With an effective strategy, investing in penny stocks under 50 cents can come with strong returns. The best stocks under 50 cents have strong volume and momentum, which savvy investors can use to their advantage.
It’s important to note that investing in penny stocks with such a low share price can be quite risky.
Although they are inexpensive to buy, they can be quite volatile. Investors need to be aware of this risk before buying these stocks.
However, penny stocks under 50 cents can be a lucrative option for day traders. The volatility that makes them a risky choice for long-term investment can actually be helpful for short-term trades.
With some research and an understanding of stock market patterns, you can time your investment to take advantage of these ups and downs.
We’ve rounded up the best penny stocks under 50 cents to add to your investment portfolio.
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Best Stocks Under 50 Cents
Majic Wheels Corp. (OTC: MJWL)
Cryptocurrency has been the subject of a huge amount of hype over the last few years.
If you have an interest in cryptos but aren’t ready to buy them directly, you can invest in the stocks of companies involved in crypto.
This is the case with Majic Wheels Corp. This new corporation recently announced they would be acquiring the Calfin Global Crypto Exchange.
Their stock price shot up dramatically as a result, hitting an all-time high.
Prior to purchasing this cryptocurrency exchange, the company had operated in the waste management sector. This is a point of concern for some investors as they pivot into a new industry.
The Calfin Global Crypto Exchange, or CGCX, already runs a crypto trading platform and provides advanced trading solutions in some parts of the world.
In addition to the exchange, they offer custody solutions and insurance to make trading safer. They are also developing mining technology.
Since demand for crypto solutions is so high right now, there is plenty of potential for this company to expand their services.
This stock is having a breakout moment right now, and now could be the right time to make a trade.
Mountain High Acquisition Corp. (OTC: MYHI)
Over the past few years, many US states have legalized marijuana in some capacity. As a result, marijuana stocks have experienced plenty of hype.
Mountain High Acquisition is based in Scottsdale, Arizona. They are an acquisition company focused on marijuana and hemp-related assets.
In 2020, Mountain High acquired Versatile, a CBD company based in California.
The company’s decision to focus on hemp products could be a very lucrative one in the long run.
Hemp is currently legal at the federal level, which means you can sell CBD products in any US state.
Marijuana is currently only legal on a state-by-state basis and is subject to much stricter regulations.
As a result, Mountain High and its subsidiaries will have a much larger potential market to work with.
Investing in this stock could be a way to invest in the nationwide CBD trend.
Focusing on CBD and hemp products could set Mountain High apart from their competitors.
Postd Merchant Banque (OTC: PMBY)
Postd Merchant Banque is a financial institution that offers financing for real estate and other projects, as well as digital banking, bank vaulting, and more.
The company is based in Connecticut, but also has an office in Los Angeles.
This stock saw a huge spike in price at the beginning of July. This is because Postd Merchant Bank acquired a Bolivian bank called Banco-PyME.
Investors seem very excited about this acquisition.
This will be PMB’s first foray into international operations, which could help them generate more revenue.
With this acquisition, PMB could also potentially expand their service offerings.
This is the second spike for PMBY stock this year. Their share price also shot up back in may, only to slowly drop back down again.
Since this stock just hit an all-time high, it’s likely that it will remain volatile and could drop back down in the next few years.
Traders who time their purchases right could benefit from renewed interest in this banking stock.Looking for more stock picks? Get a new trade every week for free with Trade Ideas. Trade Ideas sends you a new pick every single week along with the reasoning on why it could be ready to break out. Sign up for free right here.
Best Penny Stocks Under 50 Cents
Tullow Oil (OTC: TUWOY)
Tullow Oil is a UK-based oil and gas exploration company. They have operations in Europe, Africa, and South America, including both established projects and those that are still in development.
Even gold misses the mark.
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The oil market struggled in 2020 as a result of the pandemic and associated economic downturn.
As travel came to a halt, oil prices dropped. Tullow Oil stock hit a low point in March 2020.
However, the economy is starting to improve and oil prices are going back up.
As a result, Tullow Oil shares are slowly going back up. However, they are still a long way off from their 2019 share price.
Many investors have felt excited about this growth, speculating that the stock has the potential to push even higher.
Over the past year, Tullow Oil has taken steps to stabilize their finances. They sold one of their assets in Uganda and plan to sell more assets moving forward.
