Penny Stocks Are Moving Up Right Now, Are These 3 Worth Watching?
When it comes to investing in penny stocks, research is very important. In 2021, it is easy to get information with the click of a few buttons. Often those new to penny stocks will overlook research. Research is one of the best steps to take when looking for penny stocks to buy and hold.
What these investors often don’t understand, is that it’s possible to long-term invest in penny stocks, not just short-term. This is not to suggest that short-term investing is a bad idea as there are many penny stock success stories attributed to short-term investments.
Whether you are short-term or long-term investing, there is a lot to consider when conducting research. Some may just look at what an analyst is saying about a company. However, actual research can go a long way in this volatile climate. Things like reports, filings, acquisitions, and rumors can all affect your list of penny stocks.
In May we are seeing a lot of bullish momentum from penny stocks. The economy is also fluctuating greatly due to the effects of the pandemic. Loosened COVID restrictions in the United States are helping to offer interesting penny stocks to buy as momentum picks up. These companies are being called reopening stocks by traders.
When talking about penny stocks in today’s climate, you can’t avoid mentioning retail investors. Retail traders are not your typical day trader, but rather the common investor. Most retail traders buy penny stocks on Robinhood or WeBull to invest in companies in an easy and accessible way. If you are an investor of any kind, there is a lot of potential to turn a profit with penny stocks in 2021. With this in mind, let’s take a look at three penny stocks that are performing well rigt now.
Hot Penny Stocks To Watch
Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is a penny stock we have discussed a lot. Time and time again Cinedigm has proven to be show solid momentum in the face of adversity. The company often has large price increases after it makes any announcements, indicating its high volatility. Before we talk about its price changes, let’s discuss what Cinedigm does. This company works in entertainment; distributing movies, television, and short-form content.
Before the pandemic started, CIDM stock was worth under $0.40 per share. In May of 2021, Cinedigm is worth more than $1.20 per share. Digital entertainment has been a huge industry because of stay-at-home orders. This accelerated Cinedigm’s growth significantly in the last year as shown in its stock price.
So what things does the company have in its pipeline? At the end of April, the company announced record-breaking milestones across its digital content sales. Its transactional, subscription and ad-supported platforms have an estimated growth of 30% year over year. This number outperforms a lot of other entertainment penny stocks. Its transactional revenue increased notably by 39% year over year, indicative of the effects of the pandemic.
Cinedigm has also been involved in the latest technology. Non-fungible tokens or NFTs are presenting a new opportunity that CIDM is working to capitalize upon. If you don’t already know what NFTs are let’s get you up to speed. NFTs are a way to form digital ownership over a file. this could be anything from art and commercial rights to movie tickets and more. Powered by blockchain, this form of a digital asset is creating a lot of hype. Cinedigm has now become an NFT penny stock as of May 6th.
The company announced the launch of Fandor Selects. This is its NFT-based film label, which it claims is the first of its kind. It will be releasing limited edition NFTs based on the world of classic cinema. The company will launch this summer, releasing the films as a collection along with stills, GIFs, posters, interviews, and more.
It seems like every week there is another update from Cinedigm that shows its progression. Whether that be a film launch, partnership, sales report, or now NFTs. Keeping this in mind, will CIDM make your list of penny stocks to watch?
Pixelworks Inc. (NASDAQ: PXLW)
Pixelworks is a tech penny stock that creates semiconductors and software solutions. This technology includes visual processing solutions such as graphics processing units (GPU). Tech penny stocks have been all the rage recently. Pixelworks is experiencing a lot of momentum for this reason. What are some things that could be impacting PXLW stock?
On May 4th, the company reported its first-quarter financial results for 2021. Its mobile revenue increased by 91% sequentially and 58% year over year. This attributes to 44% of its total revenue. This news comes after Pixelworks announced that its i6 processor will power the new Lenovo Legion Phone Duel 2. This phone will deliver an HDR experience to make video watching and mobile gaming more enjoyable.
All of these positive strides are causing PXLW stock to increase in value. In the last 5 days, PXLW stock has gone up by more than 7.5%. Now investors are waiting to see what is next for Pixelworks. With its current reports and advancements, will PXLW be a penny stock to buy?
22nd Century Group Inc. (NYSE: XXII)
Tobacco, marijuana, and cigarette products have seen a rapid increase in sales in the last year. These tough times caused a spike in usage of these goods. 22nd Century Group is a biotech company developing plant-based solutions for science, consumer, and pharmaceutical markets. Its Moonlight brand creates low nicotine content tobacco. The company also has a partnership with Keygene N.V. to develop cannabis plants for medical, therapeutic, and agricultural use.
One key factor is causing bullish momentum with XXII stock right now. The company just reported its first-quarter financial results and business highlights for the first quarter of 2021. 22nd Century is about to launch its VLN cigarette products, which have “95% less nicotine” upon FDA approval. Its MRTP application is in the final stages of review, and it is ready to launch the product within 90 days of approval.
22nd Century Group reported revenue falling from $7.1 million last year to $6.8 million this year. This was due to lower sales volume in early 2021 but offset by increased March volume because of its SPECTRUM cigarettes sales. The company’s gross profit grew by $360,000 or 125% year over year. So the company still experienced a lot of positivity. This penny stock has nearly doubled in 2021 already. With all of this info in mind, is XXII stock worth watching?
Are Penny Stocks Worth It?
Whether you’re looking at financial results, news, or rumors there are many reasons that penny stocks are showing higher performance right now. The market for penny stocks is constantly evolving and changing every day.
This is proven by the impact that retail traders have on the sector. The advancement is also shown by cryptocurrency affecting a number of penny stocks. When making a penny stock watchlist there is a lot to consider, so which companies will end up on yours?