First published: 21 January 2022 @ 3:23 pm
Client: Shiirs
Written By: The Big Writer
Published At: Read More
Buying stocks is a great way to invest leftover money and have it grow over time. Over the past year especially, investing in the stock market has become increasingly popular among amateur investors because. It has great financial potential and is more accessible than ever. Modern apps are making it easier than ever before for anyone to invest. The trickiest part is deciding where to start.
For investing novices and experienced investors alike, penny stocks are an interesting type of stock to watch.
But what are they, and which ones are the best penny stocks to invest in currently?
Read on to learn more about penny stocks and which ones to consider investing in now.
What are Penny Stocks?
Traditionally, penny stocks are any stocks with a share price below a dollar, 99 cents, or below. Recently, this definition has been expanded to include stocks that are below five dollars, as determined by the U.S. Securities and Exchange Commission (SEC). To be designated a penny stock, there is a market cap on how much a company is worth, its market capitalization.
Penny stocks can be very risky stock picks. They are stock shares from small companies that usually do not have a long-established track record. It is important to be wary of which penny stocks to buy for this reason.
Sometimes, it can be hard to sell penny stocks after purchasing them because of little demand. Other times, penny stocks are an inconsequential and easy way to invest in the stock market. Because they are so cheap, you do not have to drain your savings just to get into investing. Many of these stocks show incredible growth potential as well.
How To Trade Penny Stocks Successfully
Like any other stock trades, to trade penny stocks means that you have to keep up on your shares often.
You can strategize a couple of different ways to be successful with penny stocks: the short-term or long-term game. Short-term investing involves buying a high dollar amount of penny stocks and selling them once they have quickly jumped and hit your price target. Long-term investing, on the other hand, means researching penny stock options more thoroughly in hopes that they will gradually rise in stock prices and grow out of the penny stock categorization in the future.
Here is our list of top penny stock companies that should be on your watch list:
Biolase, Inc. (NASDAQ: BIOL)
Biolase is a penny stock to watch, a medical supply company that primarily serves the dental industry. It is a great penny stock to watch out for because it has huge market and growth potential. Because the dental industry was impacted by the pandemic, stock prices for BIOL dropped into penny stock territory.
Currently, the stock sits at around 0.65 per share, a true penny stock by any definition. It sits at almost half of the 1.20 it was in February 2020 before the global pandemic hit. Despite being a low price stock option, the company still holds hundreds of patents and has a large stake in the dental industry. This could be a great stock to look into for a long-term investment as the dental industry continues to grow and Biolase, Inc. grows with it.
Electrameccanica Vehicles (NASDAQ: SOLO)
Unlike Biolase, Electrameccanica Vehicles Corporation is a penny stock by the SEC definition. It currently sits at about 3.30, but experts think the stock is undervalued and will be on the incline soon. After hitting a high of over ten dollars in February of this year, SOLO is waiting to take off again.
Electrameccanica is an intriguing company that is researching and designing electric vehicles. Its most famous innovation is their new vehicle design called the solo, which is a one-person, three-wheeled electric car. The company has plans to expand its retail presence to the United States soon, increase its production capacity, and expand to other global markets.
Inuvo (NYSEAMERICAN: INUV)
This is perhaps the top penny stock to watch. Inuvo, Inc. provides display methods for e-Commerce companies. Several different investment forecasts have noted INUV to be a top stock to watch for the past couple of months.
This year, the stock price peaked at almost two dollars. Since then, the stock has been semi-regularly rising and falling, now sitting at around 0.65 per share. The penny stock does pose its risks in terms of security and volatility, but it could be a great penny stock to watch out for.
Glory Star New Media (NASDAQ: GSMG)
Glory Star New Media is a Chinese digital media LLC. Currently, the share price hovers around two dollars, down from its peak in March at 4.72 for this year to date. The stock is speculated to be a good penny stock to invest in because it just recently announced a deal with an institutional investor.
Since being founded in 2016, the company has gained notoriety for integrated premium subscription video services with e-commerce, advertising, and content production services. In August, investors traded the stock at an extremely high volume. Look into this stock if you are interested in diversifying your investments in the Chinese market.
RLX Technology Inc. (NYSE: RLX)
RLX Technology, Inc. is another China-based company that is a leader in the e-vapor industry, or alternatives to cigarettes. The company, much like many other e-vapor companies, has seen price plummets due to stricter regulations and changes in Chinese IPOs in U.S. stock exchanges.
However, the company shows promise for the way that it has slowly steadied out over the past month or so. The stock currently sits around 4.50. Because it has shown net revenue growth in past quarters, the company will be a stock to look out for at an affordable share price.
Seanergy Maritime (NASDAQ: SHIP)
Seanergy Maritime Holdings Corporation was founded in the Marshall Islands and is currently headquartered in Greece. The company’s share price is down over the last year from the near two dollar range to about 1.30 currently. The company has been steadily growing globally and has seen little to no interruption of usual business activity because of the persistent need for dry goods shipping.
Trivago (NASDAQ: TRVG)
Lastly, and the most household name of all of these penny stock options, Trivago is a popular travel and tourism company. TRVG has been steadily falling from almost five dollars since March and sits around 2.40 now. The pandemic negatively affected many companies’ stock prices, naturally. Now, experts forecast a change in tides for Trivago and many similar companies.
Note that you can trade all of these stocks in real-time because they belong on the NYSE, NASDAQ, or NYSEAMERICAN. Other stock exchanges in the world have delays for how instantaneously one can buy and sell shares. The time frame is generally 15 minutes.
Get Help From Shiirs
As mentioned above, penny stocks are a great opportunity to dabble in risky investments. Consider all risks before investing your entire life savings into a precarious penny stock. Even for seasoned investors, penny stocks can be difficult to predict. Proceed with caution, and if you can, consult with your financial advisor to make the best decision for your financial situation.
Shiirs is here to help improve your financial health in any way you need. If you’re interested in penny stocks, first we can teach you how to invest in stocks. Whether you are looking to improve your credit, invest your money, or secure a loan, Shiirs has plenty of expert advice and consulting to offer. Learn more about how we can help today!
The post What are the Best Penny Stocks to Invest In? appeared first on Shiirs.