As we turn the corner in August, many penny stocks traders are looking for the best small-caps to buy. And to do so, we have to consider what factors are affecting the market. Right now, the biggest impact on both penny stocks and blue chips is the pandemic and the effects of the Delta variant. As a result of this, new cases have popped up globally, inciting fear that the pandemic may be far from over.
This fear has resulted in higher than average volatility in the stock market combined with large uncertainty overall. And while blue-chip stocks have been trading mostly flat in the past few weeks, certain penny stocks have managed to climb. Because penny stocks don’t like to play by the rules, it’s easy to find decent intraday gainers.[Read More] 3 Biotech Penny Stocks To Watch Making Big Waves in 2021
However, investors should always remember to use all of the tools they have at their disposal to ensure every trade could be a potential winner. This involves looking at balance sheets, company profiles, social media sentiment, and any other indicators that could identify value in the market. With all of this in mind, let’s take a look at three penny stocks to watch in the second half of August.3 Penny Stocks For Your August Watchlist Bitfarms Ltd. (NASDAQ: BITF)
Bitfarms Ltd. is a company that used to be a penny stock, but its recent momentum has brought it much higher in price. In the past month, shares of BITF stock have rocketed higher by over 114%. On August 4th, BITF was still within the range to be considered a penny stock. A penny stock is any ticker that trades for under $5 per share. Given its major price jump in the past two weeks or so, we see that Bitfarms is making big moves right now.
On August 5th, Bitfarms Ltd. released its second-quarter results for 2021. This is when everything changed for the company’s stock price. Bitfarms, a cryptocurrency mining company, announced a lot of positive results in this new report. In July 2021 alone, the company mined 391 new Bitcoin, which is its largest monthly production rate of the year. This is 96% higher than its mining production from back in January. The higher production is the result of increased demand for Bitcoin as well as the shutdown of many Chinese Bitcoin mining companies.
“As we work to execute on our growth targets, we anticipate adding more Bitcoins to our balance sheet at a faster rate than we have in the first half of 2021.”and Founder of Bitfarms, Emiliano Grodzki
Now BITF stock is above $6.70 per share as of August 13th. With that being said, will this company make your list of penny stocks to watch?RLX Technology Inc. (NYSE: RLX)
RLX Technology Inc. is a penny stock that just went up in the market. At $5.02 per share right now, RLX stock is also no longer considered a penny stock. However, it was only a day prior. For some context, this company sells e-vapor products for the Chinese market. RLX is involved in the R&D, manufacturing, distribution, and sale of its products. The company’s products are sold through RELX branded partner stores and other retailers via distributors.[Read More] Former Penny Stocks To Watch After Merck’s (MRK) Latest FDA Win
On August 20th, RLX plans on reporting its second-quarter financial results for 2021. These unaudited results will be released before the U.S. market opens on that Friday. The company will also be hosting an earnings conference call on the same day. This is the latest update that has come from RLX Technology. If you are planning to invest in RLX stock, the 20th will be an important day to look out for. With sizable gains in the past week or so, will you add RLX to your penny stock watchlist?IAMGOLD Corporation (NYSE: IAG)
IAMGOLD Corporation is a company that explores for gold in North America, South America, and West Africa. The company also develops and operates gold mining properties in these regions. It currently owns an interest in the Rosebel mine, Essakane mine, Pitangui project, and the Boto gold project among many others. In the past year and a half, the interest in mining companies and gold miners specifically has increased dramatically. With this increased focus, many investors have been paying attention to companies like IAG.
On August 4th, the company released its second-quarter results for 2021. The company’s President and CEO Gordon Stothart said, “The second quarter of 2021 was challenging primarily because production from our Rosebel mine was unexpectedly adversely affected by unusually heavy rains and an increase in COVID-19 cases in Suriname, in addition to difficult industrial relations.”
The company expects to have a strong performance from its Essakane mine in the second half of 2021. In addition, the company remains on track for commercial production in the second half of 2023 at its Cote Gold project as well. On August 13th, IAG stock pushed up by 4.6% in the market. As stated before, the large emphasis on gold right now is one of the main reasons for growth with IAG stock.
While these stocks are usually less speculative than others, for those looking for a potentially stable stock to watch, it could be worth keeping an eye on. With around 4% in gains in the past few trading days, there’s a reason why investors are watching IAG stock right now. Keeping all of this in mind, is IAG a contender for your penny stock watchlist?Are These Penny Stocks Worth Watching?
Finding the best penny stocks to buy all comes down to understanding where to look. With so much momentum in the stock market right now, it can be difficult to find penny stocks with long-term value.
However, if short-term trading is your thing, there are plenty of penny stocks that could be worth keeping an eye on. With all of this in mind, are these penny stocks worth watching or not?