Top Reopening Penny Stocks To Watch In 2021
Penny stocks have had a great month so far in April 2021. With the large bullish interest surrounding penny stocks right now, how can investors take advantage? Well, the best way to find valuable companies is to deduce what is driving their share price.
There are plenty of things that can cause penny stocks to take off. With reopening stocks, those factors are can be similar across the board. For this reason, let’s take a look at what is causing some of these companies to increase in value right now.
When the pandemic first began for the U.S. back in March of last year, most stocks fell as a result. Since then, most if not all have recovered and then some. So as the economy continues to push up, investors are seeing several blue chip and penny stocks hit new all-time highs. The companies that are benefitting from the pandemic are referred to as ‘reopening stocks’.
In the last year, the market for penny stocks has drastically changed. At the moment the world is still in the midst of the coronavirus pandemic. While the economy has been hurt by Covid, we are seeing signs of recovery.
With April in full swing, hopes are higher than ever for the future. In the U.S., more than 120 million Americans have received at least one dose of the COVID-19 vaccine. This equates to 36.4% of the population.
And, these numbers continue to rise substantially every day. As of the week of April 12th, people aged 16+ are now able to receive the COVID vaccine all across America. Previously the vaccine was only available to those 18 and over. Now, even those who are not in priority groups are able to receive a dose.
Despite 6 reports of blood clots with the Johnson & Johnson (NYSE:JNJ) shot, most vaccines have been very well tolerated. The FDA advised on April 13th that states should temporarily stop distributing the J&J vaccine. While this is slightly disheartening for the massive vaccine effort, it likely will not halt progress.
[Read More] 3 Penny Stocks To Buy According To Analysts; 100%-290% Price TargetsAs of April, many states around the U.S. are beginning to loosen restrictions. Texas, for example, has lifted all restrictions; allowing indoor dining and entertainment to open around the state. With all of this in mind, here are three reopening penny stocks that could benefit as states begin to cut restrictions.
Top Reopening Penny Stocks To Watch
- Color Star Technology Co. Ltd. (NASDAQ: CSCW)
- Zomedica Corp. (NYSE: ZOM)
- Dragon Victory International Limited (NASDAQ: LYL)
Color Star Technology Co. Ltd.
When it comes to entertainment penny stocks, things were not looking good last year. Now that global economies are starting to recover, entertainment penny stocks are seeing a resurgence in value. One company benefitting from this is Color Star Technology. Color Star provides online and offline music education services in the US and China.
Recently, Color Star has dipped its toes into the NFT market. NFTs or non-fungible tokens are one of the largest recent trends in the blockchain market. On April 13th the company signed a strategic cooperation agreement with Supre NFT.
Supre is a company that runs SuperTop, an integrated NFT super-platform for creating, trading, auctioning, and many other needs for NFT utilization. Right now, CSCW is still working out how it is going to enter into the NFT market in detail.
Our current understanding of Color Star’s role in NFTs is that it aims to use them on its Color Star App. It also wants to create online concert tickets, online concert videos, celebrity content, and more using NFTs. This shows that Color Star is willing to invest in new technologies to advance its share of the entertainment market. As a result of the announcement, CSCW stock opened high on the 13th, while albeit, pulling back by end of day.
[Read More] Best Penny Stocks To Buy Right Now? 3 For This Week’s Watch ListRegarding its place in the NFT market, the CEO of Color Star, Mr. Luke Lu stated, “Color Star does not focus on short-term objectives at the expense of long-term growth, so we look forward to developing NFT products that should allow global audiences to view more high-quality entertainment content, and in the meantime generate well-deserved returns to the original authors.”
Zomedica Corp.
When retail investors from the subreddit WallStreetBets set their eyes on GameStop Corp. (NYSE: GME) stock a few months ago, it fundamentally changed the world of trading. Retail traders have switched their focus to a wide variety of assets and no longer just GameStop.
One company that has become a Reddit stock play is Zomedica Corp. That isn’t to say that Zomedica isn’t doing well on its own, but this could help to explain some of its recent movements. Zomedica is a pharmaceutical company that discovers, develops, and commercializes medicines for companion pets. This includes both dogs and cats.
On March 16th, Zomedica announced the first commercial sale of its flagship Truforma therapeutic. This was a big deal when it was announced, and shows that Zomedica could have a large commercialized product on the way.
The CEO of the company Robert Cohen commented, “This is a momentous day for Zomedica, our shareholders, the veterinarians we serve, and the companion animals in their care. I would like to express my deepest gratitude to the many people at Zomedica who dedicated the past two years of their lives to achieving this critical milestone.”
Despite this progress, ZOM stock has been on a steady decline for the last month. ZOM stock saw some upside on April 13th when it opened, but then pulled back in later trading hours. This illustrates the high volatility that is associated with ZOM stock. With retail investors fluctuating the price of ZOM stock greatly, it’s difficult to tell where its shares will be in the coming months.
However, reopening and the increased amount of companion pets being adopted during the pandemic, could be a big factor to consider. As reopening continues to occur, animal hospitals will be able to move back to a new version of normal. With all of this in mind, is ZOM stock worth watching?
Dragon Victory International Limited
Last but not least is Dragon Victory International Limited. Dragon Victory is a China-based crowdfunding platform that runs a platform for connecting investors with projects to invest in. In the past few years, crowdfunding has become a popular way for new ideas to be capitalized. As reopening occurs, commerce may move back toward pre-covid levels. This means that the need for crowdfunding could also increase.
On April 13th, LYL stock increased by more than 10% with an above-average volume of over 57 million. This is compared to its average of around 1,100,000. As you can see, this is more than 4700% above its normal trading volume over the past 100 days. While no news or filings caused this, there could be external factors at play. This could include factors such as social media speculation and others.
Many investors believe that the company will be diving into the cryptocurrency industry. This has become one of the driving forces of LYL stock in the past few trading days. The rumor of its move into crypto comes from the company already engaging in blockchain and smart contract tech.
[Read More] 3 Penny Stocks To Buy Under $5 As Reopening Trade Heats Up In 2021It uses this tech to integrate upstream and downstream partners in the auto parts supply market. While this may be a rumor, it is exciting for investors to consider. Right now, the high volume seen with LYL stock is bringing in investors of all types. Considering this, LYL stock could be worth watching whether or not this rumor becomes fact.
