Penny Stocks To Watch For October
Are you making a list of penny stocks to watch right now? With the second half of October well underway, eyes are on volatile assets. The thing to remember is that with potential for great rewards can come great risk. Understanding how to manage that risk is key.
Thanks to global economic concerns stemming from things like the Evergrande default, markets pulled back over the last few weeks. The S&P, Dow, and Nasdaq all paired annual gains and dipped to some of the lowest technical levels in months.
A looming government shutdown, an uncertain future on the US economy, and other contributing factors brought fear back into the market. However, you can fast-forward to this week and the stock market is back in rally mode. With this has also come a rebirth in a risk-on environment.
Heading into the second half of October, there are plenty of penny stocks to watch right now. In this article, we’ll have a closer look at 4 gaining momentum this month.
Hot Penny Stocks To Watch
- Alpha Esports Tech (OTC:APETF) (CSE:ALPA)
- Cinedigm Corporation (NASDAQ:CIDM)
- EQONEX Group (NASDAQ:EQOS)
- High Wire Networks (OTC:SGSI)
Alpha Esports Tech (OTC:APETF) (CSE:ALPA)
Take a look at some of the emerging trends in the stock market today and esports is likely one that stands out. While it has gained momentum over the last few years, the pandemic helped speed up the adoption and awareness of this new industry. In fact, Newzoo estimates that just slightly more than 800,000 people had heard about esports in 2015. Now, Newzoo finds that nearly 2 billion people are well aware of the industry itself with over 660 million making up the active live streaming audience.
Alpha made its public debut earlier this year. Since then, the focus based on its series of updates has been on rapid expansion. This not only goes for its breadth of offerings but its userbase as well. In order to achieve this, Alpha set out on a path to use partnerships and acquisitions. In fact, some of its most recent deals have it working with Nasdaq-listed companies like Esports Entertainment Group (NASDAQ:GMBL) and The Nets Gaming Crew, the NBA 2K League affiliate of the Brooklyn Nets.
At the center of its model is Alpha’s GamerzArena platform designed for building an active community of dedicated gamers. Not only can they play and watch games alongside their peers, but they can also compete in tournaments to earn prizes through daily tournaments. According to the company it boasts over 100,000 active users and a rapidly evolving ecosystem. With the rising adoption of esports, viewership, and the like, Alpha has begun gaining attention in the market recently.
Cinedigm Corporation (NASDAQ:CIDM)
Another tech penny stock to watch is Cinedigm Corporation. It has structured a model to play off of the growing adoption of streaming entertainment. The company provides content, streaming channels and technology services to media companies. Unlike companies like Netflix or Hulu, Cinedigm offers more branded content networks. These include the Dove Channel, The Bob Ross Channel, GameToon, FashionBox, Comedy Dynamics, Docurama, among others.
Similar to Alpha, Cinedigm has focused on an expanded reach. In particular, the company has leveraged its stake in popular entertainment genres and pivoted into other areas like non-fungible tokens (NFTs), in addition to signing new distribution agreements and even relaunching some timely subscription services. It’s a lot to discuss but the interesting part is a lot of this recently happened this month.
Cinedigm released a horror-based NFT collection last week in association with Dark Art Emporium. The theme is on famous death scenes from iconic horror movies in the “Kill Scenes” series. On top of this, the company relaunched its Horror Channel subscription, Screambox, both just-in-time for Halloween. Thanks to deal like these as well as the recently updated contract with The Hallmark Channel, CIDM stock has continued climbing. Upbeat sentiment, new innovations like NFTs, and broad popularity surrounding streaming stocks have helped give Cinedigm a place on watch lists this year. As of this week, the year-to-date move so far in CIDM is nearly 300%.
EQONEX Group (NASDAQ:EQOS)
Sticking with the tech trend, EQONEX Group (f/k/a Diginex) takes aim at digital finance. The company’s model includes cryptocurrency exchange EQONEX as well as an over-the-counter trading platform. It also offers a front-to-back integrated trading platform, Access Trading, a securitization advisory service EQONEX Capital, hot and cold custodian Digivault, and asset manager Bletchley Park.
Clearly, broader attention has been on digital assets including cryptocurrency and crypto trading. The prices for things like Bitcoin and Ethereum have skyrocketed over the last few weeks. Pair that with additional access via new platforms and you’ll start to understand why the market has begun looking for companies with exposure to this arena.
Something to keep in mind with any cryptocurrency-related company is that the price of underlying assets like Bitcoin can dictate market momentum. In this case, EQONEX offers services to trade and store cryptocurrencies among other things. With that, it will likely be important to keep an eye on crypto prices if EQOS is on your list of penny stocks to watch.
High Wire Networks (OTC:SGSI)
Last week we discussed a few penny stocks under $1 to watch this month. High Wire Networks was part of that list for a few reasons. Instead of esports, streaming services, or cryptocurrency, High Wire focuses on communications and cybersecurity. Its Overwatch Ransomware Kill Switch product was recently launched and offers a solution for business-grade protection from ransomware attacks. High Wire also inked a deal with a tier 1 network services provider to the tune of $4.8 million to $7 million for the first year. According to the company, this project will have the potential for add-on services, which could also boost the value over time.
While these deals have brought some interest to the company, one of the bigger interests right now is on a potential uplisting. In September, High Wire announced that it is bringing on a new Executive VP of Finance. The reason for this, according to the company, is to accelerate its uplist to the NASDAQ. Thanks to this, speculation has helped spark momentum since the info came out. Now the market waits for more details on the timing of this process.
Are Penny Stocks Worth It?
Like all investment types, penny stocks carry risk. When you’re talking about lower-priced stocks, however, a lot of this risk is based on the DNA of the equities themselves. A slight move of a few pennies can mean a significant percentage change in position value. Meanwhile, you’ve also got to consider that many companies are still in their infancy. So each development or update brings its own set of risks and rewards.
Are penny stocks worth it? Only you can decide on this answer. But I will say that if you can handle volatility and know your way around higher-risk stocks, then penny stocks could be the perfect compliment to anyone’s trading strategy.
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