Dec 10, 2020 (Penny Stocks via COMTEX) -- Are These Penny Stocks On Your Watch List Right Now?
Epicenter penny stocks have become the focus of many investors over the past year. For some context, these stocks are defined as any stocks that were hit hard by the beginning of the pandemic. In addition, this definition applies to companies that have been able to bounce back since COVID hit. Tom Lee of Fundstrat originally coined this phrase.
For some examples, epicenter penny stocks could be anything from airline and hotel stocks to tech or energy stocks. Of course, this definition is quite loose given that so many penny stocks were hit by the pandemic. Now, however, six months or so later, we are beginning to see values of epicenter penny stocks move back toward pre-covid levels.
One thing to keep in mind is that there is no definitive time period that COVID will "end". In the meantime, however, we can use the current information we have to try and find epicenter penny stocks to watch . While not every epicenter stock is seeing a recovery, a great deal of them are. As the great Warren Buffett said, "Be fearful when others are greedy and greedy when others are fearful."
With fear playing into many traders' judgments, it could be time to find epicenter penny stocks at very low prices. All things considered, here are five to watch right now.
Epicenter Penny Stocks to Watch: AMC Entertainment Holdings Inc.
AMC Entertainment Holdings Inc. ( AMC Stock Report ) may be the epitome of what epicenter penny stocks are. For those who don't know, AMC is the owner of the largest movie theater chain in the world. When the pandemic hit, shares of AMC stock took a large and albeit, understandable dive. In the months following, things didn't get too much better for AMC stock.
Add that to a 90% dive in third-quarter movie theater attendance, and things continue to look quite bleak. If all that wasn't enough, the announcement from Warner Brothers that all movies for 2021 would be shown online and in person, meant that the demand for in-person movies declined heavily. Despite this, shares of AMC stock have managed to see some bullish interest in the past few trading sessions.
On December 9th, during early morning trading, shares of AMC stock shot up by around 8% before falling alongside the majority of the stock market. Recently, a report from the SEC showed that the investment firm BlackRock had taken a 4.6% stake in AMC stock. For this reason, some investors feel more confident in the future of AMC. Recently, the company also announced that it would be engaging in an equity sale to help prevent the threat of bankruptcy. While this is not a be all end all solution, it should help AMC's financial situation in the short term. For now, investors should be careful about considering AMC stock an epicenter penny stock to watch. But with its bullish interest in the past week, it's definitely worth watching in the short term.
Epicenter Penny Stocks to Watch: Nokia Corp.
Nokia Corp. ( NOK Stock Report ) may not seem like an epicenter penny stock at first. However, its role in the telecommunications and 5G industry, puts it on the list. The company works as a provider of telecom services and 5G technology/infrastructure. Due to more people being at home than ever before, more people are utilizing telecommunications services.
Earlier in the year, NOK stock saw its price per share go up due to heavy interest in 5G services. In addition, the company has several prospects currently in the works that could put it head to head with some of the largest telecom companies in the industry. Its main competitor, Ericsson ( ERIC Stock Report ), is currently trading with double the market cap of Nokia.
Given that the two are very similar, some investors could choose to see NOK stock as severely undervalued. In November, Nokia announced that it could land a few major supply deals around the world. After the U.K. banned any new Huawei 5G installations, Nokia quickly became a runner up to become a major part of the U.K.'s 5G infrastructure. In its Q3 2020 financial report, NOK stock reported that net sales dropped year over year by around 7%.
While shares of the company have nicely rebounded, the latest news this week has helped buck that trend, Nokia announced that it had achieved a record 5G speed of 1.9 Gbps during a successful trial of its next-generation AirScale Indoor Radio System. This was at the headquarters of mobile operator, Zain KSA in Jeddah in the Kingdom of Saudi Arabia. Considering the surge in attention on 5G stocks, NOK could be one to watch right now.
Epicenter Penny Stocks To Watch: Boxlight Corporation
Shares of Boxlight Corporation ( BOXL Stock Report ) have also been pushing higher since November. If you've been an avid reader of our site, you've become familiar with the company over the last few months. The COVID pandemic has placed a keen focus on education technology and eLearning. Boxlight provides eLearning tech and with new COVID restrictions getting kids back out of school again, this could be one of the names to know right now.