We’re at the start of a fresh week and a whole new round of opportunities in the stock market. In this article, we’re going to go answer the question, “What are penny stocks?” We’ll also discuss a few of the trending names in tech that could be on traders’ watch lists at the top of the week this week. One thing to keep in mind is that if you are looking for names to add to your list when it comes to cheap stocks, volatility will always play a role.
So, first what are penny stocks? Penny stocks are shares of companies that trade for less than $5. These can be stocks on any exchange including NYSE, Nasdaq, and the OTC, or “Over The Counter”. While some traders may have their own definition of penny stocks, the Securities & Exchange Commission has deemed this to be the most accurate.
If you’re new to trading these stocks under $5, you may be wondering how to find them and put a proper watch list together. Some traders will look for technical trends. Others will search for things like news or filings to act as a catalyst. Additionally, some traders will look for sector trends. We’ve seen this happen countless times over the last 12 months. Whether it was names involved with fighting against the pandemic, electric vehicle stocks to watch, or even the latest trends in technology, as they say, “a rising tide lifts all ships”.New Trends For Penny Stocks This Week?
While this may not be a “new trend” necessarily, we are seeing a bit of resurgence coming from tech stocks. If you take a look at one of the benchmark ETFs, the Technology Select Sector ETF (XLK ETF), you’ll see that the last few sessions brought the ETF’s price was inching back toward all-time highs. The XLK hit $131.40 just before the end of the year then pulled back through mid-week last week. Thursday and Friday saw the penny stock bounce back, hitting highs of $131.20 after hours on Friday.
In light of this move, there were also plenty of smaller names that either moved in sympathy with the broader trend or rallied from their own company catalysts. Whether or not the broader trend continues, there are several penny stocks to watch this week that finished strong on Friday.Tech Penny Stocks To Watch:
- eMagin Corp. (EMAN Stock Report)
- Borqs Technologies Inc. (BRQS Stock Report)
- Vislink Technologies Inc. (VISL Stock Report)
- ZW Data Action Technologies (CNET Stock Report)
Shares of eMagin Corp. have been on the radar recently. In particular, last week, volume and price began building momentum in a bigger way compared to the tail end of December. Furthermore, EMAN stock saw a strong move on Friday, which took it to levels not seen since October of 2017. What has been a driving force for this tech penny stock? In my opinion, a lot of the focus for traders has been on eMagin’s expansion plans. Last month the company grew its New York facility to support expansion in its business.
“We are securing more space in our Hopewell Junction facility in advance of the arrival of the new equipment under our $5.5 million IBAS grant and $33.6 million award from the Department of Defense for enhanced U.S. domestic capability for high resolution, high brightness OLED microdisplays.”
Furthermore, the buildout of the space is expected to begin this quarter. Heading into the week, something to keep in mind is CEO Andrew Sculley and acting CFO Mark Koch present at the Needham Growth Conference on Thursday. With momentum building last week and the upcoming presentations this week, will EMAN be on your list of penny stocks to watch?Borqs Technologies Inc.
You might remember Borqs Technologies Inc. from the end of November. At the time, the company reported that it signed with the Board Committee of Huzhou South Taihu New Area for a project. The intention was to set up a joint venture in the area that will serve as Borqs’ China headquarters for 5G projects.
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As I’m sure you know, 5G stocks are definitely a hot topic among traders over the last 12 months. We’ve seen plenty of names rally from penny levels to over $5. The volatility among these names, however, has been at a heightened level. While BRQS stock has been in a sideways trend for months, at the end of the week BRQS stock saw a surge in activity. In fact, BRQS traded its highest single-day share volume since August. Furthermore, the 5G penny stock experienced a jump of 29% during the trading session. However, traders will also notice that Friday’s momentum continued well into the after-hours session.
While this momentum was credited to a broader tech sector move, there are a few things to keep in mind with Borqs in particular. First, the company managed to ink the official agreement for cooperation with the Huzhou South Taihu New Area. What’s more, is that Vislink entered into an agreement with LMFA Financing. They are a subsidiary of LM Funding America (LMFA Stock Report). The deal is for LMFA to purchase up to $18 million of company debt. Via this transaction, the company said it could eliminate the majority of debt that’s owed to a senior lender. Considering the surge that came on Friday, it will be interesting to see if that continues on Monday morning.
Vislink Technologies Inc. comes in as another technology penny stock, but one that works differently than the two mentioned above. The company develops and manufactures microwave communications equipment as well as other wireless communications solutions products.
The company sells these around the world in North/South America, Europe and Asia. Vislink also has a heavy focus on the live broadcasting market. This includes the production of equipment that allows stations to broadcast their content. Additionally, Vislink is in production of equipment that is used in government agencies and regional law enforcement. One of the aspects of Vislink that excites investors is the stable demand for these products.
Last week was a big week for VISL stock in that it managed to rally from around $1.30 to highs of $1.99. There were a few days of consolidation heading into the weekend. However, technical traders will notice that this was on a lower volume pullback. VISL stock managed to bounce off of its 50 Day Moving Average and has come within striking distance of its 200 Day Moving Average. This action came after the company announced the launch of its IP Link 3.0. This is a new ATSC 3.0 advanced Studio-Transmitter Link system that can enable broadcasting service platforms to access new avenues for monetization, according to Vislink’s PR.
Considering the technical trend and early 2021 momentum, will VISL stock manage to break above its 200 day level or is the recent consolidation going to continue into the week ahead?ZW Dara Action Technologies
ZW Data Action Technologies is one of the bitcoin and blockchain penny stocks we’ve discussed recently. In fact, earlier in the week we mentioned it among several related names. The company itself focuses on online advertising, precision marketing, and data analytics. But, last month, ZW completed its Blockchain Integrated Framework for Retail Business, or BIF.
This brought it to the attention of traders looking for bitcoin stocks to buy. While the company doesn’t deal with the cryptocurrency itself, it does, have involvement with blockchain technology now. Even after some early education on the industry in 2018, many still associate the two together as the same industry. Needless to say, ZW has shined strong as many crypto-industry-related stocks have jumped this month.
“We anticipate BIF will be officially launched in 2021 and we expect to present a credible, traceable, and highly secured blockchain application infrastructure platform to our retailer users,” said Handong Cheng, Chairman and Chief Executive Officer of ZW Data.
What’s more is that this week, the company also reached a strategic partnership with Yujun Capital and its subsidiary Yujun Digital Technology Co., Ltd. Yujun Digital will provide online branding and management service to ZW’s merchant clients. With Friday’s wild action and continued interest in crypto and blockchain stocks, will CNET be on the watch list Monday?