April 15, 2021
6 minutes of reading
This story originally appeared on PennyStocks
Some of the Penny shares fell today, Is this a buying opportunity or not?
So far, penny stocks have had a great 2021. Throughout the year, we have seen many trends continue in popularity stocks under $ 5. This includes the flow of Reddit penny stocksIPO as COIN shares and many other stocks.
Before we go any further, let’s take a quick overview of penny stocks and how they work. This can be considered a brief “Penny Stocks for Dummies” if you wish.
For starters, the term itself means any stock that trades under $ 5 per share. In it, there are thousands of companies for you to choose from. While some investors like to stick with blue-chips, others prefer cheap stocks. And there are a number of good reasons for this.
First, it is more likely to see a stock rise from $ 0.10 to $ 0.20 in one day than it is to see a stock rise between $ 100 and $ 200. This means finding opportunity Being the big winner can be much bigger than the big name companies. While volatility can be high, investors understand this and trade with it.
So when we got to half way in April, the penny stocks fell. And while this may not seem right, this is a natural stock market move up and down; and can be viewed as a minor edit. In addition, whenever a stock or area of a market falls in price, it creates a potential buying opportunity. Considering this, are these a number Best penny stocks to watch in 2021?
3 Penny shares to watch in 2021
- Waitr Holdings Inc. (NASDAQ: WTRH)
- LAIX Inc. (NYSE: LAIX)
- Ballantyne Strong Inc. (NYSEAMERICAN: BTN)
1. Waitr Holdings Inc.
Waitr Holdings is a penny stock that we have bought over the past few months. Why have we written about it so many times? Well, in addition to WTRH shares rising more than 140% in the past 12 months, the company has a ton of interesting business proposals. For some contexts, Waitr operates a food ordering and delivery platform.
Based in Louisiana, Waitr Holdings competes with other big name ordering apps like Doordash Inc. (NYSE: DASH) and Ubereats among others. Waitr and its subsidiary, Bite Squad (acquired for $ 321 million in 2019), offer food ordering services in more than 700 US cities. This includes both small and medium markets. While larger food delivery offerings focus on large markets, Waitr takes advantage of the smaller, underserved regions of the United States. This allows it to differentiate itself from other regions.
Last week, the company announced that they were adding several Marco’s Pizza locations. This brings the total number of Marco’s Pizza restaurants to more than 100 locations in 92 cities across the country. Regarding this announcement, CEO Carl Grimstad said that “Marco’s Pizza is dedicated to producing the best pizza delivered to the customer and we are always working to create the best delivery experience, which makes it possible to it becomes the ideal branding for the Waitr platform. ”
This announcement is just one of a handful of similar restaurant additions it has made in the past few months. This includes adding Chuck E. Cheese restaurants, as well as a partnership with PDQ Restaurant in late March. Because of pandemicmore and more customers are turning to online ordering in higher quantities than ever before. Considering this, is WTRH a coin stock to watch?
2. LAIX Inc.
LAIX is an AI technology company based in China. It works on creating products and services that are used to make learning English more accessible in China. This includes using the Liulishuo platform, which provides learning services to consumers. The company aims to keep its platform low-cost, helping to make it even more popular than its competitors.
This is done through the use of an AI teacher and various autorun capabilities on the app. In it, users can listen, understand, interact and evaluate the performance of other users. Because of this, it works like one social media communication. A few months ago, LAIX released its third quarter 2020 financial results.
In the report, it posted net sales in the north of $ 35.3 million. Although this is a decline of about 11% q-o-q, this makes sense given Covid’s impact on all businesses including LAIX. Even so, it managed to increase its gross margin a few points to 72.9%. Despite a net loss of $ 10.4 million, it posted operating cash flow of $ 7.8 million.
“Total net sales for the quarter… in line with our guidelines. Our main focus remains on product mix optimization and improving the learning experience. By continuously upgrading our content offering, we hope to drive further improvements in conversion and retention rates.
The CEO of LAIX, Dr. Yi Wang
These results show that LAIX can evolve as more users want to use its services. Investors should wait and see its next quarterly results to see what progress it is up to. Considering this, the LAIX might be worth watching to move forward.
3. Ballantyne Strong Inc.
When we first discussed Ballantyne Strong the beginning of the week, shares are trading well below the $ 3 mark. On April 15, BTN shares rose more than 14% to more than $ 4.61 per share. This is a great example of how speculation and fundamentals can work in tandem to support the bulls. Because we’ve talked about the BTN repository twice this week, we’ll keep it simple for today.
One of the main reasons Ballantyne is seeing so much momentum is an agreement they announced just days ago. As a holding company, Ballantyne invests in companies that they see as potentially valuable. Mainly, this is the entertainment and media sector. However, it recently signed an agreement to buy back Forest and Paper Products property for $ 214 million from Rayonier Advanced Materials Inc. This acquisition exposes Ballantyne to the paper and building materials sectors.
During the pandemic, the costs of both of these assets increased significantly. This is due to the return of trade and industrialization that has been taking place over the past few months. With this order, Ballantyne will have a strong position as one of the top ten lumber manufacturers in Canada. Although no one knows whether asphalt reserves will continue to increase or not, it is still very popular at present. Whether it is on your watchlist or not is up to you.