3 Hot Penny Stocks to Buy in September
With all the negativity hanging over the market today, you might be thinking that there are few hot penny stocks to buy out there.
In general, that may be true, but as the saying goes, “don’t fight the Fed.” With the Federal Reserve continuing to raise interest rates to fight inflation, it will be difficult for major stocks to perform well, let alone smaller, more speculative stocks.
However, there may be some exceptions. Some stocks could perform well, despite the current macroeconomic backdrop.
For example, names exposed to sectors that could prosper in the coming years, regardless of what the global economy holds, could be strong penny stocks to buy.
Another good example of penny stocks to buy are those with potentially game-changing catalysts just around the corner. Along with that, there are stocks that could move the needle over the next year, thanks to the success of shareholder activism efforts.
With these three penny stocks hot to buy, these near-term catalysts could outweigh current market conditions. You might want to consider buying them in September. Even though there continues to be a high degree of uncertainty in the market.
Denison Mines (DNN)
As InvestorPlace Samuel O’Brient reported on September 1 that uranium stocks have been increasing lately.
Between Japan’s return to the use of nuclear power and Elon Musk’s comments supporting wider use of nuclear power, there has been renewed optimism for uranium games, including Denison Mines (NYSE:DNN).
It’s not the most popular uranium miner. names like Uranium energy (NYSE:CUE) have received more attention. Yet when it comes to betting on increasing the use of nuclear power to achieve net zero carbon emissions, DNN stock may be a better choice among energy penny stocks at to buy.
It can offer a better value proposition. Like a Looking for Alpha commentator argued last month Denison’s (Wheeler) flagship project could eventually have a net present value of $2.59 billion, if uranium prices rise slightly, to $65 a pound.
This is an amount well above its current market capitalization ($1.16 billion).
Globalstar (NYSEAMERICAN:GSAT) has increased over the past month.
Since the start of August, shares of the mobile satellite company have soared nearly 27% following rumors that Apple (NASDAQ:AAPL) will join the company.
There is a fair amount of risk in GSAT stocks now. Unlike just a few months ago, Apple rumors have started to partially factor into its valuation again, making it one of the riskiest penny stocks to buy.
If the tech giant fails to include satellite connectivity (via Globalstar’s services) as a feature with the upcoming iPhone 14, stocks could see a sharp drop in price.
That’s what happened last year when it wasn’t added as a feature on the iPhone 13. Then again, if so? Stock may have room to run. If you’re looking for a high-risk, high-reward bet in today’s cautious market, consider this stock.
AMMO Inc. (POWW)
At first glance, AMMO inc. (NASDAQ:POWW) may not seem to fall into the “penny stocks to buy” category. The shares have fallen since its announcement on Aug. 15 to split into two companies, one owning its ammunition business and the other owning its e-commerce segment (consisting primarily of Gunbroker.com).
However, it is uncertain whether the company will go through with this disposal plan based on recent news on shareholder activism.
Gunbroker founder Steven Urvan, whose group owns about 17.1% of POWW’s outstanding shares, has launched a full proxy contest.
The dissenting shareholder plans to name a full slate of replacement directors for the company’s board. If Urvan wins, the company may decide to drop the spin-off idea and pursue a new strategy that would result in a repricing of that title.
Stocks are arguably undervalued, given the prospect of continued earnings growth.
At the date of publication, Thomas Niel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.