The mere definition of a penny stock is rather confusing. Some definitions state a penny stock being a stock that is valued under $1, but the SEC states that a penny stock is valued at less than $5 per share and meets other criteria, such as not being traded on a national stock exchange.
For the savvy investor that deems stocks under $5 as a penny stock, there is a lot of money to be made this year. The following stocks are all considered penny stocks within the SEC $5 definition of the term, but many are companies that are much safer in terms of risks and potential gains.
What stocks made our must-have penny stock list?
Let’s find out…
The Now Corporation
The Now Corporation has jumped dramatically in the past year. This stock, defined by NWPN, has jumped over 30700 percent in 1 year and 18 percent in the last six months. The stock is on fire and the company keeps expanding.
Building off of the medical marijuana surge, the company offers both agricultural and energy-based solutions. Purchasing the rights to exoPower, the company has expanded into the energy industry and will be a very promising company within the marijuana industry. The company aims to bring farming off-the-grid and has done a spectacular job with smart investments.
While still a small entity, this stock is valued at .15 USD with a market cap of $3.1 million. Much of the stocks growth was seen with the purchase of exoPower, but the company has still fared well with over a 60 percent stock increase last month.
This is a stock that has just wiggled outside of the $5 range up to $6, but this does not mean that you should not keep a close eye on this stock. One bad day may lead the stock to fall back into the penny stock range and will allow you to pick up one of the hottest stocks of the year.
SMTP provides email services to small and large companies alike. While the company started the year at just $1.43 per share, it has skyrocketed to $6 due to wise decisions. Not only did a new VP of marketing come on board, but a new CFO was named less than a year ago and recent deals have solidified the company’s current growth.
Impressive growth was seen in 2013 as financial statements show a 10 percent gain in profits to hit the $4.7 million dollar mark for the year.
If or when this stock dips, you will want to add it to your portfolio.
Cannabis Science Inc.
Cannabis Science works within the medical marijuana field and has seen an increase of over 99 percent on the year. Located in Colorado, this stock is one that is soaring thanks to marijuana legalization and medical advances. While the stock has not been impressive for the last 3 months, there are still small gains being seen.
This stock can be a hit or miss, but the price seems to soar with each state that allows the use of marijuana for medicinal purposes. For a stock that started the year at .08 cents a share, it saw a high of 29 cents a share in February and currently sits at .1 cents a share.
While the current track record may be a cause for concern, the stock has risen since the end of April and is expected to grow thanks to its strong financial position according to financial statements.
A lot of talk has surrounded Verso Paper (VRS) as the company’s stock skyrockets in January and recently started to tumble in June. Why are we including this company in our penny stock list? Well, Verso Paper has a lot of potential, but the company’s future is riding on the acquisition of NewPage Holdings Inc.
So, why is the company stock tumbling? Moody’s dropped the company’s credit rating drastically and has rated the company as a very high credit risk. However, the stock was valued at just .65 on January 1st and currently sits at 1.86. If the company is able to purchase NewPage, any investors will make a ton of money on the acquisition.
However, if the company fails to make the purchase, you can expect a bankruptcy in the near future.
This is a risky stock that has performed well this year, but if you are looking for major returns and don’t mind the risk, Verso Paper is the way to go.
Mines Management, Inc.
An unusual addition to a top penny stocks list, Mines Management Inc. saw huge gains in January before reaching a high of 1.73 dollar per share in March. The company seemed to be on the road to disaster with federal and state charges pressed against them, but the company won in court. This means that the lawsuits did not hold up, and the biggest asset that this company has is that they are being very open about the proceedings.
Investors were honestly nervous about the lack of communication following the company’s court case, but now, the company has come out with the facts. In fact, after a statement was provided on June 18th, the stock has started to rise drastically.
The company currently owns a mine with silver and copper deposits valued at $400 million dollars in Montana. Now that the company is cleared from any wrongdoing, they are free to work this mine and potentially create 350 new jobs in the small city.
Once the Montanore project begins, you can expect the value of this company to rise well beyond the 100 percent increase the company’s stock has seen since January.
To mix things up, we added some sure hits and some companies that can hit it big if one decision or acquisition goes into their favor. Remember, always diversify your portfolio and do your own due diligence before using our penny stock list to make a large investment. With the right purchase, you can see gains of over 100 percent on the year.
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