As 2024 approaches, seizing opportunities in select penny stocks becomes a strategy many may consider. Now, amidst the vast array of penny stocks, only a fraction stands out as potentially promising investments. Some present a mix of growth and relative value for those hoping for outsized performance in the coming year.
So, given the broadly neutral current market perspective, invest only a small portion of one’s portfolio in high risk stocks. For those looking to accumulate a list, explore these three with big-time potential, alongside their heightened risk profiles.
Surge Battery Metals (NILIF)
Recently, Surge Battery Metals (OTCMKTS:NILIF) finalized agreements with the Wilkins Family and Y3-II. So, it gained control of 25%+ mineral rights for its flagship claystone project in Nevada. The first deal involved a $50,000 payment and issuance of 1.25 million common shares for a 21.25% interest in mineral rights.
Then, the second agreement closed. Surge secured an additional 3.75% interest in mineral rights with the issuance of 300,000 shares. October 2022 drilling at Nevada North revealed a lithium-rich clay zone over 1,620 meters. Further, the 2023 program aims to extend it to over 3,500 meters in length and 950 meters in width.
The first hole of the 2023 season yielded initial assay results. It reached a peak of 8,070 ppm lithium, averaging 4,067 ppm lithium with a 1,000 ppm cut-off. Consequently, Surge Battery Metals stock rose on the news, and has shown periods of strong momentum in the past. Hence, this suggests a lasting rally.
Nikola (NKLA)
Next, Nikola (NASDAQ:NKLA) stands as a higher-risk, speculative choice. True, it has faced significant stock declines, indicating waning investor confidence.
Despite this, investors weigh compelling reasons to consider it. In September, CEO Steve Girsky reported successful daily tests covering 900 miles for fuel cell trucks, highlighting their zero-emission capabilities.
And, Girsky anticipated year-end deals to sell a significant number of these trucks, backed by over 210 non-binding orders. Also, the potential popularity in California is boosted by state rebates for companies with small fleets.
Recently, the stock faced a 20% decline amid social media trends. Specifically, the automaker revealed plans to offer $300 million in combined NKLA stock and convertible notes. Such stock offerings often lead to price drops due to dilution. NKLA aimed to sell an additional $100 million in stock and $200 million in green convertible senior notes. Those will be due in 2026. So, this shows its commitment to environmentally sustainable projects.
In fact, the funds raised would be utilized for working capital, general corporate purposes, and unspecified environmentally-sustainable initiatives.
Pitney Bowes (PBI)
Pitney Bowes (NYSE:PBI) has emerged as a standout penny stock with a dynamic vision for growth. The company’s focus is on cost-cutting, subsidiary investment, and sidestepping less profitable areas.
Recent financial results surpassed expectations. That reveals a positive shift. Non-GAAP earnings per share beat forecasts by two cents and healthy sales of $784 million. Pitney Bowes is exceeding restructuring goals by targeting significant annual savings by 2024’s end, making it a top penny stock.
Pitney Bowes is a shipping and mailing firm providing technology and financial services globally. And, it reinforced its domestic parcel network on November 8, 2023. These enhancements, including automated e-commerce hubs and robotics solutions, led to a 38% year-over-year (YOY) growth in Q3 Domestic Parcel volumes. Further, this boosts efficiency and on-time deliveries for e-commerce brands and retailers.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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