Penny stocks offer investors the potential for high rewards. Often when shares price low, they are risky and subject to sudden and often unexplainable movement. But this type of unpredictability has its positives; it can expose undervalued shares and can cause sudden price surges.
Often for those who enjoy speculative investing, penny stocks are a perfect choice. Investors don’t have to spend too much and therefore don’t have to lose too much either. We’re checking out some sharpshooters on the market today.
Penny Stocks Rising
Fortress Biotech (NASDAQ:FBIO) shares are on the move, up 11% at the time of writing. For $1.46 USD, investors can get a piece of this biopharmaceutical company.
Though on a climb at present, these shares are still down 43% since hitting highs in February. The company’s Q1 report in May helped to revive the penny stock as FBIO showed a net income of $1.4 million. Investors welcomed the news, especially considering Fortress reported a loss in the same period a year earlier.
All told, the company posted revenue of $6.5 million in the period. The results caused shares to surge 31% and set shares on the right path. It also earned Fortress Biotech a Buy ranking from Zacks. There’s likely further growth ahead, so watch this space.
Fortree acquires, develops, and commercializes innovative pharmaceutical and biotechnology products.
Penny Stocks to Watch
Only last week, Stars Group (TSX:TSGI) (NASDAQ:TSG) saw its share price drop 18% after the online gambling company lowered its profit and revenue guidance for 2019. Stars warned that Fiscal 2019 revenues could come around $200 million below previous estimates and set a new range of $2.5–$2.75 billion.
The news caused shares to drop significantly, but today they are regaining something, selling for $18.16 CAD at present and up 6% on the day (so, while not technically a penny stock itself, TSG has witnessed penny stock-like volatility recently).
The market for online gambling remains continually strong and is one of the few sectors not impacted by the American/China trade war. As such, there is likely further growth ahead.
Do you have any penny stocks on your radar we should know about? What do you think of Stars Group and Fortress Biotech?
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