It is possible to achieve strong returns by investing in young companies with small valuations or depressed stock prices, but typically it's better to invest. STATED BELOW STOCKS WILL GIVE HUGE RETURNS IN 2022 Future Consumer Ltd- * Good time to consider, as stock is not in overbought zone. * Stock not in ASM/GSM. Nevertheless, the stock could do well in 2022, with copper having made enormous gains in the past few months.
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Mar 23, 2022
How to Buy Amazon for the Cost of a Penny Stock
It's possible to buy even the most expensive stocks for as little as $1.
Katie Brockman
5 debt free penny stocks with good profitability to watch out for in 2022
For those new to the game, there’s no general definition for penny stocks. Generally, equity shares that trade for less than ₹100 per unit are called penny stocks.
The craze really stems from the fact that investors can buy large chunks of these stocks at low prices.
Second, there is tremendous growth potential. Basically, high returns in the short term.
Moreover, penny stocks contribute towards the diversification of your portfolio.
Sure, there’s risk involved, just like any market-linked financial product. But if carefully chosen, the rewards far outweigh the risks.
So, if you have a high-risk appetite, here’s a list of top 5 zero debt penny stocks for 2022 with good profitability.
#1 Singer India Ltd.
Singer India (SIL) is 59% owned by RHBV, an erstwhile wholly owned step-down subsidiary of Singer Asia. Retail Holdings NV, Curacao (RHNV) owns indirect equity of 54.1% and is the ultimate parent entity here.
SIL is one of the most recognised and iconic domestic appliances brands in the region. Operating in India since 1977, it continues to reflect a strong brand presence and is seen rapidly diversifying in the home appliances space with an asset-light business model.
Even though the parent company reduced its stake in December 2020, the business profile of SIL remained unaffected.
Despite the diversification in the product portfolio of SIL, the business derives the bulk of its revenue from the sewing machine business. The segment contributed 64% to the total revenue in financial year 2021 against 63% in fiscal year 2020 and 70% in 2019.
With a manufacturing facility in Jammu, the company continues to assemble sewing machines and home appliances in India supported by outsourcing back-to-back warranty with vendors to service major defects.
This has helped the company maintain a healthy Return on Capital Employed [ROCE] of 21.2% over the past 3 years. In financial year 2021, the ROCE was more than 17%, while the profit margin was just 3 - 5% over the four fiscals through 2021.
The asset-light model has kept the company’s capital structure healthy. It reduced debt significantly by ₹173.6 m. In fact, current financials show the company has achieved a zero debt to equity ratio.
So, if you are considering investing in debt free penny stocks, Singer India with gross sales of ₹4.1 bn and profit growth of 30.7% in the past year, should be on your watchlist in 2022.
#2 Railtel Corporation of India Ltd.
Due to the recent correction, Railtel Corp is now considered a penny stock, which trades below ₹100.
Incorporated in 2000 for providing telecom-related services to the Indian Railways, Railtel Corporation of India - is a Mini Ratna (Category-I) PSU that operates across two major segments – telecom and projects.
With majority ownership by the government of India under the Ministry of Railways, the company comes with a strong parentage. Railtel has the capability to execute any connectivity-related projects for the Railways.
Railtel has consistently increased its footprint in the space by providing telecom infrastructure and other related services to several public-sector enterprises and private players.
In the last 5 years, Railtel has shown good revenue growth of 30.9%. It has maintained average operating margins of 28.7%.
This is largely because Railtel has Right of Way (RoW) exclusivity that allows it to lay fibre to facilitate telecom services along tracks.
With its fibre network of approximately 60,000 km, the company continues to receive large orders from the Indian Railways. Its gross sales were ₹13.37 bn and PAT was ₹1.40 bn in financial year 2021.
The company has been consistently paying dividends in the last 3 years with an average dividend payout of 13%.
In the absence of external debt and availability of healthy free cash balances, Railtel boasts of strong financial flexibility and robust liquidity.
In the recently announced 'Fortune India Next 500 list of Year 2022, Railtel jumped 67 positions to rank 124th among the top 500 midsized corporations in India.
Therefore, if you are looking to diversify your portfolio into the telecom infrastructure space, then Railtel Corporation of India - is a strong contender for zero debt penny stocks for 2022.
#3 Jamna Auto Industries Ltd.
Even though the Indian commercial vehicle industry has been under stress for some time, experts predict the segment will hit high double-digit growth in financial year 2022.
The much-awaited scrappage policy and the potential to reduce pollution, cost of imports of oil and raw materials are expected to drive sale volumes.
This brings us to Jamna Auto Industries, the third on our list of debt free penny stocks.
Jamna Auto Industries is a market leader with over six decades of experience in the domestic M&HCV OEM segment. Its gross sales were ₹10.5 bn in fiscal 2021.
With a dominant share of its business coming from behemoths like Tata Motors and Ashok Leyland, the company has been able to maintain a strong balance sheet despite turbulent times in the recent past.
A trusted name in commercial vehicles’ suspension manufacturing, Jamna Auto offers a full range of suspension solutions. As part of their diversification policy, the company established a strong after-market supply a complete range of spare parts. This helped its sales to gradually improve from 9% in fiscal year 2011 to 29% in fiscal 2020.
Commensurate with its expansion strategy, Jamna Auto Industries set up an in-house research & development facility. This assisted the company to spearhead its presence in new generation products lines.
With a sustained scale-up committed to long term business growth, Jamna Auto reported a PAT of ₹767.2 m in fiscal 2021.
It actively worked towards minimising debt and is a zero-debt company today.
The company’s favourable cost structure provided financial resilience that led to a declaration of an equity dividend of 75%. This amounts to a dividend yield of 0.8% at the current price.
For fiscal 2022, the company has already paid out a dividend of ₹0.5 per share.
#4 Ador Fontech Ltd.
Back-to-back lockdowns due to the Covid-19 crisis resulted in considerable disruptions in the construction industry. But the global welding electrodes market is on the cusp of a strong revival.
Backed by growing demand, the market is projected to exhibit a CAGR of 4.3% and is estimated to reach US$ 27.22 bn by 2027.
Some of the key factors propelling the progression are the introduction of cutting-edge technologies in welding automation along with the development of tailormade and innovative designs that can be applied across several core industries.
Indian manufacturers extensively use welding to join metals and alloys. This puts Ador Fontech, one of India’s leading repair welding companies as a strong contender in the list of most sought-after penny stocks for 2022.
Established in 1974 and spearheaded by a seasoned management team, Ador Fontech is a company that placed a lot of emphasis on maintaining its debt free status despite the pandemic.
This was made possible as the company put a lot of importance on collections from debtors right from the inception of the Covid-19 crisis. This translated into making timely payments to creditors and helping Ador to manage its working capital efficiently.
With financial prudence, the company could maintain a positive profit trajectory at 12.2%.
