(via ZEXPR) Small-cap stocks have some serious risks attached to them, but also, they have been beating bigger stocks for quite some time.
The iShares Russell 2000 Small-Cap Index ETF (IWM), which monitors the performance of 2,000 small-cap US stocks with little media coverage, is up 19.9% in 2020 and up 10.7% year-to-date. The iShares Core S&P 500 ETF (IVV), which monitors the 500 largest US stocks and grew 18.4 percent in 2020, has a 4.45 percent year-to-date gain.
After hearing all the buzz related to the outgrowing performance by the small-cap stocks ManCapitalGroup’s broker says it will be fair to state that everybody is now thinking about adding small-cap stocks to their venture portfolio. For this reason, ManCapitalGroup’s broker thinks it will be wise to review some best small-cap stocks that can be a source of profit if people are considering buying small-cap stocks in 2021.
Argo Blockchain (ARB)
Argo, a blockchain mining firm located in the United Kingdom, gives customers an option about how to obtain openness to the Bitcoin price. As BTC has soared, the share price took off by 494.6% in 2020 and is up by another 627.3% year-to-date, traded at £2.40 a share.
The company revealed on March 8 that it had shut £26.8 million in funding by the settlement of 9.6 million new ordinary shares. It intends to spend £7.3 million in bitcoin trading and consulting company Pluto Digital Assets, with the remainder going into mining capacity expansion and general corporate purposes.
Argo reported the establishment of 4,500 new mining machines in February, and on March 8, the company uncovered it had completed the procurement of DPN in the United States, giving it 320 acres of land in Texas and 800MW of power supply to construct another 200MW mining office during the next year. The office will deliver the company with the least power costs on the planet, most of the energy coming from renewable sources.
Sundial Growers (SNDL)
Cannabis companies are among the trending penny stocks for April 2021, as regulators around the world discuss reforming regulations to allow its use. In 2020, a few well-known cannabis stocks rose from penny stock status as investors flocked to the sector in anticipation of strong growth.
Sundial, a Canadian company, is the most recent objective of social media, investors hoping to benefit handsomely from a surge in the stock price. The stock opened up to the world for trading in August 2019 at $13 per share and quickly dropped to $8 per share, sinking to $2.27 before the year was over.
The stock was trading at $0.14 in October 2020. It has since increased by 700 percent to $1.12 per share. The company plans to benefit from the opportunities for growth in the market by transitioning from a wholesale to a supermarket model.
Ideanomics, headquartered in the United States, plans to profit from two of the financial market’s hottest trends: electric vehicles (EVs) and fintech. The firm uses a sales-to-financing-to-charging (S2F2C) strategy to provide commercial EVs to businesses, and it takes advantage of the growing number of fintech services available in the financial sector, including blockchain.
In 2020, the IDEX share price increased by 151.9% as EV stocks rose across the board, and it has expanded another 38.2% so far in 2021, trading at about $2.75 a share, after the withdrawal of other EV stocks.
In February, the company disclosed a $150 million equity sale as part of its attempts to reduce its net loss. If the number of electric vehicles available increases, sales are projected to increase this year. Thanks to high margins, the company produces more than 10% free cash flow, which is projected to rise in 2021.
As a play on the change to 5G telecom networks, the Norwegian telecom equipment company has gained a top preference of retail investors through social media. It rose 7.7% in 2020 to $3.91 for its shares traded on the New York Stock Exchange and spiked to $6.55 in late January before slipping down to the $4 per share mark, making it one of our top four penny stocks to watch this spring.
The company’s 5G demonstration has been frustrating in late quarters, with final quarter revenue down 5% due to a decline in network development and planning services, which was somewhat counterbalanced by development in 5G radio access items.
However, in October, the company’s current CEO, Pekka Lundmark, announced a new plan to pivot the company’s market as a top priority for 2021, vowing to “do whatever it takes to succeed in 5G.”
Coronavirus had a net revenue effect of around €200 million in 2020, although much of the transactions had to be shifted to later times rather than being missed.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.