Sub penny stocks trade for under $0.01 per share, making them ideal for investors on a budget. But do these up-and-coming stars have the potential to deliver big returns? Check out our picks on the seven best sub penny stocks today!
Sub Penny Stocks To Watch
Metrospaces, Inc. (OTCMKTS: MSPC)
Metrospaces, Inc. (OTC: MSPC) is a company that focuses on the development and management of real estate properties. The company has a market cap of just over $1 million and it trades for less than a penny per share.
Metrospaces owns a few different properties, but its primary focus is a mixed-use development project in the heart of Miami. The company has been recently active within the blockchain industry, developing a couple of real estate platforms via tokenization.
Metrocrowd, one of its platforms, is currently in beta-testing that started this year. According to MSPC, this ground-breaking resource will not only benefit third-party real estate owners and developers. Nonetheless, it will also enable the corporation to tokenize its own assets.
Lastly, this penny stock has seen its growth for the past couple of months after releasing its earnings, a result that showed a massive increase in its assets. We are talking about jumping from $213 thousand last year to $4.8 million this year.
Despite the current state of the economy, Metrospaces has made progress with its primary service, MetroHouse. It also closed on new properties, signed letters of intent for more acquisitions, and took a substantial step toward delivering much-needed audited financials.
Six Indianapolis residences were purchased by Metrospaces earlier in 2022. During this period, Metrospaces finished furnishing and decorating the properties, which will now be marketed as MetroHouse.
The MetroHouse app and property management software will list these first real estate holdings. Although it’s apparent that the company is in its early stages, MSPC is showing a lot of potential growth in the future.
Priority Aviation (OTCMKTS: PJET)
Priority Aviation provides services such as on-demand charters, membership cards for jet charters, and even aircraft sales. It’s a publicly-traded corporation based in New York that was founded on March 25, 1999.
Also, Priority Aviation offers charter flights for transporting heavy and outsize cargo, construction equipment and machine parts, highly valued commodities, and high-margin commodities.
It also provides support for peacekeeping missions as well as hazardous materials.
The company is now developing a physical component of its company to test and validate the criteria for its technological solutions.
It has agreed to fund and construct a student housing residential complex in Texas to support a small private institution with a student population of about 1200.
This will kick start its soon-to-be-launched app where local communities and students worldwide can post and rent available rooms, houses, and apartments using the Student Housing By Owner (SHBO) app.
The SHBO APP is a customized, patented technology that will carry intellectual property value that is documented on the balance sheet and produce income.
It was created by PJET. By investing in the development and management of a multi-unit student residential facility for a minor university in Texas, PJET is gaining practical expertise in the student life industry.
In addition to producing income and increasing the asset value on the balance sheet, the building will serve as a source of real-time data for the SHBO APP’s continued development and evolution.
This has been the company’s main highlight of its recent strategic overview presentation. Targeting 500 million students around the world. So, if you want to invest in sub-penny stocks that have a wide portfolio, you should check out Priority Aviation.
Social Life Network, Inc. (OTCMKTS: WDLF)
Social Life Network, Inc. is a social media SaaS company that operates a platform for the residential real estate industryand various sports verticals. The company is a cloud-based provider of social media software that enables users to connect, communicate, and collaborate.
It operates a platform for the residential real estate industry that includes a public forum, private groups, and classifieds. The company became public in 2016, it was just last year when it made its highest quarter in sales.
The company reported increased revenue and decreased net loss compared to the same three-month and nine-month periods in 2021. Meanwhile, it lowered operational expenditures by 62% YoY for the same nine-month period in 2020.
This company shows huge potential given what it offers to the market. In addition, the business strives to fulfill all prerequisites in order to be accepted for a NASDAQ or NYSE listing.
One such criteria that must be satisfied is a minimum bid price. Companies that are currently trading beneath that minimum bid price often accomplish this through a reverse stock split. A corporation must satisfy all other minimal conditions in addition to the minimum bid price.
Healthier Choices Management Corp. (OTCMKTS: HCMC)
Healthier Choices Management Corp. (HCMC) is one of the OTC stocks that have seen their share of the market in recent months. The company engages in the distribution of vaporizers and e-liquid.
Ada’s Natural Market, a natural and organic food shop, is also owned by the company.
The new rules by the FDA put a heavy burden on the e-cig industry, which is why many companies have been struggling as of late. Despite this, HCMC has been weathering the storm and its stock has remained strong.
