Is Tech Part Of Your Penny Stock Strategy Right Now?
In recent times, tech penny stocks have turned out to be quite volatile. But many of these have been able to reach new heights in the stock market in 2021. The pandemic caused a huge sell-off at first. But this industry and stocks in it ended up becoming some of the best performers over the last year.
This included larger companies like Apple (NASDAQ: AAPL) and Zoom Video Communications (NASDAQ: ZM). But it also included countless small-cap tech penny stocks. There are so many types of tech penny stocks that are trending in the market at the moment. Often these companies are related to digital entertainment, communications, semiconductors, electronics, and many more.
Kicking off the week, tech has taken on a bright spotlight. The benchmark Nasdaq ETF (NASDAQ: QQQ) is heavily weighted in tech. It ripped higher to start the first full week of April. This helped lift numerous stocks with exposure to tech. With this in mind, it might not hurt to have a look at some of these smaller names right now.
Tech Penny Stocks To Watch
- SeaChange International Inc. (NASDAQ: SEAC)
- Liquid Media Group Ltd. (NASDAQ: YVR)
- Atari SA (OTC: PONGF)
- Allied Esports Entertainment Inc. (NASDAQ: AESE)
SeaChange International Inc.
This software company has seen rapid value increases recently and a lot of volatility to go along with it. Of course, we are talking about SeaChange International. It provides video products, advertising, software, and more to its clients. One of its products is SeaChange Adrenalin which is a multiscreen video back-office platform.
So what’s up with this huge price spike that SEAC stock just experienced in the market? Shares were trading around $1 a few days ago, but on March 29th, the company came out with a big update. SeaChange announced that it had secured a multi-year, multi-million dollar contract with one of the largest broadband service providers.
The SVP of Marketing Christoph Klimmer said, “Longstanding customers like this major broadband service provider continue to expand use of SeaChange’s technology and are increasingly benefitting from our ad technology that facilitates cross-platform and dynamic advertising solutions for cable and IP video delivery.”
Furthermore, on April 1st, SeaChange closed a $19.1 million underwritten public offering of common stock. This offering was at $1.85 per share for 10,323,484 shares of common stock. Though the initial news of potential dilution (based on the lower share price in the offering) triggered some selling, SEAC stock has remained much higher than where it was a little over a week ago.
Liquid Media Group Ltd.
There has been a huge growing trend when it comes to certain tech penny stocks. This trend is related to cryptocurrency and tokenization. NFTs are the newest form of this technology adoption that is taking the world by storm. It seems like you can’t read a tech article at the moment without the mention of non-fungible tokens or NFTs. But what does this all have to do with Liquid Media Group, a media, and entertainment company?
On March 31st, Liquid announced that it has partnered up with CurrencyWorks. The plan is to create a multi-token IP platform. The company claims that tokenization will “transform the entire media industry” and offer new benefits for content creators.
“With (tokenization), creative professionals can drive new revenue streams based on digital NFT exclusives and collectibles, increase audience engagement, gamify their intellectual property, guarantee recurrent licensing fees using smart contracts, offer subscription access via utility tokens, raise project financing through security tokens and more, all through a single platform.”
Ron Thomson, CEO of Liquid Media
This has quickly turned YVR stock into an NFT penny stock. Though speculation played a role in its initial run to highs of $7.50, after consolidating, this news has served as more of a fundamental catalyst that traders have cited.
After the announcement was made, YVR stock went from $3.44 a share to $5.15 a share at its recent peak last week. Now, this NFT penny stock has pulled back to $3.80 a share, still holding onto much of its gains over the last several weeks. The biggest question now is with this latest market hype, will Liquid Media maintain a captive role among the other Reddit-favored penny stocks with exposure to NFTs?
If you’re a true gamer, then you have certainly heard of this tech penny stock. Atari is considered one of the founding fathers of video games. It created games such as Pong and Asteroids and is a household name for most people who grew up in the 80s and 90s. Atari has had its eyes set on the launch and rapid adoption of the Atari VCS console. This is not why this penny stock is grabbing attention right now, however.
Atari sees a lot of potential in tokenization. Its new console will implement payment by Atari Token. This is also not the reason for its recent market performance, though. The corporation just partnered with Bondly to create NFTs.
The plans are to release Atari Metaverse NFTs for gaming, music, entertainment, and more. In early March, the company also partnered with RTFKT to make fashion-themed Atari NFTs. In the last month, PONGF stock price has increased by more than 145% because of its further implementation of tokenization and NFTs.
Allied Esports Entertainment Inc.
This final tech penny stock is related to another huge market, Esports. Gaming has become much bigger over the last few years. Esports players are being signed for millions of dollars, and teams are worth multi-millions as well. Allied owns various esports properties, including a flagship gaming arena in the Luxor Hotel in Las Vegas, Nevada.
The company’s latest update came from March 31st when it released its fourth-quarter and full-year 2020 financial results. Its total revenue decreased 52% in the fourth quarter of the 2020 year over year. Its total costs and expenses also went up 135%. So it seems like Allied has not had it easy throughout this pandemic environment. But things could be turning around for this tech penny stock.
The CEO of Allied, Frank Ng, said, “As we look ahead in 2021, our expectation is that global distribution of COVID-19 vaccines will bring the return of a normalized world—and with it—the recovery of in-person events. We are optimistic that we will soon be operating in an environment where the Company’s foundational strides made on the Multiplatform Content pillar of our business in 2020 will come together alongside the resurgence of live events and the return of maximum capacity at our various Esports venues.”
Let’s also not forget the pending deal with Element Partners. This has been a back and forth between Element and Bally’s Corp. of all companies to buy the company’s assets. In a tit-for-tat engagement, Element is prevailing right now. Allied’s Board has deemed that the $105 million on the table is the superior bid right now. This transaction is expected to close this month. It will be interesting to see how Allied responds to the uptick in tech sector volatility in light of these developments.