Experts are sharing the top three penny stocks currently available on the market for people to invest in which could them millionaires by 2025.
A penny stock is a term used to describe the stock of a small company that usually trades for less than $5 (£4.01) per share.
Previously, this term was used for any stocks which traded for under $1 ($0.80) per share but that has since changed.
The vast majority of penny stocks trade over the counter via the OTC Bulletin Board (OTCBB).
However, there are certain penny stocks that trade on large exchanges, such as the New York Stock Exchange (NYSE).
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According to Omor Ibne Ehsan, a writer for Investor Place, these are the three penny stocks that could make investors a millionaire by 2025. When investing, it’s important to note capital is at risk.
Cinedigm (CIDM): An American media company based out of Los Angeles, California
http://CarParts.com (PRTS): An American provider of aftermarket auto parts online.
Checkpoint Therapeutics (CKPT): A clinical-stage biopharmaceutical company.
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As of May 15, 2023, Cinedigm Corp is trading at an extremely cheap $0.30 (£0.24) per share.
Furthermore, U.S. Auto Parts Netw is currently trading at a more expensive $4.41 (£3.53) per share.
In comparison, Checkpoint Therapeutics Inc is on the market for a share price of $2.62 (£2.10).
In his assessment, Mr Ehsan cited Cinedigm’s revenue growth of 98 percent year-on-year from last year as to why it could be a worthwhile investment.
On top of this, the investor highlighted that many Americans are considering keeping their old cars due to the turbulent economic climate which will help CarParts.com in the interim period.
Finally, Mr Ehsan described Checkpoint Therapeutics as a “speculative bet” but noted the wealth of promising drugs coming down the pipeline.
He explained: “I would point out that not all penny stocks are bad right now. There are many small businesses that are sustainable and have tremendous growth potential over the coming years.
“These businesses have been overlooked by Wall Street in this harsh environment, and buying them at the trough now could deliver multibagger gains on the way up.”
Due to the companies involved being smaller, investors are reminded that penny stocks are more suited to those who have a high tolerance for risk.
Despite this, higher volatility in the stock market can mean greater returns for people who are successful in investing.
Penny stocks can have a high potential for growth, but there is no minimum standard when it comes to investing in penny stocks.
As well as this, there is usually a lack of information about the companies due to them being smaller.
