3 More Penny Stocks To Watch Fueled By NFT Hype This Week - Antelope Ent Hldgs (NASDAQ:AEHL)

Over the past year, trading penny stocks has fundamentally changed. With the pandemic still in play and more retail traders than ever before, finding top stocks to watch can be challenging, especially with all of the market volatility. This week, tech penny stocks have been one of the focal points of investors.

In the past few days, many tech penny stocks have been affected by the stock market’s volatility. But, with any correction comes the potential to find opportunity. Now, it's best not to impulse buy just because a penny stock is down on the day. However, certain cases can make for interesting situations.

Additionally, after months of mostly bullish sentiment as the stock market recovered, we now see several days with large corrections for specific industries. This is due to both high speculation and the sheer number of events going on in the world right now. Many believe that as vaccines are distributed, the U.S. economy could bounce to pre-covid levels. But, thanks to proposed lockdown measures overseas, fears of harsher restrictions are definitely something on the top of people’s minds. This has added another layer of uncertainty in the stock market this week, with growth stocks taking it on the chin.

While this it’s speculation at this point, it is worth considering. So with the tech industry correction we've witnessed this week, are there any tech penny stocks worth watching? Here are four that have gone against the grain so far.

NFT Stocks Drive Momentum In Tech Niche

One of the main drivers of things like entertainment technology, digital currency, and blockchain-related names has been this trend in non-fungible tokens. This has become the new buzz among traders. The hard part is determining where the truth lies. Where some companies come out and say they are offering tokenization and a platform to exchange digital assets, others are purely hyped on speculation alone.

On Wednesday afternoon, shares of Antelope Enterprise Holdings AEHL surged during post-market trade. There was a link that was trying to be made between Antelope Enterprise Holdings, a company called Antelope Technology, and involvement with OpenDefi, “a global initiative that seeks to develop the decentralized financial ecosystem.” Apparently, in a Medium post, OpenDefi spoke about Antelope Technology and its global member network

Speculation Could Become A Problem

The sticking point came when anyone looks up AEHL. Most of its PRs talk about its tile and flooring business. Though there are a few sentences on its site about a subsidiary involved with fintech, there’s no mention of “Antelope Technology,” specifically. But traders speculated on a possible connection, and then we saw AEHL stock explode from under $3.50 to over $5.70 post-market on Wednesday.

It’s important to understand that blind speculation is a real factor right now. So far, none of the three companies mentioned have come out with an immediate statement on the matter. The ultimate risk is that there is no connection, and AEHL’s time as an NFT stock is short-lived.

My point is that this surge of interest in NFT stocks has traders speculating on anything and everything that “could be considered” exposure to NFTs. So make sure you get the full details and don’t blindly follow the hype train. Will AEHL end up officially becoming an NFT stock, or is this overly hyped right now? We’ll have to see what happens later this week to see if this connection is confirmed or not.

Penny Stocks to Watch Right Now

This leads me to a few of the latest penny stocks getting caught up in the NFT hype. At this stage, volatility is very important to understand. Since speculation is a major driver right now, a change in it can trigger some serious swings. Keep this in mind if any of these are on your list. But at the very least, you’ll have a better understanding of the point of interest and a potential source of the speculation.

Borqs Technology Inc. BRQS
GigaMedia Ltd. GIGM
Greenpro Capital Corp. GRNQ

Borqs Technology Inc.

An interesting tech penny stock right now is Borqs Technology Inc. Borqs produces software and products to help adopt IoT devices. This includes customized and scalable smart devices as well as service solutions for cloud software. Borqs provides end-to-end services for a wide variety of IoT solutions and has a large range of partners that it works with.

Only a few weeks ago, Borqs announced a $20 million private placement of convertible notes. The notes are not due for two years and will have an annual interest rate of 8%. The company states that these proceeds will be used to procure more orders and develop new 5G products.

The company also announced that it had entered into a deal to extinguish roughly $18 million worth of debt. The deal consists of LM Funding America LLC, which will purchase the $18 million worth of tranches to convert to common shares of BRQS. As far as NFT hype, there’ve been mentions here and there of a vague relationship to it on social media. But no real tie-ins confirmed from any company updates or the website. What I will say is that there have been headlines a few years ago discussing blockchain technology. As far as an NFT stock, it’s likely a bit of a stretch based on current public information.

However, the excitement stemming from NFT stocks may have reignited the interest in the company’s exposure to the blockchain space. It has also played a large role in the bullish momentum in other IoT penny stocks.

GigaMedia Ltd.

GigaMedia Ltd. is a penny stock that has been on our radar for the past few weeks. For some context, GigaMedia is a publisher of online entertainment, primarily working in the online gaming market. This includes targeting players in Europe, Asia, and other countries internationally. It produces a wide range of non-cash gambling and casino games. This includes games such as MahJong, AkaSeka, Yume 100, and others.

Online gaming has become much more popular over the last year, and the recent focus on NFT-related penny stocks has brought attention to companies like GIGM. While GigaMedia is not currently working on an NFT that we can see, it sits in an industry closely related to other NFT-focused companies. In many cases, entertainment companies have gotten folded into this niche simply based on speculation.

Aside from that, there has been a little bit of news recently. In its latest third quarter, GigaMedia reported $2.03 million in revenue with a gross profit of $1.2 million. CEO James Huang is bent on bringing in as much profitability as he can. Additionally, the company recently announced the execution of a $10 million promissory note for Aeolus Robotics Corp. This should give it access to the AI-powered robotics market.

While the pandemic is still in full swing, more people are searching for digital entertainment. Although not much news comes out of GigaMedia, it does present an interesting portfolio of entertainment assets. Whether this is enough to justify its bullish movements in the past few days remains to be seen.

Greenpro Capital Corp.

Greenpro Capital Corp. is a business incubator working in many financial industries around the world. This includes finance, technology, CryptoSX (a licensed crypto exchange for STOs), banking, and more. Recently, many investors have considered GRNQ to be an NFT penny stock. While it has yet to make a straightforward entrance into the NFT market specifically, its recent moves show that this could occur soon.

Recently, it signed into an agreement with Innovest Energy Fund, which currently develops a wide range of products for use in the cryptocurrency industry. Also, its investments into CryptoSX have pushed its boundaries far into the crypto and NFT market.

With this agreement, it is clear that Greenpro sees a large market opportunity in the crypto industry. This could include everything from cryptocurrency trading to NFT support. Earlier in March, Greenpro also announced a strategic collaboration agreement with iBizzCloud AI-Robotax. iBizzCloud currently serves more than 150,000 customers per year.

CEO of Greenpro, Dr. CK Lee, stated that "this collaboration will complement the services and products of both Greenpro and iBizzCloud. Each respective business will ‘cross sell' to the others customers."

Because it has several layers to its business, many penny stock investors see GRNQ as a potentially diversified play. Also, the recent attention being paid to NFT penny stocks could be a benefit to Greenpro. Considering all of this, is GRNQ stock worth watching right now?

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