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5 Penny Stocks Benefiting From The Reopening Trade In 2021

5 Penny Stocks Benefiting From The Reopening Trade In 2021



This article was originally published by PennyStocks.

These 5 Reopening Penny Stocks Popped in 2021 

Penny stocks have been one way for traders to take advantage of the stock market’s volatility. Typically, we define these as stocks under $5, but since the pandemic, the makeup of these cheap stocks has changed. What I mean by this is that the 2020 sell-off in many companies took certain names down below the $5 threshold.

Now, a little over a year after the pandemic started, many penny stocks have climbed dramatically. While there are penny stocks of all types for investors to look at, reopening and epicenter stocks have been a popular topic.

These are companies that have benefitted from large vaccine distribution and dropping Covid case numbers. According to Tom Lee of Fundstrat, “epicenter stocks are shares of companies that were hit hardest by the global pandemic in 2020 but could potentially recover the strongest in an economic reopening.” 

Right now, many reopening penny stocks have seen bullish interest. What’s more, this grouping could be extended to any industry benefiting from increased economic activity. It’s important to think outside of the box with some of these names. With this in mind, here are five reopening penny stocks that investors can’t get enough of. 

Reopening Penny Stocks to Watch 

  1. Rave Restaurant Group Inc. (NASDAQ: RAVE)
  2. Enzo Biochem Inc. (NYSE: ENZ
  3. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP
  4. Boxlight Corp. (NASDAQ: BOXL)
  5. NewAge Inc. (NASDAQ: NBEV)

Rave Restaurant Group Inc. 

As far as reopening penny stocks go, Rave Restaurant Group is a perfect example. Because of restrictions being lifted in certain states, shares of RAVE stock bounced more than 25% on March 15th. Founded back in the 50s, Rave is the owner and operator of many franchised pizza restaurants.

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This includes more than 200 Pie Five Pizza Co.’s, Pizza Inn, and Pizza Inn Express kiosk locations worldwide. The company is also working on new methods to deliver fresh pizza through unconventional outlets. Only a few weeks ago, Rave announced its second-quarter 2021 financial results. Revenue came in at $2.1 million, a decrease of $0.7 million over the same quarter last year. 

Thanks to Covid, the decline in revenue makes sense for this quarter. But, with many states beginning to reopen, investors are betting on the near term with restaurant stocks. CEO Brandon Solano stated concerning the financial report that “while we continue to work through challenges presented by the pandemic, we are seeing strong indications that the team and strategy we’ve put into place are taking hold and yielding results in repositioning Rave for long term success.”


Enzo Biochem Inc. 

After reporting its Q2 2021 financial results on March 15th, shares of ENZ stock were up by over 50%. In the report, the company announced total revenue for the quarter of $31.5 million. This represents an almost 62% increase year over year. Also, the company saw a consolidated gross margin increase of 50% over the previous year. Lastly, it reported an adjusted positive EBITDA of $4.3 million. This represents an EPS of $0.05 over an EPS loss of $0.16 in Q2 2020.

CEO Elazar Rabbani stated that “The Company’s strong financial performance in the second quarter is another reflection of the strength of our new business model for integrated diagnostic products and services. The high gross margins achieved this quarter further validate the strength of Enzo’s strategy.” 

During the quarter, the company was able to develop its GENFLEX molecular diagnostic platform further. Additionally, the company worked on shifting this platform to potentially aid in the Covid-19 pandemic. The company states that its platform could dramatically lower costs for common molecular tests.

It also mentioned that this is one of the fastest-growing areas of the clinical testing market. Because it is working on a covid-related product, Enzo Biochem has exposure to this reopening trend. Despite dropping case numbers, the need for cheap and accurate solutions to Covid is more pertinent than ever. With its solid quarterly growth in mind, ENZ could be one of the penny stocks to watch this month. 


Seanergy Maritime Holdings Corp. 

If you’re looking for a more pure-play reopening penny stock, Seanergy could be worth looking into. Seanergy and similar shipping stocks have seen a lot of bullish momentum in the past few months. Despite the pandemic, the need for goods due to increased e-commerce sales is extremely high. This means that shipping companies are gaining heightened interest from investors right now.

