Penny stocks are stocks that are valued below $5 per share, and some investors love to take a chance on low buy-ins with the possibility of big returns.
Of course, it’s very difficult to predict which way these shares are going to go. Sudden changes happen all the time with penny stocks, but if you’re an investor with a good appetite for risk, then they could be just the play for you.
If you are a lover of penny stocks, then here are two on the radar worth a look.
Callon Petroleum Co. (NYSE:CPE) is an oil and gas provider that has actually only slipped into penny stock territory in the last few months. While its stock has been in decline for most of the year, this has been as a result of investor opposition to the company’s takeover of Carrizo Oil & Gas Inc (NASDAQ:CRZO). Callon Petroleum is pushing ahead with the deal, which does have some benefits, such as bringing Carizzo’s position in the South Texas Eagle Ford Shale under Callon’s portfolio.
While the stock has been distracted by the infighting of the company’s shareholders, Callon has been posting some pretty impressive results that may have gone under the radar. In Q2, the company reported a 40% annual increase in production, with the US expecting 20,000 new wells in the shale sector. Even better, Callon Petroleum reported a $25 million decrease in capital spending. With production going up and spending going down, it’s hard to see CPE maintaining its penny stock label for too much longer. CPE stock is currently valued at $4.40.
Liberty Defense Holdings
Liberty Defense Holdings (TSXV:SCAN) (OTCQB:LDDFF) is a technology company that has designed a revolutionary new real-time detection system aimed at reducing shootings and other related attacks. The company’s Hexwave 3D scanning technology can quickly scan through bags and other hidden areas to identify security threats, as well the capability for AI deep learning to allow for more advanced threat detection capabilities.
While Liberty Defense is still in the early stages of rolling out Hexwave, it has been successfully tested at high traffic locations such as Bayern Munich’s Allianz Arena and has been taken up by the Maryland Stadium Authorities for use at Camden Yards. SCAN stock is currently valued at just $0.42, but it’s really easy to see how the potential of this technology could lead to a huge surge in this penny stock when the technology eventually gets widespread rollout.
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