The current bear market has removed much of the moss that had built up over the past few years. Several of the biggest names in the stock market are now trading at multi-year lows as investors turn away from risky investments. Many of these stocks trade for currency, which is why now is a great time for investors to look for undervalued penny stocks.
Penny Stocks are naturally more volatile than other companies traded in the stock market. They are usually thinly traded and are valued at a substantial price compared to their long-term prospects. Plus, they allow traders to quickly build their portfolios and progress to safer investments.
Therefore, any investor cannot ignore the value of penny stocks, and perhaps the current downturn is the best opportunity for them to buy a bunch of them.
|BOAT||Seanergy Maritime Holdings Corp.||$0.7039|
|EWG||Gran Tierra Energy||$1.21|
Seanergy Maritime Holdings Corp. (BOAT)
Greek Dry Bulk Shipper Seanergy Maritime Holdings Corp. (NASDAQ:BOAT) made headlines for abandoning his oldest ship in glory through a 100% subsidiary.
The objective is to effectively rationalize its activity, free up cash flow and improve its ability to raise capital. It will replace glory with a much younger ship.
Additionally, based on strong results it released recently, it announced a dividend of $0.025 per share. Add to this the strong industry outlook ahead due to limited fleet growth; Seanergy expects a strong performance this year.
Despite the incredibly bright outlook ahead and strong selling prospects, SHIP shares are trading at just 0.9 times forward sales. Therefore, it is difficult to pass up such an opportunity at this time.
Gevo (NASDAQ:GEVO) is a leading producer of biofuels and the first large-scale producer in its niche. It offers an integrated solution to reduce emissions from multiple sectors.
With the growing need for renewable energy, there are multiple use cases for Gevo’s products. However, the company is primarily focused on establishing a strong position in the Jet Fuel business.
He quickly secured several contracts with some of the major airlines operating in the United States recently, and he announced that members of the Delta and Oneworld Alliance had contracts for up to 75 million gallons of fuel per year for seven years.
Although this may not seem like a lot compared to the total consumption of kerosene, it is a big step forward for Gevo. If he can start filling contracts soon, his stock could quickly jump out of penny stock territory.
Gran Tierra Energy (EWG)
Gran Tierra Energy (NYSEAMERICAN:EWG) operates an oil and gas exploration business in Colombia and Ecuador. Over the years, it has been very successful, increasing its turnover and results with double-digit margins.
Investors are concerned about the impact of a recent regime change in Colombia on GTE’s prospects. However, these concerns are greatly exaggerated as the company evolves into a leaner business in the future.
GTE will enter next year with a significantly stronger balance sheet. He has paid off most of his debt and his next pile of debt is in 2025.
Additionally, with rising oil prices, the company increased its cash balance from $17 million in June last year to $109 million this year. In addition, oil production is expected to increase by 25% in the next quarter. Despite the positive developments, GTE is still priced before the Russian invasion.
Finnish telecommunications giant nokia (NYSE:NOK) boasts an unparalleled comeback story. After years of trials and tribulations, it is now positioning itself as one of the major players in the 5G space.
It expects its total addressable market to reach 122 billion euros this year, while continuing to sign new contracts and increase revenue in all its key segments. Moreover, with its investments in research and development, it is plausible to expect incredible commercial momentum in its cloud and network services.
In addition, its margins are improving every quarter, in line with its first results. In the long term, it could be looking at an 11% to 13% margin if it can further share the 5G space. Over the past couple of years, NOK stock has been pretty much a dormant stick, but recent developments are likely to boost its price significantly.
curiosity flow (CURI)
curiosity flow (NASDAQ:CURI) is a documentary-focused streaming service that went public via a SPAC merger a few years ago. Its shares now trade at a fraction of its de-SPAC price and are significantly undervalued.
Its focus on the documentary niche is a competitive edge that gives it an edge over the cutthroat competition in the industry. Additionally, with the subscription video-on-demand industry expected to grow nearly 9% through 2026, CURI stock could be an interesting value play.
It recently announced its first quarter results, which showed significant progress on both lines. Revenue jumped 77% to $9.9 million over the prior year period, with a 50% increase in paid subscribers.
Additionally, he ended the quarter with a substantial $85 million in cash and just $5 million in debt. It now anticipates positive operating cash flow in the first quarter of 2023, which is a major step forward in its progress towards profitability.
McEwen Mines (MUX)
McEwen Mines (NYSE:MUX) is involved in the production and sale of gold and silver deposits, primarily in the North American region.
It has been relatively successful, generating revenues of over 22.50% over the past five years. Recent results have been helped by higher average realized gold prices. Consequently, the company has built a strong cash balance of $70 million. In addition, efficient management has significantly reduced its costs in recent quarters.
However, production levels have dropped lately, which is concerning. Profitability is also still a long way off, further complicating its bullish case. Nonetheless, it is trading below 50 cents at the most attractive price multiples in recent history. Therefore, speculating on it will not be expensive.
ideonomic (NASDAQ:IDEX) is one of the most innovative electric vehicle games that offers a complete ecosystem to its users. It covers everything from financing, leasing, energy services, insurance and other related items.
With the expansion of the EV space, the company is receiving orders at a steady pace. It is experiencing triple-digit growth in several of its subsidiaries, which bodes very well for its long-term prospects.
For example, its subsidiary WAVE (provider of wireless charging solutions for heavy electric vehicles) recently collaborated with the US Department of Energy and the Antelope Valley Transit Authority.
Additionally, its hybrid subsidiary received a $5.5 million order from Global Environmental Products for its powertrain kits. With the proliferation of electric vehicles in the future, I expect Ideanomics to evolve into a much larger company down the line.
As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.