The stock offers a dividend yield of 3.1%. The PAT of ₹127.1 m came from its strong foothold in the products, services and solutions that caters to the repair segment i.e. life enhancement of industrial components.
At the back of a strong balance sheet, Ador Fontech recorded gross sales of ₹1.5 bn in financial year 2021 with an efficient cash conversion cycle of 37.1 days. Even though revenues fell 0.9% over the past 3 years, the company could maintain a healthy liquidity position with a current ratio of 4.03.
Ador Fontech is poised for long term growth with the company actively investing in updating and upgrading its welding techniques and materials. This is an additional revenue stream for the company.
This is a penny stock that should be on your 2022 investment watchlist.
#5 Rubfila International Ltd.
Operating since 1994, Rubfila International is promoted by Rubpro Sdn Bhd, Malaysia and Kerala State Industrial Development Corporation. The company is reputed to be the largest rubber thread manufacturer in the country.
Rubfila International declared a turnover of ₹2.7 bn, the highest ever in the history of the company in financial year 2021. This was a 25.2% jump from 2020.
The export business saw a 75% spike. The reported earnings per share (EPS) of 6.5 for financial year 2021 saw an 83.5% increase compared to 2020.
The company's annual revenue growth of 23.9% outperformed its 3 year CAGR of 14%.
A PAT of ₹1,404.1 m translated into a profit growth of 101%. The stock’s dividend yield is 1.4%.
Rubfila has been on a steady growth path and has worked towards expanding its capacity over the last 8 years.
In line with its expansion strategy the company recently announced the commencement of commercial production of a new line at its unit at Madathukulam in Tamil Nadu on 8 March 2022. This triggered a stock price gain of 2% on the same day.
The numbers bear evidence that the demand for latex products have been on the rise both domestically and worldwide. This is enough to secure a place for Rubfila International as a debt free penny stock to watch out for in 2022.
The Way Forward
With over 1,000 penny stocks competing for your attention, how do you separate the men from the boys?
Individual research is a given. But it must be paired with a solid framework for shortlisting penny stocks.
Check out the balance sheet, look at the debt to equity ratio and see if the company has a track record of consistent dividend payouts for the last 5 years.
Penny stocks can be a great instrument to begin your investment journey. You do not need a large amount of capital to invest. You can start small and yet make a substantial profit.
But remember. Even debt free penny stocks are highly volatile. You should only play the game if you can tackle high risk. Everything depends on the right selection that can potentially deliver long term returns.
Be prepared to stick it out.
To know more, check out Co-head of Research at Equitymaster, Rahul Shah’s video where he zeroes in on the right penny stocks to watch out for in 2022.
Happy Penny Stock Investing!
This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
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This article is syndicated from Equitymaster.com
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2 Beaten-Down Growth Stocks Sitting on Plenty of Cash
These businesses are well positioned to handle global economic downturns.
Cory Renauer
In this article, we discuss the 10 penny stocks that can explode in 2022. In order to skip our detailed analysis of penny stocks, go directly to 5 Penny Stocks That Can Explode in 2022.
Small companies that have yet to prove their mettle, or struggling firms trading below $5 in the market, are called penny stocks, and they provide an 'in' for amateur investors with little money and huge ambitions. The average 'smartphone investor' does not have big money like Wall Street does, and using trading apps like Robinhood Markets, Inc. (NASDAQ:HOOD), they have become a crucial part of the investing economy, especially after the pandemic lockdowns which boosted amateur and retail investing.
Kate Rooney of CNBC reported in March 2021 that OTC (over the counter) markets where penny stocks usually trade recorded a 2000% jump year-on-year in trading volume, coming in at over $1.9 trillion. The GameStop 'meme stock' frenzy, initiated by amateur investors on Reddit, was also a driving force behind this trend. But come 2022, and penny stocks are not enjoying the same enthused public support anymore. January recorded an 11th consecutive monthly decline in the volume of OTC trades, falling more than 70% from last year's highs, according to data provided by Finra, the US regulatory body for exchanges and brokers.
Cash at hand from stimulus cheques, opportunity from beaten-down assets, and lockdown boredom enabled this boom in penny stock investing during the pandemic, but the situation stands changed now. The Russia-Ukraine war, increasing interest rates, and inflationary pressure weighing down on all sectors of the economy have led investors to seek big companies with proven track records.
Executive vice-president at OTC Markets Group Jason Paltrowitz noted in February that over-the-counter activity remained above pre-pandemic levels, and he expects this 'new normal' to sustain in the long-term, even though penny stock investing by amateur investors had leveled off.
Not everyone can initiate their investing journey with stocks such as Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Apple Inc. (NASDAQ:AAPL), so we've come up with 10 penny stocks we think carry enormous growth potential in 2022.
Photo by Adam Nowakowski on Unsplash
Our Methodology
To compile the following list, we picked 10 penny stocks with positive analyst ratings and growth catalysts in the near-term. We also looked for solid business fundamentals and companies working on products with large addressable markets.
10 Penny Stocks That Can Explode in 2022
10. Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ)
Number of Hedge Fund Holders: 2
Share Price (as of March 18): $1.56
Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) is first up on our list of penny stocks to buy in 2022. The firm offers stem cell treatments for adults in the field of immunology, orthopedics, urology, and neurology. Its treatments include StemSpine which is used for the treatment of chronic lower back pain, ImmCelz for the treatment of stroke patients, OvaStem for the treatment of female infertility, and CaverStem for the treatment of erectile dysfunction. Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) also offers OncoCyte, which is a diagnostic test for cancer patients which helps optimize treatment, and TheraSure, a monitoring test for transplant rejection.
As of November 8 2021, Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) shares traded at $0.01, and have jumped 38,000% in the last 12 months, currently standing at $1.56 as of March 18.
On February 25, Roth Capital analyst Jonathan Aschoff initiated coverage of Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) with a 'Buy' rating and $10 price target. The analyst arrived at his target by projecting future US revenue from the firm's CaverStem, FemCelz, StemSpine, OvaStem, and ImmCelz treatments in their respective initial disease indications, and his current valuation does not include potential commercial upside from other indications early in development.
Out of all the hedge funds tracked by Insider Monkey, 2 hedge funds initiated their positions in Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) during the fourth quarter, with combined stakes worth $199,000.
Unlike blue chip stocks such as Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Apple Inc. (NASDAQ:AAPL); Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ) an affordable option for beginner investors.
9. Mullen Automotive, Inc. (NASDAQ:MULN)
Number of Hedge Fund Holders: 3
Share Price (as of March 18): $2.90
Mullen Automotive, Inc. (NASDAQ:MULN) is an electric vehicle firm based in California. It has gained 375.41% in the last month, and is a pioneer in the field of solid-state polymer battery technology, which is an upgrade over the lithium-ion batteries currently deployed in electric vehicles.
On March 17, Mullen Automotive, Inc. (NASDAQ:MULN) was featured on Yahoo Finance Live as an 'EV stock standout'. Reporters Rachelle Akuffo and Brad Smith said the top reasons for the stock's impressive growth included its progress on solid-state battery technology, positive coverage on CarBuzz, strong performance in a recent EV market study, and a significant domestic presence.
