If you’re unsure about what penny stocks are, read our crash course here.
We know what you’re thinking — “penny stocks, really?” but hear us out — sometimes, fighting fire with fire can be beneficial. And as the threat of climate change increases, there will be an even bigger shift to solar energy, providing potential opportunities for the following companies to make it big.
Currently, the stock market is showing some signs of hesitancy, which has led some investors to reduce their risk-taking. However, it’s not a great idea to completely abandon the equities sector, and if you’re still looking for growth opportunities in a relevant area, you should look into solar penny stocks.
List of seven solar penny stocks we’ll go over today:
- Solar Integrated Roofing (OTCMKTS:SIRC)
- SunHydrogen (OTCMKTS:HYSR)
- Ascent Solar Technologies (OTCMKTS:ASTI)
- Aurora Solar Technologies (OTCMKTS:AACTF)
- Principal Solar (OTCMKTS:PSWW)
- Solar Alliance Energy (OTCMKTS:SAENF)
- Fernhill (OTCMKTS:FERN)
As always, we encourage you to do your own research, but keep reading if you want to learn more about why these penny stocks are likely to be smart investments.
Solar Integrated Roofing (SIRC)
Solar Integrated Roofing is an “integrated, single-source solar power and roofing systems installation platform company” that covers commercial and residential energy needs in the United States. Solar integrated specializes in battery backup systems and electric vehicle (EV) charging stations, so the business is definitely relevant.
Many investors believe that the company will be profitable. At the beginning of 2021, the stock was at 27 cents. Just a month later, it was at 2.76. However, with the unexpected Texas winter weather this year, the stock plummeted again.
In April, the stock was at 46 cents. Although the stock hasn’t gotten as high as it was at the beginning of the year, this company is in a very relevant industry and is definitely one to watch.
SunHydrogen is quite an innovative company and a combination of a solar play and a hydrogen energy firm. The company’s technology converts sunlight into energy to extract hydrogen from water as a clean energy source, similar to the process of photosynthesis. The process is one that scientists have been attempting for years.
However, clean hydrogen energy does have its challenges. At the moment, there are two ways to get clean hydrogen energy: extract hydrogen from methane, which leads to emissions, or to deploy electrolysis, which burns fossil fuels.
SunHydrogen claims that their process is the most economically viable, and investors are positive about this stock. But although the company was off to a great start at the beginning of the year, the stock is currently at a loss of nearly 50%.
Ascent Solar Technologies (ASTI)
For a stock that’s currently trading for 1.5 cents, ASTI offers some good potential. The company mainly specializes in solar solutions, which range from bare modules to finished goods that can survive extreme environments. These solutions are mainly relevant for exploration and research and development purposes.
Ascent Solar’s underlying business is solar solutions, ranging from bare modules to finished goods that can withstand extreme environments. It is particularly relevant for exploration and research and development purposes.
This stock has a lot of appeal in investment-related internet forums, and we’ve all seen what the power of the internet can do to the stock market. However, invest at your own discretion — the company generated less than $70,000 in sales last year.
Aurora Solar Technologies (AACTF)
Aurora Solar Technologies creates and markets inline quality control systems for the solar cell manufacturing industry. They help corporate clients to improve efficiency and profitability through “measurement, visualization, and control of critical processes during solar cell manufacturing.”
AACTF stock was doing quite well early in the year (it was at 59 cents in February compared to 29 in January), however with the Texas climate surprises and people losing confidence in clean energy, the shares plummeted again.
Although the company didn’t post revenue at the end of 2020, for March of that year, they recorded a revenue of over 2 million, which was up more than seven times from 2019.
Solar Penny Stocks: Principal Solar (PSWW)
Principal Solar buys, owns, and operates solar power projects, focusing on identifying large-scale solar operations with good potential for financing and long-term ownership.
It’s difficult to estimate the fundamental value of this company, as the latest information discovered on its SEC (Securities and Exchange Commission) filings is from 2016, when the company generated a revenue of just over $5,000 and a loss of just over $400,000.
And although it’s possible that Prinicpal Solar improved financially since then, we can’t be sure. With that being said, the stock still has quite the cult following who are certain that it’s going to skyrocket.
Solar Alliance Energy (SAENF)
Solar Alliance Energy is a company that provides energy solutions with a focus on residential, commercial, and industrial solar installations. Their customer base includes those in Tennessee, North and South Carolina, Kentucky, Illinois, Florida, and California.
These states are currently hot destinations for millennials, who make up the largest workforce in the USA. So, Solar Alliance may benefit from a long-term revenue stream. The pandemic could also help the company: As people move out of cities due to work-from-home becoming the new norm, they will have greater control over the adjustments and improvements they make to their homes.
Solar Alliance also has a decent financial record. Last year, they generated a revenue of almost $2.8 million, which was up by over 60% since 2019. However, profitability is still a concern for the company and it is quite volatile.
Last, but not least (okay — maybe this one is least), we have Fernhill. Fernhill is a diversified technology holding company currently trading at one cent. The company has interests in mobile applications, blockchain assets, fintech, and AI. The most recent financial data for the company is from 2008, which is a bit sketchy, however despite that the company has quite a large online fanbase.
Only time will tell if these penny stocks ever become much. Penny stocks are high-risk, high-reward, and they’re definitely not for everyone, but if you’ve done your research and want to invest in one of these companies, we say go for it! Just don’t blame us if you end up losing money! ;)
If you want to read more about some stocks that we’re watching right now, check out some of our other blogs.