The company provides shipping services for dry and bulk goods. As of February 2021, it has 12 Capesize vessels with an average age of just over 12 years. This is relatively new and means that the company could avoid costly repairs. Additionally, these ships have an average aggregate cargo-carrying capacity of over 2.1 dwt. Only a few weeks ago, it announced the pricing of a $75 million common share offering.

CEO Stamatis Tsantanis stated that “the pricing of our offering will underpin our strategic aims of sustainable fleet growth and continued balance sheet deleveraging. The proceeds of this highly accretive transaction shall further enhance our liquidity allowing us to pursue potential additional acquisitions at what we believe to be favorable timing in the market cycle.”

Additionally, the company announced the full prepayment of a senior credit facility. With an outstanding balance of $21.6 million, the company could receive a 10% discount by reducing repayment time. The company states that this will have an immediate and substantial impact on its profitability. In the past few months, the Capesize daily spot rates, or the amount received for shipping goods, have almost doubled over its historical 5-year averages. With all of this in mind, SHIP could be a penny stock worth watching.  


Boxlight Corp. 

Boxlight Corp. is a tech company working on interactive solutions for educational tech products. This includes its Clevertouch and Mimio products. Boxlight designs, sells, and services its entire solution pipeline to stay vertically integrated. This includes interactive displays, software for collaboration, accessories, and other services.

While it is aimed at the education market, the company is also working on tapping into the larger business sector. A few days ago, it announced that the British Academy had selected the Clevertouch UX Pro interactive touchscreen display to replace its current technology workforce. The British Academy is a renowned learning environment for humanities and sciences. 

[Read More] Hot Penny Stocks To Watch If You’re Looking For Epicenter Stocks To Buy

Because Boxlight’s products have state-of-the-art features such as zoom support, infinity whiteboarding, and more, this choice was the obvious one for the Academy. While this is just one contract, having such a large educational body helps to affirm Boxlight’s placement in the market. Also, the company announced the introduction of Clevertouch Academy.

This aims to offer a large range of resources to teachers, trainers, engineers, and all who use the Clevertouch product. The President of Boxlight, Mark Starkey, stated that “Clevertouch Academy marks an additional brand investment for Boxlight in 2021. Training and supporting our customers is one of our top priorities.”

Since education and virtual learning are likely to remain a factor, BOXL could be another one of the reopening penny stocks to watch.


NewAge Inc.

Consumer products companies are also likely to be ones in the spotlight as things start reopening. In this case, NewAge Inc. has been a name to follow. The company has taken an omnichannel approach to retail sales and focuses on social selling. As they say, the proof is in the pudding, and today NewAge reported its fourth quarter and full-year 2020 results.

Sales for Q4 beat analyst’s estimates. NewAge reported $90.4 million compared to estimates of $81.02 million. Not only was this a big beat, but the $90.4 million figure was also an increase of 53%. Adjusted EBITDA also came in higher than the company expected, reaching $2.9 million. This was NewAge’s first positive adjusted EBITDA quarter in almost 2 years.

“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 that merged with us in November, we significantly strengthened our management teams and execution capabilities, and as a result are seeing excellent organic growth momentum in 2021.”

Brent Willis, NewAge CEO

The company’s target products are all centered around healthy living. These include categories like health & wellness, healthy appearance, and nutritional performance. With a network of more than 400,000 independent distributors and brand partners, the reopening trend could a spotlight on companies like NewAge.

reopening penny stocks to watch NewAge Inc NBEV stock chart

The post 5 Penny Stocks Benefiting From The Reopening Trade In 2021 appeared first on Penny Stocks to Buy, Picks, News and Information |

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Las Vegas Strip faces growing bed bug problem

With huge events including Formula 1, CES, and the Super Bowl looming, the Las Vegas Strip faces an issue that could be a major cause for concern.



Las Vegas beat the covid pandemic.

It wasn't that long ago when the Las Vegas Strip went dark and people questioned whether Caesars Entertainment, MGM Resorts International, Wynn Resorts, and other Strip players would emerge from the crisis intact. 

Related: Las Vegas Strip report shares surprising F1 race news

In the darkest days, the entire Las Vegas Strip was closed down and when it reopened, it was not business as usual. Caesars Entertainment (CZR) - Get Free Report and MGM reopened slowly with all sorts of government-mandated restrictions in place.

