Penny stocks are equity investments that are traded outside major stock exchanges. These stocks are traded at low prices and have a small market cap. As penny stocks are illiquid and highly speculative, they carry a high risk of investment.
The US Securities and Exchange Commission (SEC) defines penny stocks as shares with a value of less than $5. Typically, a penny stock is traded over the counter or by using pink sheets.
Despite the high risks of investment, penny stocks can be a lucrative form of investment because of its low price and higher prospects of return.
Here we look at 5 penny stocks that are very promising.
1. Neptune Technologies & Bioresources Inc [NEPT]
Neptune Technologies and Bioresources Inc is a Canada based wellness solutions provider. It offers nutraceutical products or standardized nutrients of a pharmaceutical grade.
MaxSimil is a patented ingredient and one of the premium products offered by Neptune. Other products include marine oils, seed oils, as well as oil extracted from legal cannabis.
Neptune also offers pet nutritional products.
In 2016, Neptune acquired Biodroga, a privately owned business solution provider for functional ingredients. Since April 2017, Neptune has become a licensed producer of Cannabis and Hemp Oil in Canada.
The monstrous growth in cannabis will hold NEPT in good stead. Analysts expect sales to rise 37% year-over-year to $39M in 2019.
Market Cap: $316M
Year-to-Date Return: 70%
Earnings Growth: 66.7%
2. Glu Mobile Inc. [GLUU]
Gaming has become one of the popular modes of entertainment. Glu Mobile is a game development company targeting mobile phones and smart gadgets.
The brand has already come up with multiple action games as well as mobile versions of console and arcade games. One of the popular role-playing games “Kim Kardashian: Hollywood” released by this company features the life of a reality TV celebrity. Glu Mobile Inc. primarily targets the female audience and over 60% of its games are female-centric.
The primary source of revenue is from the in-app purchases.
Glu Mobile has benefited immensely from the exponential growth of mobile gaming. With the global gaming industry set to experience robust sales over the next few years, Glu Mobile might be on the radar of several investors and analysts.
Analysts expect the company’s revenue to rise by 18% this year and 12.3% in 2019.
Market Cap: $1B
Year-to-Date Return: 103%
Earnings Growth: 40%
3. Arotech Corporation [ARTX]
Arotech Corporation is a successful mixture of modern technological innovations for federal use. There are two primary divisions of Arotech. One is the Training & Simulation department while the second focuses on Power Systems.
The Training and Simulation Department clubs drone technology and virtual reality for military use and law enforcement. Many of the simulations are used for combat training. Additionally, it also offers security services and weapons simulations for aircraft and missile guidance systems.
FAAC is one of the subsidiaries of Arotech Corporation. It was awarded a contract by the US Marine Corps. FAAC will be responsible for updating the convoy systems and the contract is valued at around USD 29 million.
Headquartered in Ann Arbor, Michigan, this defense and security company has been in existence for more than two and a half decades. Analysts expect revenue to rise by 1.3% to $100M this year and 11.8% to $111.8M in 2019.
Market Cap: $90M
Year-to-Date Return: -3%
Earnings Growth: 127%
4. CAS Medical Systems [CASM]
Medical and Healthcare sectors are seamlessly adopting modern technologies. CAS produces as well as markets products that can be used to monitor a patient’s vitals. Its products can be used to track patients without the use of invasive methods.
MAXNIBP is its traditional product to measure blood pressure. The company also offers a product called FORE-SIGHT which is a Tissue Oximeter with sensors.
Analysts expect CAS’ revenue to rise by 6.8% to $20M this year.
Market Cap: $63.3M
Year-to-Date Return: 196%
Earnings Growth: 15%
5. Dolphin Entertainment [DLPN]
Here’s another content production company — Dolphin Entertainment, Inc. engages in marketing and providing publicity services to major film studios, and many of the independent and digital content providers.
It is, however, flying under investors’ radar as the limelight is focused on content giants such as Netflix [NFLX], Disney [DIS] and others. It recently acquired 42West that expands its revenue stream into the public relations space.
Analysts expect Dolphin’s revenue to rise by 4.9% to $23.5 million this year, and 19.4% to $28 million in 2019.
Market Cap: $35.36M
Year-to-Date Return: -30%
Earnings Growth: 82.4%
6. Fura Gems [FURA]
Fura Gems is primarily a natural resource company. It engages in the acquisition and exploration of resource properties. The company was founded in 2006 and headquartered in Toronto, Canada.
This penny stock is currently trading at $0.40. The gemstone mining and marketing company is eyeing a share of 8-10% in the global colored stone market over the next three years. The market is estimated to reach$2B in 2021 which translates into annual revenue between $160M and $200M for Fura Gems.
Fura Gems is looking to expand its footprint in Mozambique and recently acquired nine ruby assets in the country.
Market Cap: $48.4M
Year-to-Date Return: -28%
CNBC: Here’s Why WeWork Wants To Go Public
News broke recently that WeWork’s going public in September. In this video, CNBC breaks down why they’re going public.
Before you watch, though, here’s some context.
WeWork’s recent S-1 filing — the paperwork you file with the SEC right before you go public — had the entire internet up in arms, including ourselves, trying to decode how the heck WeWork justifies its insane valuation.
Considering, ya know, IWG, a direct competitor, has nearly double the revenue, five times the members, is $2.5B ahead on the bottom line and…well, you can sort of see where this is going.
Despite earning an insane $47B valuation this year, it’s bleeding dough. Yes, WeWork grossed $1.8B in 2018…but it also lost $1.9B.
Be that as it may, WeWork is going public this year (via parent company “The We Company”), the latest in a string of high-profile tech IPOs in 2019.
And speaking of tech. Despite numerous “tech” mentions in the S-1, critics are claiming WeWork is little more than a real estate company.
As far as the We losses go, CFO Artie Minson told CNBC that investors need not worry about those grim financials, but instead to look at WeWork’s losses as “investments” that will lead to greater cash flow. (Which is very possible.)
And even if short-term losses eventually unearth long-term cash flows, will they be enough to justify its lofty valuation…and even loftier ambitions?
While we’re waiting for time to tell on WeWork’s future, if you’re looking to raise your startup game right now, go check out our content partner More Labs’ brand-new drink Aqua+. (Yes, the same More Labs behind this drink that broke the internet.)
Video: Compound Interest, Explained
3 Ways To Invest From Your Smartphone For Under $5
The numbers say 80% of millennials don’t invest in stocks.
Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.
In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”
Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)
Be that as it may, here are three ways to get started for $5 or less.
What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.
How it works: Download the app and choose your investment.
Minimum investment: $5
Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”
What: iOS and Android app.
How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.
Minimum investment: $5
Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”
What: A commission-free investment app (iOS and Android).
How it works: Download and start buying stocks.
Minimum investment: Whatever stock you want to buy.
And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.