Penny stocks are those stocks that are valued at under $5 per share, and they’re usually a pretty risky play with even less of a guarantee of big returns. However, with just the right mix of insight, timing, and a little luck, the rewards can be eyewatering. There have been some amazing success stories with penny stocks over the years, as well as more than a few spectacular failures; thankfully, we’ve been keeping an eye on the market, so you don’t have to. Today we’re looking at UR-Energy and Castlight Health.
UR-Energy Inc
UR-Energy (TSX:URE) (NYSE:URG) is an exploration stage mining company that primarily focuses on uranium mining and processing. Uranium stocks took a bit of a hammering in 2019, mostly due to the US Government’s decision to not implement a series of quotas that would further incentivize uranium production. The uranium market looked to have bottomed out a few years back, with supply dropping in line with demand, but that is set to change very soon, and penny stocks in this sector could be in for some big gains.
Reactors in Japan are coming back online after years of idleness following on from the Fukushima disaster in 2011, while Russia ramps up the production of uranium energy. There is no doubt that the next decade will see an upswing in demand for uranium because it is an abundant metal, and demand for alternative energy is surging. This penny stock is currently trading for just $0.77.
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Castlight Health Inc
Castlight Health (NYSE:CSLT) is a San Francisco-based firm that makes software for the healthcare industry, such as tools that point users to available healthcare resources with the aim of lowering costs and increasing engagement. The company generates annual recurring revenue of nearly $150 million USD, which has increased tenfold in just the last six years, almost unprecedented growth for a penny stock. The share price has fluctuated, however, with investors expecting more substantial and consistent profits than have been reported.
One issue with this penny stock is its reliance on other major firms. Earlier in the year, Castlight had to undertake a restructuring program after losing the business of Walmart (NYSE:WMT), and also has a strong dependency on health insurer Anthem (NYSE:ANTM), which is under fire from the policies of some presidential hopefuls who want to implement public healthcare in the States.
CSLT stock is currently trading for $1.42 in New York.
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