In February Mullen Automotive, Inc. (NASDAQ:MULN) posted an update on its efforts to produce electric car batteries that will replace the lithium-ion technology. It said that testing revealed the potential for a 150-kilowatt-hour battery pack which can deliver around 600-plus miles of range, and gives 300 miles of range with an 18-minute DC fast charge. Mullen Automotive, Inc. (NASDAQ:MULN) is expected to perform in-vehicle prototype testing of this battery technology by 2025.
Mullen Automotive, Inc. (NASDAQ:MULN) produces the Mullen 5 electric vehicle, which is competing strongly with established electric cars such as Ford Mach-E and Tesla Y, as reported by a recently conducted study. 3 hedge funds were bullish on Mullen Automotive, Inc. (NASDAQ:MULN) shares at the close of the fourth quarter, with combined positions worth $512,000. This is up from 2 hedge funds in the third quarter with stakes worth $318,000.
8. Eos Energy Enterprises, Inc. (NASDAQ:EOSE)
Number of Hedge Fund Holders: 5
Share Price (as of March 18): $4.11
Next up is Eos Energy Enterprises, Inc. (NASDAQ:EOSE), a New Jersey-based firm that develops battery storage solutions for the commercial, industrial, utility, and renewable energy markets in the United States. The Eos Znyth DC battery system, its zinc-based flagship product, is a crucial upgrade to the existing lithium-ion technology and is designed to provide uninterrupted backup power and efficient electricity storage.
Eos Energy Enterprises, Inc.'s (NASDAQ:EOSE) revenue for the fourth quarter stood at $3.10 million, which was an astounding increase of 1,586.96% compared to the year-ago period. Analyst Christopher Souther of research firm B. Riley maintained a ‘Buy’ rating on Eos Energy Enterprises, Inc. (NASDAQ:EOSE) stock on February 28, noting that he likes the firm's long-term outlook. He revised the price target to $13 from $14.
As of March 18, shares of Eos Energy Enterprises, Inc. (NASDAQ:EOSE) gained 39.32% in the last month. The firm has seen insider buying recently, with its top executives including the CEO, CFO, General Counsel and Director buying a total of around 108,000 shares.
As of the fourth quarter, 5 hedge funds held positions worth $3.06 million in Eos Energy Enterprises, Inc. (NASDAQ:EOSE), the same number of hedge funds as the previous quarter. Royce & Associates was the top shareholder of Eos Energy Enterprises, Inc. (NASDAQ:EOSE) in the fourth quarter, holding 90,000 shares worth $677,000.
Evermore Global Advisors, an investment firm, mentioned Eos Energy Enterprises, Inc. (NASDAQ:EOSE) in its Q4 2020 investor letter, stating:
“Eos Energy Enterprises, Inc. (Country: U.S.; Ticker: EOSE US) is a $1.2 billion market capitalization (on a fully diluted share count basis) designer and manufacturer of stationary, large-scale, and modular zinc-based battery systems sold to electric utilities, power producers, and industrial energy end users. Its batteries are predominantly used to store renewable power generated during low demand “off-peak” hours, and discharge at times of higher demand and/or elevated spot electricity prices. Secondarily, in areas with unreliable grids or grids that are prone to rolling brownouts (as California has been experiencing), Eos solutions can provide uninterrupted backup power supply for industrial customers. Based in Edison, New Jersey, the company came to market in November 2020 via its merger into a special purpose acquisition company (or “SPAC”), B. Riley Principal Merger Corp. II (old ticker: BMRG US), in a deal that left Eos with approximately $130 million of net cash.
Until now, the small installed base of grid storage battery capacity in the U.S. has utilized lithium-ion batteries, with technology largely piggybacking off developments made for electric vehicle applications. But given the risks of fire in high temperature climates among other drawbacks (including supply chain fragility/complexity, and difficulty in end-of-life battery recyclability), lithium-ion has proven to be technologically challenging for grid storage applications, keeping a lid on the pace of deployments. Zinc-based chemistry on the other hand, like that found in the Eos Aurora solution, can operate in much wider temperature ranges than lithium-ion, with no practical risk of fire. Eos also offers a fully domestic supply chain, better recyclability, and a slower discharge rate. As a result, despite lithium-ion’s clear advantages in certain important metrics like density and round-trip-efficiency, its specific drawbacks mean that in a number of applications (or regions) Eos’ offerings ultimately yield a lower total cost of ownership to its customers.
Eos has a solid first-to-commercialize advantage within its zinc chemistry niche. We expect this, along with an extremely efficient “build as we need it” approach to manufacturing capacity, has potential to translate to a leading market share within a rapidly growing field. Global energy consultancy, Wood Mackenzie, for instance, projects 31% annual growth in deployed battery storage systems over the next decade, reaching 740 GWh installed capacity globally by 2030. While the company is in the very early stages of its revenue ramp, its sales pipeline and backlog are growing steadily. With over 130 active engagements on potential projects, Eos has disclosed that at the end of 2020 it had an opportunity pipeline of over $3 billion. At the time of its merger into the SPAC, Eos projected it would generate $50 million and $269 million in revenue for 2021 and 2022, respectively. We believe the company will comfortably exceed these levels given the pace of revenue conversion and pipeline growth it has experienced since the completion of the merger. Grid storage batteries are sold with multi-year warranties. Thus, we believe the very act of going public (complete with a bolstered balance sheet, audited financials, and a “brand name”) has helped assuage concerns of customers that might otherwise be reluctant to enter into long term agreements.
Shares of Eos have been a phenomenal performer in the short period the Fund has owned them, having appreciated by more than 100% at year-end. With such high rates of revenue growth (management expects annual topline growth of nearly 400% through 2024 in its Base Case projection), admittedly it is difficult to value the business with a high degree of precision. However, based on our expectations, the Fund paid no more than 3x 2024 projected EBITDA for what we expect to be a fast-growing, and politically popular industry.”
7. Ideanomics, Inc. (NASDAQ:IDEX)
Number of Hedge Fund Holders: 7
Share Price (as of March 18): $1.00
Ideanomics, Inc. (NASDAQ:IDEX) is a New York-based firm that is driving the adoption of commercial electric vehicles. It also offers fintech products. The firm provides end-to-end solutions to commercial EV fleet operators such as purchasing, financing, charging, and energy solutions. As zero-emissions become an important priority for governments, fleet operators are encouraged to make the switch to electric vehicles, and Ideanomics, Inc. (NASDAQ:IDEX) is at the forefront to drive and benefit from this trend.
Ideanomics, Inc. (NASDAQ:IDEX) in September 2021 increased its stake in Italian EV motorcycle manufacturing firm Energica to 70%. This deal has enabled Ideanomics, Inc. (NASDAQ:IDEX) complete OEM (original equipment manufacturer) capabilities across all vehicle body types in the EV segment. The firm also plans to open a New Jersey location in 2022, which will display its mobility products and services.
