Does Your List Of Penny Stocks To Buy Include These 3 Hot Names?

Hot Penny Stocks To Watch This Week

This is going to be a short week of trading, but if you’re following penny stocks, you also know it’s likely going to be a busy one. Major markets across the board reached new record levels on Tuesday following the long weekend. Given the unbridled bullishness that we’ve seen in small-caps, it makes sense that some of the biggest percentage gainers early on were penny stocks.

Setting the tone during the morning session was Socket Mobile SCKT. This is a company we’ve discussed a few times in the past. The data company’s stock price was still below $3 the last time we covered the company. Socket had also announced that its SocketScan S550 received certification from Google Wallet for enhanced mobile pass capabilities. Fast-forward to this week, and Socket mobile – which was a penny stock as of Friday’s close – has exploded to highs of $35. The move came on the back of news that Socket launched an enterprise-grade barcode scanner for the iPhone 12, Pro, Pro Max, and Mini.

With this surge in SCKT stock on Tuesday has come a flood of attention on tech penny stocks, in general. This has usually been the case when it comes to big breakouts like this. Traders seek out sympathy momentum in either companies with a similar product or companies in a similar industry. We also see that the Select Sector SPDR Trust Tech ETF XLK has also given a nice boost to industry sentiment. The benchmark tech ETF reached new all-time highs on Tuesday as momentum carried over from last week’s gains.

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The biggest question right now is will the trend continue. Markets, in general, have been red hot in 2021 with no real break in the action. This time last year, we saw early cracks begin showing as the coronavirus began to take its toll on the market. This year has been much different (so far). As with many things that garner interest in the market, it’s important to keep trends in mind as they can become both bullish or bearish catalysts. With this in mind, will any of these tech names be on your list of penny stocks this week?

• Marin Software Inc. MRIN
• MICT Inc. MICT
• Sonim Technologies SONM

Marin Software Inc.

Shares of Marin Software’s stock have been much more active during the last few weeks. While 2021 has been a decent year so far, MRIN stock has recorded some of its most significant gains starting this month. The initial spark was lit after the company gave preliminary Q4 and full-year 2020.

Net revenues are estimated to total $7.3 million, compared to $11.4 million in the fourth quarter of 2019. Full-year net revenues were estimated to total $30.0 million. This was a year-over-year decrease of 39%, compared to $49.0 million in 2019. Despite the lower results, it didn’t prohibit traders from rallying behind the stock. It also didn’t pause institutional interest from building in the company. Renaissance Technologies recently filed a 13G showing its 5.98% stake in the company.

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For some context, Marin focuses on digital marketing software. In fact, the company has previously said that Amazon has been an important part of the digital marketing strategy. Marin's integration with Amazon Attribution has added another layer to the company’s platform. While we await the formal results from the company’s latest quarter and full-year 2020, MRIN stock has remained in the spotlight. Throw on additional momentum stemming from tech, and this could be one of the penny stocks to watch this week.

MICT Inc.

Tuesday, MICT Inc. announced the formal closing of its recent $60 million offering announced last week. The company has been in acquisition mode recently, so this funding likely helps with that. MICT signed a new financial services partnership with Shanghai Petroleum and Natural Gas Trading Center to provide financial services supporting the platform's corporate and government customers. This move came just about a week after MICT acquired Beijing Fucheng insurance brokerage for $5.7 million. This gives the company a nationwide license to offer insurance brokerage services for a broader range of insurance products.

This year, MICT’s insurance division entered into a commercial partnership with one of China’s largest payment service providers. The partner provides payment services to a fast-growing network of merchants, which includes some of China’s largest chains of convenience stores, as well as a broad cross-section of other retailers. The partnership will earn commissions on insurance sales made via the MICT platform and is expected to launch during this quarter.

If you look at the corresponding 8K to today’s press release, you’ll see that the insurance business is one of the more important focuses for the company. Proceeds from the offering are to fund the growth and development of its insurance business. The company said that it might also use a part of the proceeds to acquire or invest in businesses, products, and technologies complementary to its business.

Sonim Technologies

Another one of the tech penny stocks making waves on Tuesday is Sonim. It also jumped after making headlines. The company announced that its Sonim SCAN and SOS applications are now FirstNet Certifies and available on the FirstNet App Catalog. These are part of Sonim’s SonimWare Enterprise Mobility Software.

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Sonim SCAN, in particular, could be one of the underlying catalysts to this recent move. It’s the company’s app that uses Scandit Barcode Scanner Software Development Kit to read barcodes. Frontline workers use this in much more rugged settings. As you’ll recall above, Socket Mobile also launched a scanning device. Sympathy sentiment could have also played a role today. Needless to say, a deal with FirstNet allows Sonim access to its subscriber base.

“Achieving FirstNet Certified designation gives our users greater confidence that our SonimWare applications meet the critical communications requirements needed by public safety. Beyond our FirstNet Ready™ rugged phones, Sonim is focused on providing a rugged mobility solution with the software and accessories that meet the reliability, safety and performance our customers need.”

John Graff, CMO, Sonim

Are Tech Penny Stocks On Your Watch List This Week?

Given the tech sector trend alone, it may be worth keeping an eye on some of the smaller names. As you can see, sympathy sentiment could have already started playing a role following the big jump made by SCKT stock this morning. In light of these different catalysts, also keep in mind that there are still risks involved. Should something change in the industry itself, we could see a volatile reaction in the market. Of course, time will tell if this becomes the case.