If there’s one trend that has continued building interest in penny stocks it’s been that of epicenter stocks. What are epicenter stocks? Originally coined by Fundstrat’s Tom Lee, these are stocks that’ve gotten beaten down the most from the epidemic. They could also be companies poised for momentum as the economy reopens.
We’re talking everything from retail to healthcare. Another subset of this “epicenter” idea is also energy. It has begun evolving with the upcoming inauguration of Joe Biden as President. His administration’s focus has been on renewable and alternative energy. This has also brought into light the expansion of things like fossil-fuel-free means of transportation. With the likes of Elon Musk initially leading the charge on EV expansion, electric vehicle stocks have greatly benefited during the last few months.Are Epicenter Stocks Part Of Your Strategy?
As our readers saw, the EV boom has turned some of the cheapest stocks into formidable stocks to watch. Is the industry itself overbought? Some may argue that point. But the fact that stocks like Tesla (TSLA Stock Report) continue making new highs, it’s an interesting situation altogether. I’ll let you determine your own outlook on the niche. What I will say is that valuations haven’t matched the fundamental features of many of these companies. Nonetheless, the hype has been a big driver for automakers with exposure to the EV space.
Other than that, renewables and alternative energy stocks have gained plenty of ground as well. Many of these companies also have gained a bit of exposure to the increased interest in things like rare earths that shined bright earlier in 2020. Coincidentally, among other things like weapons, these are used to make magnets for electric vehicles and other green technologies. You also can’t forget about other, more typical epicenter stocks like travel stocks either. With vaccines being distributed as we speak, are some of these epicenter penny stocks on your list to buy or avoid in 2021?Epicenter Penny Stocks
- Fuel Tech Inc. (FTEK Stock Report)
- Gevo Inc. (GEVO Stock Report)
- Energy Fuels Inc. (UUUU Stock Report)
- United States Antimony Corp. (UAMY Stock Report)
- Liberty Trip Advisor (LTRPA Stock Report)
Fuel Tech has been on our list of penny stocks to watch since May of last year. At the time, shares were trading around 50 cents and the company had just announced two FUEL CHEM® demonstration orders using Fuel Tech’s proprietary TIFI Bio™ technology. The company commercializes technologies for air pollution control, water treatment, among other things. Its FUEL CHEM® technology works by increasing the efficiency and reliability of combustion units.
Heading into this year, it’s important to keep the company’s project backlog in mind. In a recent update, President and CEO Vincent J. Arnone, in Fuel Tech’s explained this plan in more detail.
“Within our Air Pollution Control (APC) business segment, we remain intensely focused on providing custom-engineered solutions that fulfill the unique needs of each of our customers, and expect the final decisions to be made on multiple projects by the end of the year which, if Fuel Tech’s bids are selected, would increase backlog for 2021 and beyond by $10 to $15 million.”
With the continued interested building for clean energy and the likelihood that more energy consumption coincides with economies reopening, companies like FTEK could be in focus.Penny Stocks To Buy [or avoid] #2: Gevo Inc.
Gevo Inc. is another one of the alternative energy stocks we’ve been following since the summer of 2020. The company is building its foothold in the renewable chemicals and biofuels segments of the energy industry. Most of the recent attention has been on the company’s expansion upon one of its largest contracts that were discussed back in August. Back then, the company inked a deal with Trafigura Trading LLC, which sparked the initial momentum for the stock during the second half of the year.
The off-take agreement brought Gevo’s total off-take total to about 48MGPY, collectively representing roughly $1.5 billion of revenue across the life of its contracts. Jump ahead to December, and the latest milestone secures control of a 239-acre site to meet the conditions required by its contract that Trafigura.
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This week the company engaged Koch Solutions to provide front-end engineering, design, and project management services for Gevo’s projects. In light of this big step forward, trading remains bullish on GEVO stock at the start of 2021. On Tuesday, the penny stock rallied back above $4.40.Penny Stocks To Buy [or avoid] #3: Energy Fuels Inc.
Uranium stocks are among some of the more active groupings of shares in the energy sector right now. Coincidentally, traders have gained some exposure to information on uranium penny stocks during recent weeks as well. Energy Fuels, for example, was one of the uranium stocks to watch since back in July of 2020. At that time, UUUU stock was trading around $1.60 and Energy Fuels had just eliminated a portion of its debt. It also confirmed 2020 uranium production guidance, and updates on the value of its significant uranium and vanadium inventories.
Fast-forward to 2021 and not only has the companies stock reached new milestones, but Energy Fuels has also built upon its business model. Energy Fuels produces and supplies uranium. The incoming President is expected to aggressively develop U.S. technology for export to the international market within five to seven years. In budgetary terms, the nuclear program accounts for about 75% of the Department of Energy’s budget; roughly $27 billion.
What’s more, is that the company has also reported that it will enter the rare earth business next quarter adding to its current offering. The company will work to produce clean energy and entered into a supply agreement with The Chemours Company (CC Stock Report). Under the terms of the agreement, Energy Fuels plans to acquire a minimum of 2,500 tons of natural monazite sans per year. According to the company, after the program’s ramp up, it will be the 1st U.S. company in years to make marketable mixed rare earth element concentrate set for commercial-scale separation.Penny Stocks To Buy [or avoid] #4: United States Antimony Corp.
United States Antimony Corp. is one of the companies we’ve discussed among a list of energy and electric vehicle stocks. How is the company exposed to these? Aside from mining things like gold and silver, US Antimony mines other things as well.
The company produces antimony as well as zeolite. In particular, zeolite is one of the primary ingredients in electric vehicle batteries. So, UAMY has seen greater attention in the past six months. That’s thanks to attention on the overall EV “supply chain” in general. Many EV companies are moving away from traditional cobalt and nickel-based batteries. This could present an opportunity for US Antimony. Many companies see antinomy and zeolite as the future of automotive battery technology.
With reopening efforts also heightening interest in alternative energy production, UAMY could be one of the epicenter stocks to watch. Since first reporting on the company, we’ve seen the stock climb from around 37 cents to highs of $0.59 so far this week.Penny Stocks To Buy [or avoid] #5: Liberty Trip Advisor
Finally, outside of energy stocks, we’ve also got to think about travel stocks. While most focus on things like airline stocks in this case, others look at more of the “pick and shovels” of the industry. What I’m talking about are the service providers offering booking solutions, user experience forums and the like.
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Liberty TripAdvisor has long-been one of these stocks to watch this year. In fact, in April of last year, Liberty Tripadvisor’s “B” shares may have been one of the things to actually bring attention to the company itself. Liberty TripAdvisor Holdings “B” shares (LTRPB Stock Report) soared from a close on April 14 of $4.51 to highs on the 15th of $134. At the same time, LTRPA stock jumped from around $2 to highs of nearly $3.50. The A shares are more actively traded in general.
In any case, moving forward through the beginning of the new year, LTRPA has managed to break back above $4.60 for the first time since last March. This time it’s on the way up instead of during a crushing sell-off. Companies like Liberty Tripadvisor providing online travel site services and online retail have shifted with COVID headlines in a good way recently. Now that vaccines are rolling out, can this uptrend continue in 2021?