No doubt, a strong portfolio typically includes stocks with robust fundamentals and solid track records. In a bull market, these investments provide healthy returns and protect against capital erosion. However, we should not overlook the benefits of owning penny stocks, either. The get-rich-quick angle with these picks is a real possibility. That’s why they continue to garner investor interest.
That said, penny stocks can also be a double-edged sword. Naturally, everyone is attracted to the low price tag. But it’s extremely important to understand which stocks are trading at a bargain and which ones are trading cheaply. The former can have real potential to super-charge your portfolio.
With the retail-trading frenzy we’ve seen this year, it seems like it doesn’t take much to move the needle for these low-priced picks. This is due in part to highly active social media forums who closely follow the sector, such as Reddit’s r/WallStreetBets. Ultimately, though, everyone is looking for massive profits from their investments.
So, without further ado, here are seven top penny stocks that have millionaire-maker potential…
Penny Stocks to Buy, No. 7: Surgalign (SRGA)
First up on this list of penny stocks is Surgalign, a medical-device developer that focuses on spinal ailments and digital surgery. This company markets a variety of devices for both the surgical and non-surgical treatment of spinal issues.
Last year, the reductions and cancellations of in-patient procedures weighed in on its top-line. However, Surgalign’s stellar second-quarter results suggest that the company is now back with a bang and looking to solidify its position in the industry.
In Q2, SRGA reported a healthy 20.9% increase in revenues on a year-over-year (YOY) basis at $24.8 million. Moreover, its gross margin was an incredible 71% (Page 28), which is exceptional for a medical device developer. The total addressable market for lumbar spine procedures stands at $5 billion, according to management. If the company could knock off just 5% of that market, it would be looking at $250 million in revenue. Hence, SRGA stock has a lot of potential to grow exponentially in the coming years.
Penny Stocks to Buy, No. 6: Cocrystal Pharma Inc. (COCP)
Cocrystal Pharma Inc. (NASDAQ: COCP) is a clinical stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication machinery of influenza viruses, hepatitis C viruses, and noroviruses.
The company employs structure-based technologies and Nobel Prize-winning expertise to create first-and best-in-class antiviral drugs
COCP is currently developing an oral broad-spectrum replication inhibitor called a non-nucleoside inhibitor – which is currently being evaluated in a Phase 2a study for the treatment of hepatitis C as part of an ultra-short therapy of four to six weeks.
Now if you don't know what any of that means, it doesn't matter. All you need to know is that it's huge for the treatment of some of the world's most-killer diseases… and potentially for investors too.
The stock shot up from $0.87 to $2.16 after Cohen announced his stake in the company late last year.
But now that’s it’s down to only $1.40 per share, that makes Cocrystal Pharma one of the more interesting penny stocks to watch for potentially huge gains this year.
If those Phase 2 trials turn out successful and the company moves on to Phase 3, the stock should get a boost. And if Phase 3 is successful, the stock could soar.
Penny Stocks to Buy, No 5: Seanergy Maritime (SHIP)
Based in Greece, this next entry on my list of penny stocks is a dry bulk shipper called Seanergy Maritime Holdings.
Understandably, this company had a rough year. However, it has picked up the pace in its past few quarters, posting double-digit revenue growth from the prior-year periods. Moreover, Seaenergy has been aggressively optimizing its fleet, pushing its net asset value (NAV) higher. Still, SHIP stock trades at a significant discount to its NAV and future outlook.
The company’s second-quarter revenues of $22.5 million represented a more than 380% improvement on a YOY basis. Moreover, its earnings per share (EPS) of 1 cent was in line with estimates. Through effective financial management, SHIP has expanded its fleet without compromising flexibility. This is perhaps why it has such impressive forward operating cash flow growth estimates as well.
Unusual Passive Income Investment (Found on a Golf Course)
This story is crazy…
On a golf course in Nebraska, one man got an investing tip from a friend.
He told him about an unusual investment that wasn't your run-of-the-mill stock, bond, or even private investment.
Instead, it was an little-known income stream that few people tap into… despite the huge profit potential.
This man acted on his friends' advice and invested a tiny amount – just $1,000.
But this $1,000 turned into a decades-long passive income stream that reached $100,000-per-year!
