Are These The Best Penny Stocks To Buy Right Now?
This year is already off to a wild start but that hasn’t put a pause on the constant search for penny stocks that could benefit. But before we make a list of penny stocks to watch, we first have to consider what is going on in the world, and specifically in the U.S. As it stands in the first full week of 2021, there are a few factors that could shape how the stock market moves in the coming months.
The first and the most obvious of those is COVID. With cases rising around the world, there are plenty of companies that are working to find revenue amidst the pandemic. This could be biotech and biopharmaceutical companies on the more obvious end, to logistics and wellness companies in another regard. So, it’s important to find companies that will have a life after COVID has (hopefully) finished wreaking havoc on the world.
The next factor to consider is Joe Biden becoming President of the U.S. This is a major deal and has a wide range of implications for several industries. This includes energy as well as cannabis and even electric vehicles. Lastly, we have to consider the fact that Congress will now be democratically led in both the Senate and the House. This means that certain pieces of legislation could pass (or not), giving some industries a large benefit and others, likely some hurdles to overcome. All of this combines to create a strategy that should be based on both fundamentals and current events.
Penny Stocks to Buy For Under $4
- SOS Ltd. (SOS Stock Report)
- SPAR Group Inc. (SGRP Stock Report)
- SuperCom Ltd. (SPCB Stock Report)
In this article, we’ll look at a few stocks that are trading under $4 right now. Just because they might be considered “cheap”, are they the best penny stocks to buy right now, or should you avoid them?
Penny Stocks to Buy [or avoid]: SOS Ltd.
SOS Ltd. is one of the largest gainers of the day, shooting up by roughly 84% by after hours on January 6th. For some context, SOS Ltd. works as a provider of data, technology, and solutions in China. The company has a large focus on IoT, blockchain, and artificial intelligence. One of the big reasons that SOS stock shot up today comes as cryptocurrency continues seeing heightened interest from investors. Over the past year or so, various cryptocurrencies such as Bitcoin, have shot up tremendously in value. This has made most companies that work in cryptocurrency, shoot up as well.
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SOS Ltd. has a very broad business model that allows it to operate in many different industries. This includes cloud services and technology solutions for everything from financial institutions to healthcare providers and more. At the end of December, SOS Ltd. announced that it would be engaging in a $4 million registered direct offering.
One thing to keep in mind is that because SOS is tied to cryptocurrency, it can be quite volatile. It also entered into an employment agreement with Dr. Eric H. Yan, an expert in cryptocurrency mining, security, and insurance technologies according to the company. SOS plans to set up a new wholly-owned subsidiary SOS Digital Technologies Inc., to be led by Dr. Yan.
Penny Stocks to Buy [or avoid]: SPAR Group Inc.
SPAR Group Inc. is another big after-hours mover on Wednesday, pulling in roughly 26% in gains by EOD. SPAR Group works as a provider of merchandising and marketing services for a wide range of businesses around the world. In short, the company operates as a back end platform to help retail businesses with efficiency. While this business has seen some troubles from COVID, it seems as though it could bounce back as the pandemic lessens in severity.
Kori Belzer, COO of SPAR Group stated that “there is a great deal of uncertainty about the pandemic’s potential impact on customer activity levels in the near term. Combined with increasing costs of labor, we are continuing a cautious approach to spending and maintaining our efforts to preserve the strength of our balance sheet and liquidity.”
In November, the company reported its Q3 2020 financial results for the period ending on September 30th. In the results, the company saw some decreases in revenue across the board. Despite the pandemics massive effects on the market, SPAR Group managed to escape with only an 11% drop in its revenue over Q3 2019. In addition, the company ended the quarter with $3.3 million in operating income.
One of the things exciting investors right now is the company’s plan to begin a share repurchase program. Wednesday afternoon, SPAR announced that it may repurchase up to 500,000 shares of its outstanding shares of common stock. The timeframe of this buyback is through December 22 of this year. So it will be interesting to see if the late-afternoon bullishness continues into Thursday’s morning session.
Penny Stocks to Buy [or avoid]: SuperCom Ltd.
SuperCom Ltd. is another tech company that is working in several unique industries. On one hand, SuperCom works as a provider of digital and traditional identity solutions. This includes a portfolio of products that boost safety, identification and security for government agencies and private organizations.
On the other hand, the company is working in the biometrics industry, providing advanced technology to industries such as health, homeware, security, and more. SuperCom has a long history of providing these products and continues to offer some of the best in class security solutions to its customers. On December 9th, SuperCom Ltd. secured a contract in the Southeast U.S. This contract pertains to its PureTrace GPS smartphone product. It’s popular across a large range of government bodies in the U.S. This product utilizes biometrics, voice communication, and secure messaging to provide a novel security suite for various agencies to utilize.
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On January 5th, the company announced that Ordan Trabelsi would become the new President and CEO of SuperCom. Arie Trabelsi, the current CEO of the company states that “this is an exciting time for SuperCom where we see momentum throughout the world and great opportunity for future growth. I am delighted to see Ordan take leadership of the company. His successful experience growing the company’s business in the U.S. from less than $100 thousand to over $10 million in annual revenues, our largest revenue and operations region, makes him a natural fit to lead the company in the coming years as it continues its expansion.”
