Penny stocks are an affordable way to invest money. But they are very far from the safe zone of the stock market. Often these businesses are small for a good reason. And the lack of resources makes it challenging for them to succeed. That’s why penny stocks are often considered some of the riskiest investments out there.

But occasionally, a diamond does appear in the rough. And as an investor, I’m always looking for the next big opportunity to boost my wealth. I have previously discussed trending penny stocks. But since then, I’ve found two more businesses that caught my eye. So should I be adding these to my portfolio in October? Let’s take a look.

The growing electric vehicle market

Transportation choices of consumers are shifting. As a result, more than 345,000 electric vehicles (EVs) were sold in 2020. Electrameccanica Vehicles Corp (NASDAQ:SOLO) is an emerging name in the EV sector. It is a Canadian designer and manufacturer of electric vehicles founded in 2015. Their flagship vehicle, SOLO, is expected to revolutionise computing, delivery and shared mobility. At least, that’s how the company describes it.

The EV stock has achieved some significant milestones within a short span of time. Over the last five years, their geographical presence has expanded to 20 locations in five different states of the US. 

Moreover, the business is accelerating forward and is laying a solid foundation for future years. More specifically, it has started building its US assembly facility and technical engineering centre in Mesa. Meanwhile, Electameccanica has also released the “Cargo” Version of their flagship EV. With multiple models available, the firm is expanding its addressable market size and paving the way within the delivery car sector at the same time.

Having said that, there are some concerning traits I’ve spotted. Currently, SOLO has a single manufacturing facility located in China. In other words, any economic or geopolitical shift in China can seriously adversely affect SOLO’s sales.

This penny stock is currently trading at $3.54 per share. Keeping in mind the future plans of SOLO and the soaring EV sector, I believe this stock can see explosive growth over the long term. Therefore, I see an excellent investment opportunity for my portfolio in this penny stock. However, I’ll be keeping a close eye on how it overcomes its existing and future threats.

The communication and digital sector

VEON (NASDAQ:VEON) provides communications and digital services to 212 million customers and has a global market share of around 10%. In line with its new strategy, VEON aims to generate incremental value from the New Services segment and increase returns from its future assets. All this is planned without disrupting the bedrock business pillar that is Connectivity.

Also, the company’s focus on its 4G solutions has led to an 11% growth in customers by the end of Q2 2021. This has been a critical driver in performance, increasing its 4G user base to 93 million.

Despite the increased consumer base, the company is ignoring the shift of the world towards 5G. As per the company officials, VEON has no plans to shift to 5G over the next three years. This may be a sensible decision as it lets other companies deal with the high learning costs of transitioning to the new technology. However, it also means the firm could be missing out on one of the biggest technological revolutions of the decade. Only time will tell whether management is being foolish or prudent.

This penny stock is currently trading at $2.14 per share. The increased focus on customers and strategic shifts taken so far are intriguing. And with an established business in place, this penny stock may be able to quietly thrive. That’s why it’s on my buy list for October.

Final Words on Penny Stocks investment

The primary risks of investing in penny stocks are high volatility and low liquidity. But on the other hand, the low price per share also means that if a business succeeds, the returns for investors are explosive. 

I always consider the risks and potential rewards before making any investment decision and spend a lot of time researching both the company and its industry. But so far, these two firms look like a potentially promising addition to my portfolio in October.

But they are not the only ones that have caught my attention this month…