Last year, Ideanomics, Inc. (NASDAQ:IDEX) acquired VIA Motors International in a $450 million deal. VIA is a Utah-based electric vehicle developer which makes electric trucks and buses for commercial uses in the United States and Canada and now operates as a distinct business unit after the acquisition.
On February 11, Cantor Fitzgerald analyst Andres Sheppard initiated coverage of Ideanomics, Inc. (NASDAQ:IDEX) with an 'Overweight' rating and $3 price target, noting that he believes the company's different business segments are being undervalued in the market, and this dislocation in valuation presents an interesting upside opportunity.
Out of all the hedge funds tracked by Insider Monkey, 7 hedge funds held stakes worth $8.68 million in Ideanomics, Inc. (NASDAQ:IDEX) at the close of the fourth quarter. D E Shaw upped its stake in the firm by 31% in the fourth quarter to consist of 5.3 million shares valued at $6.35 million, making it the top shareholder of Ideanomics, Inc. (NASDAQ:IDEX).
6. Limelight Networks, Inc. (NASDAQ:LLNW)
Number of Hedge Fund Holders: 11
Share Price (as of March 18): $4.78
Limelight Networks, Inc. (NASDAQ:LLNW) provides services related to content delivery networks, live and on-demand video delivery services, edge computing, and cloud security services.
In early March, Limelight Networks, Inc. (NASDAQ:LLNW) agreed to acquire Yahoo's Edgecast, which is a provider of security, content delivery, and video services. Edgecast, formerly Verizon Digital Media Services, is a subsidiary of Yahoo and will be acquired in an all-stock transaction worth $300 million.
Raymond James analyst Frank Louthan on March 11 gave Limelight Networks, Inc. (NASDAQ:LLNW) a 'Strong Buy' rating and raised the price target to $8 from $5, noting his belief that this acquisition can drive higher sales and a stronger valuation over the next few quarters.
On March 17, Cowen analyst Michael Elias upgraded Limelight Networks, Inc. (NASDAQ:LLNW) to 'Outperform' from 'Market Perform', and set a price target of $6, up from $4. Elias noted potential upside from the firm regaining lost traffic share, and sees attractive risk/reward at current levels. He also sees the Edgecast deal positioning the company for accelerated growth and profitability.
As of March 18, Limelight Networks, Inc. (NASDAQ:LLNW) has gained 35.03% in the last 12 months, and 95.10% in the last 6 months. EPS for the fourth quarter was recorded at $0.02, above estimates by $0.01.
11 hedge funds out of the 924 tracked by Insider Monkey were long Limelight Networks, Inc. (NASDAQ:LLNW) in the fourth quarter of 2021, with positions worth $119.5 million. This is up from 10 hedge funds in the preceding quarter with stakes worth $95 million in the firm. Lynrock Lake was a leading shareholder of Limelight Networks, Inc. (NASDAQ:LLNW) in Q4 2021, with a position consisting of 4.1 million shares valued at $14.08 million.
Unlike blue-chip names like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Apple Inc. (NASDAQ:AAPL), Limelight Networks, Inc. (NASDAQ:LLNW) is a penny stock with explosive growth potential.
Click to continue reading and see 5 Penny Stocks That Can Explode in 2022.
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Disclosure. None. 10 Penny Stocks That Can Explode in 2022 is originally published on Insider Monkey.
5 Best Penny Stocks With 10x Potential to Buy 2022
Penny stocks allow you to buy cheap shares at a price of $5 or less. Although riskier than traditional equities, penny stocks allow you to target higher growth potential.
In this market insight, we explore five of the best penny stocks to consider buying for your portfolio today.
The Best Penny Stocks to Buy Right Now for Huge Growth
As per our market research, we concluded that the five best penny stocks to buy now are those listed below.
Lucky Block- Blockchain-Based Lottery Concept With 4,000% Growth
Kosmos Energy - Best Penny Stock for Exposure to US-Based Oil Reserves
Inpixon - Cheap Penny Stock With Tiny Market Capitalization
Nano Dimension - Undervalued Penny Stock With an Enhanced Risk/Reward Ratio
Gevo - One of the Best Penny Stocks in 2022 for an Alternative to Gasoline
Our analysis of the best penny stocks outlined above can be found in the next section of this market insight.
The Best Penny Stocks to Buy Now for Huge Growth
When searching for the best penny stocks to buy now, it is important to focus on the risk of your investment alongside the potential upside.
We found that the penny stocks outlined below offer a great balance between both risk and reward.
1. Lucky Block - Blockchain-Based Lottery Concept With 4,000% Growth
Although Lucky Block is traded as a digital asset as opposed to a traditional equity, the project offers all of the same characteristics as a top-rated penny stock. In a nutshell, Lucky Block is building a global lottery framework that will operate on top of the blockchain protocol.
In turn, lottery games are accessible on a global basis and are guaranteed for their fairness via smart contract technology. This will result in a more transparent lottery ecosystem alongside more favorable odds for players. Moreover, the Lucky Block Telegram group has gathered over 33,000 members.
The Lucky Block token was listed on PancakeSwap, one of the best crypto exchanges, in late January 2022 and since then has generated unprecedented returns of over 4,000%. All in all, Lucky Block - at just $0.0068 per token, is a cheap crypto asset to buy with huge upside potential.
Buy Lucky Block Now
Cryptocurrency markets are highly volatile and your investments are at risk.
2. Kosmos Energy - One of the Best Stocks to Buy Now for Exposure to US-Based Oil Reserves
Kosmos Energy is a US-based oil firm that is listed on the NYSE with a small-cap valuation of just over $2 billion. As of writing, this stock is trading at just $4.63 per share.
Although Kosmos Energy had a somewhat rocky start to life as a publicly-traded company, this top-rated penny stock has performed very well in recent times. In fact, over the prior 12 months alone, Kosmos Energy stocks are up over 58%.
With that said, over the course of the past five years, this penny stock has seen losses of 21%. Nevertheless, with such a small market capitalization, there is plenty of upside potential to target.
Buy Kosmos Energy Shares on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
3. Inpixon - Cheap Penny Stock With Tiny Market Capitalization
If you’re on the search for the best penny stocks to buy now in terms of a low entry price of undervalued market capitalization, then Inpixon could be the right investment for you.
This US-based company specializes in software solutions across two core divisions - data analytics and indoor positioning. As of writing, you can invest in this top-rated penny stock at just $0.35 per share.
Listed on the NASDAQ, Inpixon stocks have taken a huge beating over the prior 12 months, with losses of over 80%.
However, with a tiny market capitalization of just $43 million as of writing, the upside potential on this penny stock price is highly attractive for those with an appetite for risk.
Buy INPX Shares on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
4. Nano Dimension - One of the Best Stocks to Invest in 2022 for Risk/Reward Ratio
Next up on our list of the best penny stocks to buy right now is Nano Dimension. Although the firm is based out of Israel - Nano Dimension stocks are available to buy via the NASDAQ exchange.
