Penny Stocks & Dogecoin Explode As Reddit Traders Look To Buy More

April
16, 2021

6 min read


This story originally appeared on PennyStocks

Risky Assets, Penny Stocks & Dogecoin Take Off On April 16th

Traders continue seeking the ultimate alpha in the stock market. Today was a clear example in light of breakouts from cryptocurrencies like Dogecoin as well as penny stocks. Why? The simplest reason is traders are looking for more volatile, higher-risk trades to make quick money from.

While the broader markets have clearly stair-stepped higher this month, the volume has come into question. In fact, the last 8 trading days have seen considerably lower levels of liquidity for indexes like the S&P and its corresponding ETF, SPY. The Nasdaq ETF (NASDAQ: QQQ) has also mirrored this lower-volume trend.

Needless to say, the story this week is momentum in higher-risk assets. Penny stocks are one of them, and, recently, meme cryptocurrency, Dogecoin has become another. Overnight on Thursday, popular brokerages like Robinhood periodically halted trading in certain cryptocurrencies, Dogecoin included.

The increased popularity of the cheap “meme coin” sparked a retail trading frenzy. Even reports from media outlets raised eyebrows of the Reddit community. One, in particular, r/WallStreetBets evidently put distance between it and any crypto. In fact, the subreddit put a “No Cryptocurrency” policy in place forbidding posts on anything related to the topic.

This hasn’t stopped other Redditors from looking for crypto and penny stocks to buy. You might think digital assets and blockchain technology would be the leading niche of choice, and many cheap stocks are taking to the skies on Friday.

Does Dogecoin Have Value?

Right now, we see a surge in altcoins, Dogecoin in particular. The meme coin isn’t a “stock,” but it does trade wildly as your typical penny stocks do. This has attracted the high-risk traders on Robinhood to designate some of their cash to this “brave new world” of cryptocurrencies. Has it sparked momentum in other altcoins?

[Read More] Penny Stocks To Watch With Cryptocurrency in Focus

Yes, but the easier it is to buy cryptocurrencies, the more active they’re likely to be. In this case, the millions of new traders on apps like Robinhood and Webull have access to a small basket of cryptos right now. Since the platforms allow for this cross-over, and Dogecoin is the cheapest on the platform, it doesn’t surprise me that all of your penny stock traders are finding Doge attractive right now.

Best Penny Stocks To Buy Right Now?

So, where does this leave penny stocks? Momentum has found its way across several higher-risk asset classes. Today we see this translate into plenty of cheaper stocks. Many of them have some exposure to either tech or the reopening trade. Will they be on your list of penny stocks to buy in April?

  1. Moxian Inc. (NASDAQ: MOXC)
  2. Clear Channel Outdoor Holdings Inc. (NYSE: CCO)
  3. Cinedigm Corp (NASDAQ: CIDM)

Moxian Inc. (NASDAQ: MOXC)

Shares of Moxian started jumping later in the day on April 16th. The company operates a social network platform based in China, in which users and merchants can interact. The company’s customer base comprises small- and medium businesses with physical stores and can engage with customers online through Moxian’s platform.

There haven’t been any news updates from the company recently. But its corporate filings have brought some attention to the company. Earlier this month, Director William Yap Guan Hong picked up 18,600 shares at an average price of $1.25 on March 11th. This is generally a bullish indication.

One of the things gaining popularity right now has been the reopening trade. Since Moxian deals with businesses having physical locations and connecting them with customers online, it could be an ideal situation for advertising companies. Moxian’s digital advertising approach is something that other companies have also taken up, especially during the pandemic.

best penny stocks to buy right now Moxian Inc. MOXC stock chart

Clear Channel Outdoor Holdings Inc. (NYSE: CCO)

In line with Moxian Clear Channel could also be in focus as the reopening trade grows in popularity. The company is one of the world’s largest advertisers for outdoor advertising and has a broad range of print and digital display products targeting millions of consumers. With reopening clearly in focus right now and the underlying economic growth implications, obviously advertisers could be among the beneficiaries of growth.

In its previous earnings for 2020 and Q4, William Eccleshare, CEO of Clear Channel, stated that “we believe we have entered 2021 in a strong financial position to capitalize on the expected recovery across our markets as we gradually emerge from the global pandemic.”

In terms of reopening, speculation and sentiment have helped drive CCO stock. Year-to-date, the penny stock has climbed nearly 30%. The recent trading channel has seen Clear Channel shares bounce between lows around $1.70 and highs around $2.25. Other than reopening highlights, the market is watching Clear Channel closely heading into May.

This is when they’ll see results from the first quarter of the year. Comment below with your thoughts on where you think Clear Channel ends up after reporting results on May 10th.

best penny stocks to buy right now Clear Channel Outdoor Holdings Inc. CCO stock chart

Cinedigm Corp (NASDAQ: CIDM)

Digital entertainment stocks have been hot over the last few months. Cinedigm creates what it calls “enthusiast” streaming channels. Among them are popular names like the “Dove Channel,” “ConTV,” and even “The Bob Ross Channel,” among other names. Earlier this month, the company reported record subscription and ad-supported user growth figures. Total subscribers to its SVOD services exceeded 640,000, up 574% year-over-year. Furthermore, total streaming viewers reached 23.8 million viewers in March, up over 200% year-over-year.

While it’s not the size of Netflix (NASDAQ: NFLX), the viewership figures are something to make a note of. In particular, over 420 million minutes were streamed in March 2021 alone. Roughly 96% of streaming was from connected TVs, which tends to be high-value inventory based on demand from advertisers. Additionally, the company has expanded the overall tally of streaming channels available. Last year, Cinedigm offered 5 as of March 2020. This year, 16 streaming channels are available.

But the bigger story recently has folded in a little bit of that blockchain/crypto factor. Late last month, the company went on a tweeting frenzy discussing its plan for entry into the NFT marketplace.

[Read More] Penny Stocks to Watch As DOGE Coin Skyrockets

“Cinedigm is excited about the rise in consumer adoption and commercial prospects for #NFT. Given our extensive film library, deep connection to fandom and collectibles, and $CIDM’s strong brand partnerships and technology capabilities, I have directed our product team to develop new #NFT products to enhance the user experience of our loyal audiences,” the company’s Twitter feed (@Cinedigm) tweeted. With things like NFT penny stocks becoming a larger focus, CIDM could be one to watch right now.

best penny stocks to buy right now Cinedigm Corp. CIDM stock chart

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