4 Penny Stocks to buy [Or Avoid] in April 2021
Penny’s stocks and cryptocurrency are the focus at the moment. To give a bit of context, let’s talk about what these two strengths are. For one thing, penny stocks are any company trading under $ 5. While you can buy penny stocks on Robinhood and other platforms, many brokers do not offer access to OTC or OTC trading. This is where the majority of penny stocks are located.
It should be noted that stocks under $ 5 can be very volatile due to both high speculation and low price. However, the opportunity to find potential big winners can be much greater than with blue chips.
Going forward, cryptocurrency is an asset class that has emerged over the past few years. While the popularity of crypto started with Bitcoin, many other cryptocurrencies are receiving just as much attention. This includes the rise of altcoins like DOGE Coin and others. Investors should also consider that DOGE Coin hit an all-time high above $ 0.39 on April 15. Over the past three months, the value of DOGE has increased by well over 4,050%. This is astounding and makes DOGE a unicorn in the investor market.
While penny stocks have experienced equally large increases in value, this usually happens over a longer period of time. If we take all of this into consideration, we see that penny stocks could be correlated with cryptocurrency. Because these cheap assets are relatively similar in price, they can often grow in tandem with each other. With that in mind, here are four penny stocks to buy or avoid in April 2021.
4 Penny Stocks To Watch As Crypto Grows In Popularity
Ebang International Holdings Inc. (NASDAQ: EBON)
SOS Ltd. ADR (NYSE: SOS)
Astrotech Corp. (NASDAQ: ASTC)
Uxin Ltd. (NASDAQ: UXIN)
1. Ebang International Holdings Inc.
If you haven’t heard of Ebang International Holdings, you probably aren’t alone. However, the company has made some significant gains over the past few months that may be worth considering. Before we get into the why, let’s discuss what EBON does.
Through its various subsidiaries, Ebang researches, designs and develops circuit chips used in Bitcoin mining. Its products are offered in the United States, China and Hong Kong. In addition to chips, it provides mining machine hosting services that allow its users to conduct mining operations from anywhere in the world.
In addition, Ebang is working on the development of telecommunications products, including fiber optic multiplexers, transmission network products, and other IoT-related devices. Its Bitcoin mining products are sold under the Ebit brand, where it serves both the Bitcoin and telecommunications industries.
Over the past few months, Ebang International has taken several big steps forward. This includes in November when he obtained an exclusive license for his AsicBoost patent. This patent increases Bitcoin mining performance by up to 20%. Because Bitcoin is so energy intensive, businesses are constantly looking for ways to increase their efficiency. So increasing performance by 20% is an important step.
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In addition, in February of this year, the company completed the design of a new chip capable of simultaneously mining Litecoin and DOGE Coin. With the price of DOGE Coin rising dramatically on April 16, investors intend to find captions that relate. Given all of this, is EBON stock worth watching?
2. SOS Ltd. ADR
Similar to Ebang, SOS Ltd. is a technology company closely related to cryptocurrency. It offers marketing data, technologies and solutions for emergency services and individual members. Within its platform are offerings for markets such as medical rescue, cooperative cloud products, big data, intelligent software and hardware, and information cloud products.
You might be wondering what the role of SOS is in cryptocurrency. Over the past few months, it has evolved heavily into a crypto mining company. Although it operates on emergency services, SOS is now considered a provider of blockchain and big data solutions. Its member base includes more than 20 million people in China.
During its last quarter, it announced that it had mined 42 Bitcoins and 916 Ethereum. Given that Bitcoin hovers around $ 60,000 as of April 15, that alone represents over $ 2.5 million in revenue. Additionally, during the first quarter, it received the third batch of 5,464 cryptocurrency mining platforms. When fully operational, these platforms will dramatically increase SOS ‘overall Bitcoin and Ethereum mining capacity.
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“These mining results reflect the first quarter of operations, and the number of Bitcoins and Ethereum is higher than what we originally expected. We expect our production to increase over the next few quarters as we complete the installation of our third batch of mining rigs and have quarterly shutdowns.
CEO of SOS Ltd., Mr. Yandai Wang
Given its important role in the cryptocurrency industry, does SOS stock have a place on your watchlist?
3. Astrotech Corp.
Astrotech Corp. is another tech company that works to build scalable businesses that use innovative technology solutions. The company works on the manufacture of products through its subsidiary BreathTech. The main device he is currently working on could provide early detection of lung disease.
In early April, Astrotech announced that BreathTech had signed an agreement with Cleveland Clinic to develop a rapid Covid-19 test that only uses a patient’s breath. The product, known as BreathTest-1000, “aims to strengthen and expand our continuing expertise in the breathalyzer field, applying their technology to Covid-19,” according to Raed Dweik, MD, president of Cleveland Clinic’s Respiratory Institute. .
BreathTech CEO Thomas Pickens said: “We are very pleased to launch this study under the leadership of one of the most experienced respiratory disease detection institutions in the world. Due to the many mutations in the Covid-19 virus and other issues, we believe society will need to continue to exercise greater caution for the foreseeable future. “
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In addition, Astrotech recently closed a binding offer to purchase for $ 37.3 million. This should help fund future efforts and general business needs. Although Astrotech itself does not engage in cryptocurrency-related activities, the focus on crypto has helped advance the tech industry. With its outlook in mind, is ASTC a penny stock to watch?
4. Uxin Ltd.
Uxin is another tech company that could gain attention due to the rise of crypto. It functions as an online used car dealership, offering a large number of deals. This includes value-added products and services such as domestic logistics, delivery, title transfers, etc.
On April 16, UXIN shares jumped around 8% in intraday trading. While there is no specific reason for this, it could be attributed to news announced earlier today. News broke early on Friday that Rich Way Global has filed a 13G case, which is an institutional position report. This means that the institution (Rich Way Global) bought 5.9% of the outstanding Uxin shares. This is a big problem because it shows the institutional confidence in Uxin’s activities.
In addition to this announcement, the company recently revealed a potential investment of $ 300 million in early April. According to the press release, two large funds based in Asia have agreed to negotiate and potentially enter into definitive agreements with Uxin through first convertible preferred shares.
While not much else is known about this transaction, I hope Uxin will report more information in the weeks or months to come. With funding of $ 300 million, Uxin could embark on many new business opportunities. Whether that makes UXIN a penny stock to watch is up to you.
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