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Tired of the huge losses when investing in penny stocks?
You could be putting your money in the wrong stocks. With the right companies in mind, penny stocks can lead to instant, market-crushing gains.
But what exactly are penny stocks?
Penny stocks are traded outside the main market exchanges at relatively lower prices per share. In most cases, the price is usually less than a dollar, hence the name. Because of their low liquidity, small market capitalization, and large bid-ask spreads, they tend to be highly speculative.
Penny stocks can be hideously risky without proper planning. However, if you know the right stocks to invest in, you can have some peace of mind.
Here are some of the best penny stocks to watch this year.
1. Container Store Group, Inc.
Container Store Group, Inc. manufactures storage and organizational products.
In the last two years, this company has had a robust expansion campaign with 80 new stores around the country. This has resulted in a 7% increase in revenue – a peak of profitability for the company.
The company is also significantly reducing its debt. By the end of last year, its debt fell by 10%.
As an investor, you should feel confident with this company’s well-executed strategy.
2. Arotech Corporation (ARTX)
Arotech Corporation is a defense and security services company. It also makes security products designed for homeland security, the military, and general law enforcement.
With a market cap of 84 million, the company operates in several countries and competes with bigwigs like Honeywell International Inc. and the General Electric Company.
Considering the move by the government to increase defense spending, Arotech is well-positioned to benefit big time.
However, just like most penny stocks, this investment is highly speculative. In 2014, Arotech’s revenue stood at $103.57 million, but in 2018 it was around $96.6 million. This shows that it struggles with growth even after being in operation for almost 30 years.
Nonetheless, in 2017, the company earned a profit of 17 cents per share, and it grew to 19 cents in 2018. In 2019, it’s estimated to rise to 26 cents per share if the company can sustain its current growth.
3. Mass Megawatts Wind Power, Inc. (MMMW)
The MMMW focuses on alternative energy. They have patented solar panels designed to move with the sun for maximum exposure.
In the first quarter of last year, this stock ran 1500%. So, if it does run at a similar time this year, you can expect huge gains.
Additionally, it has a super-low float which can make the stock rocket on very little volume.
However, it’s important to note that MMMW is currently behind on the Securities and Exchange Commission (SEC) filings. This means that it has to land a big deal for the cash flow to improve. If you’re patient enough, swing trading penny stocks may just work in this case.
Penny Stocks to Watch in 2019: Final Thoughts
Now that you know which penny stocks to watch this financial period, you can sleep better at night knowing that your investment might not go down the drain easily.For the best investment decisions, stay up-to-date with our business and finance posts.