- Penny stocks can multiply in value quickly, these picks have 10x potential this year.
- Regulus Therapeutics (RGLS): Represents traditional pharma potential and proven returns for traders.
- Imperial Petroleum (IMPP): Traders have shown their appreciation for Imperial Petroleum which has already gone 10X this year.
- Kintara Therapeutics (KTRA): A pharma firm that’s on the edge but analysts believe it has 20X potential built in.
- ObsEva (OBSV): Female reproductive health biotech with a significant catalyst in September.
- Mullen Automotive (MULN): Lots of upside despite a swirl of negativity.
- Fiore Cannabis (FIORF): Canadian medical and recreational cannabis firm with 10X potential baked into prices.
- Foresight Autonomous Holdings (FRSX): Israeli vision firm focused on vehicular accident prevention.
It’s no secret that the stock market has faced severe turbulence in 2022 that will likely continue. That implies that an appetite for risk is necessary in the current investing environment.
By extension, that means investing in penny stocks may very well be a good idea right now: investment is notably risky and requires significant risk tolerance.
But with significant risk tolerance comes significant potential for impressive returns. And make no mistake about it, 10x potential this year is indeed impressive returns. Please also note that there is also a significant risk of losing money here. However, if multiple factors coalesce these stocks you have the potential to multiply several times leading to quick gains.
Therefore, invest wisely in these penny stocks, and be sure to invest no more than you’re willing to lose.
|RGLS||Regulus Therapeutics Inc.||$0.189|
|IMPP||Imperial Petroleum Inc.||$0.765|
|KTRA||Kintara Therapeutics, Inc.||$0.1626|
|MULN||Mullen Automotive, Inc.||$1.17|
|FIORF||Fiore Cannabis Ltd.||$0.024|
|FRSX||Foresight Autonomous Holdings Ltd.||$0.6037|
Penny Stocks: Regulus Therapeutics (RGLS)
Before diving too deeply into Regulus Therapeutics’ (NASDAQ:RGLS) business model and reasons that you should buy let’s simply look at some of the numbers that indicate that it does indeed have 10x potential.
Regulus Therapeutics carries a consensus average target stock price of $1.50 and currently trades at less than 19 cents. So, based on that simple metric it currently has nearly 8x potential. Further, the stock price approached $2 in early March of 2021. Therefore it can be said that RGLS stock has what can roughly be considered 10x potential.
From a fundamental perspective, Regulus Therapeutics is a fairly traditional pharmaceutical company. Q1 results show that the company maintains $53.9 million in cash and cash equivalents and reported a net loss of $6.719 million in the quarter. That figure was very similar to the loss the company reported a year earlier. In short, the company has plenty of money to pursue the development of its pharmaceutical treatments.
The idea that RGLS stock could multiply 10 times in 2022 is predicated upon one simple factor: The FDA’s acceptance of the company’s investigational new drug application for RGLS8429. That drug is on schedule to begin a Phase 1 study for autosomal polycystic kidney disease in Q2.
The company also has an ongoing program in which its drug, Lademirsen, is being investigated For treatment of Alport syndrome in collaboration with Sanofi (NASDAQ:SNY).
Positive news from either or both of those programs could easily gray stock prices to levels at which they existed a year earlier. That implies the massive returns investors are seeking.
Imperial Petroleum (IMPP)
Imperial Petroleum (NASDAQ:IMPP) has already proven that it has 10x potential within the last few months. During the period between Feb. 7 and Feb. 22 IMPP stock traded below 70 cents. Then, a few weeks later on March 7 it spiked as high as $7.50. It currently trades near 76 cents.
So the stock clearly has the ability to provide 10x gains very quickly. However, the reasons that retail traders caused it to spike so heavily remain unclear. The company’s business model revolves around tanker transportation of petroleum products. so, we can logically guess that retail enthusiasm, a cheap price, and the Russian invasion of Ukraine colluded, causing a massive spike in price.
While predicting the confluence of those factors is nearly impossible it is also clear that IMPP stock could spike again in similar fashion. From a fundamental perspective, the company posted a net loss of $1.5 million in Q4 of 2021. That led to an EPS loss of 34 cents. That said, the potential for another price spike remains.
