Penny stocks have been quite interesting to watch. Some investors will shy away from them due to their volatility. While these assets are inherently volatile, there is also much room to make a profit. It is not uncommon to see some penny stocks go up more than 100% overnight. At the same time, the inverse situation could happen as well. As long as you know what you are doing, there is no reason you should not add penny stocks to your watch list.
Penny stocks often follow the trends of different industries and sectors. In this article, we will focus on several hot market niches that have helped boost momentum. In the last year, things like tech stocks, consumer discretionary, and even biotech have experienced a price explosion over the last 12 months.
Something to note about recent trends is that the broader markets recently experienced a much higher degree of bearish selling pressure. But the exciting thing about stocks under $5 is there there are at least a handful trending higher as markets pullback. With this in mind, here are a few names to know in March.Top Penny Stocks To Watch
- MICT Inc. (NASDAQ: MICT)
- Teekay Corporation (NYSE: TK)
- Allied Esports Entertainment Inc. (NASDAQ: AESE)
The first company on this list of penny stocks, MICT Inc., is a tech penny stock. MICT has mobile computing solutions and trading technology for the fintech sector. It operates under the subsidiaries GFH Intermediate Holdings Ltd. and Micronet Ltd. The company focuses on building its online brokerage for equities trading, wealth managing, and insurance sales in foreign markets. In fact, late last month, the company received the Hong Kong Securities and Futures Commission’s approval to complete the acquisition of Huapei Global Securities, Ltd. This offers the company a licensed platform to offer trading in Hong Kong, U.S., and China exchanges for its Chinese and Hong Kong clientele.
On March 4th, MICT announced the closing of a $54 million registered direct offering. The offering is for 19,285,715 shares of common stock and 19,285,715 warrants to purchase the same amount of shares at $2.80. After this announcement, MICT stock price increased about 5%. Further to this, MICT’s subsidiary Micronet received a commercial order for its SmartCam Connected product. It received a purchase order for 2,000 units of the product from one of the largest telematics service providers in the U.S. This order is worth about $900,000.
Darren Mercer, the CEO of MICT, said, “Whilst our focus is on the continued development of our three main fintech verticals, we are very pleased to see Micronet’s ongoing success and progress towards gaining market share in the fast-growing video telematics sector, which continues to justify our investment in the company.” Since the announcement, MICT stock has increased by about 31%.Teekay Corporation
Now let’s talk about Teekay Corporation, an energy penny stock. Teekay has had quite a good 2021 so far. This is a company that transports oil and gas worldwide. It operates liquefied natural gas carriers, offloading units, conventional tankers, floating production storage, and more. It has a fleet of about 154 vessels, including chartered-in vessels. Its purpose is to serve energy and utility companies and large oil and LNG consumers, oil traders, and many more. This energy penny stock is up 51% in 2021 as of March.
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This month Teekay declared cash distributions on Series A and Series B preferred units. These cash distributions were declared at $0.5625 per unit on Series A and $0.5313 per unit on Series B preferred units. The distributions are payable on April 15th, 2021, to all unitholders on record by the end of March.
Furthermore, this quarter, Teekay released its financial results for the fourth quarter and full-year 2020. Its adjusted net income attributable to shareholders’ fiscal year 2020 saw significant improvement up to $83 million. The corporation’s adjusted EBITDA went up to $1.1 billion, a 14% increase year over year. With the likely scenario we see energy consumption tick up with economies reopening, will companies like Teekay be worth a closer look?Allied Esports Entertainment Inc.
Allied Esports Entertainment is, as its name suggests, a provider of Esports entertainment. On Thursday, March 18th, it announced a 3-day esports event based in Sugar Land, Texas. This event will consist of a similar layout to its “Saturday Night Speedway” events which have taken place in Las Vegas numerous times. Jud Hannigan, CEO of Allied Esports, stated that “we have the unique ability to take our mobile esports trucks on the road and give fans across the country the chance to compete in a one-of-a-kind tournament setting as an extension of our Las Vegas arena experience.”
This is an interesting proposition because it could add a new layer to AESE’s business model. If this event goes well, the company could continue to utilize this mobile entertainment method moving forward. Over the past few weeks, Allied Esports has been working with Bally’s Corp. for the latter to acquire the assets of the World Poker Tour. Bally has offered $90 million in cash upon the deal’s closing, which AESE sees as a “Superior Proposal” over another offer it had from Element Partners LLC.
This acquisition would offer AESE a great deal of capital in a time when that is in need. Because of the pandemic, Allied Esports arenas have not seen as much traffic as before Covid. To continue bringing in capital, the company sees the sale of its World Poker Tour as necessary. In combination with mobile events, this move could help to see Allied Esports through the end of the pandemic. And if cases continue to decline, AESE could begin to hold in-person events. Whether this makes it a penny stock to watch is up to you.Are Penny Stocks Too Risky For You?
This is a question you should ask yourself before you even start putting a watch list together. One of the big reasons is that these cheap shares can present incredibly volatile stock market scenarios. One minute a stock could be up 15%, and the next, it could be down 30%. It all goes hand-in-hand with what I discussed above, where big swings in price are among the most attractive things about penny stocks. Don’t forget that it’s not always in the direction you want. In this case, it’s best to start by learning how to day trade first, get a good understanding of how to navigate the market, and capitalize on opportunities.