Last updated Feb 1, 2017
“What have you been up to lately?” they asked him during the holiday party. Old friends catching up during the holidays was nothing new. But his answer was a new revelation.
“I’ve been trading penny stocks for the last six months.”
Shocked looks followed by laughter. He sat there with a straight face. “No, seriously. What have you been doing for work?” They didn’t believe him. Penny stocks were a joke to them. They couldn’t understand that he was getting rich on the pink sheets. They didn’t realize he was living a life of luxury in a tropical locale while trading penny stocks from his smartphone.
The thing is…he didn’t care to explain any longer. He’d had the same conversation with dozens of other friends and family members. He knew explaining and elaborating would be a waste of time. Let them laugh. He was already laughing all the way to the bank each week.
While the story above may be hypothetical, a quick Google search proves it’s not too far from the truth for many successful penny stock traders. Just look at Josh Sason who made millions, or Tim Grittani who started with $1,500 only to turn it into a portfolio worth over $1 million. People are making a lot of cold, hard cash through the penny stocks. You can, too.
But you need good information, proper strategy and a little bit of luck on your side. That’s where we come in here at Stacked Bid. Below you’ll find everything you need to invest in the pinks sheets during 2017, including a detailed list of our ten best penny stocks to be watching out for in the coming year.
The 10 Best Penny Stock Picks of 2017 are:
1. Eco Science Solutions Inc (ECCI)
This is one of the best swing trade candidates that we have ever seen. A beautiful chart that has gone from under $.20 to over $3.40 in less than 1 year!
A share buyback program is the catalyst that started this massive run over 10 months ago. The pro traders in our chat room were all over this news back then and our members have the gains to prove it.
2. Lingerie Fighting Championships, Inc. (BOTY)
This is an interesting stock with a unique story and product. The Lingerie Fighting Championships is in the same category as professional wrestling, which has a very widespread appeal.
The company is in the very beginning stages but its fundamentals are improving rapidly. It reported $6k of revenue in 2015 and it is projected to report around $60k in 2016. This looks to be one of those rare stocks trading under $.01 that is actually a real business.
Recently the company had to raise capital with convertible shares which were then liquidated by the lenders. The share liquidation put a lot of temporary downward pressure on the stock, which is why the stock has had a large pullback since trading around $.10 in October.
The company has said this dilution is pretty much over and the stock has leveled off and is now holding support well.. The float is tiny with less than 25 million shares being traded and the market capitalization is only $133k.
3. Neovasc Inc. (NVCN)
The more we read about this stock the more we think it’s going to get bought out. It’s the only transcatheter mitral valve replacement company going to clinical trials in Europe that’s still independent.
All the others were bought out by bigger companies. This is an 8 billion dollar industry and NVCN is one of the pioneers. Payoff could be huge if the company is purchased.
4. International Western Petroleum, Inc. (INWP)
We are treating the INWP trade as a swing trade with a hold time between 5-30 days and a percentage gain goal of between 50%-100%. This trade is setting up very similar to CATQ, BBGP, and LRSV which made over 250%, 80%, and 20% respectively.
The stock has pulled back over the past couple sessions but it was able to stop the pullback and bounce. Because it was strong enough to bounce and hold its ground we are confident it will be strong enough to trend back to previous highs and break through to new highs.
The $1.80 level is incredibly important with this trade. If it breaks through that level it will have made a 52wk high and it will have a ton of momentum behind it.
5. Vitality Biopharma, Inc. (VBIO)
VBIO has been forming a very nice sideways consolidation chart pattern for the last two weeks and we are seeing the chart start to curl higher which indicates a potential breakout could be imminent.
The company is developing cannabis drugs that can be used to replace opioid painkillers. The painkiller epidemic is a massive problem and it is getting bigger every day. A drug that can replace opioids without the dependence issues that come along with opioids would be a huge money maker.
This stock will benefit significantly with every state that approves medical cannabis use. The fundamentals of the company have been improving year over year as well.
6.Adama Technologies Corporation (ADAC)
ADAC is a low float stock which means there are less shares available than a normal stock. This means the stock can move quickly in either direction. The dilution of this stock seems to be over which should provide some downside support.
7. Health Advance Inc. (HADV)
One of the most epic runs by any stock was made by HADV recently. The stock went from under $.10 to over $4 in less than 60 days! The stock has pulled back since then and we are keeping an eye on it for a bounce. The pro traders in our chat caught HADV early and were able to join in on the wild ride.
8. APT Systems, Inc. (APTY)
Volume has been building with APTY for the last couple days after the CEO said she would be buying back shares of APTY in the open market. It is a very good sign when CEOs tell us they are buying back shares. It tells us they think the company is heading in the right direction.
