Top Penny Stocks: Analytica Bio-Energy Corp. (ABEC)
YTD Performance: 29,300%
52-Week Range: $0.0017 – $0.50
Average Volume (3 months): 9,574
Market Cap: $10.6 million
Analytica Bio-Energy Corp. (ABEC) is another development stage business with another long history of name and business changes, the last of which came just a few months ago. And thus, it’s also one of the top penny stocks … that you should avoid.
Uniwell Electronic Corp. acquired a Taiwanese company called Analytica Bioenergy Inc. and changed its name to Analytica Bio-Energy Corp.
As Uniwell, the company distributed electronic components made by manufacturers in Asia. Now, as ABEC, it makes systems to purify industrial waste water. (In case you hadn’t noticed by now, penny stocks are often issued by shell companies that change names and businesses like most people change their underwear.)
At any rate, for the first nine months of the year, revenue came to a little more than $34,000. Naturally, the bottom line looked even worse, with a net loss through three quarters of $133,000. Like the other top penny stocks of 2013, ABEC’s gain of more than 29,000% year-to-date would not have made you a millionaire.
This penny stock was unchanged at $0.002 until the first week of September, when Uniwell Electronic became Analytica Bio-Energy. And even since the change, on most days no shares change hands at all.
Again, there is no liquidity — or even clarity. There are 21 million shares outstanding, but ABEC doesn’t disclose the float of this penny stock. It doesn’t disclose ownership details, either, but it’s got to be closely held — likely with lots of restricted shares — which make for a relatively small float available to outsiders like you and me.
Yes, top penny stocks can put up eye-popping percent gains, but the possibility of grabbing even a part of that upside is minimal, with a good chance you’ll lose it all. And if you do win, the cash you walk away with is hardly going to be life-changing.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.