US stock market shows potentially huge opportunity on a penny stock that is Electric Vehicle related .To keep a reminder, you have to size your investments accordingly as penny stocks could be extremely risky because of their low price and their huge price fluctuation. Plan according to your risk tolerance and your budget and do your own research because nothing is permanent in the market
What is this EV-stock
Electric vehicle (EV) stocks have jolted many investors’ portfolios to new heights this year. This is unsurprising as the industry is one of the best performers in the stock market in 2020. The International Energy Agency states that electric vehicle sales accounted for 2.6% of global car sales in 2019. By 2030, this figure could hit 30%. With such a huge slice of the market up for grabs in the next decade, this could very well be a good time to have top EV stocks in your portfolios. By looking at Tesla and Workhorse Group you can see that these EV stocks have already exploded in growth.
The industry is certainly well-positioned for growth. With Joe Biden set to be inaugurated in January as the 45th President of the United States, some of the best EV stocks to watch have rallied hard in the last month. Joe Biden ran on a progressive platform to make the U.S. carbon neutral by 2050.
What is a Penny stock
A penny stock refers to a small company’s stock that typically trades for less than $5 per share. Although, some penny stocks trade on large exchanges such as the NYSE, most penny stocks trade via over the counter through the OTC Bulletin Board (OTCBB). While there can be sizable gains in trading penny stocks, there are also equal risks of losing a significant amount of an investment in a short period.
Penny stocks offered on the marketplace are often growing companies with limited cash and resources. Since these are primarily small companies, penny stocks are most suitable for investors who have a high tolerance for risk. Typically, penny stocks have a higher level of volatility, resulting in a higher potential for reward and, thus, a higher level of inherent risk. Investors may lose their entire investment on a penny stock, or more than their investment if they buy on margin. Buying on margin means the investor borrowed funds from a bank or broker to purchase the shares.
Considering the heightened risk levels associated with investing in penny stocks, investors should take particular precautions. For example, an investor should have a stop-loss order predetermined before entering a trade and know what price level to exit if the market moves opposite of the intended direction. Stop-Loss orders are instructions, placed with the broker, that set a price limit that once reached, will trigger an automatic sell of the securities.
As per the travelling trader, the best penny stock for now is NMGRF, we cannot say that this next quantum space but definitely it is on bullish rally, and we got our eyes on the price.
Nouveau Monde Graphite (NMGRF)
If we look at the NMGRF chart, the Stock is crossing 21EMA and showing bullish sign, this stock right now is at almost 62 cents, it already hit a recent high of 75 cents which would represent an additional 22 EMA and this stock will go forward. See a path for this stock to go above one dollar and beyond
Reason for the Bullish Rally
We all know that Lithium is main ingredient in the creation of lithium-ion batteries specifically for EVs. The lesser known material that is required in making of the batteries is graphite. NMGRF which is the ticker symbol for Nouveau Monde Graphite has a hundred percent stake in the Mata Winnie project. This project is the largest graphite project in North America. Nouveau Monde is based in Montreal Canada and they are building two commercial scale pilot plant purification modules. I am not a battery scientist, but as per financial standpoints, what that means they are preparing to gearing up those modules. They can be aiming to produce carbon neutral battery grade graphite by 2023.
Today you can produce graphite, but not in a carbon neutral manner. That would make NMGRF the largest producer of graphite in North America at a time when a graphite shortage is forecast to develop. There is a projected 500% growth in the demand of graphite by 2026.
Recently, The US President has signed an executive order identifying 35 critical minerals for reducing the import from foreign countries, graphite is one of them although Canada is not included on that list as they’re one of the US biggest allies .So that would put NMGRF in a much better position. If US can source most of its graphite from Canada as opposed to countries that it might be in conflict with. From a stock perspective looking at the NMGRF chart this is a very bullish uptrend.
Strategy to be played
Invest in NMGRF as long as this trend is maintained and if it drops further as long as it stays above this trend line then continue to add to my position .Whenever this trend line is broken, like anything below 50 cents shift your sentiment.
Even if like in Quantum Space (QS) return of Bill Gates may plan to change the game of EV battery by eliminating the need of graphite by solid lithium batteries. For now and the next few years there’s going to be a projected shortage in graphite .Tesla as well as other EV companies that do work off of the traditional lithium ion battery they’re going to need tons more graphite in order to produce their batteries.
This EV penny stock / NMGRF could be the next huge winner. NMGRF is an EV-related stock (specifically EV batteries) and this company is already working with Tesla to produce their batteries. I am not saying they are the next Quantumscape stock (QS stock) but this company is a junior graphite miner and will be responsible for most of the carbon-neutral graphite used in Tesla lithium-ion batteries as well as other EV car manufacturers’ batteries. In my view NMGRF is one of the best penny stocks to buy now.