Before we look at the best penny stocks and dive into business profiles, let’s talk about how to trade this niche market.
The first thing to know when trading the best penny stocks is you have to be able to spot potential red flags and signs of fraud.
if there is a caveat emptor sign or a skull and crossbones next to the penny stock’s name, well, yeah, maybe stay away.
Next, if a company suddenly starts skyrocketing on no legitimate news, the stock is probably being manipulated.
These are very small companies and even some with wonderful business models will not leap significantly overnight. Penny stocks take time to mature because they are small operations.
Check the charts and make sure the trades are not abnormal. After that, do your own research and throw price out the window.
The best penny stocks are speculative and pricing is notoriously spooky.
Make sure you know the penny stock’s real value and that you have enough information to make a holistic decision about the company.
And yeah, let’s ponder the obvious question: why is the stock’s price so low?
Investors have signaled that the shares are not worth much, or the company has fallen on difficult times financially or business model-wise. It’s important to know that information at the outset.
In short, read a little bit before you throw your money at a broker-dealer.
About that money burning a hole in your pocket – before you place it on a penny stock, it best not be your inheritance.
It better be cash you can afford to lose. Statistically speaking, penny stock traders lose a lot more money than they make.
So, make sure you are ready to ride. Penny stocks require a person who can handle volatility.
If you are trying to trade penny stocks because you saw an ad on Youtube with someone flying on a private jet, stop right now. You are already in over your head.
Can You Get Rich Off Penny Stocks?
Ok, so you saw that video of that guy in the jet.
He was once a loser at a desk and now he is eating caviar out of a football helmet. Sure. We have seen it as well.
It’s a real rags-to-Tyler Durden kind of story, but we are here to tell you that if your BS meter did not flinch, well, this may not be right for you.
The short answer to the question is: yes. Yes, you can get rich trading penny stocks. It is a low probability, though.
But, sure, you can get rich. Why? Sheer math.
You are trading stocks that are worth pennies. Often you buy a lot of stock. If that stock goes to a dollar or even $10, you can do pretty well.
For example, let’s say you own 1,000 shares of a company at a quarter.
Your total investment is $250. Now, if that stock goes to $2.50, your $250 investment is now worth $2,500.
That was a sandbox example. But add a few zeroes in there and you will see the allure.
While it may seem like a big hill to climb, it is not. Penny stocks have high volatility.
What Are the Best Penny Stocks To Invest In?
The answer to that question is simple: the one you have researched thoroughly.
Do not invest in any penny stock company that you have not read about. It’s also helpful to know a lot about the company’s sector as well as their main competitors, if any.
You should be passionate about the company and what they do.
Penny stock investing where you know a lot about the industry is better.
If you are an avid gemologist, you may know more about junior miners or precious metal companies.
Are you a person who knows a lot about cannabis? No judgment. Okay, then you might be able to spot a decent cannabis product.
Are you aware of a new video game that is going bonkers on the App Store? If that company is public, you may know something other people don’t.
Use these tools to make sound investment decisions.
Alright, we are ready to get down off our soapbox and talk penny stocks to buy and the top penny stocks right now.
What Are the Best Penny Stocks Right Now?
Drive Shack Inc. (DS)
Drive Shack is a company that combines golf with other forms of entertainment for an exciting social experience.
Each of their locations features a professional golfing range with fun augmented reality features. They also offer a wide variety of other fun games as well as food and drinks.
Recently, Drive Shack announced a partnership with professional golfer Rory McIlroy to launch an exciting new entertainment brand called the Puttery.
This new venture focuses on mini golf and has been very popular among casual players. Their Dallas location is already open, with locations in Charlotte, Washington D.C., Houston, and Miami to follow.
Drive Shack’s most recent financial report was a positive one. They reported positive operating income as well as year-over-year revenue growth of 130 percent.
This is all despite the challenges of the pandemic. Social distancing regulations have continued to fluctuate in many parts of the country, but Drive Shack has been able to adapt and keep their properties open.
This stock is down slightly from its peak in June, presenting an opportunity to buy at a discounted price.
This exciting entertainment brand is one to keep your eye on throughout 2021, and it’s one of the top penny stocks on Robinhood right now.
