3 Tech Penny Stocks for Your Small-Caps Watchlist
One of the hottest trends for penny stocks in 2021 is tech. This sector has outperformed most others and is showing no signs of slowing down. Tech-related penny stocks can be found in many portfolios simply because they can have higher chances for increased profits. There are however reasons why investors have taken a liking to tech penny stocks.
Firstly, unlike most sectors, tech managed to grow substantially during the pandemic. The tech industry was less affected by quarantine regulations because many of these businesses could run and offer their services online. Quarantine also increased the demand for online products for such as work-from-home and educate-from-home needs.
The next reason why tech penny stocks increased this year is due to speculation. When it comes to trading penny stocks, speculation is considered a key driver in the share price of most stocks, and especially tech. Recently, analysts have shown increased optimism on the future of many tech companies. This includes those such as Alphabet Inc (NASDAQ: GOOGL), Tesla Inc (NASDAQ: TSLA), and Amazon.com Inc (NASDAQ: AMZN).
Investing in Tech Penny Stocks in 2021
It’s important to keep in mind that tech penny stocks are not all winners. There can be a great deal of risk associated, just like with any other penny stocks. Many investors do not always come out on top, but for those willing to put in the time and effort it can be a very lucrative financial strategy. Never get discouraged when trading, it takes a great deal of experience, and learning from failing is par for the course.
Another factor to consider with penny stocks is high volatility. The intraday movements we see with stocks under $5 are unlike any other market (except for crypto). This is why it is so important to create a watchlist and to have a plan before investing. By following stock price movement, investors can look for patterns and trends in a company or an industry. This leads to a better idea of how to enter or exit a trade.
Given all this information, where do you see tech penny stocks going in the next few months? With this question in mind, here are three tech penny stocks to add to your June watchlist.
3 Tech Penny Stocks To Keep an Eye On
- Luokung Technology Corp. (NASDAQ: LKCO)
- Ideanomics Inc. (NASDAQ: IDEX)
- LightPath Technologies, Inc. (NASDAQ: LPTH)
Luokung Technology Corp. (NASDAQ: LKCO)
Luokung Technology is known as an industry leader in the technology sector in China. As a company, LKCO specializes in interactive location-based services and big data processing. This is a burgeoning industry, gaining substantial traction over the past few years. Location-based technology holds the potential for many groundbreaking applications in the long term. For some context, LKCO provides DaaS, PaaS, and SaaS services for the IoT.
Luokung also offers an array of patented technology for integration into smart cities, smart transportation, and smart industry. These geographically based systems are meant to serve both city-level and industry-level data models. Since June of last year, LKCO has seen an over 90% increase in share price. To put that into perspective, that is nine times the S&P 500 average return.
One of the main focuses of the tech sector is on advancing industries and building out new ones. LKCO is doing so by providing services to major industries. Not every day do we see a penny stock with government-wide contracts to boot. Given this, do you think LKCO is worth adding to your watchlist?
Ideanomics Inc. (NASDAQ: IDEX)
Next on the list of tech stocks to watch is Ideanomics. Founded in 2004, IDEX specializes in the electric vehicle (EV) industry, as well as Fintech. EV’s remain a popular trend that is only increasing in value with the current administration in the U.S. As another tech penny stock, IDEX’s goal is to also provide large-scale upgrades to commercial companies.
It plans to do so by assisting in the adoption of EV usage in large-scale projects. This includes products such as charging infrastructure, EV procurement, and leasing solutions, and more. Utilizing electric vehicles is not only a low-cost option for companies, but it also will help to cement them for a non-fossil fuel-based future.
On June 3rd, IDEX announced that its subsidiary, WAVE, has finished yet another transit authority deployment. This illustrates wider growth with its fleet and larger adoption of its services. The deal will provide zero-emission transportation to Twin Transit Authority (TTA) in Chehalis, Washington. Many mass-transit systems are working to integrate electric infrastructure as a base for transport. This is in keeping with the future as well as a goal of cost and energy efficiency.
“Our organization sees this technology as a critical component of the future of electric bus operations, and we were determined to join forces with a company that was both easy to work with and had successful models of implementation.
WAVE’s inductive charging was by far the most efficient and effective solution, and the easiest for our drivers to operate. Perhaps most importantly, WAVE was willing to be a strategic, long-term partner.”Joe Clark, Executive Director of Twin Transit
Considering its role as both a tech and EV penny stock, IDEX remains incredibly popular among all types of investors. With that in mind, will it be on your watchlist?
LightPath Technologies, Inc. (NASDAQ: LPTH)
The last tech penny stock in today’s list is LightPath Technologies. This company is a leader in vertically integrated global manufacturing and additionally specializes in optical and infrared components for high-level assembly.
Recently, NASA’s Jet propulsion Laboratory (JPL) plans to integrate certain optical elements produced by ISP Optics, a subsidiary of LPTH, into its Mars Curiosity Rover. This is a large accomplishment, as NASA is widely regarded as one of the most advanced scientific agencies worldwide.
On the Mars Curiosity Rover, JPL plans to integrate ISP Optics’ Zinc Sulfide Mid-wave Infrared (MWIR) lens and beam-splitter to the Tunable Laser Spectrometer (TLS) instrument. This will help during the Mars expedition during its exploration.
“LightPath’s global employee base works hard every day to deliver cutting-edge, industry-leading, precision optics that enable our customers to make the most of Photonics technologies and deliver on our long term strategy of improving life experiences by harnessing light.”CEO of LightPath, Sam Rubin
While this is no doubt a groundbreaking project for LightPath, it also has major implications for the future of the company. With this accomplishment under its belt, there’s no telling what LPTH could do next. Given all this, do you think LPTH would be a good addition to your tech penny stock watchlist this June?
Which Penny Stocks Are on Your Tech Watchlist?
Finding the best tech penny stocks to watch is all about thinking outside of the box. In 2021, there are plenty of factors at play that are shifting the trajectory of the market. This includes everything from Covid to fears of inflation and the lasting effects of the pandemic.
All of these are important as they pertain to both volume and increases and decreases in share prices. With this in mind, which penny stocks are on your tech watchlist?