The first months of the Strip's comeback featured temperature checks, a lot of plexiglass, gaming tables with limited numbers of players, masks, and social distancing. It was an odd mix of celebration and restraint as people were happy to be in Las Vegas, but the Strip was oddly empty, some casinos remained closed, and gaming floors were sparsely filled. 

When vaccines became available, the Las Vegas Strip benefitted quickly. Business and international travelers were slow to return, but leisure travelers began bringing crowds back to pre-pandemic levels. 

The comeback, however, was very fragile. CES 2022 was supposed to be Las Vegas's return to normal, the first major convention since covid. In reality, surging cases of the covid omicron variant caused most major companies to pull out.

Even with vaccines and covid tests required, an event that was supposed to be close to normal, ended up with 25% of 2020's pre-covid attendance. That CES showed just how quickly public sentiment — not actual danger — can ruin an event in Las Vegas.

Now, with November's Formula 1 Race, CES in January, and the Super Bowl in February all slated for Las Vegas, a rising health crisis threatens all of those events.

The Arena Media Brands, LLC and respective content providers to this website may receive compensation for some links to products and services on this website.

Covid left Las Vegas casinos empty for months.

Image source: Palms Casino

The Las Vegas Strip has a bed bug problem   

While bed bugs may not be as dangerous as covid, Respiratory Syncytial Virus (RSV),  Legionnaires’ disease, and some of the other infectious diseases that the Las Vegas Strip has faced over the past few years, they're still problematic. Bed bugs spread easily and a small infestation can become a large one quickly.

The sores caused by bed bugs are also a social media nightmare for the Las Vegas Strip. If even a few Las Vegas Strip visitors wake up covered in bed bug bites, that could become a viral nightmare for the entire city.

In late-August, reports came out the bed bugs had been at seven Las Vegas hotel, mostly on the Strip over the past two years. The impacted properties includes Caesars Planet Hollywood and Caesars Palace as well as MGM Resort International's (MGM) - Get Free Report MGM Grand, and others including Circus Circus, The Palazzo, Tropicana, and Sahara.

VISIT LAS VEGAS: Are you ready to plan your dream Las Vegas Strip getaway?

"Now, that number is nine with the addition of The Venetian and Park MGM. According to the health department report, a Venetian guest reported seeing the bloodsuckers on July 29 and was moved to another room. An inspection three days later confirmed their presence," reported.

The Park MGM bed bug incident took place on Aug. 14.

Bed bugs remain a Las Vegas Strip problem

Only Tropicana, which is soon going to be demolished, and Sahara, responded to about their bed bug issues. Caesars and MGM have not commented publicly or responded to requests from KLAS or

That makes sense because the resorts do not want news to spread about potential bed bug problems when the actual incidents have so far been minimal. The problem is that unreported bed bug issues can rapidly snowball.

The Environmental Protection Agency (EPA) shares some guidelines on bed bug bites on its website that hint at the depth of the problem facing Las Vegas Strip resorts.

"Regularly wash and heat-dry your bed sheets, blankets, bedspreads and any clothing that touches the floor. This reduces the number of bed bugs. Bed bugs and their eggs can hide in laundry containers/hampers. Remember to clean them when you do the laundry," the agency shared.

Normally, that would not be an issue in Las Vegas as rooms are cleaned daily. Since the covid pandemic, however, some people have opted out of daily cleaning and some resorts have encouraged that.

F1? SUPER BOWL? MARCH MADNESS? Plan a dream Las Vegas getaway.

Not having daily room cleaning in just a few rooms could lead to quick spread.

"Bed bugs spread so easily and so quickly, that the University of Kentucky's entomology department notes that "it often seems that bed bugs arise from nowhere."

"Once bed bugs are introduced, they can crawl from room to room, or floor to floor via cracks and openings in walls, floors and ceilings," warned the University's researchers.  



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Americans are having a tough time repaying pandemic-era loans received with inflated credit scores

Borrowers are realizing the responsibility of new debts too late.



With the economy of the United States at a standstill during the Covid-19 pandemic, the efforts to stimulate the economy brought many opportunities to people who may have not had them otherwise. 

However, the extension of these opportunities to those who took advantage of the times has had its consequences.