The regulations have forced the company to change its product offerings, but they have adapted well. They are now focusing on their natural and organic foods business, which is Ada’s Natural Market.
This is a smart move, as the FDA regulations do not apply to food products.
The company has also been working on expanding its reach. They have recently partnered with American Vapor Group, which will help them distribute their products to more retailers. This is a great way to increase sales and exposure for the company.
Regarding its financials, for the three months that ended on June 30, 2022, net revenues from operations came to $6.1 million. This is an increase from $3.4 million, or about $2.7 million and 81.1%, over the same period in 2021.
Also, the gross margin from operations grew by around $0.9 million. This totals to $2.3 million, as opposed to $1.5 million for the same period in 2021, representing a 59.3% year-over-year growth.
This was all announced in its recent quarterly report, which includes an increase in year-end revenue expectations.
Majic Wheels Corp. (OTCMKTS: MJWL)
Majic Wheels Corp. intends to position itself as a player in the disruptive industries of Fintech and software development by means of an acquisition and merger.
Majic Wheels Corp (OTCMKTS: MJWL) is a micro-cap company with a market cap of just $4.23 million and an average daily trading volume of only over $6,000.
MJWL has significant upside potential if it can execute its business plan. MJWL is in the process of acquiring a software development company that will help it to develop and deploy financial technology.
The company recently announced its LOI to acquire Bamboo, a wellness holdings company this month. It is expected to acquire at least 26% of Bamboo, which currently has a $126 million total valuation.
As per its financials, payables for the company have grown in this Annual Disclosure from $1,622,675 to $2,746,671. Net Income increased significantly from $680,617 in the previous year to $5,359,166 today.
We can say it’s significant but, it is more than that. Its revenue and net income growth has surpassed its competitors and continues to move forward by expanding its business through property acquisitions.
If you are looking for OTC stocks with upside potential, MJWL is one of them.
Sub Penny Stock That Soared
NovaVax (NASDAQ: NVAX)
During the heat of the COVID-19 pandemic, talks about the race for a vaccine had been the buzz in both medicine and also in the world of stocks.
Traders were on the lookout for hot penny stocks that they thought would have increased price per share when a vaccine eventually was developed.
Investors bought these hot penny shares. Once news broke out that NVAX’s COVID-19 vaccine NVX-CoV2373 had reached Phase 3 of its clinical trials, the price of its shares rose in the market.
This year, the company just recently filed a request for approval to the U.S. FDA. This followed several months of production delays and buildup as well as a flurry of similar filings and authorizations in other countries.
While there is no specified timeline for the evaluation, this was great news to the investors. This once sub-penny stock, now a NASDAQ-listed company, can grow much bigger once this filing has been approved.
Also, the company is delivering its vaccine internationally. It has gained speed as it enters the last two years of 2022 and 2023, with over 23 million doses supplied since the beginning of the third quarter.
The company is convinced that, by continuing to broaden its label for teenagers and increasing and improving its vaccine’s competitive product profile, it will play a significant role in the long-term COVID-19 environment.
Microvision Inc. (NASDAQ: MVIS)
Since December 2020, MVIS has grown by 260% as of August 2021. Its sudden growth is commonly attributed toLiDAR sensors, microchips, and several other computer-related products. These levels of returns are impressive—even by penny stock standards.
Right now, although it has already retreated from its high, the company is still considered a bubble that can potentially burst. This is because of its ongoing battle for dominance in the “lidar technology” industry, that technology that makes our cars smarter.
The company promises an advantage to its competitor, its golden child “Luminar”—the company’s lidar tech that is valued at $5.8 billion. As mentioned earlier, this company is on its 52-week low.
On Reddit, MicroVision, Inc. has become a meme stock. In March 2021, the stock price reached a high of $20.50, thanks to rumors that NVIDIA Corporation could acquire the business. The stock had been trading at 18 cents in March 2020.
It was assumed that MicroVision, Inc.’s technology and business operations would seamlessly merge with NVIDIA’s development of an all-in-one self-driving car offering.
Following the announcement that the business had gotten the US Patent and Trademark Office’s permission for a patent earlier this year, the stock price rose by 30%.
Given the change in management, new product line, and several partnerships, this stock can still be profitable in the future.
MiMedx Group (OTCMKTS: MDXG)
From July 2020 to June 2021, MDXG had a gain of 114%.
The growth of the shares for MiMedx Group is mostly attributed to its increased sales from 2020 to 2021.
