Risk is part of investing. Even the most mature, well-established firms and stocks run the risk of declining to zero. However, that risk is even higher with speculative penny stocks. At the same, these less-established firms, with higher risk, can also provide greater returns. Plus, not only can these stocks multiply in value faster than a bigger firm, but investors can also buy a greater number of shares at a lower cost.
Here are some of the top speculative penny stocks you may want to consider heading into Nov.
|CGRN||Capstone Green Energy||$2.08|
Mind Medicine (NASDAQ:MNMD) is involved with psychedelic compounds and neuroscience. It’s developing therapeutics to treat underlying brain issues by leveraging neuroplasticity and psychedelics with drugs such as LSD, psilocybin, and DMT to treat issues including anxiety, depression, and PTSD.
While that is certainly interesting, MindMed remains highly speculative. As of June 30, the company had an accumulated deficit of $173.1 million. MindMed is also pre-revenue and in the process of studying its developmental programs for commercialization. The company spent $9.3 million in R&D in the most recent quarter, up slightly from $8.07 million a year earlier. Investors remain optimistic because MindMed is developing commercial therapeutics that could be used in opioid withdrawal, as one example. Revenues could be massive if commercial success occurs given the extent of opioid addiction.
Seelos Therapeutics (SEEL)
Seelos Therapeutics (NASDAQ:SEEL) is another one of the top speculative penny stocks developing novel therapeutics like MindMed. Seelos Therapeutics is focused on central nervous system disorders including ALS (Lou Gehrig’s disease) and Parkinson’s disease, suicide, anxiety, and PTSD along with rare pediatric diseases.
Investors should understand that Seelos Therapeutics has already made significant progress in the development of its pipeline of drugs. Four of its six drugs in the clinical pipeline are in phase 2 or higher. The risk of failure remains high, nonetheless. More than 30% of Phase 2 drugs fail to progress to Phase 3. Of those that progress to Phase 3, more than 58% fail to progress(2). That risk could translate to significant rewards for investors in SEEL stock, as evidenced by a stock price target of $6.25 from a current price of 88 cents.
Oblong (NASDAQ:OBLG) trades for about 33 cents and has a target price of $1. Its co-founder, John Underkoffler, is an MIT researcher who was tapped to envision AI in films including The Hulk, Minority Report, and Iron Man. And its main product, Mezzanine, seems like it has value in our increasingly digital, content-driven world. Mezzanine works by splitting content across monitors and screens and comes in three varieties ranging from 2-screen to 6-screen configurations. What’s interesting about Oblong is that while it remains speculative, it also makes revenue.
In the most recent quarter, Oblong recorded $1.33 million in sales with a gross profit of $407k. Revenues declined from the $2.05 million the company reported a year before and Oblong lost more than $9 million in the quarter. However, the company has a visualization product that can grow if marketed correctly. If that occurs, share prices can multiply quickly.
Jupiter Wellness (JUPW)
Jupiter Wellness (NASDAQ:JUPW) stock has roughly 300% upside based on its target price. The Jupiter, Florida firm develops over-the-counter drugs and maintains a portfolio of intellectual property. Its OTC drugs address issues ranging from hair loss to skin issues, to sexual health.
One example of its business is a recent announcement that the company was granted a patent application for “Minoxidil Adjuvant Therapies” after acquiring Applied Biology assets. That patent is for compositions and methods that upregulate, or increase, the efficacy of minoxidil hair loss treatments.
The reason to consider Jupiter Wellness this November is that the firm is improving currently. The company reported its strongest quarter of revenues in August, surpassing $3 million for the first time ever. Its portfolio of topical treatments that address many health concerns includes both developmental and commercially available products. That means Jupiter Wellness can be reasonably expected to see rising revenues moving forward.
NanoViricides (NYSEAMERICAN:NNVC) develops nanomedicines that fight viruses. Nanomedicine includes the application of nanotechnology to medicine. While it is a deeply complex field, it essentially results in more targeted treatments for disease. It’s another one of the top speculative penny stocks to consider.
In the case of NanoViricides, the focus is on the development of oral syrup and gummies that treat mild-to-moderate Covid 19 disease. Those therapeutics are in the Investigational New Drug (IND) application stage of clinical development. In other words, very early in the path toward commercialization. Fundamentally, NanoViricides remains nearly pre-revenue. The only money it received in the first half of this year was nearly $12k in interest income. It recorded a $5.78 million R&D expense leading to a net loss of just above $8 million. That loss was very much in line with company results for each of its first halves dating back to 2018.
The company maintains enough cash to remain solvent for at least another year and a half. If it can progress toward commercializing covid gummies and syrup it could easily multiply in value.
Smart Sand (SND)
Smart Sand (NASDAQ:SND) supplies fracking and industrial sand to a variety of customers. Its stock is worth considering because its business is well-established and strong demand should continue. The company reported strong results in early August, noting that it expects record volumes throughout 2022 and strong continued results. Smart Sand recorded $68.7 million in sales in Q2 and sold $67.11 million of sand. On a sequential basis, those $68.7 million of revenues represented a strong improvement over the $41.6 million of revenues in Q1. They were also a big improvement over the $29.6 million in revenue Smart Sand reported in the second quarter of 2021. Smart Sand reported an EBITDA of $9.2 million in the quarter and is near a breakeven point, having lost $0.1 million overall. In short, for investors that believe fracking and U.S. energy production will surge, Smart Sand is an inexpensive chance at rapid gains.
Capstone Green Energy (CGRN)
Capstone Green Energy (NASDAQ:CGRN) sells microturbines and rents energy storage solutions. It is a relatively steady firm that saw $18.7 million in revenues in the most recent quarter, up from $15.8 million in the quarter prior. A year earlier, Capstone Green Energy reported $16.1 million in revenues. The $18.7 the firm recorded in sales led to a net loss of $2.1 million. That represented a YoY improvement from the $2.2 million net loss in the first quarter of 2021.
The company has shipped over 10,000 of its microturbine systems to date across 83 countries. So, its business is about selling or renting those microturbines under its Energy as a Service (EAAS) format. The company estimates that it is responsible for over $911 million in energy savings and 1.5 million tons of carbon reduction.
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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.