Tech Penny Stocks Continue to Show Momentum
Penny stocks look like they are heating up as Summer comes on fast. During this time of year trading, penny stocks can be exciting due to the elevated volatility but albeit lower volume (Summer slump). Between May and October, many investors frequently use smaller cap stocks as means for short-term trades. This financial strategy is done to continue seeing portfolio growth, as larger-cap stocks typically slow or consolidate during this period.
A few certain sectors this past year have been making noticeable gains. This includes industries such as ESG stocks, biotech stocks, and more. At a period during elevated innovation, it comes as no surprise that both continue to grow. This is proof that investors are interested in new and relevant technologies.
Additionally, the tech industry is constantly on the up and up as new products come out daily and the need for updates to existing ones is always palpable. When you are generating a penny stock watchlist there are a few similar factors you'll want to consider.
Trading Tech Penny Stocks Right Now
First, speculation is a large component of stock price. If analysts believe that a company will perform well in the upcoming quarters alongside announcements from a company, stocks can go up (or down). This tells us that investing is not necessarily all based on how the company is currently doing financially. Forward-looking statements and press releases can also be key to keeping up to date with a company's profile.
Next, confidence is crucial to trading penny stocks. Due to the high volatility, it's common to see ups and downs. As long as proper research is done, one should try and stick to their trading goals and strategy as much as possible. And, emotions should never come in the way of either of those. As investors, we must rely on our strategies and trade only when the numbers make sense.
Lastly, keeping up with market trends is an important cornerstone of any penny stock trader. Trends can change year to year, month to month, and even sometimes week to week. It all depends on recent news and government policy.
For instance, we are witnessing a great deal of change when it comes to environmental regulation. This will go hand and hand with new laws and policies that will target businesses to alter their methods. What this means for us is that environmental-related penny stocks might see growth in the coming year.
A popular trend this past year, and moving into this year is technology. As a sector, this market thrives off competition. Companies in this realm are always looking to produce a new product, software, or novel technology to be the best. This creates an environment for high levels of innovation and creativity.
And, tech is perfect for penny stock investors looking for large volatility in short time frames. Risk, however, should always be taken into consideration, and prior research should always be done. Given all of this, here are three innovative tech penny stocks to watch in Summer 2021
3 Tech Penny Stocks for Your Summer 2021 Watchlist
- Color Star Technology Co Ltd (NASDAQ: CSCW)
- Ideanomics Inc. (NASDAQ: IDEX)
- Sonim Technologies Inc. (NASDAQ: SONM)
Color Star Technology Co. Ltd (NASDAQ: CSCW)
Color Star Technology Co. Ltd. is a company that specializes in both the entertainment and education industry. This company encompasses much of the industry's leading technology and operates through wholly-owned subsidiaries. These include Color China Entertainment Ltd. and CACM Group NY, Inc.
Its education software provides easy to access and intuitive online ed-tech services for those who use it. During the pandemic, services like these have become extremely popular. And despite Covid hopefully coming to an end, there may be lasting popularity surrounding online education.
On June 11th, CSCW announced its strategic cooperative plan to work with Movie Planet LLC and Youa Group to develop NFT integration. This deal will work in an effort to utilize new blockchain technology, as well as develop new technologies for use in film, videos, music copyright, and concerts. The cooperation will enable a larger audience of viewers to purchase and collect Hollywood movies and TV. Both NFTs and Blockchain technologies will be developed for use in the Hollywood Film Festival and International Film Festival databases as well.
"We are very much looking forward to the new opportunities that will arise from this cooperation. We also believe this cooperation will bring many upsides to the Company and our investors."Mr. Luke Lu, the CEO of Color Star
While on its own this is not a major deal for CSCW, it does provide the backbone for validating Color Star's groundbreaking technology. In the tech sector, innovation and creativity are key. For this reason, any attempts at staying up to date with the times, are always welcomed by investors. Whether this makes CSCW stock worth keeping an eye on, however, is up to you.
Ideanomics Inc. (NASDAQ: IDEX)
Ideanomics is a penny stock that we have covered countless times over the past few months. One of the main reasons for this is how broad its customer base and business model are. While sometimes, it is beneficial to stick to one niche, other times it is more lucrative to do the opposite. For some context, Ideanomics operates globally in the convergence of financial services and other industries dealing with technological disruption.
The IDEX Mobility team is a portion of the company that facilitates the adoption of electric vehicles (EV) by larger commercial fleet operators. This is done through its purchasing, financing, and leasing services on offer to its clientele. Because EVs have increased so much in popularity this year alone, IDEX sees major potential here. On the other hand, IDEX's financial division known as Ideanomics Capital works on investing in new fintech solutions and businesses.
Today, IDEX finally announced that it has fully acquired US Hybrid, a distributor and manufacturer of electric vehicle components. This is a large milestone for the company as it fits along with its mission to reduce commercial vehicle greenhouse gas emissions by using EV technology.
Again, the popularity of EVs this year and last, can not be overstated. With President Biden pushing renewables heavily, many investors believe that the future will be green. And while IDEX is not a top player in the EV market, it is working to corner a very specific area of the electric vehicles industry.
"We are pleased today to join forces with Ideanomics and their subsidiaries and to announce this significant order from the GEP.
Ideanomics has emerged as a true powerhouse in the commercial EV sector with a synergistic ecosystem of technologies and solutions that covers the entire value chain of electrification. We look forward to leveraging that strength going forward."Dr. Gordon Abas Goodarzi, CEO of US Hybrid
This deal should help to make Ideanomics' business model more vertically integrated. With access to the technology from US Hybrid, IDEX could begin scaling up its operations. Considering this, is IDEX stock on your list of penny stocks to watch?
Sonim Technologies Inc. (NASDAQ: SONM)
The last tech penny stock on this list is Sonim Technologies Inc. As a company, it is a leader in the mobile communications solutions market. This enables operations for communication systems and novel technologies for task workers across many industries. It produces innovative devices that can save clients money in the long run through effective communication.
Specifically, it produces ruggedized phones and laptops for fieldwork. Because it is in this specific area of the industry, some see its recent gains as correlated to the rise of BB stock. While SONM is not necessarily a meme stock, it could have ties to BlackBerry Ltd. due to the industry it works in.
In recent months, SONM has been shifting internally and restructuring its board. This is occurring to better position the company for growth in the coming future. By promoting Robert Tirva to the new COO position, the rest of the board is optimistic about the changes to come under his new role.
Restructuring is always important for investors to consider. It allows a company to shift its business model, and reflect on what it can do next alongside new ideas. While we likely won't see any major changes from this, it is an exciting time for Sonim Technologies. With this in mind, is SONM stock worth watching right now?
Can Tech Penny Stocks Continue to See Heightened Momentum?
Given all of this information, what do you think about tech penny stocks? Because innovation happens so quickly with tech, there are always exciting pieces of news to consider when it comes to investing.
Moving into the summer months, creating a tech-focused watchlist is crucial if you plan to invest in penny stocks. While this is not a be-all-end-all list of tech penny stocks, it should help to get you started on the right track. With this in mind, can tech penny stocks continue to see heightened momentum?
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