With more retail investors than ever before, social media sites like Reddit continue to fuel both blue-chip and penny stock momentum. The Gamestop fiasco that occurred a few months ago resulted in retail traders finding that they have a real voice in the market.
This idea of social media-based investing is something that is continuing to make market prices fluctuate. On Monday, March 8th, shares of GME stock shot up by over 40%, ending the day at almost $195 per share. Similarly, shares of other Reddit penny stocks also shot up big during the session. While no news came out regarding these companies, the social media frenzy appears to be the source.
This has institutional investors worried, retail traders are using this to their advantage to find the best penny stocks to trade. This does not mean to invest in something because it is on the front page of Reddit. But rather, large volatility spikes and dips can present investors with a unique opportunity. Though this may not be everyone’s style, with penny stocks, volatility is key.
Also, the $1.9 trillion stimulus package continues to get closer to becoming a reality. And on top of that, the U.S. showed stronger than expected jobs growth, adding almost 380,000 jobs last month. With this positivity, the hopes are that the stock market will see more bullish interest. All things considered, here are four penny stocks to watch as retail investors make a comeback.Penny Stocks to Watch
- Invo Bioscience Inc. (NASDAQ: INVO)
- BSQUARE Corp. (NASDAQ: BSQR)
- Chico’s FAS Inc. (NYSE: CHS)
- Phunware Inc. (NASDAQ: PHUN)
Shares of the biotech company shot up late in the session on Monday. Before we get into why let’s take a closer look at Invo Bioscience. The company produces medical devices used in the treatment of infertility in women. This includes its INVO Procedure, which is a more natural way to perform incubation. Its leading product, known as INVOcell, is a patented device known as an Assisted Reproductive Technology or ART. It is an intravaginal culture system and can inseminate eggs for embryo development. This is an alternative to traditional in-vivo procedures and can be much more cost-effective and available for patients.
On March 8th, Invo announced an amendment to its commercialization agreement with Ferring Pharmaceuticals. This amendment will allow Invo to increase the number of company-owned clinics with fewer geographical restrictions than before. Steve Shum, CEO of Invo, states that “we are pleased to have successfully completed this amendment with our U.S. partner, Ferring. We believe it reflects the strength of our ongoing collaboration and shared commitment to expand the use of INVOcell in the U.S. We also believe our dedicated clinic approach is an important complementary channel to accelerate awareness and market adoption of INVOcell.”
Additionally, the contract involves adjusting the 2020 minimum contractual product placement requirement, meaning that Invo will receive a $501,000 order from Ferring during Q1 2021. With this exciting news in mind, INVO could be one of the penny stocks to watch this week.BSQUARE Corp.
One of the more interesting tech penny stocks is BSQUARE Corp. The company is a producer of technology that is in use for powering intelligent devices and systems. This includes IoT and intelligent systems that are seeing widespread adoption. Additionally, it works in cloud-enabled data facilitation. With its large software base, the company offers its customers ways to produce new revenue streams and business models while lowering costs and improving operational efficiency.
Recently, the company stated that it plans to release its Q4 2020 earnings on March 18th. Ahead of this, let’s take a look at what could be in store. A few weeks back, BSQUARE announced an extension of its agreement with Itron Inc. (ITRI). Itron, for those who don’t know, is a provider of software to the utility and city infrastructure market. With this agreement, BSQUARE will offer its device management software to Itron’s distributed intelligence app store.
Don Reeves, SVP of Outcomes at Itron, stated that “we are pleased to continue our collaboration with BSQUARE to accelerate development and operation of the DI app store, which enables our customers to easily access innovative applications from our partner ecosystem.”
In its third quarter, BSQUARE was able to improve its EBITDA and reduce its cash utilization. While it was slightly affected by Covid, Ralph Derrickson, CEO of BSQUARE, stated that “Covid-19 did not derail us. The investments we made in our large Edge-to-Cloud customer relationships are bearing fruit.”Chico’s FAS Inc.
Chico’s operates a few trendy women’s clothing brands. This includes its Chico’s store as well as White House Black Market, Soma, and TellTale. Despite Covid lessening the demand for in-person retail, sales of clothing have shot up dramatically. This is due to the use of e-commerce platforms. On March 8th, White House Black Market announced a national partnership with the organization Ladies Who Launch. Kimberly Gravel, SVP of Marketing at Chico’s, stated that “as a brand that has served women for over 35 years through style for all aspects of her life, White House Black Market is committed to helping women succeed. Partnering with Ladies Who Lunch is a natural extension and further showcases our ongoing commitment to this mission.”
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In its quarterly results posted a few days ago, the company pulled in a net loss of $79 million or $0.68 per share. While digital sales across its brands shot up by almost 70% in some cases, sales at its physical locations declined. With over 1,300 stores as of January 30th, the company plans to shift its business to be more e-commerce centered. This involves closing up to 16% of its remaining stores within the next three years.
This is an important cost-saving measure for the company and could prove beneficial to its business model overall. While its balance sheet was not the most enticing, the company is working to build a better business for the long term.Phunware Inc.
One of the penny stocks that we’ve been covering for quite some time is Phunware Inc. Ahead of its scheduled presentation at the 33rd Annual Roth Conference, Phunware is working hard to succeed in its Multiscreen-as-a-service (MaaS) business model. This includes a large range of enterprise cloud platforms that allow companies to manage and monetize mobile applications.
Also, it offers location-based services, mobile engagement insights, and content management via its Software Development Kits or SDKs. The company states that it has more than 1 billion users touching its platform every month, which is no small feat. Only a few days ago, Phunware announced that it was selected by Dignity Health Yavapai Regional Medical Center to provide location-based services software.
Alan Knitowski, CEO of Phunware stated that “Dignity Health’s leadership team has embraced digital transformation and is setting the standard for patient care by leveraging our cutting-edge, state-of-the-art technology. We are excited to work with the team at YRMC, which represents the 40th deployment of our MasS LBS software for Dignity Health.”
In light of its upcoming presentation next week and momentum in certain market niches, will PHUN be on your list of penny stocks to watch?