3 Penny Stocks to Buy Before Their Major Breakouts


  • These under-the-radar penny stocks may certainly warrant some small speculative positions right now.
  • The Metals Company (TMC): A recent management reshuffle could pave the way for greater investor adoption.
  • Surge Battery Metals (NILIF): Recent drilling and sampling results point to some serious high-value lithium deposits.
  • Blade Air Mobility (BLDE): Has increased its profit margins in a speculative but high-growth space.
penny stocks - 3 Penny Stocks to Buy Before Their Major Breakouts

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In the crowded penny stock market, identifying multi-bagger opportunities requires careful research to distinguish speculative from fundamentally strong options. Speculative stocks offer short-term gains, potentially doubling in months, while fundamentally strong ones are suitable for long-term investment. 

Although the risk is higher, allocating a small portion of the portfolio to strong penny stocks is advisable. However, informed investors can find opportunities for substantial gains at low costs. This forms the basis of my list of penny stocks to buy. Recent trends suggest consecutive rate cuts in 2024, typically sparking boom cycles for penny stocks. 

With rates projected to drop to the high 4s next year, even modest improvements could increase penny stock segments. Here are three penny stocks to look and buy into.

The Metals Company (TMC)

A close-up shot of a cobalt pile in front of a black background.
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Last week, The Metals Company (NASDAQ:TMC) caught attention due to Congressional legislation favoring deep-sea mining. However, institutional interest isn’t the sole driver. With Steve Jurvetson, known for his work with SpaceX and Tesla, joining as vice chairman, TMC anticipates strategic growth. Despite financial challenges, Jurvetson’s expertise may attract crucial investments.

Juvertson became very popular for almost three decades because of his early-stage and excellent investment in big tech companies. As co-founder of Draper Fisher Jurvetson, he led investments in firms like Tesla and Planet Labs, creating $800 billion in value. At TMC, he now guides the company’s growth in deep-sea mining for the energy transition. TMC CEO Gerard Barron praises Jurvetson’s visionary approach, expecting his counsel to be invaluable.

The mining company stands out as a firm dedicated to sustainability and resource availability. It explores rare resources in sea zones, potentially supplying metals for millions of electric vehicles. Despite high capital needs and a $15.2 million quarterly cash burn, it’s poised for significant growth.

Surge Battery Metals (NILIF)

Close-up of a gold-ingot on top of a troy ounce silver and palladium bar. Precious metals. Gold, silver, palladium. materials stocks
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Surge Battery Metals (OTCMKTS:NILIF) announced it has finalized an entry and exploration agreement with the Salmon River Cattlemen’s Association (SRCA). The deal allows Surge to conduct drilling and other surface activities on SRCA’s private ground, where Surge holds 25% ownership of the sub-surface mineral rights. 

The company plans to drill four reverse circulation holes to explore high-grade lithium mineralization extensions and four holes on claims owned by Surge and its joint venture partner M3 Metals Corp. Drilling will begin by the end of May 2024 and test for lithium mineralization up to 1.2km south of the 2024 maiden resource area.

Surge Battery conducted an extensive drill program in 2024 to expand resources at NNLP with surface mapping and soil sampling. Coordination with the Bureau of Land Management was ongoing. Metallurgical tests with Kemetco were progressing, with results expected soon. Despite the high risk, NILIF stock appears attractive for those eyeing long-term growth in lithium mining.

Blade Air Mobility (BLDE)

The Blade Air Mobility (BLDE) logo displayed on a smartphone screen.
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The U.S. is known to have the most congested ground routes for air transportation, but companies such as Blade Air Mobility (NASDAQ:BLDE) offer options that ease these problems. Its unique, asset-light model supports healthy growth. Operating in the Northeast U.S., Southern Europe and Western Canada, Blade has room for regional expansion, driving revenue growth. 

Air taxi companies like Archer Aviation and Joby Aviation have slowly gained attention in the past year. As they have been progressing their FAA regulations, these companies are set to offer commercial services in the next 12 months. Unlike them, Blade provides air mobility services using helicopters.

The company aims to leverage its expertise in medical transport to enter the eVTOL market. Blade already generates revenue from its services and plans to reduce costs by acquiring more aircraft. While operating at a loss, it’s transitioning to a less asset-light model.Moreover, Blade is also the biggest air transporter for human organ transplants in the United States. This is where 56% of the company revenues come from. Now that it has slowly expanded to newer regions, that segment could be a groundbreaking game-changer.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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