3 Penny Stocks That are Making a Comeback Right Now
As Reddit penny stocks continue to fly high, investors are constantly searching for the best ones to buy. Considering that there are so many Reddit penny stocks to watch right now, how can we divide the good from the bad? Well, there are a few things to keep in mind.
The most important aspect for all penny stock investors to consider is how speculative stocks under $5 are. This means that anytime a press release is announced, or a new product or balance sheet comes out, a stock could go either up or down very quickly. With Reddit penny stocks, this speculation can be much higher than usual.
For those who are not familiar, Reddit is the popular social media site that resulted in the Gamestop Corp. (NYSE: GME) rise only a few months ago. Finding penny stocks on Reddit can be a great strategy, but investors need to make sure to do their own research.
While speculation accounts for a large portion of the volatility we see with penny stocks, it is not the whole story. The next aspect to consider is the fundamentals. While some investors don’t believe that fundamentals have a large effect, there’s no doubt that they do. Although it may not have as large of an influence on volatility as speculation does, it is extremely important to consider.
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To use this to your advantage, investors should understand where a company is financially. This includes looking at balance sheets to dissect everything from revenue to EBITDA and profitability. So if we consider both speculative and fundamental factors, we can begin to find penny stocks that may have present or future value. With this in mind, let’s take a look at three penny stocks on the rise today.
3 Penny Stocks on the Rise Right Now
- Obalon Therapeutics Inc. (NASDAQ: OBLN)
- Foresight Autonomous Holdings ADR (NASDAQ: FRSX)
- Vinco Ventures Inc. (NASDAQ: BBIG)
1. Obalon Therapeutics Inc. (NASDAQ: OBLN)
OBLN is a penny stock that we’ve covered quite a few times in the past month or so. For those who are not familiar, it is a biotech penny stock working on developing and commercializing weight loss technologies. This includes its gas-filled intragastric balloon system which can effectively treat obesity in patients. It is considered the first and only FDA-approved swallowable, gas-filled balloon system of its kind.
Back in January, Obalon made headlines after announcing a merger with ReShape Lifesciences Inc. This merger could be a major benefit to the two, as it could serve to help commercialize this novel technology. In the coming months, the pair will transition to being traded under the ticker RSLS.
In March Obalon announced its fourth quarter and full-year 2020 financial results. For the fourth quarter, revenue came in at around $0.1 million with a net loss of $0.17 million. Additionally, it reported cash and cash equivalents on hand of $3.9 million. Although this revenue is low, it is indicative of a pre-commercialization stage product.
While the Obalon Balloon System is incredibly promising, it has yet to see widespread adoption by the public. Because of this, Obalon has to work on offering this product to a wide range of consumers. So, it seems as though a play for OBLN stock could be a play for the future of this technology.
And while its revenue or lack thereof is concerning, investors should also consider the merger mentioned above, and its potential effect on OBLN’s business moving forward. With this in mind, are you going to add OBLN to your penny stock watchlist?
2. Foresight Autonomous Holdings ADR (NASDAQ: FRSX)
FRSX is a tech penny stock that we’ve talked about plenty of times this year. It is currently developing various smart multi-spectral vision softwares that can be used across a wide range of applications. It has two subsidiaries known as Foresight Automotive Ltd. and Eye-Net Mobile Ltd. These subsidiaries allow it to engage in the production of line-of-sight vision systems and beyond-line-of-sight accident prevention tools.
Some of the applications of its technologies include automatic calibration, sensor fusion, dense 3D point cloud products, and more. These are then used in everything from automotive markets to defense and autonomous vehicles. Because its technologies are relatively broad, they can be used to potentially capitalize on a large market opportunity.
During pre-market on April 21st, Foresight announced that its subsidiary, Eye-Net, has partnered with WebSIA Solucoes Disruptivas, a Brazilian distributor and developer of cutting-edge technologies. In the distribution agreement, the pair will work to sell the Eye-Net cellular-based accident prevention solution in Sao Paulo.
“We are excited to expand our activities to Latin America and specifically in Sao Paulo, Brazil’s most densely populated and technologically advanced region. Sao Paulo’s state government recently announced a new program aimed at accelerating smart city infrastructure and transportation to its municipalities.
Integrating our solution into different smart city projects in this city of 12 million people may help us to achieve a critical mass of Eye-Net Protect users in a defined area and increase the chances of preventing accidents and saving lives.”
Dror Elbaz, COO and Deputy CEO of Eye-Net Mobile
This is both an exciting opportunity, and something that could provide a long-term market for Foresight and its technologies. Considering this exciting update, is FRSX worth watching?
3. Vinco Ventures Inc. (NASDAQ: BBIG)
Vinco Ventures is another company working across several unique markets. It focuses on mergers and acquisitions based in the digital commerce and consumer brand space. Its main strategy is known as B.I.G. or buy, innovate, grow. This strategy allows it to utilize its acquisitions for targeted searches, high-traffic content campaigns, and other growth strategies.
Big news dropped on Wednesday, April 21st, that turns BBIG into an NFT penny stock. For some context, NFTs or non-fungible tokens are a blockchain based method for adding ownership to digital files. This technology has become extremely popular in the past few months, as many major companies have entered the NFT market.
So how exactly is Vinco Ventures going to do so? Well, the company announced that it has launched a subsidiary known as EVNT Platform LLC., which has acquired assets from the company Emmersive Entertainment Inc. The company will work with this proprietary platform and the large celebrity-backing that Emmersive Entertainment has, to create a new E-NFT experience. These NFT’s will be brought to market as soon as this summer and will provide original artwork from top-charting musicians and All-star athletes, that can be used in unique augmented and virtual reality applications.
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Also, the tokens can be used to access digital events and experiences. Brian McFadden, the Chief Strategy Officer at Vinco, stated that “The NFT and specifically E-NFT space is truly cutting edge. After meeting the Emmersive team and viewing their technology live, it was clear that they’re pushing the limits in this space. Combine their technology with deep celebrity contacts, and we are poised to change digital entertainment forever.” Considering this announcement and its new role as an NFT penny stock, is BBIG worth watching?