plans to use the proceeds to buy Bitcoin miners, with the remainder for general corporate purposes.
While the company’s increased interest in Bitcoin mining might not seem at the right time, with Bitcoin losing more than 50% of its ATH value to trade near $30,000, we think this is a strong bet that can show results in the long run, as cryptocurrencies will likely play their safe haven card when fiat currencies continue to devalue due to inflation. For now, it makes sense to build a position in NILE just like Executive Chairman Milton C. Ault III.
THE FINAL NOTE
Now is a great opportunity to invest in top penny stocks with great potential. Our job is to identify the best penny stocks with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio.
Buying dips and selling rips as swing trades remains the best strategy in the stock market. Still, whenever a hot stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye penny stocks that have room for growth and have yet to make their explosive move. There are plenty of opportunities, and we take our time to monitor hundreds of penny stocks to buy each week, trying to find the best alerts for our subscribers.
Remember, all you need is one or two penny stocks to run in order to crush the market averages.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.