Top 3 High Profit Penny Stocks to Watch this 2016
Looking for cheap stocks with high growth potential for 2016? Go for penny stocks! Although penny stocks are usually traded over the counter (OTC), you can find plenty of them in main trading powerhouses like NASDAQ and the New York Stock Exchange (NYSE). Penny stocks offer explosive growths, but mind you, they also incur huge amounts of risks.
One of the biggest problems in penny stock investing is access to reliable information. Penny stocks are usually offered by virtually unknown companies so market analysts often turn a blind eye on them. With good research however, investors can find companies with huge potential and invest on them while their stock is still trading at a cheap, bargain price. Here are 3 of them to get you started.
Geron Corporation (NASDAQ: GERN) is a biopharmaceutical company. They develop products aimed at treating cancer. Imetelstat, the firm’s leading product, was granted an orphan drug status (which basically states that the product will have little to zero competition if sold in the market) by the US Food and Drug Administration in June 2015. Moreover, two papers published in the New England Journal of Medicine gave positive reviews of the product, strengthening its position as a cutting edge tech in the battle against cancer.
Geron has a market capitalization of $530 million with no long-term debt. Today, the company’s stock has been trading at around $3.50 per share, way below it’s 52-week high of $5.30 per share.
Although gold prices have been plummeting for the past couple of years, late 2015 showed a great potential for a comeback. If gold follows through this 2016, one inexpensive gold-mining stock to keep an eye on is B2Gold Corporation. Based in Canada, this mining firm has 4 operational mines, one of which is found in the Philippines and 2 in Nicaragua, as of January 2016. B2Gold also owns several explorational properties in Colombia, Nicaragua and Mali.
As of January 2016, the company’s stock is trading at 89 cents per share with a very attractive price to book ratio of only 0.6. In terms of production, the last 2 years brought B2Gold to new heights. And I can see it happening again this 2016.
- Cincinnati Bell
Cincinnati Bell Inc. (NYSE: CBB) is a telecommunications company dominating the greater Cincinnati area. Aside from providing telephone services, Cincinnati Bell also offer video services and high-speed internet to its clientele. Last 2015, the firm’s Fioptics segment increased its revenues by over 30%.
As of January 2016, Cincinnati Bell’s stock is trading at $3.30 per share. Aside from its high return to assets ratio (ROA) of 17% and net profit margin of 22%, the firms 3-year average net income growth of 50% is exceptional!