Three Penny Stocks to Watch in the Second Half
Penny Stocks is a perfect way of starting trade for new investors who are seeking to expand their hard earned money while staying on the safer side amid their low price per share. Penny stocks usually trade under $1 per share but some analysts consider all those stocks as penny stocks that are trading under $5 per share. Unlike large-caps that have significantly higher per share prices, penny stocks do not require large capital.
Nevertheless, investing in penny stocks and making profits from your trades require some investing experience and keen eye on the global business activities. Irresponsible risk management could result in big losses in a very shorter period of time. Once you took a position in any company with bleak future fundamentals and low liquidity position, the chance of losing money are greater than generating profits from that trade.
On the other hand, when you used the right strategy and timing of investing in any particular penny stock, the chance for wining are higher. It is also equally important for new investors and beginners to predict the exit point for penny stocks to comfortably capitalize on recent gains. Below, I’ll take a look at few penny stocks that have strong upside potential in the coming days and have had posted significant profits in the last couple of quarters.
Golden Minerals Co. (AUMN) engages in the mining of silver and gold bars, lead, precipitates zinc, and pyrite concentrates. The company’s market capitalization is standing around 74.34 million and its trading volume is around 919,125 shares.
Mining companies are always cyclical in nature and they have offer a lot of room for traders to make profits. Share price movement and financial performance of mining penny stocks are directly correlated with the commodity prices. If investor has some hold on precious metals and commodities, they can easily make profits from its investments in mining stock.
Golden Minerals share price soared nearly 365% since the start of this year, a significant price appreciation for any company and its share holders. This clearly means that if someone had invested in Golden Minerals at the beginning of this year, their initial investment have increased 365%. Falling crude oil prices, volatility in the stock market, stable interest rates and supply and demand dynamics are key drivers for significant price rally. New traders always need to look at these drivers if they are planning to invest in mining related stocks.
Despite the significant share price rally, Golden Minerals share price have further upside potential moving forward. Crude oil prices are unlikely to rebound in the near-term and global economic environment is expected to remain week, which could move investors towards safe heaven assets and mining stocks. Therefore, Keep Golden minerals at your watch list.
Sirius XM Holdings (SIRI) is among those penny stocks that have generated significant revenue and earnings growth in the last couple of years on the back of its innovative strategies. It provides satellite radio broadcasting services including free music, news and comedy, premier sports, entertainment and key events and wide range of other programs.
Five years back, Sirius XM was only trading around 1.50 per share. This penny stock surged nearly 125% in the last five years and nearly going to become a small cap-stock. Some penny stocks with strong business fundamentals have potential to turn their status as a small-cap stock from a penny stock.
The company’s future fundamentals are strong as the company has recently beaten analyst estimated for both earnings and revenue for the second quarter of this year. Its revenues surged nearly 10%, while EBITDA increased almost 13% compared with the same period of last year. With the growth in earnings, its cash generating potential has also been expanding year over year. Therefore, buying and keeping this penny stock on the watch list could result in healthy gains.
Plug Power, Inc. (PLUG) offers alternative energy technology, particularly focusing on the design and development of fuel cell systems for the industrial off-road market. Plug Powers share price declined in the last few months amid slow off-road market. However, this penny stock is presenting a perfect case of buying low and selling high. Its stock price is currently trading around $1.71 per share, significantly lower from 52-week high of 2.52 per share.
The company’s future fundamentals are strong and its share price has significant upside potential. Recently, the company has beaten analysts earnings estimate by 0.02 per share for the second quarter of this year. In addition, the company’s revenue of 37.9 million increased 59% compared with the same period of last year. New investors must add this penny stock on their watch list, as this company has substantial upside potential considering its revenue and earnings growth.
New investors can make big profits by investing in penny stocks by using timely and right strategies. If investors want to make profits from its trades, they need to have a keen eye on the company’s future performance and business fundamentals. Those penny stocks that have strong business models and potential to generate a sustainable growth should be on new investors watch list.