5 Penny Stocks to Watch This Week
While January is coming to an end, the year has just begun for traders looking to buy penny stocks. With the inauguration of Joe Biden, vaccine distribution underway, and another potential round of stimulus, investors are hopeful for a large economic recovery. Of course, it will take some time before the pandemic begins to lessen in severity. In the meantime, the sentiment is optimistic. Additionally, the inauguration of Joe Biden presents a lot of opportunity for certain areas of the market & stocks that could benefit. This includes EV penny stocks, renewable energy stocks, cannabis, and others.
If we look at the past, we see that major struggles such as WWII or the Great Depression, usually lead to large economic booms. This is due to the lasting effects of crisis production as well as a return to normalcy. Obviously, it is difficult to say what will occur in the near-term. But, it does look like there are a lot of positive occurrences happening in the U.S. and abroad. With this in mind, let’s take a look at five stocks with substantial volume that traders have focused on this week. Will they be on your list of penny stocks to buy or avoid?
Penny Stocks to Buy [or avoid]
- Vislink Technologies Inc. (NASDAQ: VISL)
- Allied Esports Entertainment Inc. (NASDAQ: AESE)
- eMagin Corp. (NYSE: EMAN)
- Cinedigm Corp. (NASDAQ: CIDM)
- AMC Entertainment Holdings Inc. (NYSE: AMC)
One of the largest gainers of the day on January 19th was Vislink Technologies Inc. During trading and into after-hours, shares of VISL stock soared by around 35%, ending the day at $2.61. In the past month, shares have shot up by around 110%, which is quite a staggering gain. For some context here, Vislink works as a provider of wireless communication technologies.
This includes solutions for connectivity around the world in The Americas, Europe, and Asia. Under its various brands, it offers video transmission products for sports, entertainment, and government surveillance. Due to its business’s sheer breadth, we’ve covered VISL stock quite a few times in the past several months.
If you’re looking at Vislink, there are a few factors to consider right now. For one, due to heightened security measures in the U.S. following the attack on the Capital and the upcoming inauguration, surveillance and security penny stocks are in focus. Additionally, the company is offering a lot of beneficial technology both in and out of the pandemic. Due to the pandemic, more people need digital and communications solutions than ever before. In addition to all of this, the company is working on commercializing its IP Link 3.0 infrastructure program. If it can see widespread success, it could be a big deal for Vislink.
Allied Esports Entertainment Inc.
If we continue on the theme of pandemic related penny stocks, AESE could be one to watch. The company operates as a digital entertainment company and specifically in the Esports sector. On January 19th, shares of AESE stock shot up by around 17%. Since mid-November, shares are up by over 100%. This large gain can be attributed to the rise in demand for Esports entertainment. With more people at home than ever before, consumers are always looking for the next entertainment source. As opposed to just offering one type of content, Allied Esports offers a wide variety of digital strategies covering a large range of content categories.
Allied Esports made an exciting announcement on January 19th. The company stated that it had completed the sale of the World Poker Tour to Element Partners LLC. In the agreement, Allied Esports will receive around $78.25 million in exchange for Element acquiring 100% of the World Poker Tour.
Frank Ng, CEO of Allied Esports, stated that “despite the many challenges caused by the Covid-19 pandemic, the WPT business has delivered substantial, impactful results, specifically through its online platforms and services, and has made meaningful contributions for the Company. In addition, Allied Esports, with its world-renown HyperX Esports Arena Las Vegas and best-in-class production services, has generated market attention as the esports industry gained momentum during the pandemic.”
Another big gainer on Tuesday was eMagin Corp. During trading and into after-hours, shares of EMAN stock shot up by around 17%, ending the day at $2.57 per share. The company works as a designer, developer, and producer of organic light-emitting diode displays (OLED). If you’re not familiar with this term, these products are utilized in everything from mobile devices to TVs and more. Additionally, its products are in demand for the growing market on AR and VR tech. eMagin states that it produces these for consumer, aviation, and military markets. As you can see, eMagin has quite a broad market for its products. Also, the recent work-from-home trend means that the demand for OLED devices is higher than ever before. Last month, eMagin announced that it would be expanding its New York facility to grow its business.
In the announcement, the company stated that it had signed a new ten-year lease that will allow it to expand its facility by 25%. Andrew Scully, CEO of eMagin, stated that “we are encouraged by the recognition we have received for our technology and are excited to begin the upgrade of our equipment and facilities. As a result, we are securing more space in our Hopewell Junction facility in advance of the arrival of new equipment under our $5.5 million IBAS grant and $33.6 million awards from the Dept. of Defense.”
With the funding needed to grow, it looks like eMagin is working to take its business to the next level. Whether or not this makes it a penny stock to buy is up to you.
Cinedigm Corp. saw its shares shoot up by over 45% during the trading day to just over $1.18 per share. This jump came as the company announced its acquisition of Fandor, the independent-film streaming service. With this acquisition, Cinedigm will have access to thousands of films and becomes a new competitor in the online streaming industry. Chris McGurk, CEO of Cinedigm, stated that “this acquisition of Fandor, coming on the heels of our Film Detective acquisition, solidifies Cinedigm’s position as the leading global streaming company for independent films. We fully expect an immediate EBITDA uplift from Fandor and strong revenue and profit growth going forward.”
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The latter half of this statement is quite interesting. On the one hand, the financial terms of the deal were not released. On the flip side, this acquisition provides a very great platform for expansion and growth. One thing to keep in mind is that it may take some time to see heightened EBITDA growth and a rise in revenue. But, if the deal comes close to projected figures, it could be a big win for Cinedigm.
AMC Entertainment Holdings Inc.
Another entertainment penny stock that we’ve been discussing is AMC Entertainment Holdings. If you’ve watched a movie in a theatre in the U.S., you probably have been to an AMC property. As one of the entertainment industry majors, AMC saw its shares sink substantially as the pandemic struck the world. In that time, there have been multiple waves of both bullish and bearish sentiment surrounding AMC stock. Obviously, if the pandemic begins to shrink in severity, it could be good news for the movie theatre business model.
However, no one knows the exact time frame. So for investors, AMC stock presents a two-sided coin. Interestingly enough, on January 19th, shares of AMC stock shot up by around 31% to end the day. This gain comes as the company announced a $100 million note issuance. These notes will not be due until 2026, which could give AMC the finances it needs to get back on track. Since November, shares are up by a comparatively modest 42%. Whether or not this issuance will help its financial standing in the long term remains to be seen.
A New Trend In Penny Stocks?
These are just a handful of the thousands of penny stocks we’ve seen gain traction this month. One of the resounding trends in the stock market today is centered around smaller companies. Whether it’s directly tied to things like stimulus is up for speculation. However, we can say that names in tech and entertainment have been in the spotlight thanks to upbeat sentiment on an economic turnaround.