Oragenics Inc. (NYSE: OGEN)
Oragenics is a small biotechnology company based in Tampa, Florida.
Despite their small size, they have been making waves recently, as they have been developing a COVID-19 vaccine candidate.
It’s become clear that COVID-19 isn’t going away anytime soon, and there will continue to be a need for vaccines.
Oragenics’ initial research data on their vaccine has been very positive. In trials with mice, the vaccine produced neutralizing antibodies.
The company’s other products focus on treating infectious diseases. They are currently developing lantibiotics, which are designed to combat antibiotic-resistant infections.
These projects are very exciting for Oragenics. As with any small biotechnology stock, there is some risk here.
In order for the stock to grow, the company’s products need to perform well in a lengthy trial process and make it to market.
Even gold misses the mark.
Cryptocurrencies (like Bitcoin) are the ONLY assets that have all four of these features.
Features that can truly protect investors from today’s unprecedented money printing and interference from governments.
But Bitcoin is NOT the primary cryptocurrency at the forefront of this new money revolution.
These three supercryptos are the ones taking the lead and helping investors make the most money.
However, Oragenics has plenty of exciting projects in the works that could result in strong returns down the line.
RLX Technology Inc. (NYSE: RLX)
Some of the most exciting penny stocks on the market right now are Chinese companies. The Chinese economy is booming, and there are plenty of exciting startups to keep your eye on there.
RLX Technology is one of these companies. They develop e-cigarettes and other vaping products.
Vaping has become very popular over the last few years as an alternative to smoking traditional cigarettes.
While experts don’t consider vaping to be good for you, it is less risky than smoking in the traditional sense, which is one reason why it has become so popular.
Many people also enjoy the portability of vape devices, as well as the different flavors available.
RLX Technology can bring these exciting products to the Chinese market.
This stock has been trading sideways for several months, but investors are hopeful that this will change when they announce their earnings. This announcement should come very soon.
A positive earnings report could give this startup a nice boost.
This stock is an interesting pick for those who are interested in the Chinese market and those who are interested in sin stocks.
What Are the Most Popular Penny Stocks?
Elys Game Technology Corp. (NASDAQ: ELYS)
Elys Game Technology is a company that develops digital sports betting technology. They work with casino operators in Europe and North America to develop online betting solutions.
Digital gambling and sports betting became very popular during the pandemic, as casinos were closed and people could not enjoy these activities in person.
Many casinos developed digital betting platforms as a result. Elys is a company that really benefitted from this trend, as they provide the technology necessary to develop these platforms.
Additionally, many U.S. states loosened restrictions around digital gambling, which increased the market potential for these types of platforms.
Even though casinos are open again, people have gotten used to the fun and convenience of digital sports betting, and will likely continue to use Elys’ technology.
Elys’ most recent earnings report was a positive one.
Their revenue is up year-over-year and they have positive cash flow, which is always a great sign for a penny stock.
Phunware Inc. (NASDAQ: PHUN)
Phunware is an Austin-based tech startup with a diverse portfolio of operations. They also have offices in Miami, Irvine, and San Diego.
Phunware’s products help companies develop apps and other software for their audiences. Some of their features include audience monetization, location services, analytics, content management, and more.
This company also has blockchain technology products. They have two crypto products – PhunToken and PhunCoin.
PhunToken is a mobile loyalty program that businesses can use to reward their customers and keep them coming back.
PhunCoin is a consumer-facing blockchain program that rewards consumers for voluntarily sharing their data and taking services.
Not only does this reward its users with buying power, but it also helps Phunware’s clients acquire valuable data that they can use to market their products.
Cryptos have been all the rage lately, and investing in Phunware could be a good way to capitalize on this trend.
However, Phunware’s portfolio of products goes far beyond just cryptos, which provides them with more stability.
They recently announced that they will be buying Lyte Technology, a company that markets and distributes high-end computers.
One popular use for these computers is Bitcoin mining, so Phunware could use them as part of their crypto strategy.
Phunware is a company with huge potential moving forward. Although they may be a penny stock now, they could grow dramatically if companies implement their solutions on a wider scale.
