- Ten Promising Penny Stocks to Buy
Ten Promising Penny Stocks to Buy
Questor Technology Inc (CVE: QST)
Questor Technology is an environmental clean-technology company that provides incinerators to the Oil & Gas market. Their incinerators help oil and gas companies reduce waste and save money. The company had a couple of bad years due to an industry-wide downturn in the O&G sector. It reached an all-time high of $4.63 in mid-2014 and dropped as low as 0.47 by the end of 2016. They altered their business model and started renting incinerators instead of selling them. Renting is a more suitable option for their customers and allows them to operate efficiently with lower costs in the short term. Questor had an impressive performance in 2017, posting revenues of $19.5 million, a 175% increase on the previous year. Overall the company is in great financial health have no long-term debt. I expect this penny stock to continue it’s growth in 2020.
SharpSpring Inc (NASDAQ: SHSP)
SharpSpring is a SaaS platform that helps companys automate their online marketing. Main competitors include Hubspot, Marketo and Pardot. Their cloud-based software contains an array of powerful features such as; call tracking, blog builder, landing page creator, CRM software and email automation based on customer behavior. Marketing automation is a fast-growing industry and SharpSpring’s competitors all captured impressive growth. SharpSpring is a small player but still posted earnings of $13.4 million at the end of 2017, up $1.9 million YOY. As SharpSpring continues to reinvest in automation marketing technologies, they will gain a stronger foothold within the market and its impressive growth rate is expected to continue.
Groupon (NASDAQ: GRPN)
Groupon is a daily deal website, offering special discounts to consumers in every major city. It’s shocking to believe Groupon was once one of the fastest growing companies ahead of Facebook and Twitter. This eCommerce site is now a penny stock, trading around the $4.40 mark. Back in 2011, the company had big expectations on Wall Street and IPO’d at $20. Everything went downhill after the IPO as it’s business model wasn’t sustainable with new competitors flooding into the marketplace. Fast forward to 2018, Groupon is looking to revamp it’s strategy and turnaround the business. Since the beginning of the year, a number of investment banks have upgraded their stock rating. Groupon is slowly building their 48 million user base operating in a competitive sector with tight margins. GRPN’s share price is down over 14% since January but now could be an ideal time to purchase some shares.
Tuesday Morning (NASDAQ: TUES)
Tuesday Morning is a discount US retailer that peaked at $21.87 in 2015 before experiencing a rapid decline, reaching a low of $1.60. They have started the year brightly, up 64% so far into the first four months of 2018. Tuesday Morning is a classic “cigar butt” investment that deep value investors such as John Templeton love to buy. The company is in the midst of a turnaround, and management will need to prove that they can improve gross margins before investor confidence is regained. Traders will be looking to buy if the stock falls below its 50-day EMA of $3.35.
Zynga (NASDAQ: ZNGA)
Zynga is a social game developer, most well-known for games such as Farmville, Zynga Poker and CityVille. They generate the majority of revenue following a freemium model. Zynga IPO’d at $11 per share in December 2011, peaking at $15.91. Similarly to Facebook, the stock performed terribly in the months after their IPO. Back then the business was highly criticized due to their over-dependence on Facebook as a revenue source. By 2012 the company slumped to a low of $2.09 and its business model was failing. Zynga managed to survive by adapting from web-based gaming to mobile gaming. The turnaround is starting to gather pace, and cost-cutting initiatives are working well. 2017 was a brilliant year for the game developer as they rose 55.6%, generating a net profit of $27 million. They do have a strong balance sheet and will use the extra cash to make strategic accusations. Zynga is still in the early stages of their turnaround but is definitely a penny stock worth watching.
Plug Power Inc (NASDAQ:PLUG)
Plug Power is an alternative energy company that manufactures hydrogen and fuel cell systems. Fuel cell technology has been hyped as the next big thing for the last five years but we’re still waiting to harness its benefits. Plug Power’s stock price exploded in 2014 when it announced a deal with Walmart. After their initial spike, their share price has been in a slow gradual, decline. E-commerce giant, Amazon also inked a deal to purchase $70 million worth of hydrogen fuel cells. Analysts estimate that this could potentially lead to $600 million worth of sales. The deal also allows Amazon to purchase up to 23% of the business. Jeff Bezos has a keen eye for investing early in promising technologies to gain a first-mover advantage, just like they did with cloud computing. Despite the hype, Plug Power has continued to release disappointing earnings but the alternative energy industry is gaining strength. Investors will lose patience if the company can’t become profitable by the end of 2018.
SilverSun Technologies Inc (NASDAQ: SSNT)
SilverSun Technologies is a little known technology micro cap with market cap of $18 million, specializing in business software for distribution and manufacturing. What distinguishes them from other software firms is that have their own proprietary software. SilverSun Technologies provide a wide range of valuing adding activities including technical support and consulting. Last year this penny share reported slightly disappointing financials. Total revenues increased by 2.14% to $34.85 million but had a net loss of $486,469 caused by three specific one-time factors. It’ll be interesting to see if they can get back on the right track. Despite suffering loses, it’s rare to discover a small cap with big potential. We will keep on an eye on SSNT and wouldn’t invest until they prove they can maintain stable earnings. SSNT is very illiquid with barely any volume but still is a quality micro cap worth following.
Innovative Food Holdings Inc (OTCMKTS: IVFH)
Innovative Food Holdings is an undiscovered, undervalued gem in a lucrative sector with a market cap of $30 million. IVFH is one of the most attractively priced companies in the food tech market, trading at a discount to competition. The food delivery area is fiercely competitive with unprofitable companies trading at ridiculous valuations. IVFH’s share price hasn’t performed well over the last few months and trades at $0.94 per share. At these prices, it looks very attractive and represents a compelling investment.
Luna Innovations (NASDAQ: LUNA)
Luna Innovations has been on a nice run lately, breaking above $3.50 for the first time in seven years. Long-term shareholders suffered tremendously as the business rebuilt after the economic collapse. I Luna Innovations growth continue as its likely they will turnover a profit soon. Overall LUNA has a strong balance sheet with one-third of its market cap in net cash and management plan to make some strategic acquisitions throughout the year. I would wait for the share price to fall close to its 50-day EMA before buying.
MEMEX (CVE: OEE)
MEMEX is a tiny Canadian penny stock trading under 10 cents per share. The company an Internet of Things platform provider offering real-time business analytics for the manufacturing sector. Their main product “MERLIN” allows manufacturing businesses to increase productivity by an estimated 10-50%. MEMEX currently have a market cap of $8 million with it’s share price falling from $0.42 to $0.75. They have a strong balance sheet with relatively little debt and high inside ownership.