Bally’s Corp. (NYSE: BALY) Showing Hand In $100 Million Bet For Penny Stock AESE
If there’s one thing we love writing about, it’s penny stocks. Other than the name, these cheap stocks are some of the most exciting to watch in the stock market today. When they hit, they hit big, and when they don’t, it can be a huge breakdown. It’s this volatility that keeps traders and investors coming back for more.
The pandemic was a dual-edged sword for markets and investors. In 2020, the coronavirus wrought havoc on the markets, sending shares of countless companies lower. We saw 3 year’s or more worth of gains erased. We also saw hundreds of companies that were never penny stocks end up falling well-below the $5 level. Furthermore, we saw plenty of these same companies either file for bankruptcy or go out of business altogether.
But from the ashes rose plenty of phoenixes. While the initial moves came from some of the most popular penny stocks with exposure to vaccines & testing, new trends began emerging. Everything from green hydrogen and alternative energy to companies leveraging interest in new entertainment types that were relatively suppressed before the pandemic. Social distancing rules and stay-at-home orders definitely changed the way we do things. Will that be permanent? Only time will tell. Now that vaccines are being distributed, some say the reopening trade will be the one to watch.
However, I’ve written about this idea many times before. What I can say is that personally, I believe the “reopening trade” won’t be as cut and dry as looking at the beaten-down stocks during the pandemic. It could be more of a hybrid that mixes the popular industries built up last year, along with the standard market sectors that would benefit on a broader scale. Essentially, I think we see the companies that built brands around social distancing benefit along with things like infrastructure stocks and travel stocks.
Penny Stocks & Heightened Interest
If you look at some of the most popular stock market trends today, it’s usually the penny stocks that experience a heightened sense of volatility. For instance, we had the big push behind electric vehicle penny stocks thanks to Tesla (NASDAQ: TSLA), followed by the Biden Administration’s push for alternative fuel and zero-carbon initiatives. While stocks like TSLA, NIO, and others grabbed early headlines, we were looking at the “obscure” penny stocks like SOLO, AYRO, and BLNK. Fast-forward to recent, and we see that many have now become more than penny stocks, trading much higher than $5.
So what’s my point? In many cases, penny stocks carry higher risk due to speculation. However, it’s this speculation that can turn an “obscurity” into something with a bit more substance. Novavax (NASDAQ: NVAX) was just another penny stock company trying to develop a flu vaccine. It…