Kintara Therapeutics (KTRA)
Like previously mentioned stocks on this list, Kintara Therapeutics (NASDAQ:KTRA) stock has 10x potential simply based on its current price and its consensus target price. Its average stock price of $3.67 and current price of 16 cents imply upside of greater than 20x. Further, in June of 2021 it traded well above $2, again reaching that 10x threshold.
Kintara Therapeutics is volatile and has lots of upside end due to its fundamentals. the company reported a net loss of $5.36 million for its most recent quarter on May 13. Given that the company reported cash and cash equivalents of $8.839 million at the same time along with a direct offering that netted the company $7.9 million dollars in early April, we can assume the company has somewhere around $15 million in liquid assets.
That explains why share prices are so low, implying that the company is a going concern within the next few quarters. but that’s also the opportunity here: if Kintara Therapeutics releases good news in the near term there’s every possibility that those 16-cent shares rise to $2 or $3.
If either of its therapeutics, VAL-083 and REM-001, move forward within the pipeline that could easily catalyze such a movement. is it a gamble? Yes. But again it’s one with significant upside. With markets as volatile as they are, it makes sense to dedicate a reasonable portion of capital toward the penny stocks listed above.
Penny Stocks: ObsEva (OBSV)
ObsEva (NASDAQ:OBSV) is a company with a business model focused on producing therapeutics targeted at women’s reproductive health. The pharma firm is jointly headquartered in Geneva, Switzerland and Boston and focuses on novel therapies for women’s reproductive health and pregnancy.
Its shares currently trade near $1.50 and the company carries a target stock price of $11.67, thus it possesses nearly 10x potential. It is also worth noting that it is rated a buy across the board.
Investors looking to catch the stock as it moves upward and approaches that target price this year will have to have to wait until September. That’s when the company has what is called a PDUFA target action date. A PDUFA target action date is simply a date by which the Food & Drug Administration must respond to a new drug application or a biologics license application.
In this case, it’s a new drug application for Lingolix, a drug with efficacy in treating uterine fibroids.
Mullen Automotive (MULN)
I’ll admit it, I’m skeptical of Mullen Automotive (NASDAQ:MULN). I recently postulated that it could become the next Nikola (NASDAQ:NKLA) in a recent article. There are many similarities, even the most ardent supporter of the company and stock must admit that. And I’m not the only skeptic: Most of my colleagues feel the same way about the company.
But even so, the fact remains that MULN stock carries an average target price of $23 and trades for just $1.17. If the skepticism of my colleagues and I turns out to be unfounded, 10x returns are entirely possible.
The firm’s recent earnings results provide some room for optimism: The firm is flush with cash after raising $65.2 million primarily through an issuance of preferred stock. The company is also developing a high-performance EV crossover with impressive stats. A lot of questions remain, but so too does the stock’s inherent upside.
Fiore Cannabis (FIORF)
Fiore Cannabis (OTCMKTS:FIORF) relies on the same calculus as many of the other stocks on this list: It carries a target price above 20 cents and currently trades near 2 cents. And there’s a fairly easy way the company could quickly move toward that price level.
In late February the company issued a notification regarding the expected release date for its Q4 and full-year 2021 results. The announcement stated that the company would release a report before April 30.
However, that has yet to occur.
So let’s simply assume that the company soon releases those results and the company provides an earnings surprise. The stock price could jump drastically. The company gave guidance that “Gross profit is anticipated to be approximately CA$711,000, a 2,440% increase compared with CA$28,000 in 2020.”
If that turns out to be true it absolutely is in the realm of possibility that FIORF stock goes to 20 cents or more.
Penny Stocks: Foresight Autonomous Holdings (FRSX)
In order for Foresight Autonomous Holdings (NASDAQ:FRSX) stock to multiply several-fold this year the market will have to undergo a reversion to a period in which EVs are again hot. If that happens the market could cause share prices to return to former highs of mid-2021.
At that time the firm’s stock was trading near $5. It now trades for around 60 cents. In other words, that 10x potential is very plausible.
For now, investors are likely to stay away because the firm has posted successive losses in 2020 and 2021 in the range of $15 million with very little revenue to show. That makes the likelihood of it multiplying a little less realistic, but nonetheless, possible.
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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.