For as long as the stock markets have existed, investors have been looking for cheap stocks that could eventually soar and deliver hefty returns. Therefore, the standard penny stock definition is a stock priced $5 or lower. These small-cap and micro-cap stocks have an appeal for investors because of this. Even now stock pickers strive for a penny stock that could give them a handsome return.
However, an investor needs to watch the market closely and keep track of the latest moves in penny stocks in order to make the right choice. Here is a look at two penny stocks which made significant moves in the recent past.
Technology Penny Stock To Watch #1: Ideanomics
Fintech company Ideanomics Inc (IDEX Stock Chart) works with transformative industries. The company has been on a highly impressive bull run since the last week of June. Since June 25, the tech penny stock has soared by as much as 60% and it has continued to rise over the recent day.
During Monday’s sessions, the Ideanomics surged by 18% and it is quite clear that the tech stock now enjoys significant momentum on the back of a series of important deals. The company partnered with Three Gorges Energy, the world’s bigger hydro-electric company, Ding Fang and Tianda Energy.
Ideanomics is going to help all three Chinese companies build electric vehicle power stations. Since then, the penny stock has surged. This is certainly a penny stock to keep an eye on.
Tech Penny Stock To Watch #2: DPW Holdings
The other technology penny stock that has gained significantly recently is DPW Holdings Inc (DPW Stock Chart). The stock has gained 21.55% after completing a debt restructuring that could give it some breathing room.
DPW is involved in growing through acquisition of undervalued firms. Unfortunately, it had defaulted to the tune of $1,000,000 but then issued convertible debt of $1,492,000 to creditors. It has since managed to restructure debts of as much as $15.8 million for the year so far. Following the update, DPW shares soared.
Gold Penny Stock To Watch: Gold Fields Limited
Another significant mover over the course of 2019 has been Gold Fields Limited (GFI Stock Chart). This gold stock has risen by as much as 55% so far this year. Although the rise has not been smooth, those who held on to the penny stock managed to gain handsome returns.
The main concern with Gold Fields was the fact that the company had been overburdened with debt. In order to address this, the company issued two sets of bonds. The first one worth $500 million is going to mature in 5 years, while the other worth $500 million is going to mature in 10 years. Analysts believe that it has managed to take care of the debt situation and explains the surge in the gold penny stock price.