Among the most sought after penny stocks of the last period, the 3 that we will see have won over analysts and traders. These are shares, all worth less than $5, considered to have high growth potential. It means that many analysts are monitoring stocks and companies, waiting for the moment when their value could increase significantly. Here are all the details.
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What are penny stocks
The term penny stock in finance refers to shares of little value, whose value, in the past, was a few cents, but today it refers to shares traded at a very low price, generally lower than 5 dollars or 5 euros which, in most part of the cases, they are associated with emerging companies.
The trading of penny stocks of emerging companies generally takes place on the OTC (over the counter) market or outside the main stock exchanges, but there is no shortage of penny stocks listed on the main stock markets.
Value penny stocks, i.e. penny stocks with high growth potential, are highly sought after by investors, as they potentially offer a high return. An example of a successful penny stock is linked to Elon Musk’s Tesla company, whose first shares traded at $17 in 2013 and, ten years later, in 2023, reached an all-time high of $815.
Despite the high earning potential, investing in penny stocks is a risky operation, which requires good knowledge of the market, trends, exposures and above all, caution on the part of the investor.
The main risk linked to penny stocks is market manipulation, since these are shares whose value is very low, which therefore require little liquidity for the acquisition of huge share packages, their market price can easily be altered, inducing unwary investors to buy shares whose value appears to be increasing, but which in reality does not reflect the real increase in value of the stock.
How to invest in penny stocks
To invest in penny stocks, minimizing your risks, experts recommend paying attention to a series of elements on both a financial and strategic level.
The experts’ first recommendation is to carry out in-depth research on the shares you intend to purchase. In the case of penny stocks, this operation can be more complex than shares listed on the main stock exchanges, as these are shares often traded on the OTC market. , the financial information related to the security may be unclear and transparent.
Another tip from experts for investing in penny stocks is not to be discouraged by the low price, but rather, keep your position firm and wait for the right moment, although in fact penny stocks are easily tradable shares, which can be sold with relative simplicity , you need to pay attention to the right time to sell them.
3 stocks to monitor
In the last period, many analysts and traders have started to pay particular attention to the shares of FTC Solar, Ocuphire Pharma and Design Therapeutics, whose market value has risen by 0.75%, 4.43% and 10% respectively, 64%.
This is an increase in value considered organic, i.e. an increase in value not resulting from market alterations or pump and down operations, therefore there is a lot of confidence in the high growth possibilities of these securities in the near future.
FTC Solar
FTC Solar is a company specialized in solar tracking systems supported by proprietary software, in other words the company sells tools that allow the automatic regulation of solar panels and photovoltaic energy generation systems, thus maximizing the energy efficiency of the panels.
According to the latest quarterly report, sales in the first quarter of 2024 are positive and increasing compared to the last quarter of 2023. In general, the company, according to published data, is going through a phase of growth and expansion that is attracting numerous investments and investors.
Speaking of investments, recently, Ahmad R Chatila, director of FTC Solar Inc, acquired, at an average price of $0.55, a package of 92,600 shares, the total value of which is approximately $50,930.
Ocuphire Pharma
Ocuphire Pharma is an ophthalmic biopharmaceutical company specializing in the development and commercialization of tools and therapies for the treatment of refractive and retinal eye disorders, which, according to data published by the company itself, recorded sales of approximately $1,700 million in the fourth quarter of 2023.
The company is going through a positive phase that has attracted and is attracting numerous investors, including the CEO of Ocuphire Pharma himself, Nirav S. Jhaveri who recently purchased a package of 10,000 shares at a price of $2.10 per share .
Design Therapeutics
Design Therapeutics is a biopharmaceutical company specialized in the development of GeneTACTM molecules, designed to combat diseases by starting from the underlying causes of pathologies and hereditary nucleotide expansion mutations.
According to the company’s financial statement data, in the first quarter of 2024 the company recorded a smaller loss than expected, according to the projections for the third quarter of 2023 in fact a greater loss was expected, the less negative result than expected is perceived by many investors as a positive signal.
The stock has recorded growth of over 10% in the last period, and has seen a huge investment by John P. Schmid, director of Design Therapeutics, who purchased a package of 26,965 shares at a price of around 3 $.70 per share.
Read also: The stocks to avoid in 2024 for risk-free investments
