The US stock market ended the week on a negative note due to the disappointing Nonfarm Payrolls report. However, economists still anticipate that the Federal Reserve will start reducing its bond-buying program as early as next month, so equities will find some support, although the accommodative monetary policy has been a bullish factor as well.
The energy sector jumped over 3% as oil prices surged 4% on the week. Most of the penny stocks that we recommend today focus on commodities, two of which are oil and gas companies.
As for the Labor Department’s jobs data, the report said that the US economy had added only 194,000 jobs, while economists anticipated about half a million jobs. The unemployment rate fell last month to 4.8% from 5.2% in August while average hourly earnings rose 0.6%, which was better than expected.
Kathy Lien, Managing Director at BK Asset Management, told Reuters:
“I think that the Federal Reserve made it very clear that they don’t need a blockbuster jobs report to taper in November. I think the Fed remains on track.”
Meanwhile, blue chips will see their Q3 reporting season kicking off, which will define the sentiment for penny stocks as well. Analysts anticipate S&P 500 earnings per share for the quarter to be up almost 30%.
We may miss the extreme bullishness from the first three months of the year, but there are still many great penny stocks that can boost your portfolio.
FINDING OPPORTUNITIES IN TOP PENNY STOCKS
There are plenty of opportunities for investors if they follow us here at Insider Financial.
The key to trading stocks is finding the momentum BEFORE it happens and then be patient. Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens.
It’s also best to own a portfolio of penny stocks. For some that can be as many as 10 to 20 or more penny stocks that include both OTC stocks and NYSE or NASDAQ penny stocks.
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.
The fact is that there is always a bull market somewhere. That’s why it’s important for penny stock investors to trade both OTC and NYSE and NASDAQ stocks, and sometimes get exposure to larger companies that still seem to have massive growth potential. There are always opportunities if you give yourself the flexibility to trade all markets.
In this article, we take a look at 4 penny stocks gaining traction, two of which two are listed on NYSE American. They are American Leisure Holdings, Inc (OTCPK: AMLH), North Bay Resources Inc (OTCPK: NBRI), PEDEVCO Corp (NYSE American: PED), and Ring Energy, Inc (NYSE American: REI).
PENNY STOCKS #1 AMLH
American Leisure Holdings, Inc continues the bullish run that took off at the beginning of September. The Pink Current stock rose 30% since last week and more than 280% over the month, currently trading at $0.0065, the highest since the first quarter of 2017.
AMLH is a holding company that plans to bring accretive shareholder value and grow by participating in cash flowing, revenue-generating projects, and acquiring cutting-edge technologies. In its latest disclosure document, the company said that it was in a recapitalization period.
AMLH got its Pink Current status only recently and is now trying to establish its new business. In its latest tweet posted on Wednesday, the company said that it had inked a proposal to its prospective business partner. Meanwhile, AMLH is also waiting for instructions from the US Coast Guard, hinting at potential contracts with the US military, which is a big deal for an OTC company.
Company update: $AMLH, has inked a proposal to our prospective business partner, which is under review. In the meantime we are also waiting for instructions from the US Coast Guard on how to proceed.
— American Leisure Holdings Inc. ($AMLH) (@LeisureAmlh) October 6, 2021
We like the share structure of this $24 million company, with the 4 billion authorized shares being almost maxed out. If this debt-free shell is trading under one penny today, how much will it cost when it has revenue-generating operations? This is definitely a great opportunity for early investors.
CEO Adrian Patasar said in August:
“Over the course of the last month I have worked very aggressively to position the company to be in good standings with all parties that oversee OTC companies. We have also recently established a solid relationship with a very talented, young, smart and successful group, (who will be in our upcoming 2021 Q3 Filing). More importantly, any financing provided, will be at fixed prices, avoiding the traditional toxic financing means of yesteryear. Aside from some back pay to the CEO, (which can always be settled out for equity), the company will be virtually debt free and ready to grow and build value for shareholders.”
– Holding Co
– Same CEO as $DNAX
– Debt free w/ 3.3B Float
– Proposal inked for “1st Prospect”
– “Waiting for instructions from the US Coast Guard on how to proceed”
– “There are several parties interested in coming into this vehicle”
-“Big things are coming soon” CEO 9/14
— Stock Pop (@Stock_Pop) October 6, 2021
PENNY STOCKS #2 NBRI
North Bay Resources Inc is another OTC stock that has been on the rise. The share price has doubled since last week and gained over 330% over the month, breaking above the YTD high reached in February and hitting the highest level since 2015. Still, $0.0035 is a bargain price for this Pink Current stock that has great potential.
NBRI engages in the exploration, acquisition, development, and mining of precious metals and other mineral properties. It explores gold, silver, copper, platinum, palladium, rhodium, iridium, and wollastonite deposits. It holds 100% interest in the Mount Washington project located in Vancouver Island and the Tulameen platinum project located in Princeton in British Columbia. The company also holds interests in the following properties:
- Zeballos Gold, which covers an area of 1,017 hectares located in Vancouver Island;
- Fraser River Platinum, which covers an area of 413 hectares situated in Lytton, British Columbia;
- Zippa Mountain Wollastonite property, which covers an area of 2,456 hectares located in Smithers, British Columbia.
