Can These Tech Penny Stocks Gain Momentum While the Market Dips?
During a market dip, those who invest in penny stocks will often look for companies that could have gaining potential. And to do so, we have to first look at the underlying causes of the market crash, to identify which areas could be most resistant.
Why is the Stock Market Down Today?
During pre-market, the Dow Jones Industrial average futures fell by around 650 points or almost 2%. The root cause of this is a major sell-off that occurred in equities in the Chinese property market. This put the major Chinese developer, Evergrande Group close to default, which is inspiring fear around world markets. However, if we look at trends, we see that September tends to be a month where losses are common.
The Stock Trader’s Almanac states that September averages a decline of around 0.4%. So, while today’s bearish trading may seem disheartening, we have to remember that both penny stocks and blue chips trade in periods of ebb and flow. This means that when there are downtrends, they are usually followed by uptrends and vice versa. And, if we consider the extraordinary times we’re living in, this makes even more sense.
With Covid cases beginning to slow, however, we could start to see more confidence in the market moving forward. However, a lot will depend on what happens in the coming weeks. So, with all of this in mind, let’s take a look at three penny stocks to watch during the market crash today.
3 Tech Penny Stocks To Watch During Today’s Crash
Sonim Technologies Inc. (NASDAQ: SONM)
Sonim Technologies Inc. is a tech company that sells rugged mobile phones and accessories. Its products include the Sonim XP8, Sonim XP5s, and Sonim XP3 which are based on the Android platform. It also provides speaker microphones, charging accessories, cloud-based software, and much more. All of this makes it out to be a mostly pure-play tech stock with exposure to the mobile market as well as the accessories industry.
On September 14th, the company announced a reverse stock split. This reverse stock split took place on September 15th. This one-for-ten reverse stock split is now active and its volume is extremely high at the moment as a result. Often, split’s like these will take place to increase liquidity and raise capital for the company. However, it does usually take some time to see positive results from this. In other recent news, the company just launched its new XP3 plus ultra-rugged flip phone. This new phone is available at T-Mobile stores across the nation. The launch of new products is always exciting for the company involved and investors alike.
“There’s a large base of frontline and field workers who need reliable, durable and simple…