Best Tech Stocks Today? 3 Tech Penny Stocks to Watch Right Now

by | Apr 12, 2021 | Outside Takes, Penny Stocks, Tech Stocks

Why Tech Stocks Continue to See Momentum in April 2021

In April, tech penny stocks are seeing a great deal of momentum. Last week, shares of several FAANG stocks hit fresh, record highs. With declining bond yields and investors focusing on growth stocks, the majority of the major tech stocks are seeing large bullish sentiment.

Before finding penny stocks to watch, investors can identify larger macroeconomic trends. One of the ways we can identify these trends is through the movement of the tech-heavy NASDAQ composite index. Year to date, the NASDAQ has pushed up by more than 9% as of April 12th. One of the more obvious reasons for this trend is the impact of the pandemic. Throughout the past year or so, both product and service tech stocks have benefited greatly from the trend of work-from-home. 

The demand for SaaS or software-as-a-service and more product heavy stocks like Micron Technology Inc. (NASDAQ: MU) and Apple Inc. (NASDAQ: AAPL), has increased by large amounts. While we are seeing a slight correction right now, this is very normal across all industries.

But, as Warren Buffett once stated, “Be fearful when others are greedy. Be greedy when others are fearful.” This is essentially the same as buying the dip and selling when prices are high. So with tech penny stocks in focus right now, which ones should you be watching? Well, for some watchlist inspiration, here are three that you might want to take a look at. 

3 Tech Penny Stocks to Watch Right Now 

Digital Ally Inc. 

While you may not have heard of Digital Ally yet, the company has made some big waves in the market recently. Before we go into what DGLY is doing right now, let’s take a look at its primary business model. Digital Ally produces and manufactures high-quality, video recording equipment as well as video analytics software. These products are in distribution across several high-volume industries. This includes law enforcement, emergency management, fleet safety, event security, and much more.

Its products offer tailored solutions to security and management needs. While these are interesting for investors to consider, the recent price action with DGLY comes from a new product line aimed at preventing the spread of Covid-19. The product line, known as Shield Health Protection Products, include Shield Cleansers, non-contact thermometer/controlled entry devices, an electrostatic sprayer for the disinfecting of large areas, and personal protective equipment or PPE. 

This is a very broad line of products. But, they are all targeted at capturing a large market share from Covid-related issues. While products like PPE may not be as in demand as Covid decreases, its other products are more geared toward long-term solutions. Even when the pandemic becomes less severe, the need for products like thermometers and disinfectants could be around for months or even years.

Outside of this, Digital Ally recently announced several large orders for its EVO-HD in-car camera system. A recent order from the Royal Barbados Police Force represents the largest international deployment of its EVO-HD system to date. Considering its large market reach and broad product lines, Digital Ally looks like an intriguing penny stock to watch. 

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Color Star Technology Co. 

In the past six months, shares of CSCW have shot up by over 130%. Again, we saw solid momentum with CSCW on April 12th. This momentum came as Color Star announced that it had regained compliance with the NASDAQ minimum bid price requirement. While this is not a major announcement, it is confidence-inspiring for both the company and investors alike.

Moving into its business model, Color Star works in the education tech or EdTech sector. It offers “lessons from the best, at your pace.” In addition, Color Star recently moved into both the bitcoin and NFC markets. As an NFT penny stock, Color Star is seeing more popularity than it typically has. This is due to the trending nature of anything relating to cryptocurrency and the general crypto market. Color Star’s move into the NFT and crypto industry aligns with the recent announcement of its Color Star App. 

The company states that it will provide “blockchain technology support” on this app in conjunction with the company Doman. Right now, this application is used to provide interactive entertainment. In addition, Color Star plans to develop an NFT to be used in the production and release of its subsidiary Color China Entertainment.

To add another layer to this, Color Star also expanded its educational platform through a strategic cooperation agreement with the School of Digital Arts and Media at the Shandong University of Art and Design. While this is a lot to digest, all of these factors could contribute to making CSCW a penny stock to watch.

MoSys Inc. 

MoSys Inc. is a semiconductor and IP solutions provider. On April 12th the company made headlines after acquiring five new patents for search and classification algorithms. This will be used with its Stellar Packet Classification IP and will allow OEMs and network operators to deliver configurable 5G, UPF, SDN, NFV, load balancing, and security to millions of households.

The system that MoSys uses will also support certain Intel Corp. (NASDAQ: INTC) and Xilinx Inc. (NASDAQ: XLNX) products. While the financial terms of this agreement were not disclosed, the acquisition of these patents could be an extremely valuable asset to MoSys overall. 

At the end of last month, MoSys held more than $11.6 million in capital. This should help to fund ongoing operations and the utilization of these new patents. Looking back at its fourth-quarter results, CEO Dan Lewis, stated that “2020 proved to be a challenging environment with the Covid-19 pandemic contributing to delayed customer programs, as well as constraints in both sales and the supply chain. Despite (this)…we continued to execute on our business plan and made significant progress on multiple fronts.” Considering these large moves, is MoSys worth watching?

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The post Best Tech Stocks Today? 3 Tech Penny Stocks to Watch Right Now appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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