The promise of mouthwatering returns is what draw many of us (Investors) to penny stocks. I recognize this promise, so much that I can’t build a growth stocks portfolio without penny stocks.
My 2020 penny stock winners included wins with Overstock.com, Nio, Riot Blockchain Inc, Ideanomics Inc, and Arcimoto Inc. And I’ve had some losses too, but the wins more than compensated for the losses.
The market last year was a strong bull market and it was relatively easy to register massive wins but that might not be the same for 2021. As such, the returns for the market this year might be lower than 2020.
Nonetheless, there are sectors that are bound to flourish this year and investing in these sectors, like the renewable energy sectors for instance, will be the most promising for growth seeking investors looking for promising penny stocks in 2021.
When I reflect on my penny stock wins of last year, they came from stocks in growth sectors.
Overstock.com is an online retailer whose growth was influenced by the lockdown online retail demand surge, and Riot Blockchain Inc is a Blockchain stocks, and Blockchain stocks where hot last year, partly due to the rise in crypto currencies, especially bitcoin.
Ideanomics, Nio and Arcimoto are EV stocks whose growth last year was largely influenced by Tesla’s rise. One can say that growth in EV stocks are now tired to Tesla’s performance to a large extent.
This year is the year for renewables, renewable energy stocks are going flourish. 5G and self-driving stocks are also going to be hot. Many 2021 penny stock winners are going to come from this sectors.
And the hand writing is clear that Virtual and Augmented Reality is going to be a big deal in the next couple of years, and 2021 is a good time to get into the market when it’s still largely under the radar.
If you are interested in investing in penny stocks, here are 7 promising penny stocks for 2021:
1. Himax Technologies, Inc. (NASDAQ: HIMX)
Himax Technologies, Inc. is a semiconductor solution provider dedicated to display imaging processing technologies. It operates through the Driver Integrated Circuit and Non-Driver Products segments.
The company’s products include display drivers, timing controllers, wafer level optics, video and display technology solutions, liquid crystal over silicon silicon, complementary metal-oxide semiconductor image sensor, and power integrated circuit.
Its products used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, car navigation, virtual reality (VR) devices and many other consumer electronics devices.
Himax Technologies was founded by Biing Seng Wu and Jordan Wu on June 12, 2001 and is headquartered in Tainan, Taiwan.
2. Pacific Ethanol (NASDAQ: PEIX)
Pacific Ethanol, Inc. engages in the production and marketing of carbon renewable fuel. It operates through the Ethanol Production, and Marketing and Distribution business segments.
The Ethanol Production segment includes the production and sale of ethanol and co-products.
The Marketing and Distribution segment comprises of the marketing and merchant trading of company-produced ethanol; and co-products and third-party ethanol.
The company was founded by William L. Jones and Neil M. Koehler on January 30, 2003 and is headquartered in Sacramento, CA.
3. Vuzix Corp (NASDAQ: VUZI)
Vuzix Corp. is a supplier of Smart-Glasses and Augmented Reality technologies and products for the consumer and enterprise markets.
Its products include personal display and wearable computing devices that offer users a portable viewing experience, provide solutions for mobility, wearable displays and augmented reality.
The firm also holds 179 patents and patents pending and numerous IP licenses in the Video Eyewear field.
The company was founded by Paul J. Travers in 1997 and is headquartered in West Henrietta, NY.
4. Ford Motor Company (NYSE: F)
Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following three segments: Automotive, Mobility, and Ford Credit.
The Automotive segment engages in developing, manufacturing, marketing and servicing of Ford cars, Lincoln vehicles.
The Mobility segment includes Ford Smart Mobility LLC and autonomous vehicles business.
The Ford Credit segment comprises Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities.
The company was founded by Henry Ford on June 16, 1903 and is headquartered in Dearborn, MI.
5. Spi Energy Co Ltd (NASDAQ: SPI)
SPI Energy Co., Ltd. provides photovoltaic solutions for business, residential, government, and utility customers and investors.
It offers engineering, procurement, and construction services to independent power developers and producers, and commercial and industrial companies.
The company also develops, owns, and operates solar projects that sell electricity to power companies and other electricity off-takers.
