In order to find penny stocks that have a strong likelihood of booking profits within the next six weeks, investors are going to have to accept an extra measure of risk. That’s because there’s inherent risk in setting a time limit on an investment.
Nevertheless, that’s what we’re doing here. The penny stocks listed below are in position to move upward quickly. Quickly as a sidenote, don’t put more money into any investment beyond that which you are willing to potentially lose. That’s doubly true of higher risk investments including penny stocks.
Readers will be aware that penny stocks move quickly in general. There is inherent potential to quickly book profits in this sector. That is balanced by a propensity to drop very quickly as well.
This article will attempt to identify stocks that have momentum and current catalysts. In theory this should give the shares an extra push in the right direction and a higher likelihood to book profits rather than move downward.
When identifying fast moving stocks, it’s often wise to focus on a sector with the right mix of positive momentum. This list will be sector agnostic and touch on multiple industries and trends. Let’s get into it then.
- Marrone Bio Innovations (NASDAQ:MBII)
- American Resources Corp. (NASDAQ:AREC)
- Comstock Mining (NYSEAMERICAN:LODE)
- ObsEva (NASDAQ:OBSV)
- Imara Inc. (NASDAQ:IMRA)
- Synchronoss Technologies (NASDAQ:SNCR)
- Lithium & Boron Technology Inc. (OTCMKTS:LBTI)
Penny Stocks to Book Profits: Marrone Bio Innovations (MBII)
Marrone Bio Innovations is a small, growing company that provides biologically based solutions for crops, turf protection, plants and waterway systems.
The catalyst that could propel it upward in the coming weeks is that it is coming off of a strong earnings report for the third quarter. That earnings report was released on Nov. 10 and provides lots of reason for immediate positivity.
Marrone Bio Innovations reported a 12% increase in revenues, which hit a very respectable $9.9 million in Q3. Gross profits increased from $5 million to $6 million on a Q3 year-over-year basis. The company has profitable products that are clearly becoming more profitable over time.
The knock on the company is that although it has grown both its revenues and profits, it still reported a net loss of $4.9 million in the quarter. There is room for optimism there, though. Marrone Bio Innovations did decrease its loss this quarter by 18% YoY.
The reason to believe that MBII stock could move upward in the coming weeks is the strong quarterly results. The company’s decision to increase its focus on row crops globally led to the spike in revenues and if investors take a look at the company they should be impressed. Analysts favor MBII with four buys and one hold. They believe it should trade near $2.50. It currently trades at 85 cents. If the news of Q3 results travels, then it should move toward that higher price soon.
American Resources Corp. (AREC)
American Resources Corporation is a coal company. That might not seem to be a very strong catalyst at present given the focus on clean energy and broader environmental safety. However, the coal that the firm produces is of the metallurgical type. This metallurgical coal is used by the steel industry.
The obvious catalyst then, is the $1 trillion infrastructure plan being forwarded by President Joe Biden. It contains provisional spending of money for roads, bridges, ports, rail transit and the power grid to name a few.
All of that infrastructure requires steel, and steel requires metallurgical coal. Metallurgical coal is used to produce coke. Coke is necessary fuel for blast furnaces used to forge steel.
So, it isn’t difficult to imagine that investors might seize upon AREC stock as an inexpensive way to invest in Biden’s infrastructure plan. Shares have approximately 50% upside based on their current price of $2.13 and a target price of $4. Infrastructure spending is coming, that’s undeniable. American Resources Corporation is almost certain to benefit from that increase in spending. That is a potent recipe for quick returns.
Penny Stocks to Book Profits: Comstock Mining (LODE)
Comstock Mining is a bit of a controversial pick given recent results. The firm reported a $7.6 million loss in Q3. That looks bad given that the firm reported a net income of $18.3 million in the same period a year earlier.
However, if we dig a little deeper, the gains made in Q3 20 were primarily the result of the sale of the company’s Lucerne mine rights to Tonogold.
One reason LODE stock looks attractive right now is the spread between current price and target price. It trades at $2.06 and carries a target price of $7.25. I’ll caveat that and give it context by noting that that target price was given by only two analysts with LODE stock coverage. Nevertheless, that spread is compelling.
Comstock Mining develops clean technology for use in clean energy production and decarbonization. Those are hot button topics at present, which act as further price catalysts.
Comstock Mining has undertaken an aggressive acquisition spree, which has the potential to quickly increase its price. The firm acquired a wood biofuel production facility, majority rights to a lithium-ion battery recycling corporation and several other companies during the quarter.
