Aside from minor downfalls, the tech industry continues to see unprecedented growth as the years go by – despite economic downturns & rising inflation. For this reason, investors are always on the lookout for promising tech plays that capitalize on the industry’s potential and show solid results. Today, we’re bringing you 3 tech penny stocks trading under $5 that could break out sooner than expected. Stay in the loop & get alerts on the BEST tech plays here.
Tech Penny Stocks #1: RVPH
As a clinical-stage biopharma company, Reviva Pharmaceuticals Holdings (NASDAQ: RVPH) is known for its efforts to develop & commercialize next-generation therapeutics for diseases representing unmet medical needs and burdens to society, patients, and their families.
Currently focused on the central nervous system, respiratory & metabolic diseases, RVPH’s pipeline includes 2 drug candidates – RP5063 & RP1208. The company has been granted composition of matter patents for both drugs in the U.S, Europe & several other countries.
Despite this impressive growth & milestones, the company’s recently released its Q2 financial results & business highlights raised suspicions among investors. Despite a solid cash position of $19.4 million for the period, RVPH has an extremely high cash burn rate.
In fact, the company reported a net loss of nearly $12.7 million for the 2 quarters ended June 30, 2022, compared to a net loss of only $2.6 million in the year-ago period. However, RVPH’s management has assured investors that its current operating plan and financial resources will be sufficient to fund its growth & development through at least March 2023.
Elaborating on the company’s vision, CEO Laxminarayan Bhat said: “RVPH remains on pace across the 15 sites in the US and anticipates an acceleration in enrollment with the initiation of additional sites in Europe and India by the end of September.”
Clearly, the company has greater plans in the coming months. RVPH will continue exploring non-dilutive financing opportunities – such as partnerships – to support expansion & further development of its pipeline. Additionally, the company plans to initiate enrollment at sites in Europe and India for RECOVER Phase 3 study as soon as Q3, all the while collecting topline data for the pivotal Phase 3 trial that will evaluate brilaroxazine for the treatment of schizophrenia & other diseases.
Despite its alarming cash burn rate, investors’ overall sentiment is bullish on the stock’s potential moving forward. Let’s take a look at where it’s trading today.
Following its recent run-up, RVPH is trading at its new resistance of $2.64 with support near 1.31 and another .69. The MACD is on a recent bullish crossover in line with the increase in the stock’s PPS. However, accumulation has seen a sharp significant drop despite a strong RSI at 83 – indicating the stock is extremely overbought.
Tech Penny Stocks #2: AVCT
Known for its Kandy business unit that helps companies quickly embed real-time communications capabilities into their existing applications and business processes, American Virtual Cloud Technologies, Inc. (NASDAQ: AVCT) has been on investors’ radar ever since it announced changes to its BOD, management team and naming Kevin Keough CEO.
Having previously served as AVCT’s Chief Transformation Officer, Keough is a prominent candidate well-known for his expertise across several global brands. as a partner at McKinsey & Company, Inc. and a senior executive with FirstEnergy Corp., he gained extensive public company experience. For nearly 16 years, Keough served in senior operating roles with three private equity firms – Arcapita, Investcorp, and Navigation Capital Partners.
Along with these changes in the board, the company is also launching a review to explore the sale of the entire business or selected assets. AVCT has also recently announced it had retained Northland Capital Markets – certain capital markets and investment banking services of Northland Securities, Inc. (a FINRA member) – to advise AVCT with a comprehensive strategic review process that could lead to the sale of the company or selected assets.
Now that the company is laying down its strategic roadmap for further growth, investors are bullish on the company’s potential & it is reflected in massive trading volume as shown by the stock’s most recent chart.
Currently trading near its resistance of .28, AVCT has a PPS of $.2779. The stock shows a support near .1843 and a stronger one near .1616. Accumulation is showing a steep upward trend after being relatively steady for the past few weeks. Similarly, the MACD is bullish to the upside and shows no signs of an incoming crossover. The RSI is at 79 following the recent run-up – indicating the stock is extremely overbought.
In light of these indicators, investors’ bullish sentiment is clearer than ever. This comes as no surprise given the many positive changes the company is currently undergoing. In fact, AVCT could be well-positioned to break its resistance sooner than expected and trade at an ATH as its catalysts play out. Sign up here & get alerts on the BEST entry point on this play!
Tech plays are amazing catches! If you get in at just the right time, you can so easily cash out with GOOD profit! These 2 tech penny stocks have seen massive run-ups in the past few days & are likely to break their resistance soon given the companies’ plans moving forward. Wanna be the first to know the BEST entry point on such promising plays? Sign up & get the best investment opportunities straight to your inbox! ALL for FREE!
As always, good luck to all (except the shorts)!
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Disclosure: We have been Previously compensated $42,500 by awareness consulting network for coverage on AGRI. Viral Stocks is not an investment advisor and this article does not provide investment advice. Always do your own research, make your own investment decisions, or consult with your nearest financial advisor. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is our opinion and is meant for informational and educational purposes only and does not provide investment advice. Past performance is not indicative of future