Are These 3 Penny Stocks To Buy After NIO Stock’s Explosive Move?

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NIO Stock Just Shined A Bright Light On EV & Alternative Energy Penny Stocks

Nio (NIO Stock Report) has caused a huge stir among penny stocks and blue chip stocks alike. However, for those of you who’ve read our articles for a while, you also know where NIO stock was a little over a year ago. If you’re just hearing about this company for the first time, let me catch you up to speed. Nio was a company falling on hard times, mismanagement, and failed milestones in 2019.

Eventually, NIO became a penny stock and since then we followed progress closely. The sheer amount of hype behind it, alone, was enough to pique interest. But 2020 was clearly the year of NIO stock with the last few months seeing exponential levels of growth in the market. It’s apparent that based on the numbers released this year, Nio appears to have righted the ship. Let’s just hope it isn’t another instance of questionable accounting like Luckin Coffee.

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There’s also likely some questions arising from the recent concerns over the future of Chinese stocks in general. President Donald Trump signed an executive order on Thursday barring Americans from investing in a handful of Chinese companies the U.S. says support or supply the Chinese military. While this didn’t directly impact NIO stock, it does raise questions amid the ongoing trade war between the two companies.

Penny Stocks To Buy or Should You Avoid The Hype?

Needless to say, NIO’s ascent has brought back the sympathy trade hype around energy and electric vehicles. The initiatives not only made by companies like Tesla but other automakers to bring EV to the mainstream has caused a big stir across the entire ecosystem. What’s more, is that this has also shed light on the “alternative energy” conversation too.

Take a look at a company we’ve discussed for weeks, CBAK Energy Technology (CBAT Stock Report). It was one of the top penny stocks to watch in September and has remained on the list ever since. CBAK is a lithium-ion battery manufacturer. So it makes sense as to why CBAT stock might be gaining some attention right now.

When we see trends like this it’s important to keep the “hype factor” in mind. As we’ve seen plenty of times with things like marijuana stocks, once the hype dies down, investors will refocus on fundamentals. That can bring an entirely different sentiment to the sector in question. But right now momentum is surging and NIO stock has become a catalyst for several penny stocks today.

Penny Stocks To Buy [or avoid]: Polar Power Inc.

The first time we talked about Polar Power Inc. (POLA Stock Report) the penny stocks saw an explosive 1-day move. From there it came back to previous support as many parabolic moves tend to do. Then “EV fever” started setting in and a focus on energy companies. It serves many different markets including telecommunications, military, electric vehicle charging, cogeneration, and many more.

As far as where it fits into the grand scheme of things, Polar’s product portfolio hits all the hot penny stocks topics right now. Its products include DC generators, Back-up DC generators, hybrid power systems, Li-Ion battery systems, and Marine DC generators. Following Tesla’s Battery Day, there’s been plenty of attention on the “food chain” for EV production. 

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Regardless, POLA stock hasn’t released much news of substance in quite some time. So much of the latest move has stemmed from sector hype. So keep this in mind if POLA stock is on your watch list right now. It has a history of big swings.

penny stocks to buy NIO stock Polar Power Inc. (POLA stock chart)

Penny Stocks To Buy [or avoid]: Westwater Resources Inc.

Westwater Resources Inc. (WWR Stock Report) is another one of the infamous sympathy trades of the last few months. If you remember, WWR stock shot up to highs of more than $14 in October. The initial move came after President Trump signed an executive order expanding the production of rare earth minerals. These were pointed out as being vital to the numerous manufacturing sectors including electric vehicles and defense products.

 We discussed this in our article, “Should You Buy These Penny Stocks Today? 5 Up Big In October 2020.” Westwater commented on this government initiative applauding the Order saying that it addresses the threat to the U.S. supply chain from reliance on foreign countries.

“Westwater’s business plan for the Coosa Graphite Project over the next two and a half years is to develop a U.S. domestic supply for natural graphite for use in all types of batteries in the United States.”

Westwater recently announced the delivery of 30 metric tons of natural flake graphite concentrate at pilot plant contractor Dorfner Anzaplan’s facility in Hirschau, Germany. The pilot plant is expected to commence this month and continue through March 2021. Westwater is developing a proprietary process for the production of non-Chinese battery-grade graphite.

penny stocks to buy NIO stock Westwater Resources (WWR stock chart)

Penny Stocks To Buy [or avoid]: ReneSola, Ltd.

ReneSola, Ltd. (SOL Stock Report) is another one of the penny stocks to watch after NIO stock skyrocketed this month. As discussed, alternative energy stocks are also benefiting from the surge in electric vehicle stocks. In this case, SOL stock went parabolic Friday morning, exploding to highs of $5.34 then quickly dipped back below $5 by the lunch hour. While the other stocks on this list might be moving based on sympathy momentum, ReneSola does have something to look at as its own catalyst.

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The company announced that it will release Q3 results on December 1st. According to preliminary results released earlier this week, the company expects revenue to come in at the higher end of its previous guidance.

Mr. Yumin Liu, ReneSola Power Chief Executive Officer, said, “Solid revenue, coupled with our strong focus on prudent cost control, has enabled us to deliver robust bottom-line results. We are encouraged by the pipeline of project activity, and remain optimistic about multi-year growth prospects. I also want to recognize the dedication of our team in executing our strategies despite the ongoing global uncertainty with the COVID-19 pandemic.”

Coupled with sector hype, SOL stock has made a strong move on Friday. Will this momentum last into the rest of the month?

penny stocks to buy NIO stock ReneSola Ltd (SOL stock chart)

The post Are These 3 Penny Stocks To Buy After NIO Stock’s Explosive Move? appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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