They have also indicated that they want to focus more on their resources in Ghana. They believe these oil fields have the potential for much higher output than they are currently generating.
If you’re interested in the energy sector, this is a stock to keep your eye on as it continues to recover.
Seadrill Ltd. (OTC: SDRLF)
Seadrill Ltd. is another company in the energy sector that has recently spiked.
They have headquarters in London in the UK and Houston in the US, with deepwater drilling operations all over the world.
Seadrill has struggled over the past year and a half due to instability in the petroleum industry.
In fact, they had to file for bankruptcy and are now in the process of restructuring.
However, their share price spiked at the beginning of July as a result of increasing oil and gas prices.
In most cases, a company that had recently filed for bankruptcy wouldn’t be considered the best investment opportunity.
Seadrill is a unique case because of the assets they have. When compared to their competition, they have some of the newest and most potentially lucrative assets.
While the company is still carrying a large amount of debt, their restructuring gives them an opportunity to start over and get their finances back on track.
With this fresh start, now could be a good time to take a chance on this drilling company.
Business Warrior (OTC: BZWR)
Business Warrior is a tech company that makes software programs for small business owners.
Their product helps small business owners develop effective marketing strategies and track their progress.
This stock has performed well over the last few weeks as the result of a promising revenue report.
So far, Business Warrior’s revenue has been much higher this year than it was in 2020.
This indicates that the software company is on the right track when it comes to their finances.
If Business Warrior can keep up this exciting performance for the rest of the year, this could be just the beginning for this growing company.
The increase in demand for Business Warrior’s software makes sense given the current economic climate.
As a result of the COVID-19 pandemic, many people have left their previous careers and have started new ones, which include founding small businesses.
Business Warrior software offers tools that are easy to use for small business owners in many different industries.
This is a market that has plenty of potential, and there are many different ways that Business Warrior could expand their services in the future.
Stocks Under 50 Cents On Robinhood
Terra Tech Corp. (OTC: TRTC)
Terra Tech is a cannabis company based in Santa Ana, California.
They use the latest agricultural technology to create high quality cannabis products, which they sell through their subsidiary brands.
Right now, they have two brands of medical cannabis products, as well as a brand that develops advanced horticultural equipment and a brand that focuses on permiting for medical marijuana companies.
Terra Tech also has a focus on sustainability, with recycled water systems and energy efficient operations at their plants.
There has been a huge amount of interest in cannabis stocks over the past few years, as many US states have been legalizing cannabis products.
While there has been a lot of focus on recreational marijuana products, there is still going to be a huge demand for medical marijuana products.
This is where this penny stock could have an advantage over their competitors.
The company is taking steps to strengthen their balance sheet as well.
They’ve recently announced that they will be acquiring SilverStreak Solutions, but they will also be selling shares they bought in Hydrofarm Holdings Group.
This should significantly increase their cash flow. Good financial performance could have a very positive effect on this stock in the long run.
Should You Buy Stocks Under 50 Cents?
Many people avoid investing because they think they can’t afford to get started. However, penny stocks come with a more accessible price point.
It’s important to note that investing in penny stocks isn’t going to make you rich right away.
You’ll need a good understanding of the market and the risks involved in order to make successful trades with penny stocks.
When looking at penny stocks at this price point, you’ll want to look at stocks that have consistent daily volume.
Higher trading volume makes a stock far less subject to volatility. When trading volume is too low, just one trade can have an effect on the stock’s share price.
Another factor to look at when investing in stocks under 50 cents is the company’s financial history.
Recent earnings reports, acquisitions, and other deals can send shares moving up and down.
Since the stock market is very cyclical, you can watch trading patterns to determine when to buy low and sell high.
A good way to find new penny stocks is by using a stock screener. With a stock screener, you can scan for strong stocks that meet your trading criteria.
Tools like this can help you find the best possible investment for your goals and strategies to ensure you never miss a profitable trade.
They can also help you find OTCBB stocks and pink sheet gainers you might not have heard of before.
Many of these stock screeners will allow you to sign up free. However, some penny stock screeners do charge a monthly fee.
If you’re looking for affordably priced stocks and have a strong risk tolerance, these under 50 cents penny stocks could be a good choice for you.
Stocks Under 50 Cents: Final Thoughts
These stocks under 50 cents are hidden gems with exciting potential.
You can never predict exactly what’s going to happen with the stock market. However, all of these companies have exciting things in the works that could help them break out of the 50 cent range.
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