4 Penny Stocks to Watch if You Like Tech

It can often be difficult to identify which tech penny stocks have the most potential. Tech is performing extremely well at the moment. There are a few key things investors must understand before investing in penny stocks. It is important to know a lot about the company an investor plans on putting their money into. For example, what is the company's goal and what is it creating? What industry does it work in, and how is that industry performing overall?

Developing a strategy can seriously help when investing in penny stocks. When creating this strategy, you should figure out what type of investor you are. Do you plan on holding long-term positions? Or is your plan to short-term invest, or swing trade. This will help you choose from companies that have a lot in the works versus those who are just seeing a quick increase based on one news piece.

There is an extremely diverse amount of tech companies out there to potentially invest in. On one side, there are those producing physical products such as semiconductors, cell phones, televisions, and etcetera. On the other side, some create digital products such as entertainment, AI, software, and much more. 

Understanding what category the company in question falls under can help a lot when making the decision to invest in penny stocks. A perfect example of this is related to the pandemic. More often than not, companies making physical tech products did not perform as well compared to those making digital content.

Another characteristic of penny stocks right now is related to cryptocurrency and blockchain technology. Crypto has seen another huge boom in 2021, with assets like Bitcoin and DogeCoin seeing massive percentage increases in short periods. 

Since penny stocks and cryptocurrency are considered "risky" and volatile assets, investors of one often will dabble in the other. This is especially true with cryptocurrency and blockchain stocks. Keeping this all in mind, let's now shift our focus to four of them that have the potential to perform well next month.

Tech Penny Stocks To Buy Under $5

1. Globalstar Inc. (NYSE:GSAT)
2. Cinedigm Corp. (NASDAQ:CIDM)
3. Clear Channel Outdoor Holdings Inc. (NYSE:CCO)
4. Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV)

Globalstar Inc. (NYSE:GSAT)

Globalstar Inc. is a tech penny stock that has been performing quite well recently. The company provides mobile satellite services to all types of markets via agents, dealers, e-commerce, and more. Its largest clientele is recreation, personal, government, public safety, and disaster relief businesses. Shares of GSAT stock just jumped significantly, so what’s the reason behind this?

On April 26th, the CEO of Globalstar, David Kagan, appeared at the 24th Annual Burkenroad Reports Investment Conference to give a financial update for the company. During his presentation, Kagan said that the company's overall revenue growth is 7% per year. While this isn't huge news, its IoT division grew twice as fast at 14% per year. IoT (Internet-of-Things) services are Globalstar's fastest-growing division.

The company currently predicts that the market for satellite IoT will grow by more than one billion dollars in the next 6 years. Its satellites are capable of reaching more than 90% of that growth according to Globalstar. After this presentation took place, GSAT stock rose more than 45% on the same day. This momentum has carried through April 27th, where GSAT is once again seeing bullish trading.

Cinedigm Corp. (NASDAQ:CIDM)

Clear Channel Outdoor Holdings Inc. (NYSE:CCO)

This partnership will provide brands with a one-of-a-kind advertising opportunity targeted at leisure and business travelers. The Resorts World hotel now has a 135,000 square foot digital sign built into the front of it. This display is one of the largest exterior LED building displays in the United States. 

This will allow brands to engage with targeted consumer audiences in a brand new way. The sign is pointed right at the strip and offers premium visibility and cutting-edge digital signage technology. Through this partnership, the Las Vegas Convention and Visitors Authority and its agency R&R Partners have used the displays to simply state ‘Vegas Means Business'.

"These spectacular digital displays will provide brands the unique opportunity to leverage some of the largest LED screens in the world that can even operate sequentially offering an unprecedented story-telling ‘brand takeover.’"

Dan Levi, Executive Vice President and Chief Marketing Officer of CCOA

Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV)

This penny stock Hall of Fame Resort & Entertainment Company just partnered up with Dolphin Entertainment and H2H to start offering NFTs. Hall of Fame's main priority throughout the years has been operating as a resort, entertainment, and media company centered on professional football. Now it will sell NFTs associated with the H2H Legends.

The company described H2H Legends by stating, "These athletes are among the greatest to ever take the field, both in college and professionally, and include wide receiver Tim Brown and running backs Earl Campbell and Doak Walker." Shares have been jumping since this announcement was released. In the last 8 days, HOFV stock price has increased by about 28%.