Three Penny Stocks Worth Exploring

Summary

  • Atlanta-based Williams Industrial Services saw its share price grow by four times in the last one year.
  • Shares of media and entertainment platform RealNetworks have more than doubled in one year.
  • Ideanomics has been recently focusing on strengthening its EV portfolio with new acquisitions.

Penny stocks are considered as a high-risk investment due to their volatile nature. But lower price points and the potential for high returns make these stocks attractive.

In this article, we explore three penny stocks on investors’ radar: Williams Industrial Services Group Inc. (NYSE American: WLMS), RealNetworks, Inc. (NASDAQ: RNWK) and Ideanomics, Inc. (NASDAQ:IDEX).

Here, we explore more about the performance of these stocks as well as the companies’ latest developments.

 

Williams Industrial Services (NYSE American: WLMS)

This Atlanta-based company provides general construction, maintenance and specialty services including coatings application, insulation, asbestos and lead abatement, and roofing maintenance and repair as well as valve maintenance and repair.

Williams’ share price has multiplied over four times this in the last one year. Its shares ended Wednesday’s trading at US$4.98, up around 90 percent year to date.

In 2020, Williams’ revenue totaled US$269.1 million, compared with US$245.8 million in 2019. Adjusted EBITDA also increased to US$14.7 million from US$12.6 million in the previous year.

The company is expecting its revenue in 2021 to be in the range of US$310 million to US$320 million while adjusted EBITDA from continuing operations is projected between US$16 million and US$18 million.

RealNetworks, Inc. (NASDAQ: RNWK)

Seattle-based RealNetworks is a media and entertainment platform, which is transforming to an artificial intelligence-based company.

The company’s share price has more than doubled in one year. The shares closed on Wednesday at US$2.33, up 47 percent year to date. RealNetworks stock has a 52 week range of 90 cents to US$6.66.

Yesterday, RealNetworks posted a 10 percent decline in its first-quarter revenue to US$15.9 million. But it is interesting to note that the company’s revenue from AI-based facial recognition platform SAFR jumped 160% during the quarter while the voice identification platform KONTXT recorded 10% revenue growth.

RealNetworks raised US$20.3 million in its recent public offering. The management believes that 2021 will be an investment year and the company would see double-digit revenue growth in 2022 and 2023.

In 2020, RealNetworks’ revenue totaled US$68.1 million, up 3 percent year over year.

Ideanomics, Inc. (NASDAQ:IDEX)

New York-based Ideanomics operates under two units – Ideanomics Mobility division and Ideanomics Capital. The mobility division procures electric vehicles and provides financing and leasing, and energy management solutions to facilitate the adoption of commercial EVs. The capital unit develops financial services and fintech products.

Ideanomics’s shares have grown over 455 percent in the last one year. The share price grew 25 percent this year. The stock was priced at US$2.5 on Wednesday’s closing.

The company has been recently focusing on strengthening its EV portfolio with new acquisitions. On May 13, Ideanomics agreed to buy California-based US Hybrid, which makes zero-emission powertrain components.

In March, the company bought a 20 percent stake in Italian electric motorcycle maker Energica Motor Company while it acquired Utah-based wireless charging provider WAVE in January.

Recently, Ideanomics’ Malaysian subsidiary Tree Technologies secured a US$4274 million deal to supply 200,000 units of its electric motorbikes to Indonesia.

In 2020, Ideanomics saw its revenue from electric vehicle soar 600 percent year over year to US$19.5 million.

The company’s total revenue in 2020 slipped to US$26.8 million from US$44.6 million in 2019 as US$40.7 million came from a digital asset management services contract. The contract did not produce any revenue in 2020 and is not expected to make revenue further.


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