The biggest deterrent preventing would-be investors from getting in on the game is, of course, risk. There is absolutely no stock out there that is completely risk-free, and that’s just the nature of investing. Penny stocks, however, represent an opportunity for potential speculators to dip their toe into the market without fear of possibly losing everything due to their low share value. Penny stocks also represent the best chance to make huge gains off a small input—if you’re lucky, that is.
Today, we’re taking a closer look at Waitr Holdings and MoneyGram International.
Waitr Holdings
Waitr Holdings Inc (NASDAQ:WTRH) is a leader in on-demand food ordering and delivery in underserved US markets, such as its home state of Louisiana. Last year, Waitr acquired Bite Squad in a deal worth approximately $321.3 million USD, which has allowed the company access to over 86 markets in more than 500 cities across 22 states. The reasons this penny stock caught our eye is due to its high growth business model, 85% year-over-year gross food sales growth, and 98% year-over-year revenue growth in Q3 2018.
Waitr’s Q2 results also make for good reading for penny stock investors, with revenue increasing 218% to $51.3 million USD compared to $16.2 million USD from the previous year. The company also announced a “Path to Profitability” initiative with the intent of strengthening the business through realizing synergies from the Bite Squad deal, which is expected to bear fruit in the next years. Waitr shares are currently trading at $0.61.
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MoneyGram International
MoneyGram International Inc (NASDAQ:MGI) is a prominent money transfer company based out of Dallas. MGI will report its quarterly earnings on November 1, where analysts expect to see full-year sales of $1.33 billion USD, a pretty substantial figure for a penny stock. Interestingly, MoneyGram is also dabbling in crypto following a recently announced partnership with Ripple to utilize XRP in processing international payments.
As part of that deal, Ripple has invested $50 million USD in the remittance firm, which has already seen a huge surge in the use of XRP in Mexico, a trend that is expected to continue next year. MGI shares are currently trading at $4.09 and could see some interesting movement when those results are released next week.
Featured Image: DepositPhotos © lucadp