Related: American Express reveals record profits, 'robust' spending in Q3 earnings report

Credit Crunch

GLASTONBURY, UNITED KINGDOM - JANUARY 12: In this photo illustration the Visa, Mastercard and American Express logos are seen on credit and debit cards on March 14, 2022 in Somerset, England. Visa, American Express and Mastercard have all announced they are suspending operations in Russia and credit and debit cards issued by Russian banks will no longer work outside of the country. (Photo by Matt Cardy/Getty Images)

Matt Cardy/Getty Images

A report by the Financial Times states that borrowers in the United States that took advantage of lending opportunities during the Covid-19 pandemic are falling behind on actually paying back their debt.

At a time when stimulus checks were handed out and loan repayments were frozen to help those affected by the economic shock of Covid-19, many consumers in the States saw that lenders became more willing to provide consumer credit.

According to a report by credit reporting agency TransUnion, the median consumer credit score jumped 20% to a peak of 676 in the first quarter of 2021, allowing many to finally have “good” credit scores. However, their data also showed that those who took out loans and credit from 2021 to early 2023 are having an hard time managing these debts.

“Consumer finance companies used this opportunity to juice up their growth at a time when funding was ample and consumers’ finances had gotten an artificial boost,” Chief economist of Moody’s Analytics Mark Zandi told FT. “Certainly a lot of lower-income households that got caught up in all of this will feel financial pain.”

Moody’s data shows that new credit cards accounts that were opened in the first quarter of 2023 have a 4% delinquency rate, while the same rate in September 2022 was 4.5%. According to the analysts, these levels were the highest for the same point of the year since 2008.

Additionally, a study by credit scoring company VantageScore found that credit cards issued in March 2022 had higher delinquency rates than cards issued at the same time during the prior four years.

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Credit cards were not the only debts that American consumers took on. As per S&P Global Ratings data, riskier car loans taken on during the height of the pandemic have more repayment problems than in previous years. In 2022, subprime borrowers were becoming delinquent on new cars loans at twice the rate of pre-pandemic levels.

S&P auto loan tracker Amy Martin told FT that lenders during the pandemic were “rather aggressive” in terms of signing new loans.

Bill Moreland of research group BankRegData has warned about these rising delinquencies in the past and had recently estimated that by late 2022, there were hundreds of billions of dollars in what he calls “excess lending based upon artificially inflated credit scores”.

The Government's Role

WASHINGTON, DC - APRIL 29: U.S. President Donald Trump's name appears on the coronavirus economic assistance checks that were sent to citizens across the country April 29, 2020 in Washington, DC. The initial 88 million payments totaling nearly $158 billion were sent by the Treasury Department last week as most of the country remains under stay-at-home orders due to the COVID-19 pandemic. (Photo by Chip Somodevilla/Getty Images)

Chip Somodevilla/Getty Images

Because so many are failing to pay their bills, many are wary that the government assistance may have been a financial double-edged sword; as they were meant to alleviate financial stress during lockdown, while it led some of them to financial difficulty.

The $2.2 trillion Cares Act federal aid package passed in the early stages of the pandemic not only put cash in the American consumer’s pocket, but also protected borrowers from foreclosure, default and in some instances, lenders were barred from reporting late payments to credit bureaus.

Yeshiva University law professor Pam Foohey specializes in consumer bankruptcy and believes that the Cares Act was good policy, however she shifts the blame away from the consumers and borrowers.

“I fault lenders and the market structure for not having a longer-term perspective. That’s not something that the Cares Act should have solved and it still exists and still needs to be addressed.”

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Inflation: raising interest rates was never the right medicine – here’s why central bankers did it anyway

We need to start cutting rates, but there’s something that has to happen first.

Pain, no gain? Bank of England Governor Andrew Bailey. IMF, CC BY-SA

Inflation remains too high in the UK. The annual rate of consumer price inflation to September was 6.7%, the same as a month earlier. This is well below the 11.1% peak reached in October 2022, but the failure of inflation to keep falling indicates it is proving far more stubborn than anticipated.

This may prompt the Bank of England’s Monetary Policy Committee (MPC) to raise the benchmark interest rate yet again when it meets in November, but in my view this would not be entirely justified.

