Why Tech Penny Stocks Are in Focus Right Now
Tech penny stocks remain some of the most popular stocks under $5. And, there are plenty of good reasons for that. For one, the need for constant innovation means that these penny stocks are always coming out with something new.
While some companies are working on only one area of the tech industry, others have a broad range of products and services. To find the right companies for your tech-focused penny stock watchlist, there are a few things to consider.
The first and simplest aspect is, what is the tech stock working on? The product or software should be useful right now and have utility in the long term. The next question to ask is how heavily is the company innovating? While some companies are focused on updating a current product, others continue to put out a range of new ones. Both of these business models can have value, but it is important to distinguish the two.
Lastly, what is its financial situation? This means looking at balance sheets to get a complete picture of a company from a financial perspective. Investors should check for outstanding debt, revenue, YoY growth, and whether or not it is engaging in any capital-raising endeavors.
This is the best way to feel completely confident in the short or long-term trajectory of a given penny stock. Because there are so many penny stocks on Robinhood and other trading platforms, investing in these securities is more accessible than ever. With all of these factors in consideration, here are three tech penny stocks that are in focus right now.
3 Tech Penny Stocks to Watch Right Now
- Ideanomics Inc. (NASDAQ: IDEX)
- IT Tech Packaging Inc. (NYSE: ITP)
- SeaChange International Inc. (NYSE: SEAC)
1. Ideanomics Inc. (NASDAQ: IDEX)
Ideanomics is a tech company that has been rising in several recent trading sessions. While there are a few reasons for this, some of this momentum comes from an announcement made a few days ago. Before we get into it, let’s take a closer look at what IDEX does. To define Ideanomics, we have to discuss the various industries that it operates in. This includes its two subcategories, Ideanomics Mobility and Ideanomics Capital.
On one hand, Ideanomics Mobility is a service provider, working on commercializing the adoption of electric vehicles by large fleet operators. This includes vehicle procurement, financing, leasing, and energy management solutions such as charging infrastructure. This is a big deal because there are millions of vehicles out there being operated by large commercial fleets. If it can even gain a small market share of this opportunity, it could be beneficial to IDEX in the long term.
On the other hand, Ideanomics Capital works on investments in disruptive fintech solutions for the financial services industry. Together, these two operations provide a large breadth of services to several global industries. Earlier in the week, Ideanomics announced that it would be divesting its subsidiary, Grapevine Village to FNL Technologies for the purpose of investing in hoo.be. While this may sound complicated, it is a common way that companies invest or acquire others without the need for a cash transaction.
[Read More] 4 Trending Penny Stocks to Watch in April 2021
Alf Poor, CEO of Ideanomics stated that “we are delighted to make this investment into FNL, with their fast-growing hoo.be platform as a strategic growth partner for Grapevine’s influencer marketing offering.” Considering this exciting announcement and the wide market opportunity it has, is IDEX a penny stock to watch?
2. IT Tech Packaging Inc. (NYSE: ITP)
Based in China, IT Tech Packaging works as a diversified producer of paper products. This includes the use of recycled paper to make everything from corrugating medium paper to offset printing paper and more.
Before we get into its role in the tech industry, it’s worth taking a look at some of its recent announcements. Earlier in the week, IT Tech announced the completion of fundamental construction on a new tissue paper production line known as PM10.
“Amid robust domestic market demand for tissue paper products and improved production efficiency, we will continue to expand our capacity as we expect to see strong growth from the tissue paper business segment that will greatly boost our overall performance.”
The CEO of the IT Tech Packaging Inc., Mr. Zhenyong Liu
While it is not a pure-play tech penny stock, it has been working on an interesting new project. On April 7th, it announced the receipt of qualification for the Biomass CHP Project. This project will allow it to supply central heating in industrial parks using biomass technology. The goal is to generate an annual electricity output of roughly 56.45 million kw/h. This power should bring in roughly $17.5 million in revenue per year.
The CEO stated that “for the Biomass CHP Project, we make use of biomass resources for power generation and heating, which greatly promotes the development and utilization of renewable resources. The goal is to help solve problems related to energy shortage, environmental protection, and workforce employment.”
While this project may take time to see through, it is without a doubt an exciting prospect for investors to consider. Whether or not this puts it on your penny stock watchlist is up to you.
3. SeaChange International Inc. (NYSE: SEAC)
We’ve written about SEAC stock several times in the past few weeks. But if you aren’t familiar, SEAC is a cloud and on-premises entertainment services, provider. It works with both live TV and video-on-demand (VOD), which goes out to millions of users regularly.
Its end-to-end solutions enable cost-effective launches for direct-to-consumer streaming. Within its platform are offerings such as management, curation, monetization, and other on-demand needs for its content providers.
Its reach covers everything from smart-TVs to mobile devices and even set-top boxes. Only a few weeks ago, the company announced the closing of a $19.1 million underwritten public offering of common stock.
Executive Chairman Robert Pons stated “the proceeds from the offering will allow is to accelerate several key initiatives within our strategic roadmap, which is designed to drive scale, capture market share, and create even greater value for both our customers and shareholders.”
Pons goes on to state that “With more than $20 million of cash on our balance sheet, we now have the resources to better capitalize on the significant growth and demand for over-the-top streaming services globally.” Considering its advantageous cash position and market opportunities, is SEAC stock worth watching?