With penny stocks, there are a few key things investors should keep in mind. There’s no such thing as a free lunch and an informed trader can be a successful one. The idea of turning a profit with penny stocks entices traders of all kinds. However, many people end up watching their portfolio turn red. This is the result of investing in cheap stocks without a proper strategy or a trading education.
As a stock sees large upward momentum, investors will want a piece of the pie and therefore try to buy-in. Trust me, we all have a story of the one that got away. Once a penny stock has made substantial gains, it tends to pull back quickly which is known as a correction. This leaves the investors who bought because of FOMO (fear of missing out) losing substantial amounts of capital in a short period. To be successful one has to trade both technically and without emotion.
Technical and fundamental analysis are distinct strategies in use by investors every day. These are tools used to make an informed decision on how to create a list of penny stocks to watch. Unlike technical analysis, which considers chart movements, fundamental analysis considers company-specific factors.[Read More] Former Penny Stocks To Watch Making New Highs In May 2021
Performed together, these strategies can set one up to trade with the best chance of seeing profits. These are things we want to consider as we move into May and consequently, start forming a penny stock watchlist.
As we look for penny stocks under $5 investors need to consider where the most value is and which companies make sense given your investing strategy. May has already started off strong, with high volume across the board; whether it be stimulus, reopening of businesses, or just overall confidence in economic recovery. With this in mind, let’s take a look at four penny stocks that are must-sees for your May watchlist.4 Must Watch Penny Stocks For Your May Watchlist
- Digital Ally Inc. (NASDAQ: DGLY)
- Ault Global Holdings Inc. (NYSE: DPW)
- SunLink Health Systems Inc. (NYSE: SSY)
- Nokia Oyj (NYSE: NOK)
As a developer, marketer, and manufacturer of the latest video recording products, Digital Ally is contracted by a large range of groups. This includes law enforcement, emergency response, fleet safety, and event security agencies among others.
As a tech penny stock, DGLY succeeds by advancing the quality of its technology. Digital Ally’s products are becoming the standard for security practices around the world. Its pipeline includes products such as vehicle and body cameras, software storage systems, automatic recording technology, and a variety of other tools used in safety operations.
DGLY is showing its commitment to keeping up with modern challenges through its product development. One example of this is the recent launch of its Shield Health Protection Product line. This includes everything from personal protective equipment to large area disinfectant machines. Its EVO-HD line is also seeing heightened attention, working alongside law enforcement agencies to provide the best auto-activation camera systems in the business.
“The EVO-HD comes standard with our patented auto-activation technology built into the unit, which simultaneously connects and activates a recording of the in-car cameras and body camera when triggered by multiple sensors. With this technology, we look to assist in the call for complete transparency between the public and police officers.”CEO of Digital Ally, Stan RossAult Global Holdings Inc. (NYSE: DPW)
Another penny stock worth looking into is Ault Global Holdings. Pushing up by almost 20% in the last week, DPW is committed to the pursuit of further growth through an acquisition-driven business model.
By strategically investing, DPW acquires undervalued companies and select entrepreneurial businesses where it then provides financial support through credit lines. Having raised $165 million for its subsidiaries, Ault Global Holdings has optimistic outlooks for future growth.[Read More] 4 Penny Stocks To Buy Now With Price Targets Up To 302%
CFO Kenneth S. Cragun states “The financial results for 2020 demonstrate that we are achieving our objectives to grow revenue and improve operating results. In spite of the disruption from the COVID-19 pandemic, we were able to increase fourth-quarter revenues by 14.8% from the prior-year period, driven by our defense business.”
Specializing in a diverse range of industries, DPW has its hand in many markets. This includes but is not limited to the defense, aerospace, medical, industrial, telecommunications, and automotive industries. With a strong portfolio moving into 2021 should DPW be considered for your May penny stock watchlist?
Another way to find penny stocks to buy is by looking at the biggest gainers of the year. This implies that even in the most difficult of times it could have solid momentum. SunLink Health Systems is an interesting example of a company that did just that.
Increasing by more than 270% since May of last year, SSY has no plans to slow down anytime soon. SunLink Health Systems operates through a range of subsidiaries and specializes in health care operations as well as other similar businesses. Its strategic placement of hospitals has led to its success during the Covid pandemic in 2020 and so far in 2021.
It recently announced a planned $2 million expansion project with one of its subsidiaries, Trace Regional Hospital. The planned upgrade will include renovations as well as a 26-bed increase. SSY encourages growth even in uncertain times and could be worth considering for your penny stock watchlist.
“The expansion and upgrade of our Pathways Care Program will allow us to meet the growing demand for quality senior behavioral services as well as acute care hospital services in our northeast Mississippi service area.”COO of Trace, Marianne Johnson
Considering all of this and the growing need for healthcare-related services, is SSY stock worth watching?Nokia Oyj (NYSE: NOK)
As one of the leading vendors in the telecommunications equipment industry, Nokia has seen tremendous growth this year. One thing to consider is that shares of Nokia have surged by over 20% since early April. In line with this, NOK is showing additional positive signs through better than expected EPS and sales numbers in its most recent filings.
This success also hinges on its recent momentum as a 5G penny stock. Because of the emphasis on 5G networks, many companies are fighting for their share of this budding market. Currently trading under $5, NOK could have a lot of room for growth. As a company that does over 1.7 billion in sales alone according to its most recent quarterly report, Nokia continues to look like a top performer in the telecom and tech sectors.[Read More] Penny Stock Trading Strategies You Need to Know About
CEO of Nokia, Pekka Lundmark noted, “Driven by increasing demand for next-generation connectivity; good progress in Mobile Networks in securing full portfolio competitiveness; continued double-digit sales growth with our Enterprise customers; double-digit sales growth in North America; and good net sales development for Nokia Technologies.”
It’s strong growth in the past quarter indicates the momentum in the telecommunications sector overall. Considering this, is adding NOK stock to your penny stock watchlist right for you?Are Penny Stocks Worth It?
Investing in undervalued companies is a great opportunity for traders to grow their watchlists and expand their penny stock portfolios. Penny stocks offer what many blue chips cannot, which is high volatility and often; unrecognized potential. Investors both experienced and inexperienced can recognize that taking advantage of fast movers can be beneficial.
Undervalued penny stocks are often the method of choice for many of those looking to increase value through short-term trades. With these four penny stocks in mind, we see that there are plenty of options for all types of investors.