You can make a lot of money with penny stocks if you know how to trade them. Just look at the hundreds of small-caps that’ve already broken out this year. But like other articles, I’ll also mention that these big dollars signs don’t come without risk. But what’s the fun in a “safe” investment, right?
In all seriousness, learning how to make money with penny stocks takes time and a firm stance on removing emotions from trading. It’s easy to get wrapped up in hype or think “if only” when you’re watching the ticker tape. But to be consistently profitable, strategy takes importance over “gut” feelings. That’s especially important when searching for different trends in the stock market. Today, for instance, we saw a significant boost in trading of short squeeze penny stocks or, stocks with higher short interest. In addition, we’ve also seen some thematic trends hit the retail trading ecosystem, particularly Trump stocks.
Trump Stocks Trigger Momentum For Select Penny Stocks
Digital World Acquisition Corp. (NASDAQ: DWAC), the SPAC that former President Trump’s social media company, Truth Social, is set to combine with, remains a focus. This has been the case ever since DWAC stock surged from under $10 to over $170 last quarter. It effectively brought rise to an entirely new sector in the market, which includes some of the names on today’s list of penny stocks. But DWAC isn’t the only name sparking intrigue in small-caps today. This time,
Another SPAC, CF Acquisition Corp. (NASDAQ: CFVI), will be the new home to alternative social media platform, Rumble. The video app offers creators to host, distribute, and monetize their content with “authenticity” as the focal point. Where’s the Trump tie-in?
Not only did Truth Social partner with Rumble, the video media company tweeted that the former President would deliver a livestream on his “official Rumble account” on January 15th. This has not only caused a stir among Trump stocks, including CFVI and DWAC but also trickled down into small caps. Today we look at a few of the active penny stocks to watch following these latest updates.
Penny Stocks To Watch
SeaChange International (NASDAQ: SEAC)
If you’ve followed the latest developments on SeaChange, then you know why this could be on the watch list today. Some may say the latest trend in social media is all about alternatives to Facebook, Twitter, and Instagram. The rise of platforms like TikTok has brought an entirely new group of companies to the table to give users a different or at least a refreshed experience when it comes to virtual socialization.
SeaChange comes into the picture similar to the way Digital World Acquisition did. It will become the host company to a new social media business. As discussed late last year, SeaChange confirmed a definitive agreement and plan of merger with Triller Holdco, which, according to the company, is expected to result in a combined company valued at roughly $5 billion.
The TrillerVerz platform drives more than 750 million user interactions per month, reflecting 2x year-over-year growth in user engagement and 5.3x year-over-year growth in the number of paying users, which TrillerVerz believes places it in the upper echelon of social media platforms globally.
SeaChange December 22, 2021 PR
Triller is a TikTok alternative and has been widely followed for its pending public debut. Donald Trump, Justin Bieber, and Alicia Keys are among the verified users on the app. Since the deal is expected to close this quarter, SEAC could be one of the penny stocks to watch.
Phunware Inc. (NASDAQ: PHUN)
One of the more tightly tied stocks to DWAC is Phunware. News from 2020 helped re-spark attention on the penny stock. Punware announced a deal with American Made Media Consultants to develop, launch, and manage the Trump-Pence 2020 Reelection Campaign’s mobile application portfolio. Thanks to this, PHUN has remained a focus whenever Trump stocks move.
In addition to its exposure to this trend, Phunware is also active in the crypto arena. In addition to acquiring additional Bitcoin at the end of the year, Phunware also launched its PhunCoin to be available for trading on the Securitize platform. This is a blockchain-enabled transfer agent registered in the U.S. Its PhunWallet manages the coins. Two new strategic supplier relationships could also benefit the company related to cryptocurrency opportunities.
Its LYTE Technology business unit’s high-performance computers helped prompt this latest arrangement. Caleb Borgstrom, Vice President and General Manager of LYTE by Phunware, explained, “Phunware launched these four newly optimized personal computers designed specifically for high-end gamers, traders, streamers, and cryptocurrency miners in conjunction with CES in Las Vegas.”
Bakkt Holdings (NYSE: BKKT)
Just shy of the upper end of the penny stock range, Bakkt Holdings rounds out this list. The company is also involved in cryptocurrencies and turned heads late last year thanks to a big deal with Mastercard (NYSE: MA). It ultimately sparked a massive move in the stock to highs of over $50. Since then, shares have dramatically fallen lower thanks, in part, to mixed earnings in November.
Bakkt offers consumers to trade and send digital assets between eachother. The deal with Mastercard had Bakkt servicing crypto rewards capabilities for Mastercard users. As one of the cryptocurrency infrastructures plays in the space, Bakkt has also inked deals with banks like New Jersey’s Manasquan, giving the ability to offer clients access to cryptocurrency trading via the bank’s app. The company also signed a deal with the food delivery platform, BringMeThat to enable drivers to earn cryptocurrency as a payment method.
“Our partnership with BringMeThat.com is an exciting step as Bakkt diversifies its offerings to dynamic sectors of the economy and opens the door for millions of gig workers and consumers to leverage digital assets into their income and payment methods,” said Sheela Zemlin, Chief Revenue Officer at Bakkt.
With a broader focus and general acceptance of digital assets in 2022, BKKT stock could be one to watch.
Final Thoughts on Penny Stocks
Trends like short squeeze or Trump stocks gain and lose popularity depending on broader market trends. It’s worth understanding the drivers behind moves like those made in the stock market today and how sympathy sentiment plays a part. The critical thing to understand is how to use these catalysts to your advantage and profit from them.
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