In reality, the rate hikes that began two years ago have not been very helpful in tackling inflation, at least not directly. So what’s the problem and is there a better alternative?

Right policy, wrong inflation

Raising interest rates is the MPC’s main tool for trying to get inflation back to its target rate of 2%. The idea is that this makes it more expensive to borrow money, which should reduce consumer demand for goods and services.

The trouble is that the type of inflation recently witnessed in the UK seems less a problem of excessive demand than because costs have been rising for manufacturers and service providers. It’s known as “cost-push inflation” as opposed to “demand-pull inflation”.

Inflation rates (UK, US, eurozone)

Graph comparing inflation rates of UK, US and eurozone
UK = dark blue; eurozone = turquoise; US = orange. Trading View

Production costs have risen for several reasons. During the COVID-19 pandemic, central banks “created money” through quantitative easing to enable their governments to run large spending deficits to pay for furloughs and other interventions to help citizens through the crisis.

When countries started reopening, it meant people had money in their pockets to buy more goods and services. Yet with China still in lockdown, global supply chains could not keep pace with the resurgent demand so prices went up – most notably oil.

Oil price (Brent crude, US$)

Chart showing price of Brent crude oil
Trading View

Then came the Ukraine war, which further drove up prices of fundamental commodities, such as energy. This made inflation much worse than it would otherwise have been. You can see this reflected in consumer price inflation (CPI): it was just 0.6% in the year to June 2020, then rose to 2.5% in the year to June 2021, reflecting the supply constraints at the end of lockdown. By June 2022, four months after Russia’s invasion of Ukraine, CPI was 9.4%.

The policy problem

This begs the question, why has the Bank of England (BoE) been raising rates if it’s unlikely to be effective? One answer is that other central banks have been raising rates. If the BoE doesn’t mirror rate rises in the US and eurozone, investors in the UK may move their money to these other areas because they’ll get better returns on bonds. This would see the pound depreciating against the US dollar and euro, in turn increasing import prices and aggravating inflation.

Part of the problem has been that the US has arguably faced more of the sort of demand-led inflation against which interest rates are effective. For one thing, the US has been less at the mercy of rising energy prices because it is energy self-sufficient. It also didn’t lock down as uniformly as other major economies during the pandemic, so had a little more space to grow.

At the same time, the US has been more effective at bringing down inflation than the UK, which again suggests it was fighting demand-driven price rises. In other words, the UK and other countries may to some extent have been forced to follow suit with raising interest rates to protect their currencies, not to fight inflation.

What next

How harmful have the rate rises been in the UK? They have not brought about a recession yet, but growth remains very weak. Lots of people are struggling with the cost of living, as well as rent or mortgage costs. Several million people are due to be hit by much higher mortgage rates as their fixed-rate deals end between now and the end of 2024.

UK GDP growth (%)

Chart showing the annual rate of GDP growth
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If hiking interest rates is not really helping to curb inflation, it makes sense to start moving in the opposite direction before the economic situation gets any worse. To avoid any damage to the pound, the answer is for the leading central banks to coordinate their policies so that they cut rates in lockstep.

Unless and until this happens, there would seem to be no quick fix available. One piece of good news is that the energy price cap for typical domestic consumption was reduced from October 1 from £1,976 to £1,834 a year. That 7% reduction should lead to consumer price inflation coming down significantly towards the end of 2023.

More generally, the Bank of England may simply have to hope that world events move inflation in the desired direction. A key question is going to be whether the wars in Ukraine and Israel/Gaza result in further cost pressures.

Unfortunately there is a precedent for a Middle East conflict leading to a global economic crisis: following the joint assault on Israel by Syria and Egypt in 1973, Israel’s retaliation prompted petroleum cartel OPEC to impose an oil embargo. This led to an almost fourfold increase in the price of crude oil.

Since oil was fundamental to the costs of production, inflation in the UK rose to over 16% in 1974. There followed high unemployment, resulting in an unwelcome combination that economists referred to as stagflation.

These days, global production is in fact less reliant on oil as renewables have become a growing part of the energy mix. Nonetheless, an oil price hike would still drive inflation higher and weaken economic growth. So if the Middle East crisis does spiral, we may be stuck with stubborn, untreatable inflation for even longer.

Robert Gausden does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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