Are These Penny Stocks On Your Watch List Right Now?
Looking for some penny stocks to add to your watch list right now? You’re not alone. The millions of traders that have flooded the stock market today are on the hunt for the next big winning trade, and for a good reason. Since the March 2020 sell-off, retail traders have gotten familiar with how the stock market works. It’s no longer just a few “mom and pop” investors taking some of their money and putting it to work. Now we’re seeing younger investors come into stocks with a flurry of buying. The difference between retail traders now versus a few years ago: the risk appetite.
You could say that it’s definitely a risk-on market right now. AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME) are clear examples of that. The momentum fueling the sporadic moves in these stocks is based on more than fundamentals. In fact, ask anyone calling themselves an “ape” or “diamond-handed,” and their reason for buying either of these meme stocks is based more on the belief in a social movement than anything else. This has been both good and bad for newbie investors.
[Read More] 8 Top Tech Penny Stocks to Watch in July 2021
Good, because those that were quick to grab hold of the uptrend likely scored big. Bad because those who truly believe in this activist-style investment may be left holding the bag if stocks like these don’t rebound. Today, shares of both GME and AMC stock are in a freefall. In fact, they’ve dropped to some of the lowest levels seen in more than a month. Needless to say, year-to-date, both GME and AMC stock are still up substantially.
Penny Stocks To Watch In July
This leads me to the focus of this article. With the rise of interest in penny stocks, trading trends have adjusted to a more volatile approach to markets. Though many meme stocks have slid, that doesn’t mean there aren’t other companies to watch. Below we’ll take a closer look at a few names that’ve sparked intrigue in the stock market this month.
- Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF)
- Ashford Hospitality Trust Inc. (NYSE:AHT)
- Invivo Therapeutics Holdings (NASDAQ:NVIV)
- Bit Brother Ltd (NASDAQ:BTB)
Penny Stocks To Watch #1: Alpha Esports Tech Inc. (CSE:ALPA) (OTC:APETF)
When you think about Esports, you may only think about some kids playing video games. But this industry is rapidly evolving, and with it comes a lot of the same things that traditional sports come with. Not only endorsements and sponsorships but gambling as well. If the house “always wins,” then being “the house” in this niche could be a step in the right direction. Alpha Esports Tech not only facilitates competitions via its GamerzArena & GamerzArena+ platform, but it has also built a layer in to capitalize on this “iGaming” trend.
What is iGaming? Simply put, it’s betting online. This could be something like online casinos or sports betting. According to Market Insight Reports*, the global esports betting market size is expected to gain market growth in the forecast period of 2020 to 2025, with a CAGR of 13.1%. From a revenue perspective, it’s expected to reach $13.05 billion by 2025. Alpha’s GamerzArena gives users access to online tournaments and special events with enhanced offerings for paying members of GamerzArena+.
According to the company, its data already estimates that 10-20% of GamerzArena freemium users will place head-to-head bets with an average bet size of $2-$10 per math per month. Furthermore, Alpha has cited that at its 10% service fee, that could boil down to revenue of over $5 million just for this one vertical.** That’s assuming a $6 wager per month from just 15% of the company’s 500,000 user goal by the 4th quarter of 2021.
Considering the size and scope of Esports plus pending growth in iGaming, will Alpha Esports Tech be one of the names on your penny stocks list?
2. Ashford Hospitality Trust Inc. (NYSE:AHT)
One of the more popular reopening penny stocks we’ve discussed this year is Ashford Hospitality Trust Inc. The company manages a portfolio of leisure properties under luxury brands and flags, including Hyatt, Hilton, and Marriot, across 17 markets in the U.S. While the travel and leisure sector took a big hit in 2020, reopening has helped with a bit of a recovery.
In the case of Ashford, it has taken its lumps along the way. However, if you take a look at the AHT stock chart, you’ll see that even with the latest pullback, shares are back at a similar level they traded at back in April. This was just before the big move seen in mid-May and early June. Comments from Fed Chair Jarome Powell seem to have brought some optimism to the sector, and in turn, stocks like AHT.
Furthermore, in its preliminary RevPAR results update, Ashford Trust’s President and CEO Rob Hays explained that the company saw “improved preliminary RevPAR results for the second quarter” that were driven by “pent-up leisure demand.” Hays believes that Ashford is well-positioned in its current markets to take full advantage of the recovery in leisure travel.
3. InVivo Therapeutics Holdings (NASDAQ:NVIV)
This week is already an active one for Invivo Therapeutics. The company announced FDA acceptance of its preclinical module, one of 3 required for a humanitarian device exemption (HDE) application. According to InVivo, this shows that the FDA has buttoned up its review of the module in the HDE without further questions.
Now, a review of the remaining 2 HDE modules will dictate the timing of a potential approval decision. Richard Toselli, M.D., InVivo’s President and Chief Executive Officer, said, “It is rewarding to see our continued progress in advancing the Neuro-Spinal Scaffold™ towards our complete HDE submission, and we value the FDA’s continued collaboration with us to help achieve this goal.”
The company’s Neuro-Spinal Scaffold is currently enrolling patients in a 20-patient “INSPIRE 2.0” study. This focuses on the possible advantages of the Scaffold versus the current standard of care. So far, NSPR stock has climbed more than 20% since July 8th.
4. Bit Brother Ltd (NASDAQ:BTB)
One of the exciting things about penny stocks is the ability to see companies at the early stages of development. Sometimes, these companies succeed, and other times they fail. When it comes to the latter, it’s about how a company plans on pivoting to continue driving potential shareholder value. In the case of Bit Brother, formerly Urban Tea Inc., it has just gone through a full rebranding. The pivot was from distributing specialty tea products to operating as a foreign exchange dealer & money transfer agent via its Bit Brother New York subsidiary.
But the latest move, while a bit off-brand from prior updates, has stoked the fires for BTB stock. This week, the company announced a letter of intent to acquire 51% of Angelo’s Pizza with plans for expanding the century-old brand. Bit Brother explained that Angelo’s plans to grow in international markets including Canada, Japan, South Korea, China, Singapore, and Australia, among others.
Xianlong Wu, CEO of Bit Brother, said in its PR, “With Bit Brother’s experience in the catering industry, and Angelo’s Pizza’s rich history, we believe this opportunity will bring growth to all parties involved. Along with our plans to expand a restaurant with decades of success to have a global reach, we will be able to continue to grow our Bitcoin payment business.”
Whether or not this headline has some staying power is to be seen. However, this week seems to have brought more attention to the company in its early stages of rebranding.
Are Penny Stocks Worth It?
Penny stocks are high-risk and high-reward. But for those who can navigate these volatile waters, they can be well worth it. Clearly, anything can happen, and big shifts can happen at any point in time. Following current market trends like tech or reopening stocks can help cut through the noise to find the best penny stocks to buy. At the end of the day, it’s up to you to research and arrive at the best decision for your trading style & portfolio.
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**$5.4 M Revenue per year: Alpha Esports May 2021 Investor Deck