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Penny Stocks or Blue Chips? Which Should You Watch in 2021?

Are penny stocks or blue chips right for you? Here’s 3 small-caps to help decide

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3 Penny Stocks to Watch That Could be Better Than Blue Chips

With June in full swing, penny stocks are the focus of many investors right now. And, there are some good reasons why that is the case. For one, because penny stocks are so volatile, they tend to allow for large profits (and losses). Over the past few months, volume in the market has been extremely low for blue chips. 

So, many investors have turned to penny stocks to fill the gap. The next reason is that penny stocks are some of the most speculative financial instruments out there. When news drops about a specific event, company, or industry, corresponding penny stocks tend to follow suit. This is standard and can be a great benefit if you know how to use it. 

Lastly, the opportunity with penny stocks is like no other. Because all penny stocks are under $5, not only are they cheap to invest in, but we tend to see larger moves than with blue chips. For example, it’s common to see a penny stock to watch push up in the double-digit percentage points over a day. However, this is not something we see often with blue chips. 

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While the two assets are comparable, they are often used by different investors for different purposes. Before investing, consider what type of trader you may be, and what your goals are. With all of this in mind, let’s take a look at three penny stocks to watch that could be better than blue chips. 

3 Penny Stocks to Watch in June 2021 

  1. Borqs Technologies Inc. (NASDAQ: BRQS
  2. China Xiangtai Food Co. Ltd. (NASDAQ: PLIN
  3. Remark Holdings Inc. (NASDAQ: MARK

1. Borqs Technologies Inc. (NASDAQ: BRQS)

Borqs Technologies Inc. is a tech penny stock that is showing higher performance today. For this reason, let’s go into depth on what Borqs Technology does. BRQS focuses on development services, software, and products that provide Android-based smart devices and cloud service solutions. The demand for these services has jumped dramatically during the pandemic. With more people on their phones than ever before, service providers like BRQS are seeing increased momentum.

In early May big news dropped when the company completed a $23 million private placement to support its growth. The proceeds are will be put to use for order procurement and 5G project investment. It states that it will invest in the Borqs Huzhou 5G Project for a research and development center as well as manufacturing facilities in the same area. This is expected to be completed by end of the second quarter of 2021. While it isn’t only a 5G penny stock, this has become a large part of its operations.

Around one month ago, BRQS stock saw a steep decline, presumably alongside the entire market at that time. However, since then, shares of the tech company have shot up to right under the $1 mark, indicating potential bullish momentum. Could this be the turnaround point for this company? We can’t say for sure. But, it’s worth noting that the company’s volume is much higher than its average right now. Considering this, is BRQS a tech penny stock that could make your watchlist?

2. China Xiangtai Food Co. Ltd. (NASDAQ: PLIN)

The next company on this list is China Xiangtai Food Co. Ltd. We’ve discussed PLIN stock many times in the past few months for a variety of reasons. One of which is the rapid rise in value that PLIN stock has witnessed over that time.

But what exactly does China Xiangtai Food Co. Ltd. do? Well, this company engages in the slaughtering, processing, packing, and distribution of a variety of food products. Its primary product is pork, but it offers beef, chicken, lamb, duck, and rabbit meat as well.

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Despite its almost 10% gain today, there is no company news in support of this. Instead, this momentum could potentially be attributed to the pandemic. In China, the pandemic has nearly ended, and much of the countries operations have resumed. Because of this, food production and export could move back toward pre-covid levels, increasing demand for PLIN’s products along the way.

While China isn’t out of the woods yet, the decline in case numbers it is witnessing could bring the need for intense food production to high levels. While this is purely speculation, it is a probable cause as to why we’re witnessing increases in PLIN stock’s value. Additionally, this company is also frequently mentioned on subreddits like r/pennystocks and r/robinhoodpennystocks. With all of this in mind, will PLIN make it onto your penny stock watchlist?

Remark Holdings Inc. (NASDAQ: MARK)

Remark Holdings is a communications penny stock that pushed up by more than 7% by EOD on June 4th. Remark is a company that develops and deploys artificial intelligence solutions for businesses and software developers. It owns and operates an online media property that focuses on a luxury beach lifestyle. Its products are sold under the Remark AI brand in the United States, and the KanKan brand in China.

In mid-May, Remark Holdings released its fiscal first-quarter financial results for 2021. The company’s U.S. revenue increased by more than half a million dollars in the period. Its revenue from China increased by more than 10 times. This is a staggering gain, and one that could continue to be reflected in its upcoming financial reports. 

“Our first quarter was highlighted by substantial increases in revenue coming from the United States and China, despite each country’s slow emergence from COVID-19 lockdowns that dampened business in the first quarter of last year.

Momentum from last year’s second half continued with first-quarter U.S. revenue increasing by over half a million dollars and revenue from China increasing by more than 10 times compared to the first quarter of 2020.” 

The Chairman and CEO of Remark Holdings, Kai-Shing Tao

The company believes that this revenue growth has set a “positive tone” for 2021. Now, the company will be holding a special shareholder meeting on Thursday, July 8th. Just 4 days before the meeting, MARK stock is up more than 7.5%. With all of this information in mind, will MARK stock make your watchlist this month?

Penny Stocks or Blue Chips? The Choice is Yours 

When deciding between penny stocks and blue chips, the choice is ultimately up to you. Both of these financial instruments have different purposes, but both can be potentially profitable. The best course of action is to fully understand what your investment goals are, and which stocks may be best for you.

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While not every penny stock or blue chip will be a winner, with careful research and a slew of information, it can be much easier to find the ones that could be. With this in mind, the choice is yours. Penny stocks or blue chips?

By J. Samuel

As a trader and expert finance writer, I enjoy finding new and emerging trends that may have been overlooked by the average masses. If there's one thing that a trader or investor wants to know, it's how to use valuable data to their advantage. My expertise is in uncovering this data and compiling it into actionable information. As a professional finance writer, I've contributed to many of the top finance platforms and pride myself on researching factual, publicly available information and using that in all of my articles.

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