ObsEva is a company focused on women’s reproductive health and pregnancy. It researches and develops therapeutics for those purposes.
Like the great majority of biotechs, the key to profiting from ObsEva will be timing. Regulatory approval for its therapeutics acts as the gatekeeper on prices. That’s no secret to any investor remotely familiar with the biotech sector. It is feast or famine almost by definition.
The positive news is that ObsEva is on the cusp of a feast. The firm’s Linzagolix uterine fibroid therapeutic is expected to receive a Committee for Medicinal Products Human Use (CHMP) marketing approval in Q4. The company also expects to receive Phase 3 results for the use of Linzagolix against endometriosis in Q4 as well.
That clearly indicates that OBSV stock is in position to jump before the end of the year. And the two analysts with coverage of OBSV stock have given it a target price indicative of big upside.
The lower of the two pegs ObsEva with an $8 price target, and the higher target price sits at $17. That works out to be 246% and 636% upside, respectively, based on current $2.31 prices.
Right now ObsEva remains a typical biotech that recorded $0.8 million in net income for Q3. That has a reasonable chance of changing very quickly, resulting in it having the potential to book impressive profits this year.
Penny Stocks to Book Profits: Imara Inc. (IMRA)
Imara is another biotech company with catalysts incoming in the fourth quarter. The company’s therapeutics are targeted toward what is referred to as hemoglobinopathies. Hemoglobinopathies are disorders which affect the production of red blood cells and include diseases such as sickle cell disorder and beta-thalassemia.
The most pertinent update for investors is the expectation of interim analysis data for Phase 2b studies on tovinontrine in Q4. Tovinontrine is being studied for its therapeutic effects against sickle cell disease and beta-thalassemia.
The positive news around IMRA stock is that it trades for $3.45 and carries an average target price of $24. But realistically, that is a long-term target dependent upon best case scenarios.
That’s likely a price target IMRA stock could achieve after it passes Phase 4 FDA clinical trials. Remember, Phase 2b study results are expected in Q4. Should those results be positive, IMRA share prices will go up.
That’s the gamble with Imara and every other biotech. The company is what you might otherwise expect of a firm in the sector. It anticipates R&D expenses between $40-$45 million this year.
But it’s fair to expect good news and a price bump in Q4 on those results in any case.
Synchronoss Technologies (SNCR)
Synchronoss Technologies is a relatively unknown cloud company which provides enterprise solutions. That said, the company has a substantial revenue base and is pivoting toward a stronger cloud presence. The company posted $69.8 million in Q3 revenue, up a modest 1.6% from the same period a year prior.
That won’t likely entice many investors to consider the $2.94 stock. However, Synchronoss Technologies is worth considering given that it is rapidly improving its cloud position. Q3 cloud subscriber growth reached 16% in Q3, up from a 12% increase a year earlier.
The company reported impressive EBITDA figures which increased to $31.1 million from $21.44 million on a YoY basis.
Those strong Nov. 8 results led the firm to raise its full year EBITDA guidance from $32-37 million to $39-43 million. Analyst consensus is that SNCR stock should trade at double its current price and if news catches on regarding Q3 results, it should provide profits before year’s end.
Penny Stocks to Book Profits: Lithium & Boron Technology Inc. (LBTI)
I’d suggest exercising cautious optimism in relation to Lithium & Boron Technology stock. On the one hand there’s reason to be quite excited about the potential for LBTI stock to rocket upward.
On Nov. 11 the Chinese firm announced it had made a breakthrough in the extraction of lithium carbonate from mineral rich brine water. Lithium carbonate has application in the production of lithium batteries for which there is currently high demand.
CEO Jimin Zhang noted:
“We are planning to build production capacity to an annual output of 20,000 tonnes of lithium carbonate over the next two years. According to Trading Economics, the price of Lithium Carbonate in China increased from 33,843 yuan per tonne to 194,000 yuan, approximately 570% increase because of the growing market demand and tight supply. We expect the trend to continue over the next five years.”
LBTI stock trades at $1.27 but the last analyst covering it gave it a target price of $30. That’s a tremendous amount of upside, but there is reason to be cautious as well. LBTI stock trades over the counter as opposed to on a larger exchange like the NYSE or Nasdaq. It is inherently high risk. But, given the recency of the news and the market, LBTI may be a great way to book fast profits.
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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.