It’s been a rough market out there the last week or two……

We’ve seen new Covid strains, some big earnings misses, and some risk-off sentiment. However, one of the best times to buy is when there is blood in the streets. 

I’ve found a couple of low-priced stocks that have pulled back some that I love at these levels. They are in hot sectors and look poised for a rally from here. The 3 stocks are Sphere 3D Corp (ANY), SPI Energy (SPI), and Quantum Computing INC (QUBT). 

Here’s why I love these 3 stocks:

ANY

Sphere 3D Corp (ANY) provides data management and desktop and application virtualization solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It enables organizations to deploy a combination of public, private, or hybrid cloud strategies through containerized applications, virtual desktops, virtual storage, and physical hyper-converged platforms.

The company really got on the radar when they announced they would be merging with Gryphon Digital Mining back in June. Gryphon Digital Mining is a Bitcoin mining operation with zero carbon footprint. Their long-term strategy is to be the first vertically integrated crypto miner with a wholly-owned, 100 percent renewable energy supply. 

This merger announcement led to a move from the $ 2’s to over $10 in under 4 months.

Technicals

Since then, it has pulled back to the $5 area and is forming a base. I really like the stock at these levels. There are many concerns about wasteful bitcoin mining, and the fact that they are a green operation separates ANY from the crowd. I still need to see more confirmation before I get in this trade. I would like to see a $5 hold and then would look to get in on a pullback and possibly start selling some puts.

SPI

SPI Energy (SPI) provides photovoltaic solutions for business, residential, government, and utility customers and investors. It offers engineering, procurement, and construction services to independent power developers, producers, and commercial and industrial companies. They are in the Green clean energy sector and specialize in solar panels.

Furthermore, in September of last year, SPI announced the launch of EdisonFuture, Inc., a wholly-owned subsidiary of SPI Energy, to design and develop electric vehicles (“EV”) and EV charging solutions. This news saw it go from a previous close of $1.05, open at $3.54, and hit a high of $46.67 in One day! I’ll remember that move for a long time. 

Since then, they’ve raised some money and are on their way to making their electric vehicle business a reality. They unveiled their next-generation Solar-Electric pickup truck at the LA Auto Show in November 2021, and it was Cybertruck-esque! You can see for yourself here. SPI has decided to IPO its electric vehicle unit, and it will be trading under the symbol PEV sometime soon. This could be a great hold into the IPO day.

Technicals

SPI has been consolidating around the $5 level for most of the year. It recently ran above $7 and has pulled back into the $5 area.

I am actively seeking an entry at these levels and once again will consider selling some puts as well. Given its attractive valuation and being a former runner, I can see this one going $10+

QUBT

Quantum Computing INC (QUBT) focuses on providing software tools and applications for quantum computers. The company offers Qatalyst, a quantum application accelerator that enables developers to create and execute quantum-ready applications on conventional computers while being ready to run on quantum computers. It focuses on serving commercial and government entities.

QUBT recently uplisted onto the NASDAQ in July. It ran from the $ 7’s to $10+ in the first two days post listing. Since then, it has steadily sold off but has found support in the $5 area. The last time it was in the low $5’s, it ran to $8.90 in a couple of weeks.

The quantum computing sector is hot, with another stock IONQ INC (IONQ) running from below $10 to over $30 the last couple of months, currently trading in the $ 23’s.

IONQ another quantum computing company has been very strong recently

I like QUBT in the low 5’s for a possible move to $10+. I am actively stalking the stock for a long entry and will look to sell puts as well. 

Bottom Line

Three hot sectors right now are clean energy, electric cars, bitcoin mining, and quantum computing. I have identified 3 stocks at very attractive levels in these sectors. 

The 3 stocks are Sphere 3D corp (ANY), SPI Energy (SPI), and Quantum Computing INC (QUBT). My job as a trader is to get long stocks in strong sectors. Given the recent pullback in the market and these names, these are my favorite 3 stocks trading at around $5.