The market rally is causing investors to become more and more aggressive recently, and I believe this trend could accelerate as the rally continues. Thus, it seems to be a good time to buy some speculative stocks. Sub-$1 penny stocks are as speculative as you can get in the stock market. It’s not enough for the stock to be listed on any major exchange, so we’re almost dealing with pure pink sheets here, except for two stocks.

These companies have very little information about them available online and are rarely covered by analysts. Regardless, if these companies land big contracts or capture a good amount of market share in their sectors, you can easily realize 10,000%-plus gains from them in a short amount of time. The inverse is also true, so you should be very careful about what you’re putting your money into. You’ll only find lottery tickers below $1.

So, let’s explore the seven sub-$1 penny stocks that may be worthy of consideration.

NamSys (NMYSF)

NamSys Inc. (OTCMKTS:NMYSF) provides cloud-based cash management and currency processing software solutions, primarily serving the banking and retail sectors in North America. It has a SaaS business model, which is driving robust recurring revenue growth.

The company reported total revenue of 1.66 million CAD for the quarter, up an impressive 9.3% year-over-year (YOY). Notably, recurring revenue from software subscriptions, hosted services and product support surged 9.2% to 1.64 million CAD. Its flagship Cirreon Smart Safe platform is also very sticky and has little customer churn. Additionally, gross margins expanded by 1.8 percentage points to a healthy 63%.

While the stock has treaded water over the past five years, NamSys’ accelerating financial momentum could be the catalyst to propel shares significantly higher going forward.

MariaDB (MRDB)

MariaDB (NYSE:MRDB) is a cutting-edge cloud database company providing businesses with an open-source relational database solution. MRDB’s flagship product offers cross-cloud flexibility and universal accessibility that appeals to organizations of all sizes. Developers praise its intuitive design, adaptability and game-changing impact within the open-source domain. In fact, it’s been downloaded over one billion times to date and has dethroned MySQL as the go-to in Linux distributions.

Despite a rocky five-year stock performance, MariaDB seems to be orchestrating an impressive turnaround in recent months. Shares have skyrocketed more than 100% year-to-date (YTD). So, if the company can sustain its current growth trajectory, this rally could still have plenty of runway ahead.

Admittedly, gaping losses have been MariaDB’s Achilles heel in years past. However, management deserves kudos for slashing those deficits dramatically over the last three quarters. In Q1 of 2024, net losses narrowed to $3.5 million from $17.6 million two quarters ago. Similarly, the operating cash burn was more than halved to $7.2 million.

Now, MariaDB is by no means out of the woods just yet. Liquidity concerns can’t be brushed aside. But if the company continues executing on its streamlining initiatives while driving breakneck top-line expansion, MRDB could deliver big upside.

5G Networks (MLBEF)

While the “5G” in its name may confuse some investors, the company actually has no relation to the 5G cellular standard rollout by telcos. Instead, 5G Networks (OTCMKTS:MLBEF) is determined to be the one-stop-shop for Oceania businesses’ entire cloud and connectivity needs. The merger with Webcentral has created Australia’s largest independent provider in this space. It now commands over 330,000 customers.

Revenues were 96.1 million AUD, which was basically flat for all of 2023. However, the company trimmed losses by 23.57%. I believe it has enough cash to handle losses until it turns profitable since the company is already giving cash back to shareholders. Also, 5G Networks has announced the cancellation of 816,123 of its ordinary fully paid shares following an on-market buy-back process concluded on June 28, 2024. It repurchased a total of 3,678,256 ordinary fully paid shares on the previous trading day. This is part of a larger cumulative buy-back of 20,943,629 shares to date, as reported by TipRanks.

I personally think this is a bit premature, given the company hasn’t achieved profitability yet. However, it is still promising.

Zoomd Technologies (ZMDTF)

Zoomd Technologies (OTCMKTS:ZMDTF) is a rising star in the marketing technology arena. Based on their latest earnings report, I believe this sub-$1 penny stock has the potential for explosive growth. The company’s revenue increased by 16% compared to the previous quarter, and profitability is finally within reach after six consecutive quarters of net losses.

Last year, management made tough but necessary strategic decisions to refocus the business. Those moves are clearly paying off. Operating profit surged nearly 950% quarter-over-quarter to $0.6 million. Adjusted EBITDA also skyrocketed by $1 million to reach $1.2 million. ZMDTF achieved this while keeping capital expenditures steady, showing an impressive ability to drive higher returns without overextending.

With a cash balance of $2.3 million and no long-term debt, Zoomd Technologies looks well-positioned to capitalize on the booming digital advertising market. Its unified user acquisition platform should see robust demand as more businesses shift ad dollars online.

OneMeta (ONEI)

OneMeta (OTCMKTS:ONEI) aims to break down global communication barriers with AI-powered software. The company reported a tiny revenue of $5,387 for the first quarter of 2024, a 70% increase compared to the same period last year.

Despite the losses, I believe OneMeta holds good potential. Their flagship product transforms smartphones into personal translators. This technology could revolutionize international communication. In April 2024, they began providing translation services for the Archdiocese of Oklahoma City. Also, they claimed to have reduced translation and transcription speed to under 200 milliseconds.

However, you should keep the risks in mind. The company operates in a competitive space, with tech giants heavily investing in translation technologies.

Nonetheless, OneMeta’s stock has surged 117% over the past year. If the company can effectively scale its services and show a clear roadmap to profitability, I believe OneMeta could become a major player in the global communication space.

Skkynet Cloud Systems (SKKY)

Skkynet Cloud Systems (OTCMKTS:SKKY) provides industrial companies with real-time data and cloud solutions. The market for these services is growing strongly due to the AI and machine learning boom. Startups like Skkynet Cloud Systems are well-positioned to benefit from this trend as more companies look to diversify their cloud operations beyond Big Tech providers.

In Q2 of fiscal year 2024, Skkynet’s revenue increased 28% YOY to $601,806. While still a small company, this growth is encouraging. However, losses did expand.

SKKY ended the quarter with $1.03 million in cash, up from $916,780 in October 2023. Its balance sheet looks clean, with minimal liabilities. Deferred revenue, a key indicator of future growth, stands at $372,451.

While still losing money, I’m optimistic about the company’s prospects in the fast-growing industrial cloud space. If it can continue scaling rapidly and win new enterprise contracts, we could see this sub-$1 stock deliver explosive returns in the coming years.

Global Mofy Metaverse (GMM)

Global Mofy Metaverse Limited (NASDAQ:GMM) is a technology solutions company focused on virtual content for the metaverse. While I see immense potential in this burgeoning industry, the metaverse remains a niche market that may be ahead of its time for mainstream adoption.

However, Global Mofy Metaverse’s recent moves and financial results suggest it could be a pioneer in this space. The company’s $69 million fund launch could lead to aggressive growth.

Plus, I’m optimistic about the partnership between GMM’s subsidiary, Gauss AI, and Heartdub to develop a generative video AI platform, which could lead to something meaningful. Global Mofy Metaverse’s record fiscal 2023 revenue of $26.9 million is pretty solid for a penny stock.

Regardless, the price is below Nasdaq’s $1 minimum, so keep an eye out for a reverse split.

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, Omor Ibne Ehsan did not hold (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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.