If one thing’s certain it’s that penny stocks continue to make money for investors. Despite criticism over the years, these small-cap stocks and micro-cap stocks remain prevalent for new & seasoned investors alike. There is, of course, a lot of risk that goes into buying penny stocks. But if you know how to manage that risk, putting together a sound list of penny stocks gets easier with experience.
Many traders will embark on a journey of information to gain knowledge on how penny stocks work. Others will dive right in without knowing anything and that is a dangerous place to be. I would never dive headfirst into anything without having sound knowledge on the topic.
Penny stocks pose the same scenario. As far as the penny stock definition goes, we’re looking at stocks that trade below $5 per share. Even though some of these stocks under $5 trade on higher exchanges, most penny stocks trade over the counter on the OTC Market. In general, the companies behind penny stocks are usually speculative. But unlike the NASDAQ or NYSE, OTC stocks can be limited in information. This is mostly why some critics are so against even looking for penny stocks to buy.
Needless to say, that doesn’t mean these equities can’t make you money. And as I said above, being able to navigate risk is a big proponent in doing so. With the markets in turmoil, many will turn to OTC stocks or even micro-cap NYSE/NASDAQ penny stocks. Here are 5 that have performed impeccably well in 2019:
Acasti Pharma Inc. (ACST)
Shares of this biotech stock have been on a tear this year and more recently over the last 30 days. Since June 18, ACST stock has climbed from $0.90 to highs of $1.59 this week. That 77% move has been greatly helped by the move that several small-cap biotech stocks have seen.
Acasti Pharma (ACST Report) is focusing on R&D and commercialization of its prescription drug candidate CaPre®. They are using it to treat different types of hypertriglyceridemia. What exactly is hypertriglyceridemia? The disease denotes high blood levels of triglycerides. This is the most abundant fatty molecule in most organisms. Elevated levels of triglycerides are related to higher levels of cardiovascular disease.
“Fiscal 2019 was an eventful year for the Company as we achieved several key milestones related to our ongoing Phase 3 clinical trials, which remain on schedule and within budget. We recently announced that we had achieved 100% patient randomization in both TRILOGY clinical studies, and more than 60% of patients have now completed the trial.”Jan D’Alvise, president and CEO of Acasti Pharma
FlexShopper, Inc. (FPAY)
This company is focused on online lease-to-own retailer and payment solutions. The exciting thing for FPAY stock is that it recently regained its compliance requirements imposed by NASDAQ. Essentially FPAY stock needed to trade with a minimum of $1 per share at the bid price in order to continue listing.
Why has FPAY stock soared this year? Aside from being such a low priced penny stock, FlexShopper (FPAY Report) has been growing significantly. In its last update, the company reported that its lease to own checkout option is now in more than 1,200 retail locations. That’s a 1,100% increase from the same period the year prior.
Originations totaled $6.5 million which is up more than 430% from last year as well. Thanks to this, FPAY stock has jumped up 129% so far this year. That’s from $0.73 in January to highs of $1.67 this week.
Neptune Wellness (NEPT)
Another one of the money-making penny stocks to watch this year is Neptune Wellness (NEPT Report). We wrote on this company earlier this week and since then NEPT stock has shot up another 25%+. However, for the year, shares of this marijuana stock have increased by more than 130% since January 2 this year.
Today the company announced the closing of a $41 million private placement. The bigger plan for the funds is for the initial consideration for the SugarLeaf Labs and Forest Remedies asset acquisitions. This has been the big focus for investors over recent months leading up to the proposed purchase. The deal would help Neptune expand its current capacity of 200,000 kg.
[Read Our First Article] Marijuana Penny Stock Neptune Wellness (NEPT) Is Up 72% in 2019, What’s Next?
Eldorado Gold Corporation (EGO)
No list of top penny stocks would be complete without a gold penny stock. The price of gold has shot up recently causing a big stir for gold stocks of all prices. EGO stock has benefited from very positive penny stock news. Eldorado Gold (EGO Report) reported preliminary second-quarter results this month.
As far as the company’s concerned, it’s on pace to meet annual guidance of up to 420,000 ounces of gold. Additionally, Eldorado declared commercial operations at its Lamaque min in March. All of this helped EGO stock achieve favorable recognition from analysts. CIBC World Markets raised its price target from C$3 to C$7 and upped its rating to Neutral from Underperform. Since January, EGO stock is up over 200% from lows of $2.50 in January to highs of $7.78 this week.
Rekor Systems Inc. (REKR)
This was another penny stock to watch that we discussed earlier this week. Rekor Systems (REKR Report) has seen a memorable year in 2019. After opening the year around $0.50, this has been a penny stock to buy for many traders earlier in the year. REKR stock has skyrocketed to highs of $3.45 this month to commemorate a near-580% move this year.
What has helped Rekor this month? If you look at any REKR chart, you’ll see that the last 45 days have been some of the biggest for the penny stock. During this time, Rekor regained compliance with NASDAQ. It also was selected by Nokia to provide automatic license plate reader software as part of Nokia’s analytics solutions.
Most recently some strong penny stock news has further propelled the stock to 2019 highs. Rekor announced that it joined the NVIDIA Metropolis Software Partner Program to apply deep learning to video streams.