Investing in penny stocks isn’t a fixed science. The market changes every year, and it’s often difficult to know which investments you should make. Penny stocks are one of the more affordable stocks, since they’re typically valued at less than $5, but they’re not always easy to get into. Understanding penny stocks takes time and research, but they’re fairly easy to navigate once you get the hang of the process.
An important aspect of choosing which penny stocks to invest in involves studying the 10-K to judge a company’s performance. If the management doesn’t place faith in their company, you shouldn’t either.
Another important part of choosing penny stocks is doing your research. One of the best things you can do is to watch investment predictions for each year. For 2016, the list includes:
This Canadian mining company specialized in gold, silver, zinc, and copper. It’s one of the highest-grade open pit base metal deposits in the world. In an effort to make a difference in the current zinc shortage, Nevsun, whose primary source of income is copper, is switching most of its efforts to zinc. This is driving their shares down to $3 each, and the profits are only growing. The annual dividend for each share comes out to be $5.56, which is a pretty profit for investors.
Northern Oil & Gas, Inc.
Oil prices dropped almost 30 percent in 2015 and 75 percent since September of 2014. The drop in prices might paint oil and gas companies in a bad light when it comes to investing, but it’s actually one of the best times to get involved in penny stocks. While the prices are low, stock shares will be cheap, and based on the fact that the world is run by oil, this industry will no doubt rebound in the coming years, promising excellent returns.
Skyline Corporation is a company that produces and markets manufactured housing and modular homes in both the United States and Canada. Their company’s shares currently fit the criteria of penny stock based on their growing capital. They have no corporate debt and a strong cash position with an 18 percent increase in their year-over-year revenues. Their stocks were going for just $0.86 per share at the beginning of 2015, but they’ve since risen 37 percent with more growth in the future. For excellent returns, the time to get involved with these stocks is now.
The revenue for this biotechnology firm engaged in developing drugs for cancer as well as neurological and dermatological diseases plummeted in the first half of 2014, and then quickly rose again in 2015. As a result, the share price is dirt cheap, at just $2.50 per share. As 2016 wears on, those stock prices are expected to go up to $3.10 per share as the company gets back on its feet. If you want the best deal, grab the stocks while they’re cheap and let the growing company revenue increase their value for you.
Avon Products Inc.
Once the largest manufacturer of beauty products in the world, Avon has since suffered a decline in their revenue. Their shares dropped from $30 to $2.50 per share in a matter of a few years. However, their revenue is beginning to grow again, thanks to their strong brand name and a long, established history of delivering excellent products. The stocks were $2.72 in November of 2015, and the prices and dividends are expected to rise continuously from there.