Should You Buy These Cheap Stocks?
Looking for the best penny stocks to buy right now? Your choices are relatively unlimited. The fact that the definition of penny stocks encompasses all cheap stocks under $5 gives a ton of wiggle room for your list. And if you’re wondering what the cheapest penny stocks are, the prices go all the way down to $0.0001. While I won’t be talking about any stocks that low in price, we will look at a few that can be bought for under $4 as of this article.
The thing to remember is that the cheaper the stock, the less the price needs to move to see bigger returns. At the same time, it also doesn’t take big monetary changes to see significant losses either. Keep this in mind when you’re putting your list of penny stocks together. What will also help you determine which names are sound candidates are different market trends. Obviously, this week, several different niches have taken the attention of traders. One of them has been communication, and others include financials and even biotech.
When it comes to lower-priced stocks, momentum is key. You want to find strong trends and avoid overly volatile stocks. Now, we’re talking about penny stocks, I know. So, volatility is always present. The type that I’m talking about (especially if you can’t stay at your computer all day) is the day-to-day “chop.” If you look at many of the hottest penny stocks of March, many of them had their time in the sun for a day & some even for a few hours.
After that, some of the high-flyers ended up completely falling apart. So trend identification was key in these cases. Are you looking at a strong, consistent uptrend? On the flip side, is the trend very choppy overall? Depending on the type of trader you are, different trends are better suited for different types of traders. With this in mind, let’s take a look at stocks under $4 right now. Will they be on the list of best penny stocks to buy right now?
Penny Stocks To Buy For Under $4
- Luokung Technology Corp. (NASDAQ: LKCO)
- Vislink Technologies Inc. (NASDAQ: VISL)
- Borqs Technologies (NASDAQ: BRQS)
Big Data Tech Penny Stocks Grab Interest From Traders
Big data is such a broad topic to cover. This can include everything from software as a service (SaaS) to what has become known as the Internet of Things (IoT). These higher-level niches are just another way to discuss connection, automation, and digital learning wrapped in a tech framework easily accessible by end-users.
Luokung is in the thick of this big data discussion. It’s also one of the tech penny stocks we’ve discussed for a while now. The company’s Luokuang and Superengine brands provide spatial-temporal big data. This is done via platform-as-a-service (PaaS), SaaS, and data as a service (DaaS) offerings.
This week the company is in the spotlight following its latest acquisition. Luokung finalized the deal with eMapgo Technologies. eMapgo provides navigation and electronic map services in China.
In response to the news, Xuesong Song, Chairman and CEO of Luokung, stated, “This is a significant milestone in the Company’s history as we have created one company with technologies and a product portfolio that will provide us with a clear competitive advantage in the fields of autonomous driving, smart electric vehicles, intelligent transportation, and smart cities, enabling us to accelerate our development in this industry while being accretive to Luokung’s financials.”
With a diverse portfolio of offerings centered on emerging tech, LKCO could be one of the names to know heading into the second quarter.
Communications Tech Penny Stocks Spark Speculative Bets On 5G Tech
You can’t argue that 5G tech has become a buzzphrase of the digital age. The next evolution of digital communications technology has seemingly captivated traders and investors alike. With the rise of this new offering, communications and technology companies have sought ways to gain exposure. While some may develop infrastructure systems, others will offer the switch systems to allow connectivity.
In this case, Vislink Technologies is focusing on drone usage. In a tweet this week, Vislink said, “Verizon has deployed #5G service to 3 cities & 7 military bases in the southeastern region. Find out more in @ExecutiveBiz about how this contract could potentially initiate next steps for drone usage at the military base.”
In the article cited by the tweet, Verizon was discussed as it has made its 5G network available to 3 U.S. cities in addition to network adoption at military bases. In particular, Verizon is working with Qualcomm to establish a “5G living Lab”. Paul Guckian, vice president of engineering at Qualcomm, noted the Miramar team was “very interested in drones” and that Qualcomm partnered with the Federal Aviation Administration on low-altitude flight tests.
Vislink’s IMTDragonFly could be what it was alluding to in the tweet. This is one of Vislink’s broadcasting products for wireless video transmission for use in UAG, UGV, and body cams. Other than this, Vislink also offers a suite of additional products more directly suited for military & government applications.
Borqs Technologies Inc.
Vislink isn’t the only company involved with 5G and communications technology. Borqs Technologies has been another one of the names on the list of 5G stocks to watch. However, it also has focused on the broader Internet of Things, including the connected devices category within this niche. In particular, Borqs has inked deals for things like 5G industrial parks and even has a JV with SkyCentrics to manufacture automated smart control systems.
This month, Borqs Technologies raised $20 million in convertible notes with proceeds used to procure orders the company expects to receive from its customers this year. Borqs also said it would earmark a portion of the funds to develop its 5G products. Obviously, the extra capital should help but should also be kept in mind as the company raised this through convertible notes. The notes are due in two years, have an annual interest rate of 8%, and are convertible into ordinary shares of Borqs at a 10% discount from the market price. Will this pose a larger dilution risk down the road?
On a technical analysis front, the volume has continued picking up throughout 2021. While BRQS stock broke out big in February, now that it has come back down, shares still trade much higher than where they did in January. What’s more, for those who like technical analysis, take a look at the 50- and 200-day moving averages.
You’ll notice that back in early February, the 50 crossed up and over the 200-day. This is known as a “golden cross” and is generally thought of as a bullish indication. While not all golden crosses result in big breakouts, it is worth noting as we approach the second quarter.