Penny stocks come in all shapes and sizes. They are defined by the SEC as a company whose share price is under $5 with a market cap less than $1, but often penny stocks are much much smaller, given their name. You may have heard of the risks associated with penny stocks but, they also come with the potential to be highly lucrative investments.
This is because of their potential dramatic gains in a short time period. Below are two examples of penny stocks, which generated double- or triple-digit growth to investors over the course of 2018.
Penny Stock #1: Blink Charging Co.
Blink Charging Co. (BLNK) owns, operates, and provides electric vehicle (EV) charging equipment and networked EV charging services. The company offers residential and commercial EV charging equipment that enable EV drivers to recharge at various location types.
It provides Blink Network, which is
Prior to the company’s news release in May of entering a partnership with Whole Foods to open electric vehicle charging stations at 470 locations, this penny stock was trading around $1.48. Within two weeks, those same shares hit fresh highs of $8.65, for what could have been total gains of 484%. Although the rally didn’t endure, this penny stock’s shares are still trading 97% higher than its share price prior to the news release.
Penny Stock #2: Oragenics, Inc.
Oragenics, Inc. (OGEN) is a biopharmaceutical company focused on becoming a leader in novel antibiotics against infectious disease and on developing effective treatments for oral mucositis. The company is developing OG716, an antibiotic product candidate that’s in nonclinical testing for health-care-associated infections and other homolog antibiotic product candidates and AG013, which is in clinical development for the treatment of oral mucositis in cancer patients.
Oragenics announced news in late-September of presenting at two conferences October 1st and 2nd, which could have been the catalyst that sent this penny stock’s share price soaring over the next few days nearly 500%. Oragenics share price reached a new 52-week high of $3.74 before losing half those gains in its next trading session. Although these large gains did not last long, this penny stock held on to a small part of gains until recently.
Food For Thought
In each of these examples, a catalyst boosted the penny stock’s trading volume which in turn drove up its share price. While we are unfortunately unable to predict news, it does not mean it is impossible to come out winner on momentum trades like these. With a high-risk tolerance and focus, anything is possible.