Penny stocks (those trading under $5 per share) are always interesting. Investors will always be attracted to the idea of picking up twenty or more shares for under $100. The risk is attractive because the idea of finding a hidden gem that can multiply in value overnight has mass appeal.
Tech stocks on the other hand, swing in and out of fashion. It’s no secret that the sector has had a rough go of it in the last few months. After tech stocks ran way up in 2020, investors decided to take some profits off the table in 2021.
That action cooled prices, creating a swing in the other direction. That means there’s now a reasonable argument that there are more deals to be had in tech stocks than there was six months ago.
Investors who scour the internet should find that the confluence of penny stocks and tech stocks has several strong points of attraction at present. That makes these seven tech penny stocks worthy of your attention.
- ZW Data Action Technologies (NASDAQ:CNET)
- ImagineAR Inc. (OTCMKTS:IPNFF)
- Borqs Technologies (NASDAQ:BRQS)
- Super League Gaming (NASDAQ:SLGG)
- Exela Technologies (NASDAQ:XELA)
- Senseonics (NYSE:SENS)
- Support.com (NASDAQ:SPRT)
Top Tech Penny Stocks: ZW Data Action Technologies (CNET)
There’s every reason to still believe in the growth of China and Chinese companies. Rhetoric aside, China is still a rapidly developing country with opportunity across many verticals and the potential of meteoric growth.
ZW Data Action Technologies recently released news that puts it in position to leverage the rapid growth present in the Chinese market. The news relates to ChinaNet Online Technology, a wholly owned subsidiary of the integrated internet advertising, precision marketing, analytics, and blockchain company. The news is that ChinaNet Online Technologies became an authorized advertising service provider for Tencent Holdings (OTCMKTS:TCEHY). Tencent is a large company that operates in fintech, advertising and mobile gaming segments.
The move allows ZW Data Action Technologies to leverage Tencent’s brand recognition and gives it a much greater audience.
ZW Data Technologies had already begun 2021 auspiciously. The first quarter saw the company increase revenues by 91.5% over the same period in 2020. The company isn’t suffering large losses like many young companies do. In fact it has been flirting with breaking even for multiple recent quarters. Although it posted a gross loss of $720,000 in first-quarter 2021, that figure was a profit of $900,000 a year earlier.
ImagineAR Inc. (IPNFF)
ImagineAR Inc. is a company with a very inexpensive stock. It is also a company with a cloud-based augmented reality (AR) platform. The company delivers interactive content to users through the platform.
IPNFF stock’s 15 cent price, combined with the potential of augmented reality and content, make it worth keeping an eye on.
ImagineAR allows businesses to create AR campaigns with very little tech aptitude. The end result is that customers can point their mobile devices toward “logos, signs, buildings, products, landmarks and more to instantly engage videos, information, advertisements, coupons, 3D holograms and any interactive content all hosted in the cloud and managed using a menu-driven portal.” The company boasts a client list that includes multiple minor league teams across different sports, Orange Theory Fitness, Grubhub (NYSE:GRUB) and NBA team the Sacramento Kings.
If ImagineAR can build out across not only sports, but also retail, fundraising, and advertising, and create revenue, it will quickly appreciate in price. It’s worth paying attention to as a fledgling company in the rapidly growing augmented reality space.
Top Tech Penny Stocks: Borqs Technologies (BRQS)
Borqs Technologies is an embedded software and products company working within Internet of Things (IoT). The company is a solution provider for Android-based mobile devices within IoT. The company builds embedded products which have utility in smart phones, tablets, watches, trackers, wearables, vehicles, home appliances, machines and smart cities.
Investors can purchase BRQS stock for under $1 right now — it trades at about 92 cents. However, it peaked above $3 back in February.
Borqs Technologies recently received land use rights for a 1.7 million square foot industrial park in Huzhou, China. The news was announced on June 7, and the industrial park is anticipated to be operational by the end of June. The focus of the project includes “5G mobile technologies R&D and incubation activities, IoT products manufacturing and showcases, as well as hosting facilities for visitors.”
