4 Penny Stocks That Could be Buy the Dip Candidates
When it comes to penny stocks, buying the dip can be a great strategy to use. For those unfamiliar, this is quite simple. When penny stocks or any stocks for that matter are down, it could present a buying opportunity.
And, because of the high volatility with the entire list of penny stocks, there are a lot of potential entry points for investors to consider. Now, when making a penny stocks watchlist, looking at the biggest losers of the day is not usually a great standalone strategy.
However, it can be useful to explore whether they are down for a reason or simply due to large gains seen in previous sessions. In the stock market, ebbs and flows are more than natural. This means that most stocks will fluctuate in value regularly. For this reason, buying the dip can often be a profitable strategy.[Read More] 3 Best Penny Stocks To Buy Now & Some Analysts Project 419% Upside
But, it is important to understand why a stock may be down on the day. For example, if negative news comes out or a poor balance sheet is to blame, it may continue to drop in value. However, if a stock is simply dropping as a result of a price correction, there could be an opportunity to be had.
Considering this, buying the dip should be in use in tandem with your own research and investing strategy. Because, at the end of the day, any penny stocks worth buying should align with your portfolio goals. Considering this, let’s take a look at four penny stocks that could be buy the dip candidates.
4 Penny Stocks to Watch for a Bounce Back
- Cinedigm Corp. (NASDAQ: CIDM)
- Seelos Therapeutics Inc. (NASDAQ: SEEL)
- Vinco Ventures Inc. (NASDAQ: BBIG)
- Toughbuilt Industries Inc. (NASDAQ: TBLT)
1. Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is an entertainment penny stock we have previously discussed many times. If you have not yet heard of Cinedigm, let’s get you up to speed. This entertainment company is a distributor and provider of movies, television, and short-form content in the U.S., Canada, and New Zealand. It owns a large library of distribution rights to various titles and episodes.
Just one week ago, this company announced that it has seen rapid subscriber growth on Fandor after its acquisition in January 2021. This subscriber growth accounts for 39% year-over-year growth on the site.
For some context, Fandor provides ‘indie films’ to a large audience. The President of Fandor, Phil Hopkins said, “We look forward to bringing an unforgettable streaming experience to new subscribers and existing fans of independent film, genre film, classics, and episodic series on Fandor.”
Cinedigm also recently announced that its overall corporate debt has dropped by $44.2 million. Considering this, it looks like CIDM is in an advantageous cash position right now. Another driving factor for CIDM’s success is its announcement of Fandor Selects which will utilize NFTs.
If you have not yet heard of non-fungible tokens or NFTs, they are essentially one-of-a-kind digital assets one can own through blockchain technology such as music, pictures, trading cards, and more. While CIDM is not only an NFT penny stock, this is a new part of its business to consider.
Fandor Selects is the “world’s first NFT film label” which will be releasing limited edition classic, contemporary, and world cinema NFTs. Company’s getting involved with cryptocurrency and blockchain technology have been large gainers in 2021, so it is no surprise that this is contributing to CIDM moving up. Noting this information, will you add CIDM to your list of penny stocks to watch?
2. Seelos Therapeutics Inc. (NASDAQ: SEEL)
Seelos Therapeutics Inc. is a biotech penny stock that focuses on the development and commercialization of novel technologies and therapeutics for the treatment of the central nervous system, respiratory, and other disorders. It has many leading programs in its pipeline right now. One of which is SLS-002, an intranasally taken racemic ketamine for treating acute suicidal ideation in patients that have major depressive disorders. It also has treatments for Sanfilippo syndrome, Parkinson’s disease, and more.
Seelos made headlines on May 20th when it announced the pricing of its $60 million public offering of common stock. This public offering of 19,354,840 shares of the company at $3.10 per share is a big deal and should help to give it necessary funding for growth. Following the announcement, SEEL stock went up by around 1% which is not out of the ordinary. In the last 6 months, this company has gone from under $1 per share to more than $3.30 per share.
The company also recently reported positive topline data from the open-label study of SLS-002. The topline data shows significant treatment efficacy and a well-tolerated safety profile for acute suicidal ideation in patients with major depressive disorder.
This was a positive update from the company, with CEO Raj Mehra noting, “These are trying times in our battle against the suicide epidemic, which has been exacerbated by the COVID-19 global pandemic, and SLS-002 could create a paradigm shift allowing better treatment for these patients.” Will you invest in SEEL on your penny stock watchlist?
3. Vinco Ventures Inc. (NASDAQ: BBIG)
Vinco Ventures Inc. is a penny stock that focuses on consumer product research and development, manufacturing, sales, and fulfillment. It offers toys, homeware items, plush, and electronics. These products are sold to distributors, retailers, and manufacturers via e-commerce. It also provides personal protective equipment to governmental agencies.
Recently, Vinco has become laser-focused on creating NFTs as an addition to its broad business model. Non-fungible tokens have taken over the crypto world and have piqued the interest of many investors. The company plans to release 3-dimensional full-scale NFTs to market this summer for athletes, music, and actors.
On May 11th the company announced plans to pre-sale three exclusive ’emmersive-NFTs’ (E-NFTs). The pre-sale items will sell for $2 million each for a 3 celebrity set. While this seems expensive, if you’re familiar with the NFT world, you know that these lofty goals can often be achieved.[Read More] Penny Stocks to Buy? 3 That WallStreetBets Won’t Stop Talking About
The co-founder of the company, Erik Hicks said, “This is the first step in the combination of entertainment, technology, and finance for our organization. We are creating a unique experience that will revolutionize the entertainment industry while creating immeasurable value to the collector.”
On May 19th, it announced that an exclusive NFT album will be released by Tory Lanez through Vinco Ventures subsidiary, EVNT Platform LLC. Amid all of this recent news, Vinco Ventures stock price has increased substantially in the past few weeks. On May 20th, shares of BBIG shot up by around 14%, representing solid bullish sentiment. With all of this information in mind, is BBIG stock worth watching?
4. ToughBuilt Industries Inc. (NASDAQ: TBLT)
The next penny stock, ToughBuilt Industries Inc., is a company that we’ve talked about frequently in the past few months. ToughBuilt is a consumer product and retail penny stock that designs, develops, manufactures, and distributes home improvement and construction products. These are in use for both the construction industry and the consumer tools market. Some of its products include tool pouches, tool rigs, belts, bags, totes, and accessories.
The company reported its first-quarter results on May 17th which helped to push positive momentum for TBLT stock. This is because ToughBuilt stated its revenue increased 214% to $12.3 million compared to $3.9 million in the first quarter of 2020. These revenue increases were caused by big industrial demand for the company’s products. Its GAAP gross profit increased 128% as well.
CEO Michael Panosian said, “The growth in revenue was driven in part by the quarter-over-quarter introduction of new SKUs across Soft and Metal Goods, as well as increased demand for our job site support products. The unique design and functionality of our ToughBuilt product suite continue to resonate with our customers, resulting in increased interest from large retailers across the globe and the expansion of our existing retail relationships.”
The company’s stock price is up by around 23% since this announcement. With all of this in mind, is TBLT worth keeping an eye on?
Is Buying the Dip Worth It With Penny Stocks?
Buying the dip with penny stocks can be a great strategy if used correctly. However, having a trading education will always help to ensure that you know how to enter and exit positions at the right time.[Read More] 3 Penny Stocks To Watch Under $2 Making Big Moves Today
While these stocks may be down today, it could present an opportunity for investors to find an undervalued company. However, this strategy should always be used in conjunction with research. Considering all of these factors, is buying the dip worth it with penny stocks?