Why would anyone look for penny stocks to buy? Aren’t they risky? Isn’t buying a lottery ticket the same or betting on black in roulette? For anyone with a little bit of experience trading, you already know penny stocks can be incredibly lucrative if you know what you’re doing.
In this article, we’re going to take a deep dive into some of the hottest penny stocks to buy recently. They’re no longer sitting below the $5 limit, but once you’ve seen some of the catalysts behind them, you might be able to identify the next round of hot stocks to jump in the stock market.Best Penny Stocks To BuyVinco Ventures Inc. (NASDAQ:BBIG)
Small-cap tech stocks have been a big focus for retail traders over the last few months. As you’ll see on this list of penny stocks, this is a solid trend. Vinco Ventures has turned heads for a few different reasons. Not only was merger news a driver, but we also saw BBIG stock gain interest from the Reddit retail community. We initially mentioned this company in January following the first rumblings of its deal-making platform.
Vinco merged with a media company, ZASH, which would ultimately lay the groundwork for the acquisition of Lomotif Private Limited, which owns the Lomotif short-form video platform. Thanks to the growing popularity of social media platforms like TikTok, any potential threat has been monitored closely. Lomotif has over 30 million monthly active users, according to Data Analysis Firm Sensor Tower.
You’ve also got another angle in Vinco’s NFT (non-fungible token) business. The company launched recording Artist Tory Lanez’s album “When It’s Dark” on its E-NFT.com platform. The album was the first to go platinum on the blockchain, with over 1,000,000 units sold.Recent BBIG Stock News
Now that you’ve got some background, recent headlines show the media company continues growing. Vinco purchased an advertising platform, AdRizer, for $108 million. The advertising company did $37 million and expects to reach a $62 million run rate this year, according to AdRizer. The unique part about this company is that it has a trading platform specific to publishers and advertisers. With this latest addition, the focus is on Vinco’s 2021 revenue potential.
How big has BBIG stock been for traders? If you look back at the start of the year, shares were trading around $1.38. This week, the former penny stock reached highs of $7.08, and for the year’s high, BBIG stock jumped to $12.49. Based on just a year-to-date move, shares have climbed 413%, making that hypothetical $500 buy in January worth roughly $2,165 at this week’s high.Paltalk Inc. (NASDAQ:PALT)
Another social media stock, Paltalk, did something that many retail traders hunt for each year. It made the majestic move uplisting from the Over-The-Counter exchange to the Nasdaq. It has even become one of the many meme stocks to watch this month. The attention has continued focusing on the company after last month’s big spike to highs of $15.20, an all-time high for PALT stock. This summer, Paltalk gained approval from Nasdaq to jump from the OTCQB.
Since then, momentum has built up continuously. What does Paltalk do? The company provides communications software for multimedia social applications. Its portfolio includes Paltalk and Camfrog. Together, these platforms host a collection of video-based communities. The company also offers services like Vumber offering virtual calling and virtual phone numbers to clients on a subscription basis.Recent PALT Stock News
There haven’t been many new headlines from the company. But if you are watching this former penny stock, keep track of the filings. Earlier this month, the company filed a registration statement for up to $50 million. Anyone new to trading, why would this be something to keep track of? If you look at the filing, you’ll see clearly that the company “may offer and sell from time to time, in one or more series or issuances and on terms that we will determine at the time of the offering, any combination of the securities described in this prospectus, up to an aggregate amount of $50,000,000.”
So it “might” decide to raise money at an unknown price per share and likely based on market conditions. This could pose dilution risk as with many cases of public company financing. PALT has been one of the best penny stocks this year. In January, things began with shares trading at $1.48. This week PALT stock reached a high of $9.60, 548% higher year-to-date. That means our hypothetical $500 is worth $2,740 as of this week’s high so far.Aehr Test Systems (NASDAQ:AEHR)
Aehr is one of the companies we’ve followed since early 2020. At the time, the former penny stock was trading around $2.40 and had just showcased a new test system at an industry conference. Since then, a lot has happened. I won’t bore you with the drawn-out history lesson. But it’s essential to understand the basics.
When it comes to Aehr Test Systems, the company develops test systems for burning-in and testing memory integrated circuits. Its systems are used in automotive, mobile devices, memory & logic, and silicon photonics industries. Over the last few months, Aehr has signed one multi-million-dollar deal after another, which has helped give the market a boost, as you’ll notice.Recent AEHR Stock News
That deal flow continued this week, with Aehr receiving its latest $1.3 million order for its FOX-NP Test & Burn-In Systems from a current customer. What’s more, these are expected to ship within the next few months. On top of this, a flurry of insider trading has also brought attention to the stock – again, make sure you’re reading the filings and not just news headlines. From September 30th to this week, multiple Form 4s were filed showing insider activity which showed a mix of buying, selling, and shares from employee stock purchase plans. You can see all of those filings here.
So what’s the hypothetical $500 position worth since the start of the year? Following this week’s highs of $21.36 (so far), AEHR stock has climbed 754%. That means the $500 in AEHR in January is worth around $3,770.Penny Stocks To Buy Now
These are just a handful of former penny stocks that hit it big in 2021. Will their trends continue? That’s left to be seen. But there is something to say about companies capable of reaching new milestones continuously throughout the year and maintaining an active voice for the retail audience.
Of course, not all penny stocks will run hundreds or thousands of percentage points like these or short-squeeze stocks, including AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME), or other meme stocks. However, the potential for market-beating gains is apparent when it comes to many of the stocks under $5 right now.
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