Traders have always used penny stocks to take advantage of the volatility in stock markets. Traditionally, penny stocks can be defined as stocks priced under $5. But the make-up for penny stocks has changed since the COVID-19 pandemic because a lot of businesses came below the $5 threshold to sell-off in 2020.
Now that it is almost more than a year since the pandemic started, several penny stock values have risen drastically. Even though there are many eligible penny stocks to buy right now, reopening stocks can be a popular option.
Many companies are benefiting from the vaccine distribution and the reducing number of COVID-19 cases. Stocks or shares of some businesses affected the most by the pandemic are recovering extremely fast in the reopening economy. That is why reopening penny stocks are generating a lot of interest from investors, especially these five.
Rev restaurants group is the owner and operator of several pizza franchises all over the world, including Pie Five Pizza, Pizza Inn, and Pizza Inn Express kiosks. The restaurant industry was one of the most affected during the pandemic. But now that restrictions are being lifted in several states, the stock shares of Rave have jumped up more than 25%.
Rave restaurants recently declared their financial returns for the second quarter of fiscal 2021. Their total revenue was $2.1 million, which was a mere $0.7 million less than the same quarter in the last fiscal year.
The company also announced a net income of $104,000 and a $0.01 increase per share for the second quarter of fiscal 2021. Investors are saying this is a good sign and betting that the company’s stock shares will soar in the coming times.
Stocks or shares of some businesses affected the most by the pandemic are recovering extremely fast in the reopening economy.
The stocks for Enzo biochem soared by more than 50% when they reported second-quarter financial results for fiscal 2021 on March 15. The company reported total revenue of $31.5 million for the second quarter of fiscal 2021, which was almost 62% year-over-year.
The company also declared that its consolidated gross margin has increased by almost 50% more than last year. Their sound financial results in the second quarter of fiscal 2021 reflect the positive effects of their new business model that integrates diagnostic products and services.
The company made efforts to advance its GENFLEX diagnostic test platform further. It also made further efforts to shift the diagnostic platform to aid in the COVID-19 pandemic.
According to them, the diagnostic platform will be able to lower the costs dramatically for common molecular tests. It is one of the fastest-growing sectors in the clinical test market, which means the company’s success would continue to rise along with its stock shares.
Investors looking at strong reopening penny stocks should consider Seanergy Maritime Holdings Corp. Seanergy stocks have seen a lot of bullish force in the last few months. The need for shipment did not decrease during the pandemic because of the high e-commerce sales. That is why shipping companies have gained a lot of interest from investors in the present circumstances.
Seanergy offers bulk shipping services for dry goods and has 12 Capesize ships as of February 2021. All of the vessels are less than 12 years old, which means they are relatively new and would not incur costly repairs for the company.
The average cargo shipping capacity of these ships is more than 2.1 deadweight tons (DWT). The company announced to price $75 million common share offerings a few weeks ago, so now is the right time to invest in their penny stocks.
Some consumer product companies like NewAge Inc. have also come into the spotlight as penny stocks start reopening. The company has adopted a multichannel approach for retail sales and focuses a lot on social selling.
Their approach is so efficient that it has beaten analyst estimates for the fourth quarter and full year of the 2020 financial results. NewAge Inc. declared revenue of $90.4 million, as opposed to an estimate of $81.2 million, which was an increase of almost 53%.
The company’s adjusted EBITDA was also higher than the analyst expectations and reached $2.9 million, which was the first positive adjusted EBITDA in over two years. The company achieved scalability and profitability from ARIX and four other companies that merged with them in November.
They have also made significant improvements to their management teams and operational capabilities, which has resulted in tremendous growth momentum for 2021.
Reopening trades or epicenter stocks have become one of the current trends with penny stocks. Some companies that were affected by the global economic downturn during the pandemic are showing tremendous turnarounds recently.
Therefore, investors are interested in stocks that are on the way to make a full recovery and trading much higher than last year. We feel that these four penny stocks are the ones to look out for in March 2021.