As of June 29, 2020, it owned and operated 16.8 megawatts of solar projects.
In addition, the company, through its wholly owned subsidiary, EdisonFuture, Inc., designs and develops electric vehicles and EV charging solutions.
It operates in Greece, the United States, Italy, Japan, the United Kingdom, Australia, and Germany.
SPI Energy Co., Ltd. is headquartered in Shatin, Hong Kong.
6. Ideanomics Inc (NASDAQ: IDEX)
Ideanomics, Inc. focuses on monetizing the adoption of commercial electric vehicles, associated energy consumption, and developing financial services and Fintech products.
Its Mobile Energy Global division provides financial services and incentives for commercial fleet operators, including group purchasing discounts and battery buy-back programs.
This division also offers solutions for the procurement, financing, charging, and energy management needs for fleet operators of commercial electric vehicles.
The company’s Ideanomics Capital division provides financial services solutions.
This division is involved in the areas of capital markets, such as financial products advisory and creation, with specific focus on the application of blockchain and artificial intelligence in financial technology.
This division also operates EKAR, an exchange traded fund that tracks the Innovation Labs Next Generation Vehicles Index, which comprises of global stocks that have exposure to the theme of electric and self driving/autonomous vehicles.
The company was founded in 2004 and is headquartered in New York, New York with office in Beijing, China.
7. Nokia (NYSE: NOK)
Nokia Oyj engages in the provision of network infrastructure, technology, and software services. The company is a major player in the 5G Network Infrastructure market.
It operates through the following segments: Networks, Nokia Software, Nokia Technologies, and Group Common and Other.
The Networks segment comprises mobile networks, services, fixed networks, and optical networks.
The Nokia Software segment offers cloud core software portfolio.
The Nokia Technologies segment focuses on the innovation and research and development in technologies used.
The company was founded by Fredrik Idestam in 1865 and is headquartered in Espoo, Finland.
8. Ocean Power Technologies Inc (NASDAQ: OPTT)
Ocean Power Technologies, Inc. engages in commercializing proprietary systems that generate electricity predominantly by harnessing the renewable energy of ocean waves.
It offers the PB3 PowerBuoy which generates electricity by harnessing the renewable energy of ocean waves.
The company operates through the following geographical segments: North America; Europe; and Asia and Australia.
Ocean Power Technologies was founded by George W. Taylor on April 19, 1984 and is headquartered in Monroe Township, NJ.
9. Infinera Corp. (NASDAQ: INFN)
Infinera Corp. engages in the provision of networking solutions, which consists of networking equipment, software and services.
Its portfolio of solutions include optical transport platforms, converged packet-optical transport platforms, optical line systems, router platforms and a suite of networking and automation software offerings.
The company was founded by David F. Welch, Drew Daniel Perkins, and Jagdeep Singh in December 2000 and is headquartered in Sunnyvale, CA.
10. Renesas Electronics Corp (OTCMKTS: RNECY)
Renesas Electronics is a Japanese Semiconductor Company that offers the usual semiconductor products and services you’d expect, like microcontrollers and microprocessors, amplifiers and buffers, and memory products.
It has been involved in the usual Semiconductor business nothing much around self-driving technologies up until it acquired IDT in 2019.
IDT is an American Semiconductor company with products that are suited and required by automotive companies developing and deploying self-driving technologies.
As a matter of fact, Renesas acquired IDT specifically to boost its self-driving car chip business, in a deal worth $6.3 billion.
IDT has strong power management and memory products which focuses on wireless networks. And the converting and storing of data in connected vehicles demands high levels of data streaming and interaction, a problem IDT products can help solve.
Toyota, the world’s largest seller of cars selected Renesas to provide chips for its self-driving cars back in 2017; a big win for Renesas.
In 2019, Renesas announced it has joined the Autonomous Vehicle Computing Consortium (AVCC) as a core member. Moves like this points out that Renesas is taking the prospect of the self-driving market serious.
The self-driving market is a huge one that has major openings for different players and Renesas is taking the chip way in.
I’m a Technology Stock Analyst, with focus on companies developing cutting-edge techs. Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.