March has been an interesting month for penny stocks, to say the least. While most days have been bullish for penny stock investors, underlying factors have pushed some days to be bearish. In the market right now, there are several things at play that investors should be considering. While vaccine doses are being distributed at record numbers, European case counts continue to rise.
Economically, Fed Chair. Jerome Powell has worked to calm nerves in the last two speeches he’s given. He’s done this by stating that there should be no fears of major inflation in the short or mid-term. Powell has also explained that investors should be hopeful for a large economic recovery if virus cases diminish.
But in the past two months, Treasury yields have jumped by around 60 basis points. While there are a lot of unknowns, investors seem to be optimistic about the future. So with this in mind, there are plenty of penny stocks that are riding a bullish wave. Though we can’t predict the future, optimism is our best tool against short-term uncertainty. With this considered, these four penny stocks have gotten a boost of momentum recently:
- Newage Inc. (NASDAQ: NBEV)
- Boxlight Corp. (NASDAQ: BOXL)
- Catalyst Pharmaceuticals Inc. (NASDAQ: CPRX)
- Lion Group Holding Ltd. (NASDAQ: LGHL)
A few days ago, Newage announced a shelf registration to sell up to 22 million shares of common stock. Ahead of a potential capital infusion, let’s take a closer look at NBEV stock. Around the same time, NBEV announced its fourth quarter and full-year 2020 financial results. In the results, net revenue shot up by more than 50% to $90.4 million for the fourth quarter. The net income increased to $61.8 million over the previous year’s loss of $4.0 million. This was the first quarter that Newage posted a positive EBITDA, bringing roughly $2.9 million.
Brent Willis, CEO of Newage, stated that “2020 was another transformative year for Newage, whereby we reached nearly half a billion dollars in pro forma revenue and achieved positive adjusted EBITDA in the fourth quarter, and we believe we are just getting started. Beyond the scale and profitability benefits that came with ARIIX and the four other companies merged with us in November, we significantly strengthened our management teams and execution capabilities.”
The company has worked to move into markets outside of the U.S., including Mexico, Europe, and Japan. Newage is a producer of organic and healthy products for sale in three categories. This includes health and wellness, appearance products, and nutritional performance aids. It states that it has more than 400,000 exclusive and independent distributors around the world. With the numbers posted in the fourth quarter, Newage looks like it could be on a path for growth, assuming no massive pandemic shutdowns are in the cards this year.Boxlight Corp.
We’ve been covering Boxlight Corp. for several months due to its innovations and consistency. In a common stock and cash deal, Boxlight announced on March 23rd that it would be acquiring Interactive Concepts for $3.3 million. Last year, Interactive Concepts brought nearly $6.5 million in revenue and a positive adjusted earnings report. This acquisition comes as Boxlight works hard to capitalize upon Europe.
In Belgium, Luxembourg, and the Netherlands, Boxlight reported 25% year-over-year revenue growth. Interestingly enough, these areas only represent around 6% of the European population. On March 25th, Boxlight will report its fourth-quarter and full-year financial results for 2020.
Ahead of this, the company is working hard to commercialize its Clevertouch and Mimio Systems further. These systems allow for interactive learning and collaboration. They can be used in everything from educational settings to business environments. Over the past several months, Boxlight has landed several large deals with educational institutes. This includes the supply of systems to the British Academy in London.
It recently opened the Clevertouch Gallery in London to give the public a better understanding of its technology. In 2021, Boxlight aims to capitalize on other markets such as enterprise, healthcare, retail, and government. If it can do so successfully, it could be a significant development for Boxlight.Catalyst Pharmaceuticals Inc.
Another big announcement came this week as Catalyst Pharmaceuticals posted a $40 million share repurchasing program. Patrick McEnany, CEO of the biotech firm stated that “this share repurchase program reflects our confidence in the long-term outlook for the Company, including our ability to continue to generate strong cash flow. We believe that our strong balance sheet, earnings power and borrowing capability have us well-positioned to successfully execute both on our recently announced strategic initiative to expand our product and pipeline portfolio of therapies to treat other rare diseases on this share repurchase program.”
As a commercial-stage biopharmaceutical company, Catalyst is working on therapies for several debilitating neurological and neuromuscular disorders. In 2018, it submitted a New Drug Application to the FDA for its Firdapse (amifampridine) substance. This is in use for the treatment of LEMS in adults. Currently, this drug is commercially available in the U.s. and, more recently, Canada.
In its fourth-quarter report posted last week, Catalyst announced a revenue increase year-over-year of $0.9 million to $31 million total. Also, its EPS hit $0.11, which represents a 57% growth rate over last year. The company is continuing to work on the broad commercialization of Firdapse, which has shown a great deal of efficacy in those who need it.Lion Group Holding Ltd.
Lion Group Holding Ltd. operates a trading platform with many products and features for its users. The company aims at Chinese retail investors, where it offers CFD trading, insurance brokerage, futures and securities brokerage, and more. A few weeks ago, it announced a new SPAC company through Maxim Group LLC and Loeb & Loeb LLP’s engagement.
This new SPAC will be named Aquarius I Acquisition Corp. With this, the company plans to grow its business in areas such as internet tech, software, fintech, and more. Mr. Chunning Wang, CEO of Lion, stated that “as one of the first SPACs to originate from the Asia region, Lion has firsthand experience with SPAC mergers and sufficient financial resources.”
A few days ago, the company announced that it might be entering into the NFT or non-fungible token market. This is a phenomenon that has only come to light in the past few months. It states that it will be working with Grandshores Technology to offer blockchain technology, support, and digital asset platforms. We’ve also seen the surge of interest in NFT penny stocks this week.
As a player in the blockchain market, Lion has continued to show its penchant for innovation. Since early December, shares of LGHL stock are up by over 80%. With all of this in mind, are you adding LGHL to your list of penny stocks to watch before April?