3 Penny Stocks to Watch as Crypto Fuels Momentum
As penny stocks and cryptocurrency both see solid momentum, which companies are investors watching right now? Well, before we go into it, it’s worth identifying the differences and similarities between the two.
For starters, the majority of cryptocurrencies are relatively cheap. While there are standouts like Bitcoin and Ethereum, most crypto’s like the popular DogeCoin, are well under $5. Given that all penny stocks are by nature under $5, we see a stark comparison between the two.
While penny stocks and cryptocurrencies do not usually trade in tandem with one another, often, one can inspire momentum with the other. This is especially true considering trading platforms like Robinhood. Robinhood has become extremely popular for both stock and crypto investors. This is because no other app allows you to buy both with as much ease as Robinhood does. And while it may not allow access to over-the-counter markets, there are plenty of penny stocks to buy on Robinhood.
Another reason that the two can be compared easily is that both offer the potential to see large intraday gains. This is not to say that blue chips do not allow for this, but rather, it’s much more likely to see a $0.10 stock go to $0.20 than it is to see a $100 stock go to $200 in a single day. Considering all of this, let’s take a look at three penny stocks to watch as the cryptocurrency craze continues to fuel momentum.
3 Penny Stocks to Watch With Cryptocurrency in Focus
- Obalon Therapeutics Inc. (NASDAQ: OBLN)
- SeaChange International Inc. (NASDAQ: SEAC)
- Moxian Inc. (NASDAQ: MOXC)
1. Obalon Therapeutics Inc. (NASDAQ: OBLN)
One of the penny stocks showing high volume on April 19th is Obalon Therapeutics. Up around 7% on the day, Obalon is a medical tech company working in the weight loss industry. Its flagship product is a swallowable, gas-filled intragastric balloon system.
This system is the first and only FDA-approved product of its kind and works by shrinking the available area in the stomach. This serves to decrease hunger and encourage weight loss. While OBLN has not announced any major news in the past few weeks, a big development that came out a few months ago could be sparking the recent rally.
On November 10th, Obalon announced a definitive merger agreement with ReShape Lifesciences Inc. (OTC:RSLS) While there is no concrete timeline for when this deal will be completed, the two will reportedly trade under the ReShape name with the new ticker symbol RSLS. So while we wait for this merger to finish up, let’s take a closer look at Obalon. In its fourth-quarter results released a few weeks ago, the company announced $0.1 million in revenue. For the full year, it brought in roughly $1.3 million in total revenue.
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There are two factors that investors should consider here. On one hand, the intragastric balloon system has not yet been commercialized. This means that Obalon is still in the early stages of seeing revenue from this device.
On the other hand, it had to halt operations during the fourth quarter as a result of the Covid pandemic. This is another reason why revenue was so low during that period. So to understand Obalon, investors should consider the above factors before making a decision. Whether or not it is a penny stock to watch is up to you.
2. SeaChange International Inc. (NASDAQ: SEAC)
While you may not have heard of SEAC stock, it has become a big name in the online entertainment market. SeaChange International is a provider of cloud and on-premises platform services including TV, on-demand video, and end-to-end solutions. These products are used by millions of users regularly.
It also allows content owners to provide cost-effective direct-to-consumer video streaming services for management and monetization purposes. Its offerings are available across Smart-TVs, mobile devices, and Set-Top Boxes. These provide it with a very broad consumer base to work from.
Only a few weeks ago, SeaChange announced a multi-year, multi-million contract with one of the largest broadband service providers in the U.S. While the provider in question remains unnamed, the company states that it will be providing a platform to help convert the companies existing hardware to a virtual platform. In regard to this, a company executive offered a statement.
“Longstanding customers like this major broadband service provider continue to expand the use of SeaChange’s technology and are increasingly benefitting from our ad technology that facilities cross-platform and dynamic advertising solutions for cable and IP video delivery. This major win, which combines license and service components, marks one of the highest average values of any North American contract in more than two years.”
Christoph Klimmer, SVP of Global Sales and Marketing at SeaChange
He goes on to state that this deal will further solidify both SeaChange’s go-to-market strategy as well as its role in the video services industry. While this is only one exciting announcement, it could help to inspire confidence in SeaChange’s business model. Considering this, is SEAC a penny stock to watch?
3. Moxian Inc. (NASDAQ: MOXC)
Based in China, Moxian is an O2O (online-to-offline) integrated platform operator, providing social media services and internet media marketing products. Its platform allows for customers to interact with merchants such as small and medium-sized businesses. While no big news has come out of Moxian in the past month or so, we can look at previous announcements to see where MOXC stock is at right now.
In corporate filings announced earlier in the month, we see that on March 11th, the Director of the company, William Yap Guan bought 18,600 shares at an average price of $1.25 per share. This can usually be viewed as a positive, as any time an insider buys shares, it shows institutional confidence to investors. While this should also be taken with a grain of salt, it is an encouraging sign for MOXC’s business.
One thing to consider is that many investors tend to view MOXC as a reopening penny stock. Before we go into why it’s worth discussing what a reopening penny stock is. This term is used to define any company that is benefitting from states and countries reopening as the pandemic lessens in severity. For example, many entertainment stocks have pushed upward in value as governments have eased Covid-related restrictions. So why exactly is Moxian a part of this category?
Well, its platform allows for commerce to be done between consumers and physical businesses. Additionally, because many retail businesses are struggling in the current Covid-economy, several companies are looking to advertise as a way to secure financial stability. Moxian offers digital advertising services, which could be a benefit to companies looking to find more customers right now. Considering all of this, is MOXC worth watching?