Penny stocks are those with a share value of under $5, and they can often be risky bets, but they can also offer huge rewards if you find the right one.
They’re usually made up of fallen angels of growth stocks that haven’t hit their full potential. For example, during the Global Financial Crisis a decade ago, Dollar Thrifty Automotive hit a low of $0.60 before rebounding and selling to Hertz (NYSE:HTZ) for $87.50 in 2013. So, it’s clear that the risk involved in penny stocks can be very worthwhile if it pays off. Let’s take a look at some you might want to keep your eye on this week.
Plug Power (NASDAQ:PLUG) is a US manufacturer of Hydrogen fuel cells to replace conventional batteries in electric-powered vehicles, and it’s been in penny stock territory for the better part of five years, which is interesting given the increasing shift towards electric vehicles. What makes this such an attractive investment is the recent deals the company has inked with mega-cap companies like Amazon (NASDAQ:AMZN) and FedEx (NYSE:FDX).
News of the Amazon deal, which will see Plug’s technology used in machinery at the online retailer’s fulfillment centers, more than doubled PLUG stock in under a month, which is a very promising reward for investors. Currently valued at $2.19, there’s still plenty of room for this penny stock to kick on from here as more companies take notice of Amazon’s interest in the company.
Biocept Inc. (NASDAQ:BIOC) is a cancer technology firm that provides liquid biopsy testing. Currently valued at $0.90, BIOC has had a rough time as of late, having lost over 75% of its share value in the last 12 months. However, there is some promise for this penny stock, as the company recently received three new patents in North America and Europe, as well as inking a new laboratory services agreement.
The interesting thing about this penny stock is that its share value is about 10% of its next closest competitor in the liquid biopsy technology sector, which has an expected market valuation of 12 million USD by 2025. So, with a little patience, BIOC could be one serious bargain right now.
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