There are a few definitions by which investors define penny stocks. Some stick to the idea that penny stocks are those that trade below $1. This was the traditional definition of a penny stock, and the one you’re most likely to see. Others use market capitalization.
There remains no consensus as to the “true” definition of a penny stock. But they remain popular, as they are inexpensive and often volatile. That volatility means that investors can potentially receive very quick gains. Yes, that is of course balanced by substantial risk, but the fact remains that penny stocks will always be alluring.
My guess is that penny stocks could see an upsurge in popularity in the near future: Now that cryptomania has cooled, investors with higher risk tolerance may pivot into penny stocks. If that is the case, such demand could raise prices quickly.
Whether that happens or not, penny stocks already have the power to rise quickly. The list below will include those which have the potential for 10X gains. Let’s dive in.
- Protagenic Therapeutics (NASDAQ:PTIX)
- Mind Medicine (NASDAQ:MNMD)
- Conformis (NASDAQ:CFMS)
- Senseonics (NYSEAMERICAN:SENS)
- Sesen Bio (NASDAQ:SESN)
- NexGen Energy (NYSEAMERICAN:NXE)
- Elys Game Technology Corp. (NASDAQ:ELYS)
Penny Stocks: Protagenic Therapeutics (PTIX)
Traditionally, biotech companies seek to commercialize therapeutics which alleviate problems related to physical health. But recently, there has been an increasing focus on the mind, stress and mood disorders, which wasn’t really the case a few years ago.
That is where Protagenic Therapeutics focuses its efforts. The company engages in the development of therapeutics for stress-related neuropsychiatric and mood disorders. Recent studies by the Cleveland Clinic indicate that stress is on the rise, likely confirming what many already suspected — the pandemic has lead to higher stress.
This is a strong indication that Protagenic Therapeutics could be pivotal in mental health therapeutics in the future. The company is specifically seeking to dominate a target market it estimates at $20 billion for its lead candidate, PT00114.
That lead molecule has shown strong safety and efficacy in preclinical models, and should be in a Phase I/IIa trial by Q3 of this year. PT00114 has shown efficacy in the “reversal of depression, stress-exacerbated anxiety, excessive startle, drug seeking, and opioid withdrawal.” If PT00114, as the company expects, receives Breakthrough Designation from the FDA it’s easy to see how it could indeed multiply in price 10X.
Mind Medicine (MNMD)
Mind Medicine is, like Protagenic Therapeutics, focused on the development of neuropharmaceuticals. The company, however, deals with psychedelics.
It would have been much more difficult, if not impossible, to find an investment like Mind Medicine a decade ago. Part of Mind Medicine’s allure is its novelty and potential for quick gains that it brings. Investors are aware of MNMD stock and what it is potentially offering from a risk/reward standpoint. The stock has gained significant traction since mid-September. It has risen from 33 cents at that time, to just under $4 per share now. And given the speed with which biotech companies rise upon meeting regulatory approval, it isn’t hard to imagine that MNMD stock could multiply by 10 times from its current price.
Mind Medicine offers experiential therapy in which LSD is administered to produce a psychedelic effect under medical supervision. Patients receive therapy in this setting to help them deal with mental health issues. The company is focused on treating anxiety, addiction, and adult ADHD. It also is developing and researching novel compounds in this new area.
Mind Medicine sees the addressable market as being one that could grow to $16 trillion in size by 2030. The company’s experiential LSD therapies are currently in Phase 2b. If Mind Medicine truly establishes itself as the pioneer in this field, there is almost no doubt it will return 10X gains to investors who are on board now.
Penny Stocks: Conformis (CFMS)
Conformis is a company that develops, manufactures, and sells replacement joints. Specifically, Conformis makes replacement knee and hip joints. Therefore, one catalyst for Conformis is the aging population.
However, the financial news for Conformis is somewhat mixed. Q1 total and product revenues both decreased by 16% in Q1 on a year-over-year basis. However, Hip System revenue increased by 49% in the same period. Gross margins increased slightly, to 45%, as well.
The company also raised $85 million via a common stock offering giving it funds to pursue further growth and development.
The investment thesis for Conformis is relatively straightforward. It’s inexpensive at $1.17, the company serves an aging population with increasing demand for joint replacements, and elective surgeries should be increasing as Covid-19 wanes.
Conformis derives roughly 85% of its business from the U.S. which is quickly emerging from the pandemic. Again, that means elective surgeries will be on the increase.
