Will These Tech Stocks Show Momentum Next Month?
With tech penny stocks still in focus, how can investors identify which ones are worth watching? Now, this is a multi-faceted question with a few moving parts. For one, we have to consider the penny stocks placement in the tech industry overall. This includes what products is it producing, what industry does it work in, and what does its competition look like? These questions can help to identify what type of value it may have in either the short or long term. It’s worth considering what your strategy is when it comes to finding penny stocks to watch.
Are you more of a long-term trader? Or, are you holding positions in the short term/swing trading. This can help to narrow down your penny stock watchlist so that it aligns with your intended timeline. When it comes to tech, there are a few niches within the overall industry.
On one side, we have companies producing a physical product. This could be anything from computers to AI-vision systems and everything in between. On the other hand, we have more software-focused companies. Additionally, there are businesses that work in both sectors. As stated earlier, investors should also consider what the competition looks like. While in the past, finding tech penny stocks may have been relatively straightforward; we now have to consider two additional aspects.
For one, what is the impact of the pandemic on its business model. For example, some companies have shifted their business models toward pandemic-related demands. This includes video-collaboration services, online entertainment and more. Using the pandemic to guide your investing decisions can give you an edge against the competition.
The second aspect to consider is the effects of blockchain and cryptocurrency on penny stocks. With the recent attention being paid to crypto with currencies such as DogeCoin or Bitcoin, many companies have begun utilizing blockchain-based technology. This is a relatively new market with almost unlimited potential. So, in 2021, there are plenty of tech penny stocks to choose from. With this in mind, let’s take a look at four that could show momentum as we move into May.
4 Tech Penny Stocks to Watch For in May 2021
- Cinedigm Corp. (NASDAQ: CIDM)
- Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV)
- Globalstar Inc. (NYSE: GSAT)
- LM Funding America Inc. (NASDAQ: LMFA)
Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is a penny stock that we’ve been covering for many months now. The company operates as an entertainment stock, working in the digital and premium content streaming market. It provides entertainment to millions of users on a regular basis through its large distribution pipeline of channels. This includes providing services to tech and retail companies working to enter into the entertainment market. Big news dropped on April 26th, detailing a new streaming channel with Fantawild Animation.
The channel, which will have new content every month, will include the renown ‘Boonie Bears’ franchise, which is regarded ad the top animated media property in China. Yearly, this franchise alone accounts for more than $435 million in toy and merchandise sales. Additionally, the films from this company grossed nearly $500 million in its short history. To understand the size of this deal, we have to consider that Fantawild is a major player in the Chinese entertainment market. It owns 29 theme parks with 10 more currently in development.
“Fantawild’s dedication to innovation has led the studio to become one of the world’s premiere animation companies. Through this partnership, Cinedigm is thrilled to launch a streaming channel dedicated to the studio’s most popular movies and TV series.
As more consumers transition to streaming, the need for high-quality, branded family programming continues to grow. This demand has allowed us to bring the global phenomenon into homes across North America.”
Erick Opeka, the Chief Strategy Officer for Cinedigm
While Cinedigm has plenty of other projects in the works, this announcement could rival even its largest deals. While this will likely take some time before the details are fleshed out, it is undoubtedly an exciting prospect. Considering this, will you add CIDM to your penny stock watchlist?
Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV)
As we’ve continued to discuss HOFV stock in the past year, the company has continued to see bullish interest. Now, as it sits in the mid $4 range, investors are still looking at HOFV as a penny stock to watch. So why is there so much positive sentiment for Hall of Fame? Well, to understand it, let’s take a closer look at the company.
Hall of Fame is an entertainment company working in the resort and hospitality industry. It leverages its role in the football industries through its partnership with the Pro Football Hall of Fame in Canton, Ohio. Additionally, it owns the Hall of Fame Village, which is a multi-use sports and entertainment destination that centers around the theme of football.
If you read PennyStocks.com often, you’ve probably heard about HOFV’s move into blockchain and specifically NFTs. Because there is so much emphasis on NFT penny stocks right now, this move explains a lot of the bullish moves that HOFV stock has seen recently. If you aren’t familiar, a few weeks ago, Hall of Fame entered into a partnership with Dolphin Entertainment Inc. to create non-fungible tokens or NFTs aimed at selling exclusive content.
This content will be in development through HOFV and its partners. Additionally, it should help to bring in heightened revenue to its media division. The first sale of these NFTs will be connected to its Heisman 2 Hall or H2H program, created with Elite Team Holdings, which represents the 10 athletes that have won a Heisman Trophy and have been inducted into the Pro Football Hall of Fame.
CEO of HOFV, Michael Crawford, stated that focusing on this space at a time when NFTs are surging in popularity demonstrates our company’s ability to leverage direct access to exclusive content and to a robust pipeline of brand and intellectual partnerships.” With this large an innovative move, HOFV stock could continue to be worth watching.
Globalstar Inc. (NYSE: GSAT)
Globalstar Inc. is a leader in the satellite IoT solutions market. It provides these products to customers around the world that work in a broad range of industries. This includes oil and gas, transport, emergency services, government, maritime and more. Globalstar’s goal is to provide more efficient tech solutions that enable mobile assets to be monitored remotely. This includes asset tracking products such as its SmartOne device and SPOT product line for personal safety.
All of its products have the goal of utilizing IoT and cloud solutions to help innovate in age-old industries. Only a few weeks ago, Globalstar announced a partnership with Lisa Trading to bring asset management services to Brazil. This specifically includes its SmartOne Solar devices which can be operational with no maintenance for up to 10 years.
“The oil and gas sector is a very concentrated and competitive vertical in Brazil. We are excited to have the opportunity to procure this business and [are] confident the partnership with Lisa Trading will deliver an effective long-lasting solution to the contractor. This is just one of many key steps in our company’s strategy to expand our IoT business in key verticals across the region and the globe.”
Juan Porras, the General Manager of Globalstar for Latin America
On April 26th, shares of GSAT stock were up by more than 14% during midday trading. While no major news caused this spike, it’s worth noting the oil and gas sector is seeing a lot of momentum. Considering this, does GSAT deserve a place on your watchlist?
LM Funding America Inc. (NASDAQ: LMFA)
LM Funding operates through its subsidiaries to provide tech-based specialty finance products to the nonprofit community. While the majority of its operations are located in Florida, the company works in other states such as Washington, Colorado, Illinois and others. Big news dropped on April 26th, that the company would be purchasing roughly $2 million in digital assets.
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This includes cryptocurrencies such as Bitcoin or Ethereum. And while they won’t be a part of its capital allocation strategy, this purchase will account for more than 10% of its total assets. The company states that it is working on ironing out the details of the potential of digital assets as well as its transactional capabilities.
Bruce Rodgers, CEO of LMFA, stated that “we believe certain digital assets already provide an alternative to storing value in cash and cash equivalents while the blockchain technology used by other digital assets will provide the backbone for a variety of transactions in the near future. The community associations that we service are required to maintain reserve accounts that could benefit from the value preservation features of some digital assets. Additionally, we foresee increased use of blockchain technology and digital assets throughout the real estate transactional ecosystem.”
Moves into blockchain have become commonplace in the tech and non-tech sectors. And while LM Funding is in no way a pure-play blockchain penny stock, this move does put it into the crypto industry to a certain degree. Because the cryptocurrency world is still new and a relative phenomenon, it will be interesting to see how this plays out in the long term.