Whether you love penny stocks or hate them, they’re part of the bigger conversation in the market right now. Many major outlets from Bloomberg to Yahoo Finance are realizing what many readers have known for a long time. Penny stocks are on fire right now. The droves of new traders that came into the stock market last year have created a snowball effect with yet more and more new traders finding stocks as a means of making money. One of the most popular apps they’ve used is Robinhood. While the opinion on the app is mixed, there’s no denying that its ease of use and quick set-up time has made it simple to start day trading.
But something that it hasn’t offered is education. This is where we’ve seen plenty of these new Robinhood traders lose big money, even bragging about it on sub Reddits because they believed the hype more than other factors like fundamentals or technicals. Earlier today, we released an article about 7 key principles that new traders should keep in mind. One of the repeated themes throughout that article was that making money is the goal of trading.
It sounds crazy, but when dealing with volatile stocks like these, it’s easy to get caught in the hype. It’s also easy to find yourself in the mindset of “maybe it will go higher” or “if it goes up another $X, I’ll make $Y.” At the end of the day, there are no guarantees in the market. If there’s profit to take, there’s no reason to ignore that. Also, don’t forget that if a trend is truly as strong as you expect, there should be additional opportunities later on to re-enter a winning trade.Making Your List Of Penny Stocks
So, where does that leave traders this week? Due to the holiday weekend, we’re looking at a shortened week. If you’re asking, “Is the stock market open on Monday?” the answer is no. But that doesn’t mean you can’t take advantage of the downtime. What better way to use some of this free time than to put together your list of penny stocks for the beginning of the week?
When trading resumes on Tuesday morning, you’ll at least have a starting point to go off of. With this in mind, we’ve got a list of a few tech companies that’ve gained momentum recently. Even though they are lower in price, trading below $3, are they the best penny stocks to buy this week? I’ll let you decideRobinhood Penny Stocks To Buy Under $3
- UTStarcom Holdings Corp. (NASDAQ: UTSI)
- Vislink Technologies Inc. (NASDAQ: VISL)
- SeaChange International Inc. (NASDAQ: SEAC)
With more 5G than ever before, companies like UTStarcom Holdings are working to capitalize on this burgeoning market. As a 5G penny stock, UTStarcom works as a telecom infrastructure provider. This means that it develops and commercializes the technology that backs everything from mobile streaming to fiber optics and more. Based in China, UTStarcom is working to offer its telecom services in many countries throughout Asia. This includes Japan, India, Taiwan, and others. On January 11th, exciting news came out, stating that UTStarcom would be working with a mobile operator in Europe. The goal is to supply a large range of networking software as well as 5G infrastructure.
In the deal, UTStarcom will utilize its new TN704E metro access platform to help optimize network capacity at existing sites. This deployment is estimated to take around three years to complete. With Phase I already underway, this could continue to be a big opportunity for UTSI.
With more people at home than ever before, the demand for high-speed internet has increased greatly. This demand is being felt in Asia, Europe, and around the world. Since December 1st, shares of UTSI stock have shot up by around 60% so far. With 5G in focus right now, it will be interesting to see how the company leverages its current projects to expand in the 5G ecosystem.
Communications stocks and the broader technology market itself have seen a strong surge of interest recently. Thanks to the continued interest in world headlines, companies within this niche have spearheaded a new initiative that involves a fresh spin on information technology. Vislink provides live entertainment and high-quality communications hardware to its global customers. Though it hasn’t been the biggest mover in the industry, the VISL stock price has managed to climb as much as 84% over the last 30 days.
We’ve reported on Vislink many times in the past. One of the things I can personally say is that the company doesn’t release too many headlines. However, it is one of the more vocal public companies on Twitter. This seems to have become the center of focus for traders following Vislink’s latest milestones. From providing first responders with actionable data to offering surveillance & wireless communications, Twitter is where the company has chosen to report these updates.
Right now, several things have influenced the public’s interest in the company. First, the heightened threat levels in D.C. has many stocks with exposure to surveillance gaining attention. Second, Vislink recently gave an update on a new data infrastructure platform, its IP Link 3.0. This offers benefits to a wide range of end-users, including public safety, first responders, and even virtual learners.
“The ATSC 3.0 advanced visual standard allows audiences to enjoy a media-rich TV broadcast system with game-changing video and audio quality improvements, as well as a pathway for exciting features like interactivity and participation, which gives children the ability to enjoy interactive games and adventures along with their favorite shows,” said Sean Van, Vislink’s Product Manager or Live Production, in a January PR.SeaChange International Inc.
Another one of the tech penny stocks on Robinhood for your list this week is SeaChange International. This company recently hit some scanners when SEAC began experiencing some higher trading volume levels in December. Since the article on December 28th, SEAC has managed to climb as much as 100%. So what has been a driving force for this tech stock? SeaChange’s earnings results. The company beat Wall Street estimates for earnings per share during its fiscal Q3 2021. Adding to this, the company highlighted strong demand from content owners for its new ‘Video Apps’ platform.
This platform offers content owners the ability to launch direct-to-consumer TV and video apps right through Smart TVs and connected platforms. Its “SeaChange Framework” has also helped content owners “generate new advertising revenue streams through the automated sale of their ad inventory.” Last year, the company said it had secured the “most meaningful win” in its history with one of the largest mobile network operators in the world for SeaChange’s Advertising Solutions. The company said that the aggregate potential revenue opportunity over the next three years is roughly $100 million. That’s based on the customer’s annual unsold ad inventory and the revenue share SeaChange would receive to monetize it.
Looking at this year, tight now attention is on the leadership transitions going on within the company. Last week, SeaChange appointed Chairman Roberts Pons as Executive Chairman. While the company searches for a new CEO, Pons will also assume the interim CEO role.Are Penny Stocks On Your List This Week?
Last week ended with a surge of interest in penny stocks. I think this shorter week will begin the same way. It’s important to keep in mind (especially if you’re new to trading) that these cheaper stocks carry much higher levels of inherent risk. At the very simplistic level, lower prices open the door to higher volatility.
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A small price change can equate to a larger percentage change. It’s great when it’s in favor of your trade. But when it’s in the opposite direction, that’s when you can run into some trouble. In light of the recent interest in stocks under $5, whether you’re using Robinhood, Interactive Brokers, or other platforms, always weigh the risk and reward of each name on your list of penny stocks.