Investopedia describes a penny stock as a small company’s stock that typically trades for less than $5 per share. Usually, trading penny stocks occurs as OTC stock via over the counter (OTC) transactions even though there are a few penny stocks that trade on big stock exchanges like the NYSE and Nasdaq.
From gold stocks to cannabis stocks, top penny stocks are not limited to any particular industry.
Even though you can make sizeable gains trading penny stocks, these cheap stocks carry the risk of losing a significant amount of your investment within a short period.
Penny stocks are popular since they lack barriers to entry and are quite appealing to beginner traders who may find themselves short of capital.
Currently, some of the hottest stocks online include biotech stocks, energy stocks, marijuana stock, and tech stocks.
Thanks to Robinhood penny stocks, these stock traders can access cheap stocks while being charged zero trade fees
In this piece, we are going to focus on two stocks that lie on the Robinhood penny stocks category you should consider in 2020.
LightInTheBox (NYSE: LITB) – A Penny Stock To Watch
LITB, also known as LightInTheBox Holding Co., Ltd in full, is an international retail company that is based online delivering its products to consumers who are based in over 200 countries around the world.
Headquartered in Beijing, China, the company was founded in 2007. It’s currently an option for penny stock trading as its shares trade for about 90 cents.
It attracts consumers by displaying its lifestyle products through various websites, including MinilnTheBox.com, LightInTheBox.com, and a few other websites that are available in over 26 major languages.
Why LITB Would Make Great Stock On Your Portfolio
The list of penny stocks to watch, especially stocks under $1 is quite long. However, none other offers potential returns like LITB.
Currently, priced at $.90, the stock is set to benefit from changes the company has been implementing to improve operational efficiency, cost controls, and product optimization.
The improvements are already visible in the latest financial results and have helped the company record its first profitable GAAP quarter since 2014.
According to Mr. Jian He, the CEO of LightInTheBox, the “focus on improving product optimization, driving customer engagement and expanding our market scale have been critical to the success we have seen so far. “
So if you’re picking an online stock, especially a Chinese stock, or from a long list of tech stocks, it’s important to know the market it is in. Because of this position, LITB is on a list of experts penny stocks to watch list. It could be an excellent growth stock in a portfolio, though it comes with risks (as does all activity in trading stocks).
Great Panther Mining Ltd (NYSE: GPL)
GPL: Great Panther Mining Ltd (NYSE: GPL)
Great Panther Mining Ltd (NYSE: GPL) is an intermediate silver and gold mining and exploration company. The company operates three mines in Brazil, Peru, and Mexico. Recently, Great Panther Mining Ltd topped in Q4 production estimates after producing 146,853 ounces of gold.
This figure was a major boost to the company and has contributed significantly to stabilizing the company’s balance sheet. Moreover, anticipated improved cash flow will reduce risk to the firm, and more investors will be tempted to purchase the penny stock.
Currently, GPL is among the top penny stocks to buy as it is trading at $0.60 per share. If you’re in search of a cheap stock that will continue to increase from higher production and an increase in gold prices, GPL is the one to go for. Should the price of gold increase, the stock’s share will move to $1.20, which is a likely event.
This is an increase of 66% to 100% for you.
Volatility is a proportion of the anticipated daily value extend, the range where an informal investor works. Greater volatility shows more noteworthy benefit of misfortune.
Following a volatility analysis of GPL stock, it’s at 6.36%. This points to higher noteworthy returns for investors that purchase this penny stock shortly.
Moreover, potentially higher inflation, the recent outbreak of coronavirus in China, and increased geopolitical tensions are some of the main factors pushing investors to safer assets.
One of these safer assets is GPL stock. As mentioned above, this is one of the top penny stocks to buy for investors given its potential high return on investment percentage.
So, if you’re looking for a penny stock to invest in, GPL stocks should be at the top of your prospect list.