Penny stocks have both unlimited risk and unlimited reward. Sometimes that reward can take a year to culminate. When looking for penny stocks to buy, investors tend to gravitate to great news. If the news is good enough, it can promote both instantaneous or gradual growth. A downside to trading penny stocks is that many tend to not be trading on the Robinhood trading app. Three such instances include:
Crypto Penny Stock Bounce-back Story
Grayscale Bitcoin Trust (GBTC Stock Chart) is a digital currency asset management company. In 2018 the company’s share price reached nearly $40. However, the price reached $4 in January and February of 2019 by the end of its downtrend. Since that moment, Grayscale has rallied back to almost $12 on consistent positive news.
Some news highlights include the company launching its Stellar Lumens Trust in January. Also in February, Grayscale released its 2018 Digital Asset Report which showed the company raised $360 million. To top off the penny stock news cycle, the company recently announced the public quotation of Grayscale Ethereum Trust shares.
Healthcare Penny Stock Breaking Out: The Promising Stem Cell Field
Lans Holdings Inc. (LAHO Stock Chart) is a payment solutions company. They have a group-buying portal and payment processor that makes it easy for new sellers to start selling their products. The company’s shares have seen multiple jumps but their recent one was 240%. This most recent skyrocket was attributed to Lans Holdings entering a letter of intent to completely control Global Stem Cells Group Inc.
“This transaction represents a significant opportunity for our company to enter the explosive field of Stem Cell technology with a proven and seasoned team and I look forward to working closely with GSCG to execute on their growth plans.”Dave Christensen, CEO of Lans
Trade War Impact
Lynas Corporation Limited (LYSCF Stock Chart) is a materials company focused on rare Earth minerals in Australia and Malaysia. Since the beginning of 2019, Lynas’ share price got mainly stuck between the $1.00 and $1.20 range. However, the stock jumped 2 times over the year on March 26th and May 29th. Those two moves helped the stock increased 100% over 3 months.
The move on March 26th was sparked by Lynas rejecting Wesfarmers offer of $1.1 billion to acquire the company. The stock jumped 35% on this news alone. The second catalyst was due to the US-China Trade War. China’s threat to cut US material companies off made Lynas the only significant rare Earth material provider for the US. This prompted a 38.7% gain in the share price.