The growth of IoT, paired with tech strength in China makes Borqs Technologies interesting. The new industrial park will give the company an increased footprint at cheap prices, indicating that the government wants to see the company succeed.
Super League Gaming (SLGG)
Super League Gaming is a company focused on connecting gamers. As the company notes: “Super League’s mission is to be an amateur esports experience platform that connects and celebrates players, regardless of their age, game, or skill level.”
Gone are the days in which gaming is an individual endeavor. Not long ago, the extent of the shared gaming experience included a maximum of a few players huddled around a gaming platform playing against one another. Gaming has rapidly evolved into an experience that’s quickly becoming global in scale. And the content aspect of gaming and the emergence of esports can’t be overstated in connection to the rise of gaming’s popularity.
That’s part of the reason that Super League Gaming is interesting as an esports community and gaming platform content provider.
The company is also growing through acquisitions. On May 27 company shareholders approved a 12.6 million share issuance to fund the company’s acquisition of Mobcrush. The acquisition will give Super League Gaming a monthly audience size of 75 million people. It’s fairly obvious why investors would be willing to throw $100 into 20 SLGG shares given how prevalent gaming culture has become.
Although SLGG is slightly above $5 currently, which technically takes it out of the true penny stock group, it remains noteworthy.
Top Tech Penny Stocks: Exela Technologies (XELA)
Exela Technologies is a Texas-based company that provides transaction processing services and information management at an enterprise scale.
Although Exela is large, with nearly 20,000 employees, its stock is relatively cheap at $1.60. Businesses today are increasingly concerned with inefficiencies that exist within their processes. Vendors like Exela Technologies that can automate those processes, thereby reducing expenses, will always be in demand.
While Exela Technologies helps businesses automate and reduce expenses, its own issues do remain. The company reported mixed 2020 full-year results in mid-March.
Revenues declined by 20.2% from 2019 to 2020 for the company. However, the company also managed to reduce its loss from $304.1 million to $88.9 million in the same period. It also managed to achieve its fifth consecutive quarter hitting revenue guidance at that time.
And the market has been bullish and bearish on XELA stock as a result of the mixed results. Shares currently trade for $1.47, but they’ve peaked above $4.60 just a few months ago. It’s clear that the stock can create quick paper gains for those willing to take the risk.
Senseonics is a company at the junction of healthcare and tech. It produces Eversense, a glucose monitor with a sensor, transmitter and mobile application for use in diabetes control.
The company’s website claims that it has created the first and only long-term, implantable continuous glucose monitor. Certainly it will have competition in the sector if it indeed doesn’t already. It’s no secret that diabetes is on the rise in the United States. 30 million Americans currently have diabetes, and another 84 million are categorized as being pre-diabetic.
Alarming stuff to be sure. Senseonics’ sensor provides continuous blood glucose monitoring for up to 90 days and eliminates the use of fingerstick monitoring.
SENS stock is on the rise of late. It has risen roughly 33% between June 10 and 11 on no immediate news. Perhaps markets are reacting to news released at the beginning of the month relating to trials.
Top Tech Penny Stocks: Support.com (SPRT)
Support.com, like Senseonics, has been on the rise lately. On June 1, SPRT stock was trading around $2.55, and shot up to $4.30 by June 10. The catalyst for this movement occurred on June 3 when they released their new customer and technical support solutions service.
It announced a new service offering will “…bring reliable and 24/7 on-demand customer support to emerging fintech leaders, cryptocurrency and NFT platforms, exchanges, and wallet OEMs. The new offerings, including Support.com’s Homesourcing(SM) Cloud Platform and Crypto Concierge(SM) service, will solve customer and technical support issues and provide education around cryptocurrency and financial services, leveraging the company’s proprietary security software and deep institutional knowledge to meet rising market interest and demand for crypto-based customer support services.”
The company also announced that it would begin to accept Bitcoin (CCC:BTC-USD) payments. Further, the new service offering intends to help solve customers’ problems and answer questions about crypto whenever they come up. That means 24/7 Q&A regarding crypto. It is a big pivot, but if support.com can satisfy that demand, it’s clear that there is a lot of money to be made.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.