Penny stocks, by their nature, are a volatile investment option. Penny stocks that trade at or below one cent can be even riskier than some of the more expensive penny stocks available on the market.
Penny stocks are generally considered any stock that trades below the $5 mark, though the exact definition is relatively loose.
However, with all that risk comes a lot of potential opportunity. After all, getting in on the ground floor of a company before its stock price explodes is the dream of many casual investors, and penny stocks are one of the primary ways to accomplish that.
As always, make sure you do your due diligence and research on these companies. Here is a quick list of 1 cent stocks to get you started.
Britannia Mining Inc is a natural resources development company. The firm explores, mines, and produces metals, gold, and diamonds.
As of mid-October, the stock was trading higher be more than 131 percent.
Exactly what news has caused the stock to climb is uncertain but with the global economic uncertainty, many investors have been moving their money into gold. Indeed, the yellow stuff hit $2,000 per ounce for the first time this year.
So, while there isn’t a lot of information specifically on BMIN, if you want to get into the gold mining market, this might be a good option.
WRFX is an independent film studio that distributes films over the internet. According to its website, the company is headed by seasoned professionals with over twenty years of combined experience in the entertainment industry.
It’s unclear what is causing Worldflix’s stock to trade higher by 100 percent as of October 12, 2020, but the company does specialize in distributing films online, and in the midst of a global pandemic that’s how most people are getting their entertainment.
This is a highly volatile stock, and should only be bought by those with a high risk tolerance.
Vapor Group has had a turbulent few years. In 2017, it was performing very well, but has since receded to the “penny stocks under 1 cent” level of trading.
However, the stock was trading higher by 100 percent as of mid-October, so there is some uproom to play with.
The Vapor Group focuses on purchasing commercially viable ideas and growing them into a success. Its notable products include the Easy Grinder and Royal CBD.
Despite the company’s continuing volatility, there is a lot of potential in both the vaping and CBD markets where VPOR already has a foothold. In fact, the e-cigarette industry is expected to surpass $39 billion revenue by 2030, according to one study. While the CBD market was expected to grow to $2.1 billion in consumer sales by this year.
Getting in on the ground floor of a company like VPOR while the stock price is low could be a great opportunity - if you can handle the turbulence.
As we mentioned, penny stocks like these - those below one cent - are notoriously risky. So tread with caution.
That said, there is certainly the opportunity to discover undervalued and under-reported companies before the take the markets by storm.
Additionally, stocks like these are too small for big, institutional investors to get involved in. Many of them are restricted from investing in smaller companies while others just don’t feel it’s worth their time.
Moreover, analysts tend to ignore stocks like this. That can be a double-edged sword: For one, other low-level investors are less likely to jump on a stock simply because it hasn’t received any coverage anywhere else. However, it makes doing your research on a company even more difficult.
At any rate, make sure you do your research. Finding stocks that trade below one cent but also inspire confidence can be extremely difficult. Track down company websites, look for company filings – heck, call up the CEO and ask them questions. Whatever you need to do to make sure your investment (and money) is in the right hands.