Tech Penny Stocks Hold A Bright Spotlight This Year
Technology penny stocks and blue-chip stocks alike are becoming a big focus for investors. Long-before the S&P bounced back to even for 2020, the NASDAQ was making new all-time highs.
The tech-dominated index is living proof that innovation is helping drive investment in the stock market today. The biggest question is can it last? The old saying is nothing goes up in a straight line forever. But will we ever see another big pullback as the market did in March? If you look at the INVESCO QQQ, there’s a very clear trend over the last 9 years:
The QQQ has climbed more than 470% since late-2010 and the last 2 years have since immense growth. Since the start of 2019, the ETF has climbed over 70% and the sheer momentum this year clearly shows tech is on fire. So it makes you think about whether or not this is the best industry to track. Obviously, we see a lot of biotechnology companies trading much higher this year as well. In either case, it isn’t something to be ignored but likely looked into a bit further.
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Then when you throw penny stocks into the mix, we’re talking about a whole new layer of speculative momentum. Taking all of this into account, let’s look at some of the trending penny stocks in tech right now. Will they hit your list in July?
Tech Penny Stocks To Watch: Fandom Sports Media Inc.
Earlier this month we started following Fandom Sports (FDMSF Stock Report) (FDM). One of the clear trends we’re seeing is the impact on the economy from stay at home orders. Quarantine has been a curse and blessing for penny stocks this year. When you talk “COVID” you can’t ignore the companies that could benefit from more people stuck inside their homes and gaming is one of the niches gaining attention.
If you look at things like the VanEck VideoGaming ETF (ESPO) the move is clearly bullish this year. Even with the market dip in March, ESPO is up more than 40% year to date. That same trend also holds true for other esports ETFS like Roundhill’s “NERD“. It has climbed from under $17 to more than $23 this year.
According to VanEck, “We believe the growth of video gaming and esports is a trend, not a fad. It reflects broader trends around the increasing consumer demand for online, interactive entertainment, the fragmentation of the digital media landscape amid the rise of cord-cutters, and the demographic shift as digital natives grow up.”
In light of this, companies like Fandom are taking full advantage of the trend. This week the company signed a LOI with Esportz Entertainment Corp. It is an online Esports news, and entertainment network. The LOI contemplates assessing synergies for potential collaboration and/or a joint venture. “Fandom has constructed a global ecosystem for Esports fans and the dynamics of Esportz content offering dovetails with our agnostic philosophy of accretive and complementary solutions for Esports organizations with critical mass,” said David Vinokurov, CEO and President of Fandom Sports. July has been one of the more active months for FDMSF in the market and with that could be one of the tech penny stocks to watch this month.
Penny Stocks To Watch: MicroVision Inc.
Another one of the penny stocks we’ve tracked closely this year is MicroVision Inc. (MVIS Stock Report). At the top of the week we had it on our list of stocks to watch after tech closed so strongly last week. Specifically, MicroVision stock clocked out at $1.50 for the normal session on July 12th. But around 5 PM EST, the penny stock saw another late surge in price. MVIS stock jumped to a high of $1.60. Things picked up on Monday where the ended on Friday and MVIS stock has been on the move since.
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We first starting covering this company back in mid-April. At the time, MVIS stock traded around $0.25. But if you’re looking at an MVIS stock chart right now, you can clearly see things have dramatically changed. Wednesday has already seen this penny stock reaching a new 2020 high of $1.95. In fact, MVIS stock hasn’t traded at these levels since late 2017.
What’s become a big driver for MVIS stock this year? Lots of speculation. MicroVision is the creator of PicoP® scanning technology. It’s a mini laser sensing and projected display solution. With M&A heating up, some had speculated that MVIS could follow a similar trend. But so far, nothing has been solidified from what we can see. Its technology can be used in products for interactive projection, consumer light detection and ranging (LiDAR), automotive LiDAR, and augmented and mixed reality.
With things like self-driving cars, sensor technology for “back to work”, and other scanning tech getting more interest, it makes sense why there could be some excitement around companies like this. What will that ultimately mean for MicroVision?
Penny Stocks To Watch: Boxlight Corporation
Boxlight Corporation (BOXL Stock Report) has been somewhat of a mainstay on the list of penny stocks to watch this week. Over the weekend we discussed the company and highlighted the fact that more cases could put a damper on going back to school. Last month Boxlight announced the release of MimioConnect. This is its cloud-based teaching and learning platform that helps teachers streamline lesson delivery in remote and blended classrooms.
This week it was revealed that certain cities in California would not send children back to school immediately this year. EdTech stocks have taken a bigger focus in the stock market as a result. This week, we’ve seen blue-chip education technology stocks like K12 Inc. (LRN Stock Report) reach new 52-week highs. Dubbing it the future of education, EdTech companies are focusing on adding more access points to their platforms. K12, for instance, brought on even more educators to start the 2020-2021 school year.
In light of this, it doesn’t surprise me that small-cap EdTech penny stocks have benefitted. For Boxlight, specifically, it’s been beefing up its board of directors as well. New board member, Charles Amos, for example, 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. Whether this is just a fad or an actual new trend is yet to be seen. However, with more cities looking for virtual options, the EdTech space could be one to keep in mind.
Penny Stocks To Watch: Barnes & Noble Education
Finally, one of the other new additions to our lists of penny stocks recently has been Barnes & Noble Education (BNED Stock Report). Right now the company offers learning tools providing 24/7 access to tutors, Q&A and over a million step-by-step guides to homework problems in 29 subjects and counting. So could it be considered one of the EdTech penny stocks to watch? I wouldn’t rule that out.
But recent attention has focused on the company’s last update. Earlier this month, the company announced it has partnered with the American Video Game League. The goal is to launch Autumn Anarchy, a first-of-its kind college esports tournament. The company said Autumn Anarchy will invite more than 500 gamers nationwide to compete in qualifying tournaments for the popular gaming title, Fortnite. The tournament winners will receive $10,000 in scholarship prize money and gain entry into “Code Red,” one of the largest influencer esports events in the industry.
As I said earlier when referencing Fandom Sports Media, Esports are gaining a lot more attention right now. Lisa Malat, President of Barnes & Noble College. “Esports provide a phenomenal opportunity for students to come together, regardless of where they may be in the Fall.”
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What’s more is that recent insider activity may have shown favorable sentiment from traders this week. A Form 4 filing on July 14th showed Levenick Zachary bought 25,000 shares at an average price of $1.85. The transaction boosted the executive’s stake in the company to 127,000 shares.