The firm specializes in the manufacturing of semiconductors and electronic components, which are both niche industries in high demand. In terms of its share price action, this penny stock has dropped in value by over 74% and 94% in the prior one and five years, respectively.
On the flip side, this allows you to buy Nano Dimension shares at a hugely discounted entry price. Finally, the firm is trading with a market capitalization of just under $1 billion as of writing. As such, Nano Dimension is one of the most promising stocks to keep an eye on this year.
Buy NNDM Shares on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
5. Gevo - Penny Stock Offering an Alternative to Gasoline
Another penny stock to consider for your portfolio is Gevo. This US-based company - which was founded as recently as 2005, specializes in alternative energy sources.
As such, the firm’s primary objective is to reduce greenhouse gas emissions via clean and renewable energy sources. In terms of its stock price action, Gevo is traded at just $3.38 per share as of writing.
Over the prior 12 months, the stocks are down a whopping 75%. However, the firm is only at the very start of its renewable energy journey, so entering the market now will yield a highly attractive entry price.
Buy GEVO Shares on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
How to Buy Stocks With the Most Potential
Once you have assessed which penny stocks to watch for your portfolio, you can proceed to make a purchase with your chosen stock broker.
How to Buy Lucky Block
As noted earlier, although Lucky Block isn’t a penny stock, this crypto asset offers many of the same characteristics in terms of upside potential.
Here’s how to buy Lucky Block tokens right now via the Pancakeswap exchange.
Step 1: Get Trust Wallet App - The easiest way to buy Lucky Block is via Trust Wallet - which gives you access to PancakeSwap. You can download the Trust Wallet app for free via Google Play or the App Store.
Step 2: Buy BNB - To buy Lucky Block, you need to have some BNB tokens. The reason for this is that Lucky Block is traded against BNB on the Pancakeswap exchange. You can buy BNB in less than 10 minutes with a debit/credit card via Trust Wallet.
Step 3: Visit PancakeSwap - If you have BNB in your Trust Wallet, you can now click on ‘DApps’ followed by ‘Pancakeswap’.
Step 4: Contract Address - Copy the Lucky Block contract address from the project’s website and paste it into PancakeSwap. This ensures that you are purchasing the correct token.
Step 5: Buy Lucky Block - You now need to enter the number of BNB tokens that you want to exchange for Lucky Block. Then, click on the ‘Swap’ button and confirm the transaction.
Buy Lucky Block Now
Cryptocurrency markets are highly volatile and your investments are at risk.
The final step is to head back to your main Trust Wallet interface and click on ‘Add Custom Token’. Then, re-paste the Lucky Block contract address. In doing so, you will now be able to view your Lucky Block investment in real-time.
For a more detailed walkthrough of how to buy Lucky Block, read our in-depth guide.
How to Buy Stocks on eToro
If you are looking to buy penny stocks in the traditional sense, the likes of Kosmos Energy, Inpixon, Nano Dimension, and Gevo can all be purchased at eToro on a 0% commission basis and with a minimum of just $10.
Step 1:Open eToro Account- You will first need to open a brokerage account via the eToro website. In addition to your basic personal information and contact details, choose a username and password.
Step 2: KYC - Before you can deposit funds into your eToro account, you need to get yourself verified. You can do this instantly by providing eToro with a clear copy of your driver’s license or passport.
Step 3: Deposit Funds - Now it’s time to deposit at least $10 into your eToro account. Supported payment methods include Visa, MasterCard, Paypal, ACH, and more. USD deposits attract no fees.
Step 4: Search for Penny Stock - In the search bar, you can now enter the name of the penny stock that you are planning to buy. Then, when you see the penny stock appear, click on the ‘Trade’ button.
Step 5: Buy Penny Stocks - Finally, to buy your chosen penny stocks, let eToro know how much money you wish to invest (from $10) before clicking on the ‘Open Trade’ button.
Conclusion
This article has discussed five of the best penny stocks to buy now for your portfolio.
Regardless of which penny stock you want to buy, eToro allows you to invest on a commission-free basis.
Most importantly, you only need to risk $10 to buy penny stocks at eToro.
Buy Penny Stocks on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
Subscribed to newsletter successfully
Thank you for subscribing to our Daily News Capsule newsletter.
Close StoryИсточник: [https://torrent-igruha.org/3551-portal.html]
These 20 penny stocks defy gravity to zoom up to 700% so far this year
New Delhi: Domestic equity markets have come under intense selling pressure lately but a score of penny stockshave still managed to deliver multibagger returns to investors.
According to the data from Ace Equity, 20 penny stocks were able to tide through tough times to rally up to 725 per cent so far this year.
Apart from these stocks, 30 others have zoomed between 70-100 per cent during the period under review. At the same time, BSE Sensex and NSE Nifty have dropped about 10 per cent each on a year-to-date (YTD) basis.
The latest round of corrections has been triggered by a war between Russia and Ukraine which led to a rise in crude prices and sharp outflows from foreign investors. Apart from these, inflationary worries, hawkish commentary from Federal Reserve and other central banks, and rich valuations also marred the equity markets.
Commenting on the market fall, Jim O'Neill, Chairman, Chatham House said in an interview to ETNow that long term investors should not panic as crises offer the best buying opportunities.
"India has more control over its own destiny than many of the places," he added. "India would be amongst the places that will be set to recover the most dramatically as and when things calm down."
According to the data, trading player of agri products Tine Agro has topped the gainers' list with a 725 per cent rise. The scrip zoomed to Rs 31.8 on March 7 as against Rs 6.8 on December 31, 2021.
With more than a 700 per cent rally, Kaiser Corporation, engaged in the printing of labels, articles of stationery, magazines and cartons, followed suit. The scrip has surged 720 per cent to Rs 22.95 from Rs 2.79 at the end of December.
ETMarkets.com
They are followed by IT player BLS Infotech and textile firm Khoobsurat, which have gained 646 per cent and 586 per cent, respectively during the period under review.
Kiran Syntex, Hemang Resources, MPS Infotecnics and Elegant Floriculture & Agrotech (India) are some of the other stocks which delivered between 270-370 per cent returns to investors.
Swiss Military Consumer, Corporate Courier & Cargo, Triveni Glass, Tranway Tech, Innovative Ideals & Services, Nikki Global Finance and Biogen Pharmachem Industries have gained more than 120 per cent this year so far.
IL&FS Engineering and Construction, Regency Trust, Macro International, Madhusudan Securities and Luharuka Media & Infra are among the remaining penny stocks that turned multibaggers during the said period.
Penny stocks have no defined theoretical definition. However, stocks in single digits or below Rs 10 are bracketed in this club. In this study, companies with a market cap of less than Rs 1,000 crore at the end of 2021 have been considered.
