Education Technology or EdTech Penny Stocks Are Taking Off In July
Penny stocks are well-known for the companies they represent being “forward-facing” or “cutting edge”. You might also think of them as “start-ups”. But whatever the case, the fact remains that many companies that trade shares as penny stocks certainly focus on innovation. With the jump in coronavirus cases across the globe, the economic landscape is very different right now.
It involves a much greater focus on technology than on traditional brick and mortar. Case in point, it will be hard to figure out what will happen to phsycial retailers once the dust settles. This is in light of a surge in online sales from giants like Amazon and heavier usage of applications like Teladoc. In lieu of going to a phsycial location, applications and technology are making it easier to get what we need without leaving our homes. Obviously, in 2020, this has stemmed from stay at home orders, lock-downs and the like due to COVID-19. Needless to say, it has created somewhat of a pivot for the world.
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In fact, with places like California pondering the going back to school conversation, EdTech could be the next niche to look at. It also appears that in July, traders have been attracted to some of these names. Whether or not it’s just the flavor of the month or if there’s legs for a longer-term run are yet to be seen. The case can be made, however, that the market is taking notice of some distance and e-learning penny stocks right now.
Something to keep in mind, however, is like we’ve seen with other sectors, a bit of “reopening optimism” can make the market forget all about “stay at home tech” and refocus on traditional niches. So if this is a sector you’re interested in right now, keep in mind that things are more speculative at this stage. That could reflect in things like higher volatility and, as a result, higher risk.
EdTech Penny Stocks To Buy [or avoid]: Boxlight Corporation
Boxlight Corporation (BOXL Stock Report) has been on our list of penny stocks to watch for the last few days. The company provides technology solutions for the global education market. Last month Boxlight announced the release of MimioConnect. This is its cloud-based teaching and leColor Star Technology Co., Ltd. (HHT Stock Report). It too saw shares climb this week. The company offers online and offline education services. Last week, Color Star announced a Framework Agreement with Moremoon Cartoon Cultural Diffusion (Shenzhen) Co., Ltd. Among several initiatives, the company looks to offer multiple varieties of products on its “Color World” Platform.arning platform that helps teachers streamline lesson delivery in remote and blended classrooms.
While there hasn’t been much news from the company in July, Boxlight did bring on some new talent. The company announced the appointment of R. Wayne Jackson and Charles Amos as independent members of its board of directors. In particular, Amos served as the CEO of GuideK12, a K-12 education focused data analytics company. GuideK12 was acquired by Forecast 5 where Mr. Amos now serves as Senior Managing Director.
Schools in California’s two largest districts including Los Angeles Unified and San Diego Unified won’t reopen for in-person learning when the school year begins next month. This has triggered more interest in education technology companies. Does BOXL stock have more left after the last few days or will traders learn a valuable lesson in trading breakouts?
Penny Stocks To Buy [or avoid]: Color Star Technology
Color Star Technology Co., Ltd. (HHT Stock Report) saw shares climb this week as well. The company offers online and offline education services. Last week, Color Star announced a Framework Agreement with Moremoon Cartoon Cultural Diffusion (Shenzhen) Co., Ltd. Among several initiatives, the company looks to offer multiple varieties of products on its “Color World” Platform.
“We plan for Color World to become a diversified platform. Once our plan is successfully implemented, subscribers on our platform will not only learn face-to-face with their favorite Star Teachers, but will also have easy access to purchase peripheral products of their idols. At the same time, the platform will also allow subscribers to send gifts to their idols. We strive for Color World to become not just an education platform, but also a joyful learning experience and interactive education social platform with our Star Teachers,” the company said in its July 9th PR.
Over the last 5 sessions, HHT stock has been on the move. Last Wednesday the penny stock was trading around $0.80. As of July 14th, HHT crossed above $1.40 for the first time since June 11th. This is also a level right around its 200-Day moving average. Why is that important to know? Major moving averages like the 50- and 200-Day Moving Averages historically act as support and resistance levels. In light of recent above average trading volume, does HHT stock have enough momentum to break through this upper level? If it does, it will be the first time HHT traded above the 200 Day moving average since last fall.
Penny Stocks To Buy [or avoid]: Yatra Online Inc.
Yatra Online Inc. (YTRA Stock Report) is another EdTech penny stock with higher volume this week. It may not get identified as that if you looked at the company before July 14th. Yatra Online, Inc is better knowns as the parent company of Yatra Online Pvt. Ltd. That is India’s leading Corporate Travel services provider with over 850 corporate customers and 20,000+ SMEs across industries.
However, recent news could put YTRA stock on the list of education technology penny stocks to watch. Obviously, given the state of global travel due to COVID, Yatra may have found a way to diversify a bit. The company announced an alliance with upGrad Enterprise, the B2B arm of upGrad. This is India’s largest online higher education company.
Dhruv Shringi , Co-founder and Chief Executive Officer, Yatra.com said, “In a tough economic climate, it is important to develop and reskill the workforce to overcome the challenges being presented. We are excited to join forces with upGrad to provide a platform to our clients who are looking to develop employees’ potential specific to their businesses or a sector. This unique partnership further paves our way to become an end to end business solution provider to our clients.”
Penny Stocks To Buy [or avoid]: Exela Technologies
If you’ve read some of our previous articles, you may be looking at Exela Technologies (XELA Stock Report) and wondering how it made this list. Well, to be honest, it isn’t just education technology penny stocks in distance learning settings getting attention.
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The fact remains that other states are still planning to open doors to schools in the fall. August is typically the start of the school year for many cities across the U.S. With that in mind, it’s also not a bad idea to have “EdTech” in mind from a different angle.
When we first came across the company, XELA stock traded around $0.30. Attention started to pique after the company tweeted about its previously announced deal with Co-operative Bank. The two companies are working together to expand their existing partnership to deploy Exela’s Confirmation of Payee platform.
The company has also been pushing attention to its contactless solutions. Specifically, its “Intelligent Lockers” are described as a “superior experience for students and faculty through their convenience and simplicity,” including a USB port for charging devices and email/SMS notifications to confirm receipt. In a tweet from earlier in the month, Exela said, “As college campuses look to reopen in the fall, Intelligent Lockers provide a safe, contactless way for students to pick up packages.”