Owning partially or fully multiple extraction projects is already great, but NBRI can also leverage another lucrative bi-product – the CO2 emissions. Two years ago, NBRI obtained approval for its application for a mineral carbonation protocol at the Tulameen Platinum Project, which qualifies it to sell carbon credits directly to the B.C. Ministry of Environment’s Climate Action Secretariat. British Columbia’s carbon tax is $50 per ton in 2021.
Investors are particularly excited about the company’s potential in Magnesium extraction that could bring revenue in billions, which is huge for a $17 million company with a great share structure, making its share price undervalued.
$NBRI – HUGE HUGE estimated 135 million tones of Mg-rich olivine crystallizes in the PGM mineralized areas of the property.
135 millions tones OF MG x $4500 per tone = $607,500,000,000
if the company extracts only 1 million tones of MG, it is still revenues be in billions. pic.twitter.com/tTArkqoZoM
— Nash (@nchintha) October 6, 2021
In fact, the number of outstanding shares has increased by 5% since last month, but the price keeps ascending, which shows the great confidence of investors. This OTC stock will hit the penny mark very soon, and it’s blue skies from there.
PENNY STOCKS #3 PED
PEDEVCO Corp has also been making waves recently, but the gains are more modest also because we’re speaking about an NYSE American-listed stock with a $165 million market cap. PED is now trading at $2.07, up 8% since last week and 75% over the month. On Friday, the share price hit the highest level since February but on record volumes, which suggests that the uptrend might be sustainable.
PED is an oil and gas company that engages in the acquisition, development, and production of oil and natural gas assets in the US. As of December last year, the company held approximately 37,068 net acres in the Permian Basin Asset located in Chaves and Roosevelt Counties, New Mexico, and about 11,948 net acres in D-J Basin Asset situated in Weld and Morgan Counties, Colorado.
The recent spike came after PED announced that it had closed a direct offering with an institutional investor, according to which it had sold about $7.0 million worth of common stock. Specifically, the company sold 4.5 million shares of common stock at a price of $1.57 per share.
The net proceeds, which is about $6.4 million, will be used to fund its 2021 Permian Basin and D-J Basin asset development programs, as well as potential acquisition opportunities, and general corporate purposes, and working capital.
Last month, PED President J. Douglas Schick, said in an update:
“We are very pleased and encouraged by the exceptional offset well performance seen by third party operators in and around our D-J Basin acreage position in recent years, attributed largely to favorable geologic targeting and improved completion techniques. Both 30-day IP and cumulative production per well results have grown substantially, making the D-J Basin one the most economic and best-performing oil basins in the US.”
In the meantime, the company continues to move forward with the Phase III development of its Permian Basin asset, with the first two horizontal wells planned for drilling later this year or early 2022.
“We will continue to seek to leverage our debt-free balance sheet and deploy our ~$20 million in free cash in the development of our D-J Basin and Permian Basin assets in a manner most accretive to our shareholders,” the president said.
We are quite convinced by PED’s expansion plans, considering the $7 million investment from an institution, and the fact that the CEO has recently acquired more PED shares is a strong argument to hold the stock.
$PED is a long term trade, easily a $5 stock but thin, so its best to buy on any dip. The CEO Simon Kukes is a leading energy consultant.
Kukes purchased over $500,000 of $PED stock so you have to believe he knows something. pic.twitter.com/wsPE5ADuQZ
— Will Meade (@realwillmeade) October 1, 2021
PENNY STOCKS #4 REI
Ring Energy, Inc is another NYSE American stock on the rise, and it also focuses on oil and gas. REI is now trading at $3.91, up 28% since last week and up 60% over the month. REI has been in a bullish mood since last year, demonstrating a fivefold increase so far in 2021, breaking above $4 dollars for the first time since 2019.
Ring Energy is an oil and gas exploration and production company based in Midland, Texas. Its activities include the acquisition, exploration, development, and production of oil and natural gas fields. These operations are focused in the Permian, Central, and Delaware Basins in Texas and Kansas, but a vast majority of production comes from Texas. The company’s production is mostly done through the vertical drilling of wells.
The $390 million company has benefited from an increase in the price of oil, which jumped last week to the highest in seven years, as well as a surge in the price of natural gas, which has doubled since the beginning of the year.
Other than that, REI has a great business model, healthy balance sheet, and a great future, which attracts many investors, both retail and institutions, with the latter currently holding about 20% of REI stock. The fundamentals behind REI are so strong that the share price keeps increasing despite a 40% dilution this year alone.
In August, the company reported solid Q2 results with reduced losses, improved revenues, and greater control over expenses. Revenue was up 347% compared to Q2 2020, to $45.6 million. The net loss was $15.9 million, down 88% from 2Q 2020.
With low debt levels, and the profitability of its wells expected to increase, especially given the surge in commodity prices, we think REI is still undervalued even at $4. The Q2 report reads:
“In response to a higher crude oil price environment, the Company initiated a four-well Phase III drilling program in early August that will be followed by a Phase IV drilling program of two or more additional wells to begin early in the fourth quarter.”
Higher oil and gas prices will benefit companies like REI and PED.
THE FINAL NOTE
Now is a great opportunity to invest in top penny stocks with great potential. Our job is to identify the best stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
The 4 penny stocks discussed today are on the rise and are good stocks to hold. Nevertheless, our best advice is to be patient and enter the market during corrections. 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)!
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 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.