3 Penny Stocks to Add to Your Early April Watchlist
If you’re thinking about buying penny stocks in April, there are a few things you should know. These are widely applicable and will help you throughout all of your trading.
What to Know About Trading Penny Stocks This Month
First, it’s important to understand what penny stocks are. Penny stocks are generally defined as shares that trade for less than $5 per share. They’re often referred to as “micro-cap” stocks due to the small market capitalization, however, this is not always true.
Second, penny stocks are notoriously volatile and risky. It’s well known that penny stocks can be subject to significant price fluctuations, and there’s often large price swings that occur with little to no notice. On top of this, we see that penny stocks are extremely speculative. This means that they will move based on news, announcements, or company updates. For that reason, it is crucial to stay as up to date as possible on what is going on in the stock market and with individual penny stocks.
The third thing to keep in mind is to always have a trading strategy. When buying penny stocks, you need to have an exit plan and a stop-loss in place. This will help protect you from the inherent risks associated with penny stocks.
Finally, always remember to do your own research. This cannot be underscored enough. When buying penny stocks, there is a great deal of misinformation out there. This could be social media discussion or anything similar. So, always know exactly what the company does and what you’re looking for.
So, if you’re interested in buying penny stocks in April, there are a few things to consider. With all of this in mind, let’s take a look at three that investors are watching right now.
3 Penny Stocks That You Should Know About This Month
Transocean Ltd. (NYSE: RIG)
Transocean is a penny stock that we have covered multiple times in the past few weeks. And with the recent rise in energy prices, it’s clear that RIG stock is in focus for investors of all types. In the past YTD period, shares of RIG stock have shot up by over 40%.
The most recent news from the company came on March 29th. On the 29th, the company announced its investment in Ocean Minerals Ltd. The goal with this investment is to work on new technologies for collecting nodules from the seabed. And, this puts Transocean further into the renewable energy industry.
“The technical challenges associated with the efficient recovery of deepsea polymetallic nodules represent an opportunity for Transocean to leverage our unique offshore expertise in support of the rapidly emerging energy storage market.
We are excited to work alongside Ocean Minerals to help support efforts to achieve a lower carbon energy economy and meet the growing global demand for critical minerals. A mixture of all energy sources will be required to meet future global energy demands, and our work with Ocean Minerals is another way for Transocean to continue to provide essential offshore energy services.”The CEO of Transocean, Jeremy Thigpen
This is great news for the company and continues to show why so many investors are interested in RIG stock. With that in mind, will it be on your penny stocks watchlist?
Vinco Ventures Inc. (NASDAQ: BBIG)
Another penny stock that investors have been watching recently is BBIG stock. In the last month, we’ve seen a sizable bullish turnaround with Vinco Ventures, as it has gained over 20% in value. While BBIG has been on a wild trajectory in the last year, this is to be expected with a company that moves as quickly as Vinco Ventures.
The most recent news from Vinco Ventures came on February 16th. On the 16th, the company announced the acquisition of AdRizer. For those unfamiliar, AdRizer is a revenue attribution and audience acquisition based ad platform.
“With the AdRizer acquisition complete, we are now focused on deploying AdRizer’s technology platform to monetize the content creation and streaming capabilities of the Lomotif short form video app through digital advertising.”The CEO of Vinco Ventures, Lisa King
This is big news for Vinco Ventures and could be a large pull for potential traders. Considering that, does BBIG deserve a spot on your list of penny stocks to buy?
ContextLogic Inc. (NASDAQ: WISH)
While WISH stock has not had the best performance in the last few days, it has begun to see a small bullish turnaround from its one year drop of over 80%.
Now, it’s worth noting that WISH stock has had a rough few years. And with its price at around $2.10 per share, it’s clear that there could be some value if the company can get back on track. The main news with ContetLogic comes as the company does not have a solid financial base to work off of.
With a net loss in its Q4 earnings of $58 million, the company is improving. However, it is still burning a large amount of cash. With no profitability in the past few years, WISH needs to get its act together in order to be worth investing in. However, with its current highly volatile position, it could be an interesting swing trade. Whether this makes WISH worth buying or not however, is up to you.
Are Penny Stocks Worth Buying This Month?
Whether penny stocks are worth buying or not this month is completely up to you. During the last few weeks, the market has been extremely volatile with both bullish and bearish sentiment abound.
However, those that swing trade have been able to take advantage of these moves to make money with penny stocks. If you have a proper trading strategy, profiting with small caps is entirely possible. So, with this in mind, do you think that penny stocks are worth buying this month or not?