Just as there is an increasing demand for joint replacements, so too is there a growing demand for diabetes management solutions. That is where Senseonics could indeed make investors strong returns in the coming quarters and years.
Senseonics Holdings has created the first long-term, continuous glucose monitoring system for managing diabetes. The system consists of a sensor (implanted under the skin), a removable transmitter which sends data every 5 minutes, and a mobile app for users to view their data at any time.
Unfortunately, as many readers will be aware, diabetes is on the rise in the U.S. and globally.
Globally, the number of people with diabetes increased from 108 million to 422 million between 1980 and 2014 according to the World Health Organization. And recent estimates by the CDC indicate that 10.5% of the U.S. population currently has diabetes.
Companies which can best help patients manage the disease stand to benefit the most. Senseonics recently released results from the PROMISE study which demonstrated the accuracy of its 180 day continuous glucose monitoring system.
SENS stock currently trades for roughly $3.60 per share and has already multiplied in value in 2021. In early January, shares traded for under $1. It’s clear that there’s lots of room for SENS stock to move upward and now is a smart time to establish a position.
Penny Stocks: Sesen Bio (SESN)
Sesen Bio may soon rise above the $5 penny stock categorization. SESN shares’ price chart indicates a stock that has been rising steadily throughout 2021. Shares began the year at $1.30 and have moved upward to their current price of $4.16 quite predictably. It does look like a stock with less volatility than many other penny stocks which is usually attractive.
The company develops targeted protein therapeutics for use in the fight against cancer. The company’s protein molecule therapeutics selectively and broadly target and kill cancer cells while minimizing toxic effects on healthy cells.
Sesen Bio’s most viable path toward 10X gains comes from its Vicineum treatment which is being evaluated in Phase-3 trials for efficacy against bladder cancer. Further, the company believes that Vicineum may also have efficacy in the treatment of head and neck cancer. Sesen Bio completed a Phase-2 trial in the U.S. for that purpose which showed patients were 71% recurrence-rate free.
Vicineum is also being evaluated in conjunction with treatments from AstraZeneca (NASDAQ:AZN) giving it multiple paths to success moving forward.
Sesen Bio’s most recent investor presentation indicates that Vicineum could see regulatory approval in the U.S. this year and in 2022 in Europe. That same presentation also suggests Vicineum may see peak revenues of as high as $3 billion moving forward.
NexGen Energy (NXE)
NexGen Energy takes this article out of Biotech and healthcare penny stocks, and into the mining sector.
The company is a uranium exploration and development company located in British Columbia. Uranium probably doesn’t immediately bring clean energy to mind, but NexGen Energy is squarely marketing itself toward that future.
Uranium is utilized in fueling nuclear reactors, which have the capability of reducing CO2 emissions on a global scale. The production of nuclear energy fueled by uranium removes over 100 million car equivalents of CO2 yearly. NexGen Energy anticipates it will eliminate 70 million car equivalents of CO2 yearly by producing the uranium which fuels nuclear reactors.
There are broad indications that the U.S. and Europe will both be seeking to expand nuclear energy production, which will increase the demand for uranium. The current uranium supply gap may increase multiple-fold over the coming decades which means exploration and production companies could have a commodity on their hands that could quickly increase in value. There was a uranium bull cycle between 2001 and 2007 which saw prices increase by greater than 2,000%. Uranium looks to be entering another such cycle meaning quick gains may be on the horizon.
Investors are increasingly looking to commodity markets as a bulwark against inflation concerns, and NexGen Energy is sitting on the largest development-stage uranium deposit in the world in the Rook I Project in Saskatchewan, Canada.
Penny Stocks: Elys Game Technology Corp. (ELYS)
Elys Game Technology is a company in the rapidly growing e-sports, online gaming and gambling niches. The company operates retail and i-Gaming betting and casino services in Austria, Italy, Latin America, and North America. It is launching U.S. operations in 2021.
The company has grown fast over the last 12 months. It oversaw $575 million in wagers over that period, and $37 million in revenues, an increase of 44%. In the U.S., 50% of the population is anticipated to have access to sports gambling by 2025. Elys Game technology hopes to take a slice of the $7 billion in expected revenues from that growth.
The company wants to sell its technology suite to gambling companies which will use the technology for the retail betting consumer. It is marketing itself to other B2B casino companies as a plug-and-play platform which can be used to set up gambling operations for customers such as casinos and their retail customers.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.”