2020 has been a great year to trade penny stock breakouts. And with my help, 2021 is going to be even more prosperous for you because I'm going to show you exactly what to look for.
Buying penny stocks that are moving higher and nearing their 52-week highs has worked much better and has been particularly profitable in 2020.
The break above the 52-week high often attracts breakout traders that use the new high list to pick stocks. Their buying can help push the stock above the $5 mark, allowing more institutions to get involved in the stock.
This type of trading is not for everyone. It is very volatile at times. You will have some good months, and you will have some bad months.
But if you can live with volatility and swings in your account balances, you can make a lot of money with penny stock new high breakouts.
Because we want new high list traders to help lift our stock higher, we want to buy when the stock is moving up and nearing the 52-week highs to get in ahead of the new high list buyers.
Here's my first pick...
The Best Penny Stock to Buy in Renewable Energy
Gevo Inc. (NASDAQ: GEVO) is an excellent example of a penny stock that is flirting with new highs.
The company is currently just about 8% away from its 52-week high price. The stock is up 37% this week, so it is riding a strong momentum wave as it nears the breakout level at the high of $3.06.
Gevo is a renewable energy company that makes renewable fuels, including gasoline, diesel, and aircraft fuel. Most of the company's fuels are made with corn-based biofuels, but it has also researched using sugarcane waste, rice straw, and forest waste to produce fuels.
As part of the company's commitment to renewable power, Gevo uses wind power to provide renewable electricity at its Luverne, Minn., facility.
Earnings are expected to grow by 25% a year for the next five years, so this breakout could take the stock price a lot higher in 2021 and beyond.
The Best Penny Stock to Buy in Digital Marketing
Fluent Inc. (NASDAQ: FLNT) is another penny stock on the verge of breaking out to new all-time highs.
Based in New York, Fluent runs digital marketing campaigns that help connect its clients with potential consumers of their products and services. The company describes its service as data-driven performance marketing.
FLNT's biggest growth segment is media and entertainment. It has successful relationships with streaming services and mobile gaming companies that are helping to drive revenue gains. This segment has been a huge winner during the pandemic as we have all stayed at home.
Streaming and gaming will continue to be strong even after the vaccine makes it safe to go out again.
WARNING: It's one of the most traded stocks on the market every day - make sure it's nowhere near your portfolio. WATCH NOW.
Fluent has over 500 advertiser clients right now. The company has a list of over 30 million active and authenticated potential customers to introduce to its customer's products.
Analysts expect huge gains from this company with earnings growth over the next five years of 40% or more. If the stock price matches earning growth as it often does, it could drive Fluent shares to five times or more the current stock price.
Fluent is up 11% in the past week, so the stock is building momentum for a decisive break over the 52-week highs.
The Best Penny Stock to Buy with 218% Upside
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Barnes & Nobel Education Inc. (NYSE: BNED) is another penny stock that is running up toward a new 52-week high right now.
BNED runs bookstores for college and university campuses and K-12 institutions in the United States. The company currently operates 772 physical college and university bookstores and 647 virtual bookstores.
As you can imagine, business has been somewhat slower than expected for this company. COVID-19 has changed university life this year. Many schools have a significant portion of students doing distance learning, which hurts the physical book store sales. Most of their campus locations also sell fan-related merchandise, and the lack of crowds at many sporting events has hurt those sales as well.
This week's big news is that Barnes and Noble Education has struck a deal with Fanatics and Lids, the two online and offline leaders in the licensed sports and emblematic merchandise category, to take over that part of the business.
Barnes and Noble will continue to run the bookstore part of the operation while the two leaders in sports and college logo related marketing oversee that part of the operation.
The two companies are also making a $15 million strategic equity investment in BNED and receive 2,307,692 common shares of BNED in exchange.
As this stock hits new highs and then moves back above $5, we could see a strong institutional buying wave in the stock. It wouldn't surprise me to see the stock reach $15 per share (a 218% return from its current price of $4.72) if that happens.
The Complete List of Best (and Worst) Stocks for 2021
Wall Street insider Shah Gilani says 2021 could be a gold mine for Americans.
He's showing his subscribers exactly which stocks to buy and which to sell.
But you're getting it all for free - no sign-up or credit card required.
Prices, tickers, and company names will be coming your way fast.