Some typical characteristics of these stocks tend to be low promoter holding, huge debt, accumulated losses and poor dividend track record.
Market experts have often warned investors that expecting such astronomical returns from all penny stocks would be a mistake. Such stories only attract attention, but actually lack fundamental strength.
As a word of caution, Ajit Mishra, VP- Research, Religare Broking said that irrespective of market conditions, investors should prefer companies with strong fundamentals.
"If an investor is stuck in such 'cheap' stocks during the corrective phase, it's prudent to exit them and look for better opportunities. One should utilize this decline to invest in quality counters," he advised.
However, not all penny stocks have rewarded investors. Seventeen such stocks have dropped more than 45 per cent since the beginning of 2022, with five of them eroding 60-65 per cent of investors' wealth.
Superior Finlease (down 65 per cent), Indosolar (down 64 per cent), Usha Martin Education (down 61 per cent), Ballarpur Industries (down 60 per cent) and Satra Properties (down 60 per cent) were leading wealth destroyers.
Other money spoilers include Samtex Fashions, Gujarat Investa, Starlite Components, Indian Infotech & Software, Suryachakra Power Corporation, which dropped more than 50 per cent.
(What's moving Sensexand NiftyTrack latest market news, stock tipsand expert adviceon ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Market in trouble? Pff… 23 penny stocks surge up to 5x in 2022
NEW DELHI: When you look at headline indices, it is easier to see that making money has become very difficult on Dalal Street. Niftyand Sensexare down about 2 per cent due to increasing geopolitical tension and fears of monetary tightening.
However, there is a block of the market that is untouched from such worries and is in a secular uptrend — the so-called penny stocks. As many as 23 stocks in this block have more than doubled investor wealth, with some multiplying even five-fold in the current calendar.
Penny stocks are those scrips that have share prices below Rs 10. We have considered only those stocks that were priced less than Rs 10 at the start of the year. The list includes even those names that are priced more than Rs 10 today due to appreciation.
Kaiser Corporation, which runs a printing press for small and medium corporate companies, is the biggest gainer among them, surging 409 per cent so far this year. The company reported Rs 17 lakh of revenue for the December quarter, with profit coming in at Rs 1.33 lakh. Before this, it was incurring losses.
Among other top gainers are BLS Infotech, Khoobsurat, MPS Infotecnics, Madhusudan Securities, Kiran Syntex and Innovative Ideals and Services (India) that have gained 200-400 per cent in the last 50 days.
ETMarkets.com
Many of these stocks have been clocking upper circuit limits almost every day. Trade volume is also minuscule, making them illiquid for retail investors to trade in. Some of these are also facing insolvency proceedings.
Not surprisingly, none of these stocks is covered by Dalal Street analysts as they believe most of these stocks are operator driven and there is hardly any fundamental basis for their superlative performance.
Meteoric rise of IPO financer In the overall market, the biggest gainer this year so far is KIFS Financial Services, surging 600 per cent so far, meaning a seven-fold increase since the beginning of the year. The company is engaged in providing loans against securities, especially financing initial public offer (IPO) bids.
IPO financing has emerged as a lucrative business for financial services companies as a number of new companies debuted on the exchanges in recent few months, and high net-worth investors rushed to invest in them, mostly by availing loans.
In the December quarter, the company said its profits stood at Rs 1.2 crore for the December quarter, against Rs 40 lakh in the same quarter the previous year. Revenue for the company also increased over three-fold during the quarter.
Among other names that have risen more than 400 per cent so far in 2022 are Shanti Educational Initiatives, Sejal Glass, Maitri Enterprises, Tine Agro and ARC Finance.
Please note that investing in penny stocks can be extremely risky. This article is just for informational purposes and not financial advice. Consult your financial advisor before investing in such names.
(What's moving Sensexand NiftyTrack latest market news, stock tipsand expert adviceon ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
5 Best Penny Stocks With 10x Potential to Buy 2022
Penny stocks allow you to buy cheap shares at a price of $5 or less. Although riskier than traditional equities, penny stocks allow you to target higher growth potential.
In this market insight, we explore five of the best penny stocks to consider buying for your portfolio today.
The Best Penny Stocks to Buy Right Now for Huge Growth
As per our market research, we concluded that the five best penny stocks to buy now are those listed below.
Lucky Block- Blockchain-Based Lottery Concept With 4,000% Growth
Kosmos Energy - Best Penny Stock for Exposure to US-Based Oil Reserves
Inpixon - Cheap Penny Stock With Tiny Market Capitalization
Nano Dimension - Undervalued Penny Stock With an Enhanced Risk/Reward Ratio
Gevo - One of the Best Penny Stocks in 2022 for an Alternative to Gasoline
Our analysis of the best penny stocks outlined above can be found in the next section of this market insight.
The Best Penny Stocks to Buy Now for Huge Growth
When searching for the best penny stocks to new penny stocks to invest in 2022 now, it is important to focus on the risk of your investment alongside the potential upside.
We found that the penny stocks outlined below offer a great balance between both risk and reward.
1, new penny stocks to invest in 2022. Lucky Block - Blockchain-Based Lottery Concept With 4,000% Growth
Although Lucky Block is traded as a digital asset as opposed to a traditional equity, the project offers all of the same characteristics as a top-rated penny stock. In a nutshell, Lucky Block is building a global lottery framework that will operate on top of the blockchain protocol.
In turn, lottery games are accessible on a global basis and are guaranteed for their fairness via smart contract technology. This will result in a more transparent lottery ecosystem alongside more favorable odds for players. Moreover, the Lucky Block Telegram group has gathered over 33,000 members.
The Lucky Block token was listed on PancakeSwap, one of the best crypto exchanges, in late January 2022 and since then has generated unprecedented returns of over 4,000%. All in all, Lucky Block - at just $0.0068 per token, is a cheap crypto asset to buy with huge upside potential.
Buy Lucky Block Now
Cryptocurrency markets are highly volatile and your investments are at risk.
2. Kosmos Energy - One of the Best Stocks to Buy Now for Exposure to US-Based Oil Reserves
Kosmos Energy is a US-based oil firm that is listed on the NYSE with new penny stocks to invest in 2022 small-cap valuation of just over $2 billion. As of writing, this stock is trading at just $4.63 per share.
Although Kosmos Energy had a somewhat rocky start to life as a publicly-traded company, this top-rated penny stock has performed very well in recent times. In fact, over the prior 12 months alone, Kosmos Energy stocks are up over 58%.
With that said, over the course of the past five years, this penny stock has seen losses of 21%. Nevertheless, with such a small market capitalization, there is plenty of upside potential to target.
Buy Kosmos Energy Shares on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
3. Inpixon - Cheap Penny Stock With Tiny Market Capitalization
If you’re on the search for the best penny stocks to buy now in terms of a low entry price of undervalued market capitalization, then Inpixon could be the right investment for new penny stocks to invest in 2022 US-based company specializes in software solutions across two core divisions - data analytics and indoor positioning. As of writing, you can invest in this top-rated penny stock at just $0.35 per share.
