EV penny stocks are red hot this year. Most recently we’re seeing the latest surge stemming from excitement triggered by Nio (NIO Stock Report). Shares of the former penny stock skyrocketed this year. Most recently, the company saw a parabolic move in the market ahead of and just following its latest round of earnings. Thanks to this, in addition to pent up momentum that began around Tesla’s Battery Day, many electric vehicle penny stocks are graduating to higher levels.
But how sustainable are these moves in the stock market today? Some penny stocks being traded right now are of companies that have a minimal operating history with electric vehicles. When we talk about mass euphoria and emotional trading, this is one glaring red flag that can come to mind. Needless to say, for those day trading penny stocks, the old saying “Make hay while the sun shines” couldn’t be truer.Are EV Penny Stocks Running Out Of Power?
Day traders are taking full advantage of the short squeezes and FOMO in the EV space right now. Many have seen this type of euphoric trading before. Remember earlier this year a little thing called coronavirus saw traders flocking to any name that had a press release mentioning the word.
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What I will say is if you’re looking to invest in penny stocks, high volatility is a tough thing to deal with. Generally speaking, investing entails holding shares for longer than a year. Right now, however, it would seem it’s a day trader’s paradise and EV penny stocks are in the spotlight. The big question now is after the latest moves many of these have made are they still worth buying right now or is a pullback coming? That I’ll leave up to you to decide. However, keep all of this in mind and remember that no one ever went broke taking a profit.EV Penny Stocks To Buy [or avoid]: DPW Holdings Inc.
DPW Holdings Inc. (DPW Stock Report) has been one of the penny stocks that has found a way to capitalize on many industry trends. The holding company made a mark during the early days of the crypto boom, it targeted medical devices, and has even found a way to gain exposure to the electric vehicle boom. Taking a page out of other “pick and shovel” companies, DPW has gone the route of providing EV charging solutions.
Earlier this year the company announced the launch of a new hybrid electric vehicle charger. This was through its Coolsys electronics business. Many have questioned the company and its intensions over the years due to the fact that it has found ways to gain exposure to trending segments. Regardless, in this case, the company’s most recent news suggests that DPW is focusin on growing the current model.
It has established a program targeting both national and regional fast-food franchisees to install ACECool™ electric vehicle chargers as a part of a revenue sharing program. The company will initially fund the program that is expected to be launched in California , Nevada, and Canada. But keep in mind, the company itself said that there is no assurance that the program will be successful. In any case, DPW stock continues surging during Monday’s morning session. Will this trend continue or is a pullback coming?EV Penny Stocks To Buy [or avoid]: Medigus Ltd.
Medigus Ltd. (MDGS Stock Report) is another company that has raised some eyebrows this month. It’s also one that hasn’t had prior exposure to electric vehicles. Last week, Medigus announced its intention to enter into the electric vehicle and electric charging markets through an MOU. The company signed a non-binding memorandum of understanding with the founders of EMuze to invest in a joint venture. The two plan on commercializing EV micro-mobility vehicles.
This deal hinges on the ability of the two companies to actually come to a definitive agreement. Right now, all that’s in place is an MOU. However if the deal materializes, Medigus would hold a 19.99% stake in the venture with an opportunity to increase that to 50.1% with an additional investment.
Considering the current state of electric vehicle stocks in the market today, the mention of a potential deal appears to have been a quick catalyst for MDGS stock. Similar to DPW, will this aggressively high level of activity last?EV Penny Stocks To Buy [or avoid]: Ideanomics Inc.
Ideanomics Inc. (IDEX Stock Report) has been beaten down for the better part of the last few months. Questions arose on the legitimacy of its operations in China involving EVs. However, during the month of November, IDEX stock has mounted a strong recovery. Initially, momentum sparked after the company reported stronger year-over-year growth in both sales and EPS. That continued when Ideanomics announced an agreement to acquire Timios Holdings, a nationwide title and settlement solutions provider, to help expand the company’s fintech business.
However, as it would seem, the company’s previous involvement became the center of speculation. Monday, the company announced further entry into the EV space with an upsized stake in electric tractor maker Solectrac. On October 22 the company announced that it acquired 14.7% of Solectrac, Inc. for $1.3 million. The recent investment brings Ideanomics’ stake to 24%, which it said would reduce to 22% after more investments were finalized in the company.
Something to consider outside of the big move in November is what was recently filed. On Friday a prospectus supplement showed an offering of 30,867,376 shares of IDEX stock to YA II PN, Ltd. at a price of approximately $0.9719 per share. This was pursuant to a previously announced Standby Equity Purchase Agreement dated September 4, 2020, with YA. The shares are being issued as part of the commitment by YA to purchase from time to time up to $150,000,000 worth of shares. Will this pose a downside risk for IDEX stock in November?EV Penny Stocks To Buy [or avoid]: Senmiao Technology Limited
Senmiao Technology Limited (AIHS Stock Report) just reported earnings last week. Year over year, sales and EPS were lower for the quarter. However, it doesn’t seem to have impacted AIHS stock much. In the business update portion of the earnings, CEO Xi Wen pointed to the goal of becoming a total solution for the ride-sharing ecosystem in parts of China.
“We have strengthened this value proposition through cooperation with BYD to offer electric vehicles with financing and leasing options to drivers in our core markets; and a collaboration with Luxingtong for the provision of a wide array of telematics and safety solutions for our drivers.”
Though it focuses on ride-sharing, the obvious inclusion of offering electric vehicles with financing has become a sticking point for some looking for any of the EV penny stocks left.EV Penny Stocks To Buy [or avoid]: Ferroglobe PLC
Ferroglobe PLC (GSM Stock Report) makes specialty alloys that can be used in numerous end markets, like solar, automotive, and consumer products. Obviously, the need for raw materials is evident if massive growth is expected for EVs in the future. Specific to Ferroglobe, the company produces silicon metal and silicon and manganese-based alloy.
Drew Baglino, Tesla’s head of powertrain and energy engineering, recently cited the potential of silicon in lithium-ion batteries. He said that using silicon could expand the range of electric vehicles 20%. With this simple idea in mind, companies providing raw materials necessary to manufacture the power plants of these electric vehicles are also gaining interest right now.
What’s important to note is that Ferroglobe is set to release Q3 earnings today after the close. While euphoric momentum has driven GSM stock higher, will this next round of earnings results bring it back down to Earth or become the next catalyst in the bull run?