HomeMarket NewsThe Undervalued Bright Sparks: 3 Long-Term Stocks for Astute Investors

The Undervalued Bright Sparks: 3 Long-Term Stocks for Astute Investors

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Penny stocks have often been compared to discount stores, filled with goods of questionable quality. Yet, buried within the risks lies a rare opportunity akin to finding a precious gem among the rubble.

While these stocks have a reputation for fraud and unscrupulous tactics, identifying a potential winner can lead to substantial profits. Now is an opportune moment to consider wise investments in select penny companies before their value skyrockets.

Whilst Wall Street remains fixated on large-cap tech stocks, the allure of undervalued penny stocks has been largely overlooked. However, astute early investors can still stand to reap significant rewards. By employing prudent risk management strategies, losses can be minimized, and profits maximized even in the face of market volatility and dilution. Let us delve into three promising long-term stocks that could potentially yield substantial returns.

Diving into Li-Cycle Holdings Corp. (LICY)

Person holding cellphone with logo of Li-Cycle Holdings Corp. (LICY) on screen

Source: T. Schneider / Shutterstock.com

Li-Cycle Holdings (NYSE:LICY), a leader in lithium-ion battery recycling in North America, has unveiled an ambitious global expansion plan with the opening of a processing facility in Germany. Recycling 10,000 tons annually, the company aims to triple its capacity. Notably, the U.S. Department of Energy has extended a generous $375 million loan for its North American operations, underscoring the growth potential in the EV sector.

In a strategic move, Li-Cycle Germany GmbH has secured €6.4 million in funding from Saxony-Anhalt to expand its European footprint. This investment will enhance its battery-spoke recycling facility and drive sustainability initiatives, capitalizing on the growing demand for eco-friendly solutions.

Pioneering Surge Battery Metals (NILIF)

A pile of lithium from Surge Battery Metals

Source: Bjoern Wylezich/ShutterStock.com

An auspicious discovery of the highest-grade U.S. clay resource at Surge Battery Metals’ (OTCMKTS:NILIF) Nevada North lithium project has set the stage for a promising future. Initial estimates suggest the project may yield 4.7 million tons of lithium carbonate equivalent (LCE) at 2,839 ppm lithium, based on data from analogous deposits.

CEO Greg Reimer underscores the significance of the Nevada North lithium project, highlighting its substantial lithium deposits and high-grade clay resources. The site, located 73 km northeast of Wells, boasts 725 mineral claims with inferred lithium carbonate resources exceeding 4 million tons at 3,167 ppm. With a mineralized zone spanning a vast area, a comprehensive drill program in 2024 aims to expand the resource through additional exploration and sampling initiatives.

Surge Battery Metals Inc. has been recognized as one of the Top 50 mining companies on the TSX Venture Exchange for 2024, a nod to its accomplishments in advancing the Northern Nevada Lithium Project.

The Deep Dive into TMC the Metals Company (TMC)

The vast ocean on which TMC the Metals Company explores for minerals

Source: Manu Galdamez/ShutterStock.com

Weathering recent challenges, The Metals Company (NASDAQ:TMC) has staked its claim as a pioneering deep-sea mining entity. Specializing in polymetallic nodules extracted from the Central Coast Zone (CCZ), the company is navigating towards profitability amidst market scrutiny.

Positioned as a favored penny stock, TMC focuses on critical minerals for electric vehicles and clean energy, leveraging deep-sea exploration to emerge as a significant industry player. Analysts anticipate a breakeven point looming around 2025, with projections of up to $1 billion in revenue by 2027.

A Note on Penny Stocks and Low-Volume Stocks: While InvestorPlace typically refrains from discussing companies with a market cap under $100 million or trading less than 100,000 shares daily due to the associated risks, exceptions are occasionally made when relevant disclosures are provided to ensure transparency and investor awareness.

For further insights: Learn how to navigate the world of penny stocks and maximize gains while avoiding scams.

As of the publication date, Chris MacDonald did not hold any positions (directly or indirectly) in the stocks mentioned in this article. The viewpoints expressed herein belong to the author, adhering to the InvestorPlace.com Publishing Guidelines.

Driven by a passion for investing, Chris MacDonald pursued an MBA in Finance and carved a path through various roles in corporate finance and venture capital over the past 15 years. His background as a financial analyst, coupled with his keen eye for undervalued growth opportunities, shapes his conservative, long-term investment philosophy.

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