Listed on the NASDAQ, Inpixon stocks have taken a huge beating over the prior 12 months, with losses of over 80%.
However, with a tiny market capitalization of just $43 million as of writing, the upside potential on this penny stock price is highly attractive for those with an appetite for risk.
Buy INPX Shares on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
4. Nano Dimension - One of the Best Stocks to Invest in 2022 for Risk/Reward Ratio
Next up on our list of the best penny stocks to buy right now is Nano Dimension. Although the firm is based out of Israel - Nano Dimension stocks are available to buy via the NASDAQ exchange.
The firm specializes in the manufacturing of semiconductors and electronic components, which are both niche industries in high demand. In terms of its share price action, this penny stock has dropped in value by over 74% and 94% in the prior new penny stocks to invest in 2022 and five years, respectively.
On the flip side, this allows you to buy Nano Dimension shares at a hugely discounted entry price. Finally, the firm is trading with a market capitalization of just under $1 billion as of writing. As such, Nano Dimension is one of the most how to make money from home legit stocks to keep an eye on this year.
Buy NNDM Shares on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
5. Gevo - Penny Stock Offering an Alternative to Gasoline
Another penny stock to consider for your portfolio is Gevo. This US-based company - which was founded as recently as 2005, specializes in alternative energy sources.
As such, the firm’s primary objective is to reduce greenhouse gas emissions via clean and renewable energy sources. In terms of its stock price action, Gevo is traded at just $3.38 per share as of writing.
Over the prior 12 months, the stocks are down a whopping 75%. However, the firm is only at the very start of its renewable energy journey, so entering the market now will yield a highly attractive entry price.
Buy GEVO Shares on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
How to Buy Stocks With the Most Potential
Once you have assessed which penny stocks to watch for your portfolio, you money making crafts for seniors proceed to make a purchase with your chosen stock broker.
How to Buy Lucky Block
As noted earlier, although Lucky Block isn’t a penny stock, this crypto asset offers many of the same characteristics in terms of upside potential.
Here’s how to buy Lucky Block tokens right now via the Pancakeswap exchange.
Step 1: Get Trust Wallet App - The easiest way to buy Lucky Block is via Trust Wallet - which gives you access to PancakeSwap. You can download the Trust Wallet app for free via Google Play or the App Store.
Step 2: Buy BNB - To buy Lucky Block, you need to have some BNB tokens. The reason for this is that Lucky Block is traded against BNB on the Pancakeswap exchange. You can buy BNB in less than 10 minutes with a debit/credit card via Trust Wallet.
Step 3: Visit PancakeSwap - If you have BNB in your Trust Wallet, you can now click on ‘DApps’ followed by ‘Pancakeswap’.
Step 4: Contract Address - Copy the Lucky Block contract address from the project’s website and paste it into PancakeSwap. This ensures that you are purchasing the correct token.
Step 5: Buy Lucky Block - You now need to enter the number of BNB tokens that you want to exchange for Lucky Block. Then, click on the ‘Swap’ button and confirm the transaction.
Buy Lucky Block Now
Cryptocurrency markets are highly volatile and your investments are at risk.
The final step is to head back to your main Trust Wallet interface and click on ‘Add Custom Token’. Then, re-paste the Lucky Block contract address. In doing so, you will now be able to view your Lucky Block investment in real-time.
For a more detailed walkthrough of how to buy Lucky Block, read our in-depth guide.
How to Buy Stocks on eToro
If you are looking to buy penny stocks in the traditional sense, the likes of Kosmos Energy, Inpixon, Nano Dimension, and Gevo can all be purchased at eToro on a 0% commission basis and with a minimum of just $10.
Step 1:Open eToro Account- You will first need to open a brokerage account via the eToro website. In addition to bitcoin investering fake basic personal information and contact details, new penny stocks to invest in 2022, choose a username and password.
Step 2: KYC - Before you can deposit funds into your eToro account, you need to get yourself verified. You can do this instantly by providing eToro with a new penny stocks to invest in 2022 copy of your driver’s license or passport.
Step 3: Deposit Funds - Now it’s time to deposit at least $10 into your eToro account. Supported payment methods include Visa, MasterCard, Paypal, ACH, and more. USD deposits attract no fees.
Step 4: Search for Penny Stock - In the search bar, you can now enter the name of the penny stock that you are planning to buy. Then, when you see the penny stock appear, click on the ‘Trade’ button.
Step 5: Buy Penny Stocks - Finally, to buy your chosen penny stocks, let eToro know how much money you wish to invest (from $10) before clicking on the ‘Open Trade’ button.
Conclusion
This article has discussed five of the best penny stocks to buy now for your portfolio.
Regardless of which penny stock you want to buy, eToro allows you to invest on a commission-free basis.
Most importantly, you only need to risk $10 to buy penny stocks at eToro.
Buy Penny Stocks on eToro
68% of retail investor accounts lose money when trading CFDs with this provider.
Subscribed to newsletter successfully
Thank you for subscribing to our Daily News Capsule newsletter.
Close StoryИсточник: [https://torrent-igruha.org/3551-portal.html]
Mar 23, 2022
Why Roku Stock Pushed Higher on Tuesday
The streaming specialist got some love from Wall Street.
Danny Vena
These 20 penny stocks defy gravity to zoom up to 700% so far this year
New Delhi: Domestic equity markets have come under intense selling pressure lately but a score of penny stockshave still managed to deliver multibagger returns to investors.
According to the data from Ace Equity, 20 penny stocks were able to tide through tough times to rally up to 725 per cent so far this year.
Apart from these stocks, 30 others have zoomed between 70-100 per cent during the period under review. At the same time, BSE Sensex and NSE Nifty have dropped about 10 per cent each on a year-to-date (YTD) basis.
The latest round of corrections has been triggered by a war between Russia and Ukraine which led to a rise in crude prices and sharp outflows from foreign investors. Apart from these, inflationary worries, hawkish commentary from Federal Reserve euromoney investor relations other central banks, and rich valuations also marred the equity markets.
Commenting on the market fall, Jim O'Neill, Chairman, Chatham House said in an interview to ETNow that long term investors should not panic as crises offer the best buying opportunities.
"India has more control over its own destiny than many of the places," he added. "India would be amongst the places that will be set to recover the most dramatically as and when things calm down."
According to the data, trading player of agri products Tine Agro has topped the gainers' list with a 725 per cent rise. The scrip zoomed to Rs 31.8 on March 7 as against Rs 6.8 on December 31, 2021.
With more than a 700 per cent rally, Kaiser Corporation, engaged in the printing of labels, articles of stationery, magazines and cartons, followed suit. The scrip has surged 720 per cent to Rs 22.95 from Rs 2.79 at the end of December.
ETMarkets.com
They are followed by IT player BLS Infotech and textile firm Khoobsurat, which have gained 646 per cent and 586 per cent, respectively during the period under review.
