Penny stocks offer investors significant upside returns. The percentage returns on penny stocks to buy cannot be found elsewhere in the market. Additionally, these names give buyers defined risk. Defined risk is paramount to market participants. Without it, one cannot make a living over the long run.
Some strategies rely on shorting these names in the belief that they will go bankrupt. Often, this is a crowded trade. This is shown in many of these stock’s high short interest. Crowded trades rarely work for the masses. By design, they cannot. Conversely, this article focuses on penny stocks to buy. Buying these names and taking the other side of the trade rewards savvy investors with tremendous returns.
Top Penny Stocks To Buy
Over the counter (OTC) stocks carry an added level of risk that listed names do not. These companies are not required to file the same amount of information. Additionally, they lack analyst coverage compared to listed names. Conversely, these names do not halt. If listed names move a certain amount in a certain amount of time, trading pauses for a time. Buyers and sellers take a break and decide their next move. However, penny stocks move as high or low as they wish during sessions. This provides extremely profits for those on the right side.
OTC Medical Top Stocks To Buy
GB Sciences, Inc (OTCQB : GBLX) is creating a pipeline for the development of novel medicines based on our own patent-pending formulations of chemicals extracted from the Cannabis plant. Medical cannabis is now widely used and accepted. The movement went so far as to legalize recreational use of the plant in some states. Furthermore, the odds of national acceptance are higher than ever.
Additionally, this top penny stock to buy shows many strategic advantages. It is on the cutting edge of new research in the industry. If their studies continue producing results, a paradigm shift may occur. Companies will take market share from big pharma and investors will rush to invest. Finally, the stock trades around $.65 and trades almost 2 million shares daily. Liquidity extremely important in penny stocks. Investors can adjust their position easily without taking unnecessary losses.
Innovation Pharmaceuticals, Inc (OTCQB : IPIX) is a biopharmaceutical company dedicated to discovering innovative medical therapies with dermatology, oncology, anti-inflammatory and antibiotic applications. This top penny stock to buy has products in the pipeline that investors understand. Psoriasis and anti-inflammatory conditions are common in society.
Furthermore, when this companies gets approval is develops a new product, the price rises. Investors like to invest in companies they understand. Most noteworthy, this stock traded at almost $30 in the past. It offers tremendous upside at this level. Additionally, the stock currently trades at $.65. The trading volume of over 200,000 is sufficient to swing large positions. The company is gaining positive attention
Top Listed Penny Stocks To Buy
listed penny stocks offer investors more informationListed names come with an extra layer of comfort. These stocks must keep company information current. Also, they remain transparent at all costs. Conversely, this leads to a higher level of competition, which makes profitable trading more difficult. A trade off exists between these two worlds. However, profits are garnered every day for the informed investor.
Forward Industries, Inc. (NASDAQ : FORD) designs, markets, and distributes carry and protective solutions primarily for hand held electronic devices. This stock has a history of popping violently on news. It shows 7% short interest, causing amplified moves higher. The company recently acquired another smaller firm, making the stock skyrocket over 250% in one session.
Furthermore, the company trades over 1 million shares daily. This top penny stock to buy has a price-to-sales (P/S) ratio under 1. This means investors are paying less than $1 for every $1 of sales from the company. These metrics make FORD an exceptional candidate for higher prices.
Glu Mobile (NASDAQ : GLUU) develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. This name traded as high as $14 in the past, showing its upside potential. Also, with returns over 80% it shows extreme outperformance this year.
Additionally, the company shows healthy earnings-per-shares (EPS) growth over 70% quarter-over-quarter (Q/Q). It also shows high sales growth, and 50% margins on those sales. Furthermore, the stock is covered by reputable firms such as Stifel and Wedbush. These experts offer opinions and guidelines as the company reports news. This top penny stock to buy is a low risk play that rewards investors with explosive moves higher.
Penny Stocks To Buy Now
Penny stocks are inherently cheap, thus buying a diverse basket is prudent. The chance that every name will skyrocket higher is slim. However, the chance that a few names offer four digit returns is likely. Finding stocks that are crowded to one side gives longs a better chance of success. Additionally, combining this criteria with other fundamental metrics discussed in this article increases success rates dramatically.
Buying these names makes sense on a risk/reward spectrum. Shorter term players pay attention to the hardest to borrow stocks. Brokers provide this information to traders at fixed intervals. Positive news or a buying flurry sends these names soaring. Many of the top penny stocks to buy periodically appear on the list.
Finally, one must own a brokerage account with access to specific markets. Without access to OTC markets, an investor misses a large deal of these potential candidates. Interactive Brokers is a leading online broker that trades a vast majority of securities available.
Penny Stocks get a distorted reputation from the media. Also, Wall Street during the 80’s was not the most regulated industry. Thus, some brokers pumped terrible companies to unsuspecting retail investors. These investors eventually lost their money. However, that was in the past.
Penny stocks evolved significantly since then. Additionally, their daily trading volume increased, giving the market liquidity. Due to their inherent risk structure, a large community of online traders strictly trade penny names. This creates large swings in price as large parties enter and exit positions. Savvy investors see this coming and take advantage. Online day traders love momentum names, as many of these become once they attract attention. They bid the price up for days or weeks, allowing early investors to exit at a significant profit.