By now, you’re well aware of the dangers of trading penny stocks with upside. But as a reminder, not only will you find a disclaimer at the tail-end of this article about penny stock dangers, but here’s what the U.S. SEC says:
“Penny stocks may trade infrequently — which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock[s] should be prepared for the possibility that they may lose their whole investment.”
Sure, penny stocks are attractive at such low prices. But they’re also dangerous.
If you understand the risks and want to invest in them anyway, investigate the stocks where insiders are putting their money where their mouth is. After all, if they’re putting up their own money, they must have a good deal of confidence in their stock.
Here are three potential penny stock moonshots you may want to consider.
Aurora Innovation (AUR)
The last time I highlighted an opportunity in Aurora Innovation (NASDAQ:AUR), Uber Technologies (NYSE:UBER) had just bought about $75 million worth of the AUR stock. Plus, Volvo Autonomous Solutions just unveiled AB Volvo’s (OTCMKTS:VLVLY) first-ever production-ready autonomous truck in Las Vegas — using Aurora Innovation technology.
That was on June 5, as shares of AUR traded at around $2.15. Today, it’s up to $2.81, where it’s still a long-term buying opportunity.
Helping, Aurora’s involvement with autonomous trucking gives it exposure to a potential $76 billion market opportunity by 2032 from $35.51 billion.
Also, while the company didn’t report any revenue for its recent quarter, its earnings per share loss of 11 cents was still better than estimates for a loss of 14 cents. Even better, George Soros’ fund recently picked up about 4.5 million shares of AUR in late March. Jim Simons’ Renaissance Technologies also picked up 477,900 shares in late March.
Globalstar (GSAT)
We can also look at oversold shares of telecommunications infrastructure company, Globalstar (NYSEAMERICAN:GSAT), which currently trades at $1.07. Fueling interest in the stock, director James Monroe III bought 4.51 million shares of GSAT for about $4.8 million on July 1.
Helping, Apple (NASDAQ:AAPL) recently said it would expand the capabilities of satellite messaging on the iPhone. “The new iOS 18 update will broaden the availability beyond emergency messaging, and Messages via satellite will be an option when cellular and Wi-Fi connections are not available,” according to SatelliteToday.com.
That’s great news for GSAT considering it partnered with Apple for the satellite connectivity components. Even better, funds such as Jim Simons’ Renaissance Technologies recently bought 156,430 shares of GSAT. Israel Englander’s Millennium Management also bought another 38,230 shares.
With earnings, while its first quarter EPS loss of a penny was just in line with estimates, its revenue of $56.48 million did beat by $1.74 million.
Atossa Genetics (ATOS)
The first time I mentioned Atossa Genetics (NASDAQ:ATOS), it traded at 75 cents on April 4, 2023. At the moment, it’s up to $1.20, and is still an attractive buy as it pivots from support.
The company recently posted encouraging data from a Phase 2 study of its drug (Z)-endoxifen as a neoadjuvant treatment for breast cancer.
As noted by the company, the 40mg EVANGELINE data is “extremely encouraging as it shows that (Z)-endoxifen can not only stop ER+ breast cancer from growing, but it can also shrink or eliminate the tumor, as measured by MRI imaging,” said Dr. Steven Quay, Atossa’s President and Chief Executive Officer.
Even better, funds have been aggressively buying ATOS. At the end of March, for example, Israel Englander’s Millennium Management increased its stake in ATOS by 2,040%. Ken Griffin’s Citadel Advisors increased its stake by nearly 1,280%. Jim Simons’ Renaissance Technologies increased its stake by about 8% with the addition of 102,100 shares.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
