Over the past few months, tech penny stocks have seen more bullish sentiment than in many months prior. While the beginning of Covid hurt all stocks, tech stocks managed to come out on top. While they aren’t necessarily considered reopening stocks, tech companies have benefitted from the pandemic. With more people at home than ever before, the need for tech is more palpable than ever.
This is doubly true for the massive workforce engaged in work-from-home. While larger companies like Tesla and Apple have seen bullish sentiment, there are hundreds of penny stocks in the tech industry to consider as well. Because of this, the options are almost limitless. While we still have to choose wisely, many companies are competing to have the top spot.
Within the tech industry, there are several niches. These include companies focused on enterprise operations, medical tech, tech devices, and so much more. As you may know, tech plays an integral part in everyday life around the world. With vaccines being distributed and the economy returning to normal, the pandemic’s effects will not disappear overnight.
This means that our reliance on tech and tech products is likely to remain for the long term. With IoT and other tech integration becoming the norm, more and more investors continue to turn their attention to tech penny stocks. Will any of these be top penny stocks to buy or should they be avoided at this point?Tech Penny Stocks to Buy [or avoid]
- Qudian Inc. (NYSE: QD)
- MICT Inc. (NASDAQ: MICT)
- Phunware Inc. (NASDAQ: PHUN)
- Profire Energy Inc. (NASDAQ: PFIE)
- Senseonics Holdings Inc. (NYSE: SENS)
Qudian Inc. is a micro-lending firm that has seen some solid gains in the past few trading sessions. It operates as a tech platform that allows Chinese consumers to access personalized credit solutions. This could be small credit lines aimed at discretionary spending or other financial needs. Currently, there are little to no options for those who larger financial institutions cannot serve.
The company is aimed at the younger generation, where the need for small credit lines may be more palpable. While Qudian does not release a large quantity of data, we can use its most recent financial statement to see where the company is at. In the third quarter of 2020, Qudian published a report showing more than 81.3 million registered users on its platform. This is a jump of around 4% over the previous years same period.
The company was also able to lower its outstanding loan balance by 34.5%, representing a relatively more stable financial position. Mr. Min Luo, CEO of Qudian, stated that “in the third quarter, we maintained a prudent approach to the operation of our cash credit business amid fast-evolving regulations regarding online lending. We also remained focused on protecting our net assets, continuing to implement stringent credit approval standards to navigate the dynamic operating environment.”
While revenue did decrease by around 67% to $125 million in this quarter, this makes sense given the financial hardships resulting from Covid. With China moving beyond the pandemic, it seems as though Qudian’s services could become more popular. With this in mind, is QD on your list of penny stocks to watch?#2: MICT Inc.
MICT is a penny stock that we’ve covered several times in the past few months. MICT is another tech company working in the fintech market. Specifically, MICT offers online brokerage services and insurance products in several foreign markets. Also, the company operates its Mobile Resource Management business based in the U.S.
Through its Micronet subsidiary, MICT engages in the design, development, and manufacturing of rugged mobile devices. These devices are in use in many fleet operations and those who need rugged devices in the field. Only a few days ago, the company announced a sizable purchase order from one of the largest telematics service providers in the U.S. The deal, worth around $0.9 million, will supply 2,000 SmartCam connected products to the company in question.
For those who don’t know, the SmartCam device is an in-vehicle product that allows for all-in-one-video services. This includes diagnostic capabilities, video analytics, vehicle health, and more. Darren Mercer, CEO of MICT, states that “this order is further evidence of the traction that our subsidiary, Micronet continues to build with its highly innovative SmartCam product. 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 telematics sector, which continues to justify our investment in the company.”
Because of its standing in the tech industry, MICT continues to be a popular choice amongst investors. Whether it’s a penny stock to watch is up to you.Penny Stocks To Buy [or avoid] #3: Phunware Inc.
Another interesting tech penny stock is Phunware Inc. Phunware is a provider of MaaS or multiscreen-as-a-service products. This basically is an integrated cloud platform solution for a wide variety of uses. It includes ways for companies to monetize their platforms, access data solutions, and grow via Phunware’s SDKs or software development kits.
Phunware aims itself at the mobile experience sector, which has shot up in value during the course of the pandemic. It states that more than 1 billion users touch its platform every month. A few days ago, the company announced that it would publish its Q4 and full-year 2020 results on March 25th during after hours. Ahead of this, let’s take a closer look at what PHUN has been up to.
Last week, Phunware announced a partnership with Vizzia Technologies to offer its “digital front door” solutions. This will enable Vizzia to utilize the large range of services offered by Phunware. Because Vizzia is a healthcare organization, this opens up Phunware’s market reach to a new sector.
Andrew Halasz, CEO of Vizzia, stated that “together, Phunware and Vizzia represent a next-generation digital front door solution for health systems looking to leverage complex location data and best-in-class mobile engagement.”
Vizzia operates by improving the operational efficiency of existing healthcare businesses. It has grown its revenue in the past three years by 98%. With this partnership, the boundaries that Phunware has will hopefully be expanded much further. All things considered, is PHUN a penny stock to watch?#4: Profire Energy Inc.
As far as tech companies go, Profire Energy Inc. is quite an alternative choice. The company provides technology to the oil industry, including burner management systems and other components used in oil production. It aims to up the efficiency and safety of existing combustion appliances used in the energy industry. While most of its operations are in the U.S., Profire has teams dispersed in Canada. This provides it with a large base of customers around North America. On March 16th, Profire announced a strategic partnership with Spartan Controls Ltd. The partnership should help connect new and existing customers in Western Canada, thus increasing its potential market share.
Co-CEO Ryan Oviatt states that “partnering with Spartan Controls aligns with our strategic focus to expand our brand presence beyond our traditional upstream and midstream markets. Spartan Controls, Emerson’s Impact partner in Western Canada, brings an expansive sales and business development footprint across their territory serving a wide range of industries and markets.”
After this was announced, shares of PFIE shot up by around 22% after hours on Tuesday. PFIE announced revenue of $5.7 million in its most recent fourth-quarter report, with a gross profit of $2.8 million. Also, it was able to reduce its operating expenses by more than $3.8 million. While Covid did have an impact on PFIE, the company has worked to mitigate this substantially. Looking forward, PFIE aims to continue being the leader in oil and gas combustion solutions.#5: Senseonics Holdings
Another alternative/ non-traditional “tech” stock is Senseonics. The company focuses on medical device technology. In particular, Senseonics is developing & commercializing long-term implantable continuous glucose monitoring systems for those with diabetes. Its lead products are Senseonics’ CGM systems, Eversense® and Eversense® XL.
The company hasn’t been overly vocal this month aside from their earnings earlier this month. “We are very pleased with our fourth-quarter results, our commercial collaboration agreement with Ascensia, and the success of our recent financings. These steps conclude a strategically transformational year for Senseonics,” said Tim Goodnow, Ph.D., President and Chief Executive Officer of Senseonics.
The US Patent & Trademark site recently showed that Senseonics was granted a patent for “Remote analyte monitoring,” which triggered an initial pop in shares of SENS stock. This momentum has continued into the second half of the week, with Wednesday seeing another strong push during the morning session.