Kiran Syntex, Hemang Resources, MPS Infotecnics and Elegant Floriculture & Agrotech (India) are some of the other web hosting to make money which delivered between 270-370 per cent returns to investors.
Swiss Military Consumer, Corporate Courier & Cargo, new penny stocks to invest in 2022, Triveni Glass, Tranway Tech, Innovative Ideals & Services, Nikki Global Finance and Biogen Pharmachem Industries have gained more than 120 per cent this year so far.
IL&FS Engineering and Construction, Regency Trust, Macro International, Madhusudan Securities and Luharuka Media & Infra are among the remaining penny stocks that turned multibaggers during the said period.
Penny stocks have no defined new penny stocks to invest in 2022 definition. However, stocks in single digits or below Rs 10 are bracketed in this club. In this study, companies with a market cap of less than Rs 1,000 crore at the end of 2021 have been considered.
Some typical characteristics of these stocks tend to be low promoter holding, huge debt, accumulated losses and poor dividend track record.
Market experts have often warned investors that expecting such astronomical returns from all penny stocks would be a mistake. Such stories only attract attention, but actually lack fundamental strength.
As a word of caution, Ajit Mishra, VP- Research, Religare Broking said that irrespective of market conditions, investors should prefer companies with strong fundamentals.
"If an investor is stuck in such 'cheap' stocks during the corrective phase, it's prudent to exit them and look for better opportunities. One should utilize this decline to invest in quality counters," he advised.
However, not all penny stocks have rewarded investors. Seventeen such stocks have dropped more than 45 per cent since the beginning of 2022, with five of them eroding 60-65 per cent of investors' wealth.
Superior Finlease (down 65 per cent), Indosolar (down 64 per cent), Usha Martin Education (down 61 per cent), Ballarpur Industries (down 60 per cent) and Satra Properties (down 60 per cent) were leading wealth destroyers.
Other money spoilers include Samtex Fashions, Gujarat Investa, Starlite Components, Indian Infotech & Software, Suryachakra Power New penny stocks to invest in 2022, which dropped more than 50 per cent.
(What's moving Sensexand NiftyTrack latest market news, stock tipsand expert adviceon ETMarkets. Also, ETMarkets.com is now on Telegram, new penny stocks to invest in 2022. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
As their name implies, penny stocks are stocks that trade below $1 per share. However, in a broader new penny stocks to invest in 2022, the term can also refer to stocks trading below $5 per share.
Among the benefits of penny stocks, investors can buy large quantities of them with little money and can generate large valuations quickly due to their high volatility and generally little Wall Street coverage.
However, be aware that penny stocks also represent an investment considered high risk because it is very much based on speculation.
Below, we list some companies with good potential in their markets that currently have a share price below $5.
(Read more from Wall Street Memes: ARK Innovation ETF: Have The Discipline To Limit Losses)
Sundial Growers – $SNDL
Worth half a dollar, Sundial Growers (SNDL) - Get Sundial Growers Inc. Report enjoys enormous popularity among Reddit users because of its cannabis-oriented business.
Also, Sundial shares have meme-stock appeal thanks to their trading performance since early 2021. Sundial stock has been highly volatile, especially because its value is based more on shareholder sentiment than company fundamentals.
Sundial shares have been in the spotlight lately due to its risk of delisting from the Nasdaq exchange. Sundial shares have failed to trade above $1 how to invest in bitcoin canada more than 10 consecutive trading days in the last 180 days.
One way to avoid delisting would be to do a reverse stock split. This would involve merging the company's shares with the aim of forming a smaller number of shares in the float, decreasing liquidity, and proportionally increasing value.
A reason why its stock is below $1 can be explained by the aggressive dilution of its shares from 105 million in 2020 to more than 2 billion in 2021. However, the company's management has already warned that it plans to repurchase about $79.6 million worth of its common stock.
With the stock being under pressure to increase its share price in a short period of time, coupled with the strong popularity of SNDL stock coming mainly from Reddit forums, we should expect high volatility and large share price spikes in the near future. In addition, news related to cannabis legalization in the U.S, new penny stocks to invest in 2022. could boost cannabis stocks in general.
DiDi Global – $DIDI
Yes, a company with a market cap above $20 billion can be a penny stock. Such is the case with the Chinese technology and mobility company DiDi (DIDI) - Get DiDi Global Inc. Report, with shares worth $4.31.
The company was the target of a major backlash over its delisting from the NYSE late last year, marked by conflicts between Beijing and Washington over regulatory clampdowns.
DiDi had a much hyped $4.4 billion IPO on the NYSE and then saw its shares collapse after Beijing threatened to ban DiDi's app in China due to broken privacy laws and potential cybersecurity risks.
The DiDi case has attracted a lot of attention and generated uncertainty regarding Chinese stocks listed in the U.S., due to the view that China is punishing the decision of companies like DiDi to publicly list overseas.
However, DiDi's ride-sharing business is still very attractive. It's investimentos bitcoins vale a pena profitable than Uber and now has more modest valuations since the regulatory hurricane punished its shares. However, with a calmer scenario in Beijing and Washington, the worst may be over for Chinese stocks, including DiDi.
Investors can buy shares of DiDi via ADRs (American Depositary Receipts), which are certificates issued by the United States that represent shares of a foreign stock. However, this type of investment can generate double taxation for investors — the main disadvantage of an ADR.
Uranium Energy Corp. – $UEC
Buzz around the uranium market has been taking hold on the stock market, especially in the last year. Touted as an industry of the future, where nuclear energy is seen as a source of decarbonized fuel, uranium stocks have generally doubled in value. The leading uranium ETF, the Global X Uranium (URA) - Get Global X Uranium ETF Report has even risen as much as 96% by 2021.
However, for those who like stock picking, this penny growth uranium stock may be an option. Uranium Energy Corp (UEC) - Get Uranium Energy Corp. Report is a company with subsidiaries focused on the exploration and processing of uranium and titanium in the United States, Canada, and Paraguay.
With a current market cap of $857 million and shares valued at just over $3, Uranium Energy has not yet generated any revenue in the last seven years and has not produced any uranium yet, new penny stocks to invest in 2022. The performance of its stock, which reached over 200% growth in 2021, has been trading in line with the speculation of the uranium market.
Yet Uranium Energy, with a healthy balance sheet with $93 million in cash, has plans to acquire new companies in the uranium active production sector with the aim of generating immediate revenues.
The global uranium market is projected to reach a value of $10.18 billion by 2022. As uranium is a powerful source of energy, the increase in mining projects and development of processing technology should strongly enhance its value in the coming years.
(Read more from Wall Street Memes:2 Top NFT-Related Stocks to Buy in 2022)
(Disclaimers: this is not investment advice, new penny stocks to invest in 2022. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)
Co-producer of The Street's financial channels: Apple Maven, Amazon Maven and Wall Street Memes. Researcher and operations manager at DM Martins Research.
ETMarkets.com
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