It also has been a defining year for the company, as it advanced its primary product (mdHACM) as a “potential blockbuster biologic.”
The company and many investors believed that it has the potential to reduce pain and increase function in mild-to-moderate knee osteoarthritis.
With its expanding portfolio and ongoing FDA filings, MIMEDX believes that 2022 will be a watershed year for the firm. Its thriving commercial business puts it well for double-digit growth in a variety of underserved areas.
Additionally, the business recorded second quarter net sales of $66.9 million. This is an increase of 11.6% over the same period in the previous year for the company’s ongoing portfolio of goods.
A restricted market release of AMNIOEFFECT was also introduced, with the first patient being treated. The third quarter of 2022 is set aside for the full product launch.
Can You Trade Penny Stocks on Robinhood?
Robinhood supports penny stocks, as long as the stocks are listed on NASDAQ or NYSE. However, users cannot trade OTC penny stocks, or sub penny stocks, on the platform.
The reason for this is that, once a stock goes below $1 for a certain period of time, the chances of it getting delisted from the two mentioned exchanges are very high.
Since it will become a sub penny stock and can only be sold OTC, users cannot trade with it via major exchanges like Robinhood, as the platform does not allow users to deal with OTC sub penny stocks.
Should You Buy Sub Penny Stocks?
Sub penny stocks do come with some rewards as well as disadvantages for a retail investor. First, although penny stocks are relatively cheap investments, investors rarely make a substantial profit unless they trade in high volumes.
Second, finding the right penny stock for investment isn’t as easy as it sounds, which can be very discouraging. By the time you find out about a hot penny stock, it’s already too late.
When you invest in a sub-penny stock, you are taking on a great deal of risk, thus, it’s important that you do your due diligence before buying.
The Dreaded Pump and Dump
Although you have the chance to make big money if you purchase a penny stock that soars in price on the market, this type of stock trading is very prone to a scheme in trading stock called “pump and dump.”
There are instances where someone would buy hot penny stock in high volume. This creates a false sense of demand for the stock and increases its value artificially. This is the “pump.”
After the stocks have increased in price and more investors trade them, the scheme would come into play. The people behind it would sell their holdings, making a huge volume of profit while doing it. This is the “dump.”
Meanwhile, other investors drawn to the scheme will lose money as the stock instantaneously drops in its value per share. However, there are a few effective techniques for profiting from pump and dumps.
If you’re interested, you might want to take a look at Tim Sykes, the master of making money off of pump and dumps.
Sub Penny Stocks: Final Thoughts
If you want to trade penny stocks, you need to fully understand not only the rewards but also the risks that come with them.
Sub penny stocks have the potential for massive gains if they skyrocket, making them a good potential long-term asset to hold—especially if you own a huge volume of them. On the other hand, the potential for loss is huge as well.
These stocks are generally considered to be very risky investments and are therefore not recommended for most investors. Despite the risks, some people still find value in investing in sub-penny stocks.
For example, a sub-penny stock may be appealing if the company is in the early stages of development and has a lot ofpotential for growth.
Alternatively, some investors may purchase sub-penny stocks as a way to get exposure to certain sectors or industries that they would not otherwise be able to access. If you choose not to trade sub penny stocks, penny stocks are always an option to consider.
Sub Penny Stocks FAQs
What are sub penny stocks?
Sub penny stocks are stocks that trade for less than a penny per share. Most of these stocks are listed on the over-the-counter (OTC) markets, which are unregulated exchanges that aren’t as heavily regulated as the major stock exchanges. However, there are some that are listed in NASDAQ and NYSE.
Why would anyone invest in sub penny stocks?
There are a few reasons people might invest in sub penny stocks. One, they might be hoping to catch a big break and make a lot of money if the stock price skyrockets. Two, they believe the company is undervalued, and its stock price will go up over time.
Are there any risks associated with investing in sub penny stocks?
Yes, there are a few risks associated with investing in sub penny stocks. One is the stock might not be worth anything at all and you could lose all of your money. Another one is the company might go bankrupt and you could lose all of your money.
How can I research sub penny stocks?
One way to research a penny stock is to look at the company’s financials to see if the company is profitable and has a good track record. Another way is to look at the stock’s chart to see if the stock has been going up or down over time.
What is the best sub penny stock to invest in this year?
Majic Wheels Corp. is an acquisition and holding company that focuses on disruptive fintech and software development. The company reported a revenue of $6.28 million and $173 million in assets last quarter. And recently purchased Bamboo, a wellness holdings company.