Penny Stocks to Watch: ROX Stock and DNN Stock

Penny Stocks

Penny stocks offer some of the most volatile plays in investing. Typically priced below $5 a share, these stocks are prone to sudden sell-offs and sudden gains—more often than not, for no reason. As such, investors either love them or loathe them. With predictions hard to make, investing here is not for the faint of heart. But if you love a speculative play, then here are two on our radar.

Penny Stocks to Watch: Castle Brands

Shares of Castle Brands (NYSE:ROX) are currently down 33% from this year’s high. That fact doesn’t exactly make ROX stock very alluring. But for $0.60 at present, the company has a steadily growing brand in its The Jefferson bourbon range, which grew revenue by 20% in fiscal 2018. Castle’s whiskey portfolio could be its saving grace.

The company’s revenue continues to grow, and margins are increasing. However, thus far, profits have been slim. But if investors sit tight, then a lucrative sale to a larger spirit brand such as Diageo (NYSE:DEO) or Constellation Brands (NYSE:STZ) could be worth the wait.

For $0.60 a share, there is a big potential here.

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Penny Stocks to Watch: Denison Mines

For $0.46 USD at present, Denison Mines (NYSE:DNN) is a very cheap stock. Year-to-date, the stock traditionally traded sideways; however, a recent 13% dip culled that trend for the worse. Now, Denison is trading at the lower end of its value margin, and investors might spy a chance for a quick turn-around spike.

As a small, developing miner, DNN stock offers a chance for big and sudden gains, but investors will have to be vigilant. The company is targeting uranium resources, and the price of uranium is beginning to pick up. Further, with the closure of a mine by giant Cameco Corp (NYSE:CCJ), uranium is now harder to acquire. As such, the competition has blown wide-open, and DNN could now be in line to supply the lion’s share.

With this potential, in particular, this stock could soar.

As with all penny stocks, there is great risk, and investors must tread carefully. But keep a close watch, and there is definitely the potential to grab a quick and handsome payout.

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