While penny stocks carry immense risk with them in terms of price movements as a small trigger can move the price either ways in a stupendous manner, few of them do have the capability to stay resilient despite a lot of turmoil in the overall market scenario. 2 Penny Stocks being discussed here have lately seen good performance over the last one month.
Cloud based services provider, Dropsuite Limited (ASX: DSE) recently reported that paid users now exceed 400,000, up 33% from the 300,000 of paid users reported on 14 June 2018. This was earlier reported to be up from 162K number of users, same period last year, to approximately 250,000 Paid Users as of second week of May 2018. The cash position to scale and grow the company stands at $4.3 million, with solid traction in new partner sign-ups. Gross margin for the group is best in class exceeding 80%, which is up 2% from the last year. Triple digit year on year growth in the email backup has exceeded expectations. Product introduction acceleration that is creating a strategic advantage over competition, is another highlight for business strengthening. Dropsuite recently re-launched its email backup product from a partnership secured in April with a large IT Service Provider and this is the reason why the high growth in new paid users is primarily coming. The rapid increase in paid users over a short period is driven by an extensive marketing campaign to the partner’s existing customers. While the campaign has generated a huge increase in paid users, revenue per user will be lower due to special volume pricing for that provider and hence revenue churn maybe dependent on more flexible ‘opt-out’ terms. That said, with healthy gross margins, the company is very pleased with the scale of revenue performance.
ASX: DSE was trading at a market price of $0.120, as at July 11, 2018 and the performance change or a rise of 50% is noted over the past 12 months with one month surge of 145%.
A leading developer of software and hardware, BrainChip Holdings Limited (ASX: BRN) provides solutions based on artificial intelligence (AI) and machine learning applications. Recently, the group appointed James Roe as its Director of North American End User Sales. North America is expected to provide significant growth and become a multi-million-dollar market for BrainChip and the market for video surveillance in homeland security, law enforcement, and school safety in North America is large. Other than this, the group has also developed a revolutionary new “spiking neural network” (SNN) technology which is a type of neuromorphic computing and has an ability just like a human brain to learn autonomously, develop and relate the information.
BrainChip Holdings thus provides an automated table solution, with an advanced visual identification system based on its technology and the system combines innovative and exclusive SMART RFID technology. Built to each individual operator’s specific operational needs, its platform Automated Table Solution, ATS is a customizable, scalable, modular table game solution. ASX: BRN was trading at a market price of $0.132 as at July 11, 2018 and has seen a performance change or a decline of -21% over the past 12 months with a rise of 8% in last one month.
Both the above stocks are information technology stocks, and have gained traction along with the sector doing well at an overall level.