3 Penny Stocks to Buy Before the Breakout
Investors tend to have a love-hate relationship with penny stocks. On the one hand, they offer the possibility of fascinating returns, due to the underlying stock’s volatility, and the ability to purchase large shares with relatively little capital. But, this also goes the other way. These companies that meet the requirements to be penny stocks primarily deal with stocks under $5 in share price. This price can lead to wild swings, both positive and negative, for the company, and bring a lack of stability.
Dealing with penny stocks can be a very risky game that can lead to significant potential losses. But, I believe that a small amount of exposure to these companies can be a good idea for their potential to skyrocket in share price overnight. Some companies that trade below $5 per share still may have an attractive business model and the ability to be profitable, which may lead more investors to the company.
When it comes to penny stocks, you should do your research in trying to find one or multiple stocks that would work for you. Just be very cautious when it comes to exposure to one company and news that could drastically swing their stock price in one direction or the other.
Quantum-Si (QSI)
Quantum-Si (NASDAQ:QSI) is a life science company that develops next-generation protein sequencing through the use of semiconductor chips. Their technology has benefits in the biotech and pharmaceutical fields. The company manufactures protein sequencing kits, a protein sequencer called Platinum, and cloud software to help analyze data produced by protein sequencers.
In June, the company changed its headquarters from Guilford to Branford, Connecticut. The new facility is state-of-the-art and offers nearly 30,000 square feet of space. Quantum-si started trading publicly on the NASDAQ in June of 2021 through a special purpose acquisition company (SPAC) merger with HighCape Capital Acquisition Corp.
In the first quarter, Quantum-Si’s net loss shrank by 49% to $24 million, and they also reported a quarter of a million in total revenue for the first quarter. Quantum-Si total sales resulted primarily from their Platinum instruments and kits. They are expected to release their second-quarter earnings result on August 7.
Broadwind (BWEN)
Broadwind (NASDAQ:BWEN) is a clean energy company focusing on heavy industrial, energy, and mining fabrication headquartered in Cicero, Illinois. Broadwind is headquartered in Cicero, Illinois. The company announced in January that they had reached a $175 million two-year deal with a global manufacturer of wind turbines. Following this news, the share price skyrocketed by over 150% from $2.26 to $5.85 in the matter of a few days.
In their first quarter earnings report, sent out on May 11, Broadwind stated a 17% jump in revenue and reported a net income of three-quarters of a million dollars compared to the previous year. Their company’s multiple segments, including heavy fabrication, industrial solutions, and gearing, all saw a spike in revenue this quarter by at least 13%.
Applied DNA Sciences (APDN)
Applied DNA Sciences (NASDAQ:APDN) is a biotech company that produces products to detect DNA. Their flagship product is the LinearDNA platform which delivers highly purified DNA for a wide range of uses including cell therapies, vaccines, and other diagnostics potential. Their CertainT platform allows various products to be given a unique molecular identifier which can then be tested throughout the supply chain process to understand if the integrity of the product is still present.
Applied DNA Sciences reported second-quarter fiscal 2023 earnings on May 11, which stated a drop in overall revenue of 28% and net income of $551,000 compared to the previous year.
On July 13, Applied DNA Sciences announced that it would acquire Spindle Biotech, an RNA polymerase developer. Under the agreement, Applied DNA Sciences purchased all outstanding shares of Spindle, which is approximately $625,000. This acquisition will allow for a more robust LinerDNA platform.
On the date of publication, Noah Bolton did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
On Penny Stocks and Low–Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low–volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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