APTY has been trending at solid support before starting to curl up the last couple days. Yesterday APTY broke through resistance and made a new 45 day high and closed at the high of day, which indicates the strength should continue into the next day.
9. MJP International Ltd. (MJPI)
MJP International Ltd., a development stage company, engages in the sale and distribution of LED lighting and technology solutions in North American market. Its LED lighting products consist of LED Par series bulb, a replacement bulb for traditional Par 30/38 lamps; LED Down Light series, a lighting fixture with bulb and installation housing; and LED tube series products to replace fluorescent lamps and fit into existing light fixtures.
The company sells its products to end users, including municipalities, airports, railway lines, hospitals, post-secondary institutions, and large property owners; wholesalers; contractors; and retailers. MJP International Ltd. was founded in 2010 and is based in Calgary, Canada.
10. Incapta Inc Com (INCT)
This stock is in the middle of an incredible up-trend that has already produced 100%+ gains for our members. The stock has a very small float and no signs of dilution. We are getting close to another key breakout level and if we move past the $.60 cent mark we could see $1.00+.
The Risks and Rewards
Before we break down solid penny stocks to watch, we want to offer a quick disclaimer. You can make a lot of money investing in penny stocks. You can also lose a lot of cash on the pink sheets.
Penny stocks are high risk, high reward. While you take a lot of risks, you have the potential for enormous returns. And why are there so many risks involved with penny stocks? Most agree there are three reasons penny stocks are risky.
First, there’s a lack of credible information surrounding most penny stocks. With no minimum standards for many stocks on the pink sheets and a lack of in-depth financial data, it’s rare you’ll find a company you can properly research and vet before investing.
Next, most investors quickly realize that a stock is considered a “penny stock” for a reason. Often, these companies are significantly overleveraged and on the verge of bankruptcy.
Bankruptcy leads us to our third penny stock risk – scammers. Many penny stock scammers make big bucks by luring investors into a nearly worthless stock before taking their money. You must be aware of the scams surrounding the pink sheets. Here are a few common ones:
- Pump & Dump Schemes
- Reverse Merger
- Short & Distort
- The Guru Scam
- Mining Scams
- Offshore Scams
- No Net Sales
The Definition of Penny Stocks
While there is some variation, most consider penny stocks as anything trading outside major market exchanges under $5 USD per share. Traditionally, anything under $1 USD is a penny stock.
Penny stocks are an extremely high-risk investment, and most investors consider them to be incredibly speculative. Most companies that find themselves trading on the pink sheets suffer from small capitalization, a lack of liquidity, large bid-ask spreads and limited disclosure.
These stocks do not trade on respected the major market exchanges. You won’t find penny stocks on the Nasdaq. Often, penny stocks have no SEC compliance and regulation to worry about. To say the wide world of penny stocks is the like the wild West wouldn’t be a stretch.
You can invest and trade penny stocks through the OTC Bulletin Board, also known as the OTCBB. Individual companies are also exchanged through the pink sheets, which are completely unregulated.
Get Started Today
If you’re a high-risk investor looking to see significant gains, then the penny stock markets may be right up your alley. Just remember – penny stocks will always be a big gamble. Only with proper research and strategy will you see profits with speculative plays.
While there’s a bit of doom and gloom above, there’s still a lot of money to be made through the pinks sheets. We wouldn’t have complied and created this article if we didn’t believe in penny stocks. Start slow and learn the markets before taking huge gambles that can offer huge payouts.
Things to Remember
If you’re still here, then investing in penny stocks may be right up your alley. If you’re an investor with a high tolerance for risk, then the pink sheets could be for you.
Before you make some trades, you must remember one thing: Penny stocks have a high level of volatility. Due to this fact, there’s the potential to make a lot of money and to lose a lot of money when investing in the pink sheets.
It’s vital to take certain precautions when investing in penny stocks. With precautions and a proper strategy, you can minimize losses – to a certain extent. One precaution many investors take when trading penny stocks is a stop-loss order. Before entering a trade, you have a predetermined stop-loss order that ensures you exit the market immediately if the market moves too far in one direction.
While many investors have illusions of grandeur when hitting the pink sheets for the first time, it’s important to note that realistic expectations should be managed. It can take months and years to find gains materializing in the stock market. Most investors don’t turn a few hundred into 100K in a matter of weeks.
Stocks trading on the pink sheets and the OTCBB usually have low trading volumes, which increases the risk of the investment. Any penny stock trading less than 100,000 shares a day should be avoided as you learn the market You could get stuck with shares of little to no value if you invest in a company with extremely low trading volumes.
To mitigate your risk while you start trading, you can trade penny stocks (under $5 USD a share) on the American Stock Exchange (AMEX) and the Nasdaq. These exchanges are continually regulated, which ensures you won’t be taken for too much of a ride while starting out.