Penny stocks usually trade at a price of less than $5. That being said, there is potential for enormous gains if penny stocks start to move upward. Over the years, many keen investors have managed to make a fortune on such stocks. Here is a look at two penny stocks to watch that have made significant gains last week.
Penny Stock To Watch #1:
Insys Therapeutics (INSY)
One of those stocks is opioid manufacturing company Insys Therapeutics Inc (INSY Stock Chart). The company has agreed to stump up $225 million to pay a fine owing to a range of illegal conduct that it engaged in. The federal investigators had found evidence of widespread illegal marketing practices and bribery from the company.
It had been done in order to boost the sales of its addictive fentanyl spray. The settlement comes close on the heels of the revelation that the company’s founder John Kapoor and four top executives had been found guilty of bribing doctors to prescribe its medicines.
However, after the news of the settlement became known, the stock started soaring. In fact, it was up as much as 35% at one point. However, on Monday, those gains were mostly returned to the market. Share prices fell as low as $0.35 during premarket trading on June 10th. Despite this fact, could this still be a penny stock to watch? INSY stock recovered after the opening bell and traded for the majority of its Monday morning session around $0.60. This was nearly 100% higher than its premarket low.
Penny Stock To Watch #2:
Medicine Man Technologies (MDCL)
The other stock is the vertically integrated marijuana company Medicine Man Technologies (MDCL Stock Chart). The stock has gained as much as 15% last week after it managed to acquire the biggest cannabis grower in the state of Colorado.
The marijuana is spread over an area of 36 acres and could significantly boost production levels for the company. It is also important to note that the company operates in a sector that is likely primed for growth. Much of the excitement across the sector on Monday had to do with the fact that Tilray (TLRY Stock Chart)’s major shareholder extended its share lockup period. The even may have signaled confidence in the market that such a large firm was willing to forego short term profits in lieu of longer-term opportunities.