3 Penny Stocks to Watch Following the AMC and Bitcoin Rally
Meme stocks are back, and with it has come more bullish sentiment for penny stocks as well. Right now, popular stocks such as AMC Entertainment Holdings Inc. (NYSE: AMC) and GameStop Corp. (NYSE: GME), are both seeing large five-day rallies of 24% and 32% respectively. If you’re unfamiliar with this situation, let’s go over why it matters.
Why Did GME Stock and Bitcoin Shoot Up?
Back in January, groups of online traders came together to beat out massive institutional short positions on GME stock. This resulted in the current 12 month gain for GME of over 4,050%. After this, traders moved to AMC, as their favorite entertainment company was moments away from Chapter 11. With AMC stock, we see a slightly smaller but still respectable, 720% 12 month gain.
So, why does this matter? Well, this resulted in a complete paradigm shift in the stock market, showing retail traders that they could influence how the market moved. And now in August 2021, these two meme stocks as they are colloquially known, are once again going to the moon.
In addition, we saw Bitcoin’s price shoot up during intraday trading as well, which often correlates with meme stocks. And to add another layer, when these stocks move, we sometimes see penny stocks showing sympathy momentum as well. So, with all of this in mind, let’s take a look at three penny stocks to watch as AMC stock and Bitcoin climb.
3 Penny Stocks to Watch With Bitcoin and GME Pushing Up
Aditxt Inc. (NASDAQ: ADTX)
One of the biggest gainers of the day so far is Aditxt Inc. By midday, shares of ADTX stock had shot up by over 70% to over $3.37 per share. This is a major gain for the company and one that is backed by news that came out earlier in the trading day.
Right before the market opened on August 25th, Aditxt announced that it signed a letter of intent or LOI to acquire the Target Company. This company sells an antiviral oral therapy used in treating Covid-19, and Aditxt believes it will benefit greatly.
Currently, the Target Company has emergency and compassionate use, standard of care, and full approval in several countries around the world excluding the U.S. and Canada. Under the deal, Aditxt will provide a $6.5 million loan and it will provide common shares to make up to 50% of Aditxt’s outstanding share after the deal closes.
“We have been eager to grow the global footprint of Aditxt’s immune therapeutic and monitoring platforms. We are also excited about this potential transaction, which, if completed, would be a complementary strategic fit with our company.”Amro Alban, CEO of Aditxt Inc.
Considering this big news and its rise today, ADTX stock could be worth keeping an eye on. However, investors should understand that ADTX stock can be quite volatile. But, if this is something you’re interested in, it could be an interesting addition to your watchlist.
Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is an entertainment penny stock that we’ve covered numerous times in the past few months. And, as a provider of entertainment services, its correlation to the rise of AMC stock is clear. In the past five days, shares of CIDM stock have shot up by over 12% to its current price of just under $1.75.
While this explains yesterday’s gain, today, Cinedigm made an exciting announcement. On August 25th, Cinedigm stated that four of its channels will now be available on the Roku Channel free of charge. This includes Real Madrid TV, So…Real, The Only Way is Essex and the El Rey Network.
“The Roku Channel continues to grow as a go-to destination for streaming, enabling users to discover and enjoy a wide variety of programming. We are thrilled to help make such a variety of new channels that we know will appeal to each enthusiast audience available on the Roku Channel.”Daniel Schneider, SVP of Revenue at Cinedigm
This is big news for the company, and highlights its top position in the digital entertainment industry. And, with a variety of other channels as well, Cinedigm continues to show why investors are interested in it. With all of this in mind, will CIDM stock make your list of penny stocks to watch in August?
Vinco Ventures Inc. (NASDAQ: BBIG)
Another big gainer of the day so far is BBIG stock, pushing up by over 6.4% at midday. Today, Vinco announced its Q2 2021 earnings for the period ending on June 30th, 2021. In the results, the company stated that Vinco, ZASH Global Media and Entertainment, and ZVV Media Partners, LLC, completed their acquisition of an 80% stake Lomotif.
In addition, it sold over 1,000,000 copies of Tory Lanez’s album “When It’s Dark” on the E-NFT.com platform, which makes it the first album to go platinum on the blockchain. Financially, Vinco brought in revenue of around $2.69 million which is less than the previous year’s same quarter. The company states that its revenue dropped due to the drop in sales of PPE products during that time. However, it did manage to push up its gross margin to 36% from 22.5% in Q2 2020.
This is great news, as higher margins mean the potential for better profitability in the long term. Because Vinco has hands in everything from blockchain to NFTs and PPE, it remains a very broad penny stock to watch. Whether it deserves a place on your watchlist, however, is up to you.
Which Penny Stocks Are You Watching Right Now?
After the Bitcoin and AMC spike today, many investors are enthused about the near future with penny stocks. While there are hundreds to choose from, it can be difficult given the sheer breadth of options out there.
But, with the right research on hand and a commitment to your own trading strategy, making money with penny stocks can be doable. Considering this, which penny stocks are you watching right now?