Many investors are attracted to penny stocks simply because they are incredibly cheap. There is also potential to make a lot of money with a small investment. Over the years, many investors have generated handsome returns from investing in penny stocks. But at the same time, it is necessary to keep in mind that an investor has to be disciplined in their approach in order to be successful.
One of the most important things is to make a list of penny stocks which have decent fundamentals. Then then you might invest in the ones that look the best. Here is a peek at two penny stocks that rose this week following updates that had a bearing on fundamentals.
Penny Stock CV Sciences Inc Tests June Highs
Hemp based CBD oil maker CV Sciences Inc (CVSI Stock Report)’s stock started to soar after the company signed a deal with retail giant Kroger. It is one of the top selling CBD oil brands and by virtue of the deal with Kroger; it will now be available in a total of 945 stores across 17 states in the United States.
The reach of the company’s products goes up dramatically due to this deal and hence, the stock soared by as much as 9.50% in Wednesday’s trade on the over the counter market.
Penny Stock Workhorse Group Inc Secures Financing
On the other hand, Cincinnati based electric vehicle company Workhorse Group Inc (WKHS Stock Report), which is engaged in the manufacturing of electric delivery vans, managed to raise $25 million from investors that will allow it to keep its operations afloat for the foreseeable future. The company, which has been in existence since 1998, had earlier been the talk of the town after it had been in talks to acquire General Motors’ plant in Lordstown. Since its inception, adequate capital has been the company’s biggest problem and this capital raise will give it some breathing space.
Since the news, the stock has jumped by 25%. The Lordstown plant could be acquired by Steve Burns, Workhorse founder. The company would then have a minority stake in the operation. The plant is apparently going to be used to build an electric pickup meant for commercial use.