4 Penny Stocks to Buy [Or Avoid] in April 2021
Penny stocks and cryptocurrency are in focus right now. To give some context, let’s talk about what these two assets are. On one hand, penny stocks are any company trading under $5. While you can buy penny stocks on Robinhood and other platforms, many brokerages do not offer access to the OTC or over-the-counter exchange. This is where the majority of penny stocks are.
It’s worth noting that stocks under $5 can be highly volatile due to both high speculation and the low price point. However, the opportunity for finding potential large gainers can be much larger than with blue chips.
Moving forward, cryptocurrency is an asset class that has come to light in the past few years. While the popularity of crypto began with Bitcoin, many other cryptocurrencies are seeing 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 of above $0.39 on April 15th. In the past three months, DOGE has increased in value by well over 4,050%. This is staggering and makes DOGE a unicorn in the investor market.
While penny stocks have seen equally large value increases, this usually occurs over a longer period. If we take all of this into consideration, we see that penny stocks could correlate with cryptocurrency. Because these cheap assets are relatively similar in terms of price, they often can rise in tandem with one another. Considering this, here are four penny stocks to buy or avoid in April 2021.
4 Penny Stocks to Watch as Crypto Rises 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’re probably not alone. However, the company has been making some big gains in the past few months that could make it worth considering. Before we get into 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 U.S., China, and Hong Kong. In addition to chips, it provides mining machine hosting services that allow its users to conduct mining operations from anywhere around the world.
Additionally, Ebang works in 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 Bitcoin and telecommunications industries.
In the past few months, Ebang International has made several big steps forward. This includes back in November when it was granted an exclusive license for its AsicBoost patent. This patent allows for increased Bitcoin mining performance by as much as 20%. Because Bitcoin is so energy-intensive, companies are constantly searching for ways to increase efficiency. So to increase performance by 20% is a large milestone.
Also, in February of this year, the company completed the design of a new chip that can simultaneously mine Litecoin and DOGE Coin. With the price of DOGE Coin increasing greatly on April 16th, investors are intent on finding penny stocks that relate. Considering all of this, is EBON stock worth watching?
2. SOS Ltd. ADR
Similar to Ebang, SOS Ltd. is a technology company with large ties to cryptocurrency. It offers marketing data, technology, and solutions for both emergency rescue 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 SOS’s role in cryptocurrency is. In the past few months, it has transitioned heavily into a crypto mining company. While it does work on emergency services, SOS is now considered to be a blockchain and big data solutions provider. Its membership base encompasses more than 20 million individuals in China.
During its most recent quarter, it announced that it mined 42 Bitcoins and 916 Ethereum. Given that Bitcoin is hovering around $60,000 as of April 15th, this alone amounts to more than $2.5 million in revenue. Additionally, during the first quarter, it received the third batch of 5,464 cryptocurrency mining rigs. Once they are fully operational, these rigs will vastly increase SOS’s overall Bitcoin and Ethereum mining capacity.
“These mining results reflect the first quarter of operations, and the number of Bitcoins and Ethereum are higher than what we originally anticipated. We expect our output to grow in future quarters as we complete the installation of our third batch of mining rigs and have full quarters off operation.”
CEO of SOS Ltd., Mr. Yandai Wang
Considering its large role in the cryptocurrency industry, does SOS stock have a place on your watchlist?
3. Astrotech Corp.
Astrotech Corp. is another tech company, working on building scalable companies that utilize innovative technological solutions. The company is working on producing products through its subsidiary, BreathTech. The main device it is working on right now could provide early detection of lung diseases.
In early April, Astrotech announced that BreathTech signed into an agreement with Cleveland Clinic to develop a rapid Covid-19 test that only uses a patient’s breath. The product, known as the BreathTest-1000, “aims to build and expand on our ongoing expertise in the area of breath testing, applying their technology to Covid-19,” according to Raed Dweik, MD, the Chairman of Cleveland Clinic’s Respiratory Institute.
The CEO of BreathTech, Thomas Pickens, stated that “we are very pleased to kick off this study under the management of one of the most experienced respiratory disease detection institutions in the world. Due to the many mutations to the Covid-19 virus and other issues, we believe that society will need to continue to be at a heightened level of caution for the foreseeable future.”
[Read More] 3 Pandemic Penny Stocks To Watch This Week
Additionally, Astrotech recently closed on a $37.3 million bought deal offering. This should help to fund future endeavors and general corporate needs. While Astrotech itself does not engage in cryptocurrency-related business, the emphasis on crypto has helped to push the tech industry up. With its prospects in mind, is ASTC a penny stock to watch?
4. Uxin Ltd.
Uxin is another tech company that could be seeing attention due to the rise of crypto. It operates as an online used car dealer, offering a large number of offerings. This includes value-added products and services such as nationwide logistics, delivery, title transfers, and more.
On April 16th, shares of UXIN jumped up by around 8% in intraday trading. While there’s no singular reason for this, it could be attributed to news announced earlier in the day. News dropped early on Friday that Rich Way Global filed a 13G Filing, which is an institutional position report. This means that the institution (Rich Way Global), purchased 5.9% of outstanding Uxin stock. This is big deal because it shows institutional confidence in Uxin’s business.
In addition to this announcement, the company recently disclosed a potential $300 million investment back in early April. According to the press release, two large Asia-based funds agreed to negotiate and possibly enter into definitive agreements with Uxin through senior convertible preferred shares.
While not much else is known about this transaction, hopefully, Uxin will report more information in the coming weeks or months. With $300 million in financing, Uxin could engage in many new business opportunities. Whether this makes UXIN a penny stock to watch is up to you.