4 Reopening Penny Stocks To Watch In April 2021
As another week for penny stocks gets off to a good start, investors are asking, what are the best reopening penny stocks to watch? Before we get into the nitty-gritty of this question, let’s look at an overview of the market right now.
As the world has changed in the last year, so has the market for penny stocks. Currently, the pandemic is still affecting most, if not all companies in the stock market. This effect can be either positive or negative depending on the type of company. Those that are benefitting from the recent economic reopening have earned the title of being “reopening stocks“. With more than 32% of the United States population having taken at least one dose of a vaccine, investors are betting on the pandemic coming to a close soon.
Flash forward to Monday, April 12th. During the day, the broader market pulled back despite this positive news surrounding the pandemic. You might be wondering, why is this correction happening only days after the S&P 500 and Dow broke new records? Well, this movement is a clear example of the natural ups and downs that occur in the stock market.
Let’s take the tech industry for example. Tech is one of the largest sectors in the U.S. and has faired quite well considering the pandemic’s effect on all businesses. But, it’s important to note that tech is not the only sector with reopening stocks in it. However, it is a great example of the volatility that comes with all large events.
With earnings season approaching, we could see a new round of momentum across many industries. In the coming earnings reports, investors are hoping for a long stretch of positive financial results that would indicate economic recovery.
With the U.S. reopening slowly but surely, there could be a sizable market rebound. This will without a doubt, be illustrated in the quarterly reports released in the next few weeks. In these reports, investors should focus on revenue, sales, cost of revenue, and other factors that would indicate positive signs for a business. With this in mind, there is no doubt that the market will be put to the test this earnings season.
In addition, retail sales numbers will help to show what the economy is doing at the macroeconomic level. Analysts expect to see a sizable increase in retail numbers as data comes out later this week. Because the broader market has a large effect on the performance of penny stocks, this data is important to consider. With this in mind, it’s up to you whether or not these four penny stocks are worth watching.
Top Penny Stocks To Watch
- IZEA Worldwide Inc. (NASDAQ: IZEA)
- SPAR Group Inc. (NASDAQ: SGRP)
- Ballantyne Strong Inc. (NYSE: BTN)
- ZW Data Action Technologies Inc. (NASDAQ: CNET)
IZEA Worldwide Inc.
IZEA Worldwide is a company you might be familiar with if you read pennystocks.com regularly. If not, let’s get you up to speed. IZEA is a marketing technology company that provides tech services and software. These products allow brands to collaborate and monetize content on a large scale.
One of its primary markets is influencer marketing. In the past few years, influencer marketing has grown to be a multi-billion dollar industry. For example, celebrities like Kylie Jenner will charge up to $1 million for a single, sponsored Instagram post. And with thousands of influencers out there, the potential market size is extremely large.
On April 7th, IZEA Worldwide released a new data set for investors to take a look at. This data was released via IZEA’s proprietary BrandGraph platform. In the report, BrandGraph showed that around $5.2 billion in organic (earned) promotional content was lost from February 2020 to March 2021.
This data shows that more influencers are charging for content than ever before as opposed to unpaid promotional content. Additionally, sponsored travel and tourism content has shot up by as much as 77% since April of last year. IZEA believes that influencer marketing in this travel niche will continue to grow in the coming months and years.
The Founder and CEO of IZEA Ted Murphy stated, “Travel brands are slowly starting to invest in influencer marketing again. Marketing leaders are likely recognizing that they will need to allocate more of their spend to influencer marketing versus other forms of marketing near term.”
Only a day before IZEA released this data, it made a large announcement detailing a new partnership. The announcement details that G&B Digital Management has joined the IZEA Talent Partner Program as of April 6th. Now, all of G&B’s talent portfolio is available on IZEA’s platforms. IZEA stock has increased nearly 40% in April alone, with investors heavily considering this sizable announcement. On April 12th, IZEA stock shot up by another 9% or so by end of day.
SPAR Group Inc.
SPAR Group is a leader in global merchandising solutions. This includes the setup and installation of new stores in many countries around the world. In the last 6 months, shares of SGRP stock have shot up by a staggering 136%. On April 12th, significant momentum was once again seen with SGRP stock.
This gain comes only a few weeks after SPAR Group reported its fourth-quarter and full-year financial results for 2020. In the report, the company’s EPS increased by an impressive 425% year over year. Additionally, its domestic revenue increased by 11.9% with its full-year net income increasing by 39.2% as well.
In regards to SPAR’s plans for 2021, President and CEO Mike Matacunas said that “The continued expansion of our Great Openings business, growth of our South Africa, Mexico and India businesses during an unprecedented pandemic and the focus of our entire organization on the performance, safety and well-being of our employees and clients, has provided us a solid platform for the new year.”
SPAR’s consolidated net revenue did fall year over year, but this has a small effect when compared to its mostly positive results. By end of day on April 12th, SGRP stock had bounced up by around 11%. Only a week ago, SPAR stock was trading at $1.60 per share. As of end of day on Monday, SGRP stock price traded at $1.88 per share. Considering this increase and the reopening of retail, is SGRP worth watching?
Ballantyne Strong Inc.
On Monday, April 12th, Ballantyne Strong made big headlines after an exciting announcement came out. Before we get into this, let’s take a deeper dive into its financial situation. Last month, Ballantyne reported its fourth-quarter and full-year operating results.
After the results came out, shares of BTN shot up, before quickly correcting. In the operating results, the data illustrated that Ballantyne was able to navigate COVID-19 with a relatively low impact on its bottom line. As a holdings company with a focus on the physical entertainment sector, Ballantyne could be considered a reopening penny stock.
On April 12th, Ballantyne Strong announced that its portfolio company, GreenFirst Forest Products Inc. has taken a large stake in several forest and paper product assets from Rayonier A.M Canada G.P and Rayonier A.M. Canada Industries Inc. With this, it expects to become a part of one of the largest lumber producers in all of Canada.
This is a large deal and is valued at $214 million in total. After the announcement was made, BTN stock went from $2.73 a share on Friday, April 9th to over $3.53 at end of day on April 12th. As the speculative gain on this deal subsides, investors should consider the value in the long term of this sizable investment.
ZW Data Action Technologies Inc.
ZW Data is a company that offers strategic online advertising, precision marketing, data analytics, and research and development for the blockchain industry. In the past year, the popularity of blockchain and all relating categories, has increased substantially.
As the world continues to explore the potential uses of blockchain technology the popularity of it will likely continue to increase. To help fund its operations, ZW Data announced the closing of an $18.7 million registered direct offering back in February. This deal consists of roughly 5.21 million shares sold at $3.59 per share.
In the same month, ZW Data also announced that it partnered with Wuhan BitSpace Tech Inc., a blockchain mining technology company; to create a joint blockchain mining platform. The plan is for the pair to create multiple large-scale self-operated mines. With this, the companies expect to have a load of 100,000 kilowatts which will operate at extreme efficiency. Additionally, the pair expect deployment to be completed within the next six months.
The Chief Technology Officer of ZW Data, Yingguang Guo said, “We will also have comprehensive cooperation with BitSpace in the field of digital currency, such as mine design and construction, mining machine procurement, operation and maintenance, and quantitative hedge investment of digital currency.”
The two companies have a goal of allowing companies that don’t currently use blockchain, to utilize it as a new method of business efficiency. This includes allowing owners to implement blockchain technology such as cloud computing, mining pool services, and increased financing capacity. While companies are still working out the details of what blockchain can offer, the potential is only capped by our imagination. Considering this novel technology, should you watch CNET stock?
