Microvision (MVIS), Orbital Energy Group (OEG), Canaan (CAN), Waitr Holdings (WTRH) and Marathon Patent Group (MARA) are 5 stocks to keep an eye on this week, here’s why.
Canaan (CAN)
CAN stock has seen some major bullish movement in the past few weeks. In the past five days alone, CAN stock has shot up by over 56% to its November 20th price of $4.35. In the past month, that number jumps up to over 90% in gains.
Based out of China, the company has been working on the production of ASIC applications and bitcoin specific mining chips to do just that. In 2019, the company was rated as the second-largest manufacturer of bitcoin mining hardware in the whole world. In addition, according to a report from Frost and Sullivan, last year the company accounted for roughly 21% of the computing power of all bitcoin machines.
A report done in 2018 by Technavio, stated that the cryptocurrency hardware industry could be worth $2.2 billion by the year 2022. That represents a CAGR of 10% for every year moving forward. In addition to its large bitcoin sector, the company also produces AI chips for use in existing systems. Similarly, the AI chip market is subject to see a CAGR of 62% within the next three years. With all of this in mind, we can begin to see just how much potential bitcoin and blockchain stocks could have. Recently, the trading of CAN stock looks to be quite volatile. However, this is simply something that penny stock investors should keep in mind.
Orbital Energy Group (OEG)
OEG is a company developing and acquiring energy and gas solutions. These include industrial gas sampling, measurement, and delivery systems. One of the aspects that makes OEG a penny stock to watch is that it is working in the renewable energy market. With president-elect Joe Biden, America could put a broader focus toward renewable energy within the next several decades.
Because of this, many investors have begun to look at renewable energy penny stocks. Recently, the company reported its Q3 2020 results for the period ending on September 30th. In the results, the company was able to double its revenue over the previous year to $13.6 million for Q3. In addition, gross profit came in at $2.4 million, which is again more than double the $1.4 million it brought in in Q3 2019.
Jim O’Neil, CEO of Orbital Energy stated that “in the third quarter, we continued our evolution into a diversified infrastructure services provider. Our recently acquired solar engineering, procurement and construction services company, Reach Construction Group, is engaged for multiple, utility scale solar programs starting in the fourth quarter.”
With this move toward solar, it looks like Orbital Energy Group is shifting its business model for the future. For this reason, investors can decide if OEG stock is the right penny stock to watch.
Microvision (MVIS)
MVIS stock is one of the frequently discussed names when it comes LiDAR systems, which have become a bit more popular with the rise in excitement about electric vehicle stocks. Also of note is that its products are being used for IoT platforms.
This month, Microvision reported on progress in the development of its first-generation MEMS Dynamic Scanning Long Range Lidar (LRL) sensor module. The goal is meeting key automotive industry requirements, with hardware for demonstration and benchmarking by next April.
The company also has explained that it has contracts to license its products to big-name companies. This includes STMicroelectronics and more. In its most recent financial results for Q3 2020, the company posted $0.6 million in revenue with a net loss of $0.02 per share. Sumit Sharma, CEO of the company stated that “Microvision is focused on pursuing a strategic transaction at the right value for our shareholders. Our focus is to drive to an agreement at a valuation that reflects the sustainable strategic advantage, we believe, our technology offers now and into the future.”
All things considered, MVIS stock has been on the rise for months. Even after the recent pullback in October, shares have since re-engaged the bullish trend. Furthermore, since we first started reporting on MVIS stock in 2020, shares have rallied in a big way.
Waitr Holdings (WTRH)
WTRH is a unique penny stock to watch given the market that it’s in. For those who don’t know, Waitr Holdings Inc. is a company that provides online food delivery services. The company has several platforms including the Waitr Platform as well as the Bite Squad Platform. Both of these work by offering consumers a way to order food online and have it delivered. While we’ve reported on WTRH stock since last year, the Covid pandemic acted as a springboard in 2020. Food delivery services have become extremely popular, and Waitr Holdings is working to capitalize upon this. The company stated that at the end of 2019, it had as many as 18,000 restaurants on its application across 640 cities. On November 9th, the company reported its Q3 2020 financial results.
In the results, it posted $52.7 million in revenue which represents a $3 million gain over the same quarter of the previous year. In addition, the company brought in a net income of $4.6 million. This may not seem like much, but if we compare it to the previous years quarter income loss of $220 million, it is quite good. Lastly, the company brought in more than $13 million in adjusted EBITDA for Q3 2020. Carl Grimstad, CEO of the company stated that “we achieved a second consecutive quarter of continued profitability and operating cash flow, which we believe is the result of our fundamental strategic initiatives and focus on operating a profitable business.”
With the food delivery industry continuing to grow exponentially and new curfews put in place by the likes of New York City and California, WTRH stock looks like it could be one of the top penny stocks to watch right now.
Marathon Patent Group (MARA)
MARA stock is no stranger to big moves this year. Since March, MARA stock has climbed from $0.35 to highs of $5.25. Following a pullback at the end of the third quarter, bitcoin mania has helped give the penny stock another boost of momentum. Since the beginning of October, shares are up nearly 70%. Furthermore, Friday’s post-market activity took shares even higher. By the end of the extended hours session, MARA had reached highs of $3.54. Similar to CAN stock, Marathon has benefited from the renewed excitement surrounding bitcoin. The company mines cryptocurrency and over the last few months, has focused on infrastructure for 2021.
By the second quarter, the company is expecting to have over 23,500 miners deployed equating to a 1,100% boost in mining capacity. What’s more, Marathon sees potential to generate $8.8 million in revenue per month and $6.7 million gross profit per month. The company also estimates that it has the potential to produce 15 to 20 Bitcoins per day. This would be at an average production cost of $3,863 per Bitcoin. I think a lot of this potential hinges on what happens with crypto moving forward. As we saw in 2018 and 2019, the bubble burst and cut bitcoin prices by a wide margin. For now, however, crypto is hot and so are several bitcoin stocks like MARA.
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