3 Tech Penny Stocks For Your Weekly Watchlist
Tech penny stocks have been heating up over the past year and a half. While trading recently has been full of heavy volatility, there’s no doubting the long-term potential that the tech industry has. And as a result, investors are looking for both short and long-term tech penny stocks to buy. To understand which companies in the tech industry could be worth it, there are a few things that investors need to consider.
First and foremost is, what does the company produce and what sub-industry is it in. Does it manufacture hardware, software, or a combination of both? These questions will help you to identify what long-term value the company could have if any.
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Next, investors should look at the company’s balance sheet. This is in no way specific to tech penny stocks and is something that should be done no matter what the stock is that you’re interested in. When looking at a balance sheet, investors should examine the company’s cash balance, debt, revenue, and a few other important metrics. This will help to show what the company’s financial situation is at the present and what it could be in the near and long term.
While this is not a fully comprehensive list of how to buy penny stocks in the tech industry, it should help to get you started on your search. So, with all of this in mind, let’s take a look at three tech penny stocks to watch this week.
3 Tech Penny Stocks to Watch This Week
Luokung Technology Corp. (NASDAQ: LKCO)
If you keep up with pennystocks.com, you have certainly heard us mention Luokung Technology Corp. in the past. Despite some less than stellar performance in the past few weeks, LKCO stock has remained as a trending penny stock. In its YTD and one-year performance, shares of LKCO are up by around 60% and 140% respectively.
This is a sizable gain and one that reflects the bullish momentum on LKCO stock during that time. For some context, this company offers the Luokuang mobile application, which is a content and service distribution platform. Some of the platform’s offerings include e-commerce, entertainment, advertisement, and information among other stuff.
On September 22nd, the company closed its previously announced registered direct offering of 27,333,300 ordinary shares and warrants to buy 13,666,650 ordinary shares at a combined purchase price of $1.20. Overall, the gross proceeds to Luokung come in at around $32.8 million before fees. These warrants can be exercised for $1.60 per share, and expire three years from the issuance date. It’s worth noting that the exclusive placement agent for the transaction was FT Global Capital Inc.
One thing to keep in mind is that LKCO can be highly volatile. Given both its past and the current state of Chinese tech stocks, it doesn’t look like the volatility with LKCO is going anywhere anytime soon. Now, it will be interesting to see what Luokung announces next. Considering this, will LKCO make it onto your penny stock watchlist?
Gaotu Techedu Inc. (NYSE: GOTU)
Gaotu Techedu Inc. is a company that offers educational services in China. Primarily, the company offers K-12 after-school tutoring services for a variety of academic subjects. These subjects are comprised of English, Mandarin, math, physics, and more. It also offers various other language courses as well. In addition to this, Gaotu operates Weishi, which is an interactive learning platform on WeChat made for instructors and students.
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On September 21st, the company announced its second-quarter financial results for 2021. During this period, its net revenues grew to RMB 2,232.3 million, which represents a 35.3% increase year over year. Its gross billings and paid course enrollments grew an impressive 12.2% and 4.1% respectively year over year as well. For its six-month results, its net revenues and gross billings increased 41.5% and 2.7% year over year. These results are highly encouraging and show solid growth prospects for GOTU as a company.
“In the second quarter, we have upgraded our organizational structure. We will continue to develop in the area of professional education, STEAM education, vocational education, and product digitalization.
In exploring professional education, the public office exam sector has maintained its relatively high level; paid users in the financial certificate sector have increased 4 times year over year.”CFO of Gaotu Techedu, Shannon Shen
Keeping this new info in mind, will GOTU make your list of penny stocks to watch?
Paltalk Inc. (NASDAQ: PALT)
At over $8 per share as of early October, PALT stock is clearly not a penny stock anymore. However, with a five-day and one-month gain of 90% and 135% respectively, PALT stock was a penny stock only a short time ago. Before we dive into why this happened, let’s first look at what the company does. Paltalk is a tech company that offers communications software. It also develops multimedia social applications and secure communication solutions. Its products include Paltalk, Tinychat, and Camfrog.
On September 30th, the company engaged ClearThink Capital to develop and deploy a comprehensive investor outreach and communications program. ClearThink is a consulting firm that generally connects undervalued corporations with sophisticated institutional investors, retail brokerage firms, and much more.
“We believe we are now ready to enter the next growth phase of our business, as we successfully achieved our Nasdaq listing, and have a strong balance sheet with $6.5 million cash and no long-term debt as of June 30, 2021, and subsequently raised approximately an additional $3.5 million in connection with our recent underwritten public offering.”Chairman and CEO of Paltalk Jason Katz
Before this announcement was made, PALT stock was at about $5 per share on average. Only a short time later, shares have surpassed the $8 mark as mentioned previously. With this in mind, will PALT stock make it onto your watchlist this month?
Are Tech Penny Stocks Worth Buying in 2021?
Finding the best tech penny stocks to buy in 2021 can be challenging. However, if you do the proper research and understand exactly what a company does, it can be much easier than previously imagined.
Considering that there are so many tech penny stocks to choose from, finding just a handful will make it much simpler when creating a watchlist. So, with all of this in mind, do you think that tech penny stocks are worth buying in 2021?