My colleague Marc Lichtenfeld dug into this story, and you'll be shocked to find out what he uncovered.
P.S. Marc also reveals how anyone can get into a similar opportunity for just $5. Click here to learn more.
Penny Stocks to Buy, No 4: Ceragon (CRNT)
Based in Israel, Ceragon is a 5G play that has been in the news recently following an announcement of $35 million worth of follow-on orders from top-tier mobile operators in India. Moreover, the company also announced that it signed a multi-year service agreement with a “leading US service provider.” Now, management believes it’s in a solid position to take advantage of the 5G transition. Despite these positives, though, CRNT stock is trading at just 1.1 times forward sales.
After several rough quarters, Ceragon has posted some positive revenue growth numbers. In Q2, revenues of $68.6 million were a 9.9% improvement from the same period last year. Moreover, the company’s adjusted gross margin was at a healthy 31.5%, with an operating income of $500,000 compared to a sizeable net loss of $3.5 million in Q2.
This company expects to beat its consensus revenue estimates for the year at $284.2 million. Therefore, with the accelerating growth of the 5G market, expect CRNT stock to make big waves in the coming years. This name is definitely an interesting pick among the penny stocks.
Penny Stocks to Buy, No. 3: Hive Blockchain (HIVE)
Cryptocurrency miner Hive Blockchain is currently one of the largest publicly traded Ethereum (ETH) miners on the market. In fact, Hive Blockchain “provides over 5% of Ethereum’s total network hash rate.” Moreover, it also has a substantial hash rate with the industry leader in Bitcoin (BTC).
However, the transition of Ethereum to a proof-of-stake model could render mining redundant. True, miners stand to indirectly benefit from the price appreciation resulting from the update or any increases in price due to stronger “tokenomics.” Regardless, though, Hive is most likely to take a substantial hit in revenues in the short term. That said, it should also effectively repurpose its GPU fleet to build top-class data centers in the long run.
All in all, this is an intriguing pick among the penny stocks.
Best Time to Buy Tech Stocks Since 2000 (And the #1 Bargain Now)
After the tech bubble popped in 2000, there were some amazing bargains available…
You could get Amazon for just $6!
I believe this time is no different.
With the recent tech sell-off, there are some incredible companies trading at discounts we’ll never likely see again in our lifetimes.
And I believe I have the name of the #1 bargain right now.
This is a tiny Silicon Valley company that’s using AI to do something incredible.
To get the whole story, including details of my #1 tech bargain, click here now.
Penny Stocks to Buy, No. 2: Trivago (TRVG)
Last up on this list of penny stocks is Trivago. A hotel booking platform, Trivago suffered along with the rest of the travel sector due to the Covid-19 pandemic. This is evidenced in its earnings results from the first quarter, where revenues tanked in a big way. However, in its most recent quarter, revenues rose to 95.5 million euros ($112 million), growing by 493% YOY. Therefore, TRVG stock appears to be back in business and should do well as the pandemic eases.
Currently, management is optimistic about the pent-up demand in the second half of the year with the broader economic reopening across the world. Moreover, the company has done well to control costs, scaling back on marketing expenses. As a result, net loss in its most recent quarter was 3.3 million euros ($3.87 million), significantly lower than previous quarters.
Although it might take a year for the company to recover fully, opportunities are waiting for this one in the post-Covid world. It could blast off soon enough.
Penny Stocks to Buy, No. 1: The $4 “Stock of the Year”
Sponsored
Picture the perfect stock for a moment.
What would it look like?
No doubt it would have hundreds of billions in revenue – more than tech giants like IBM, Facebook and Google.
It would probably be a leader in cutting-edge technology like smartphones, robotics, e-commerce and medical equipment.
It would have tens of thousands of unbreakable patents.
It would pay an enormous dividend.
It would be on the verge of dozens of blockbuster announcements that would send the stock higher and higher.
And most of all…
It would trade ultra-cheap – less than $4.
It seems crazy that such a stock exists.
And you've likely never heard of it.
Why?
Because it trades under a secret name.
Seriously, it's true.
My colleague – stock-picking legend Alexander Green – just gave the most shocking live presentation regarding this “perfect stock.”
He says this single stock alone could pay for your retirement.
