4 Penny Stocks Bouncing Off Key Technical Levels
This week’s gotten off to an interesting start for markets & penny stocks could give us some hints at underlying trends. Major indexes experienced one of the best single-day rallies in months on Monday, and it wasn’t spearheaded only by a few sectors. Stocks across the board trended higher after last week’s market rout. With that, however, came a bit of a pause early on Tuesday. While we wait for the final stimulus plan’s outcome, some fears have been stoked, spooking investors a bit.
One of these fears is the resurgence of new virus strains. Even amid the new Johnson & Johnson vaccine being distributed, newly reported Covid-19 cases and deaths in the U.S. rose from a day earlier. However, they remain below January’s highs, with the number of those hospitalized with the virus continued to decline. Needless to say, this slight uptick brought some jitters to traders this week as new variants have emerged.
Despite this as a backdrop heading into the rest of the week, stocks remain hot. On top of this, penny stocks, in particular, continue to surge. Just before the market open, shares of many companies were jumping. Tech, biotechnology, and some energy names were among the gainers. We’ve also seen a boost in certain marijuana stocks ahead of the stimulus being passed. With a grab-back mix of hot stocks to watch, 4 of them have begun trending higher early this week.
Hot Penny Stocks
- Vislink Technologies Inc. (NASDAQ: VISL)
- Great Elm Group Inc. (NASDAQ: GEG)
- Inuvo Inc. (NYSE: INUV)
- Organigram Holings Inc. (NASDAQ: OGI)
Vislink Technologies Inc. (VISL)
I explained this was a grab-bag of penny stocks to watch, but every one of them has released key updates this week that may warrant some additional attention. Vislink Technologies has been on our list of penny stocks for months. The communications technology company was building interest for the majority of this year. Tuesday kicked things up another notch after Vislink announced a new Department of Defense order.
This new order was to the tune of a $4 million award by the U.S. DoD for handheld intelligence, surveillance, and reconnaissance receiver devices or “ISR” devices. This isn’t the first order from the U.S. armed forces either. Over the years, Vislink has signed deals with the U.S. Army as well as the U.S. Navy.
“Vislink’s enduring relationship with the military is a testament to our high-quality wireless video communication solutions and the continued crucial need for real-time and secure video data delivery of actionable intelligence,” said Mickey Miller, CEO of Vislink. With this latest win for another government order, VISL could be one of the hot penny stocks to watch early this week.
Great Elm Group Inc. (GEG)
Great Elm Group Inc. isn’t likely one of the top names on your list. That is unless you track lower volume penny stocks. In this case, GEG hasn’t traded more than 54,000 shares in a single day this year. However, some news on Tuesday sparked early momentum in the penny stock.
Great Elm announced that its Focus Respiratory subsidiary acquired Advanced Medical DME, LLC and PM Sleep Lab, LLC. They provide everything from sleep testing and PAP as well as other respiratory products and services. In total, the two reported pro forma unaudited revenues of $5 million last year. The real key to this acquisition is that it will allow Great Elm’s subsidiary to expand the existing footprint in the Midwest. It will add more than 2,500 active patients to the company’s patient base as well.
What’s interesting is what happened early in the Tuesday session. While the headline came out around 6 AM EST, shares of GEG stock spiked just as the premarket session began at 4 AM EST. How much of a spike? The penny stock hit a high of $20 then sharply came back to around the mid-$4 range. Whether or not this had anything to do with the news is to be seen. But it was an interesting observation nonetheless.
Inuvo Inc. (INUV)
This was one of the companies discussed earlier this week. Inuvo has now made a 5-day rebound after dropping to February lows of $0.92 last week. The company turned heads on Monday after revealing that on February 24th, its Vertro subsidiary signed a new deal to use Google’s WebSearch Service and AdSense on approved websites. Specifically, Vertro agreed to use the Google product suite for an initial term from March 1, 2021, to February 28, 2023, unless terminated earlier.
Inuvo’s core model centers around AI technology via the use of its IntentKey platform. In a press release earlier this year, Richard Howe, CEO of Inuvo Inc., explained IntentKey’s model.
“The IntentKey’s purpose was to reinvent the manner in which prospecting data is both manufactured and then used to discover online audiences. With this SaaS version of the platform, we extend the market for this product to companies who wanted the power of the technology while still using their own resources to deliver campaigns.”
The big question is will this Google-related news be a sticking point for traders in that, will it be impactful enough to spark continuation in this recent uptrend?
Organigram Holings Inc. (OGI)
While it isn’t a U.S. Multi-State Operator, Organigram is one of the more popular marijuana penny stocks to watch. The Canadian pot stock has experienced a very strong year so far rallying as high as $6.45 before the recent pullback. This week OGI stock may be back in a brighter spotlight following its recent update.
Organigram announced Tuesday that it launched two new additions to the Company’s recreational cannabis product portfolio: SHRED Tropic Thunder Jar of Joints and Trailblazer SNAX Milk Chocolate Bars.
“The addition of these new products to our lineup of positively reviewed and most-searched brands – one offering the decadence of world-class chocolate and the other, a launch of an exceptional value product from the brand that we believe has set a new standard in the pre-milled category – are a direct response to the preferences our consumers have shared with us.”Greg Engel, CEO, Organigram