Comstock Mining Inc. (NYSE: LODE)
Comstock Mining is a mining company with a unique focus on sustainable extraction processes and renewable resources.
While there are many interesting mining penny stocks on the market right now, this one stands out from the pack because of their unique business model.
They do have a full portfolio of mining operations that includes gold, nickel, lithium, silver, cobalt, and more.
Their mining properties are in the Comstock mining region of Nevada.
However, they’ve taken a different approach from other companies by focusing on eco-friendly extraction. They’ve also decided to focus on mining for materials that support the clean energy market.
For example, both cobalt and nickel are essential for developing electric vehicles.
The electric vehicle market has been picking up steam over the last several years, and the stock market has reacted accordingly.
Getting into this industry will likely be a smart move for Comstock as demand for electric vehicles continues to increase.
Comstock stock spiked in February 2021 during a period of market volatility and has continued to perform fairly well – albeit with some ups and downs.
This company has also created the industry’s first commercial mercury remediation system.
This system will help prevent their mines from contaminating the surrounding landscape.
Finally, they’ve announced that they have acquired a majority stake in a company called LiNiCo, which recycles lithium-ion batteries.
This helps them diversify their operations and get involved further in the electric vehicle industry.
Right now, Comstock Mining has an extremely low price-to-earnings ratio, which means that they could be undervalued.
What Are The Best Penny Stocks To Buy?
Color Star Technology (CSCW)
As the Chinese market is growing, many American investors have been diversifying their portfolios with Chinese stocks.
One interesting Chinese penny stock to keep your eye on is Color Star Technology Co.
They are a company that focuses on AI and virtual reality – two exciting technologies that are highly sought after right now.
Most recently, Color Star has been working with app developers to create virtual reality concerts.
VR experiences like this are particularly appealing right now, since concerts are not allowed under current restrictions in some parts of the world.
Color Star also creates immersive online music education programs.
Even as COVID-19 restrictions lift, virtual programming could be an excellent way for people around the world to watch their favorite artists.
They launched the Chinese version of their Color Star app in September 2020 and followed up with an English version in December.
This innovative entertainment app is subscription-based and offers a library of performances, celebrity classes, and other content from popular influencers.
Color Star recently used a unique strategy to raise $26 million.
They decided to price their shares at a premium of $1.30 each to do so.
They plan on using the money to improve their AI and virtual reality technologies.
While this stock is cheap right now, it has huge potential to grow as the app builds its subscription base.
Color Star has already managed to build up a solid subscription base in just a few months, setting the stage for ongoing growth throughout the year.
Their stock has been on an upward trajectory throughout September, generating exciting momentum.
Additionally, the company recently announced that they will be establishing an international business unit.
This means they will be able to take advantage of business opportunities outside of China, which would be a huge catalyst for growth.
SOS Ltd. (NYSE: SOS)
The cryptocurrency markets have been the subject of intense public interest and scrutiny this year. Many investors have looked for stocks that are involved in the cryptocurrency, rather than investing directly in cryptocurrency itself.
SOS is one of these companies, and it’s been of particular interest to retail investors on Reddit and other platforms.
SOS is based in China and has several subsidiaries.
They’ve adjusted their business model several times since their inception, drawing some criticism from experts. However, their most recent approach seems to be working.
They’ve invested in the technology to mine both Bitcoin and Ethereum en masse. They also provide a variety of emergency services throughout China.
SOS’s most recent earnings report was a solid one.
Because they’ve only recently started mining cryptos, this is actually a reflection of their other business operations, which appear to be solid.
The company has also announced huge revenue growth in the first half of the year.
Mining for Bitcoin and Ethereum should only add to this financial stability.
If you’re interested in cryptocurrencies as well as investing in China’s rapidly growing economy, this could be a penny stock worth keeping your eye on.
The Best Penny Stocks: Final Thoughts
That rounds up my best penny stocks in the market right now.
The market is always shifting and we will be looking for more stocks that we think have value as we move into a new season.
Volatility is certainly ahead for the markets, so these picks are safer than some others. Did we miss any stocks that you like? Let us know in the comments.
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