Penny stocks (stocks with a stock price of less than $5) are a blessing and a curse. The field is littered with fledgeling companies, some of which will go on to become unicorns, bringing early investors ample astronomical returns and life-changing profits. However, many of these companies never reach their potential and become an investors nightmare, sucking in funding and spitting out nothing in return.
Navigating this undiscovered goldmine of stocks can be difficult. But with a little guidance, identifying the hot penny stocks of 2019 is one way of getting your 2019 investments off on the right foot and bringing huge potential to your investment portfolio.
Americas Silver Corporation
A merger with Pershing Gold at the tail end of last year has left Americas Silver Corporation with a shovel-ready project in Nevada that could give the company a significant revenue boost and drive expansion.
Estimates suggest that the Relief Canyon project could net the firm 75,000 to 90,000 ounces of gold each year for the next seven years and boost cash flow by some $25 to $30 million.
Plandia Biotechnology Inc.
With regulations on cannabis products easing, one of the companies that stand to benefit is Plandia Biotechnology Inc. The firm produces cannabis-infused beverages, and with a rapidly expanding market with very few existing players, it is among those in prime position to capitalize on the influx of demand in 2019.
Limelight Networks
Limelight Networks has seen its price turnaround as 2018 drew to a close. The company delivers internet content and has enjoyed moderate growth of late. Revenue is up 14%, multiples are favourable, and this growth is set to remain into 2019.
With its share price hovering around $4 a share it is no doubt a larger fish in the penny stock pond. With revenues set to continue, it could soon break out of the penny stock field. Limelight Networks is certainly one to watch in 2019.
Alaska Communications Systems Group Inc.
This stock is appealing to new investors due to its easy-to-follow business model. In recent months, the price has followed a double bottom trading pattern, with shares falling to $1.37 a share twice in just two months.
This is reassuring for investors as it shows the price is range bound and a clear floor has developed. While there is currently a ceiling due to market constraints, it will not keep this range forever and once it breaks through the ceiling, there is no telling where the price could settle.
Plug Power
While renewable energy and environmental solutions have not historically had much allure for investors, that is set to change. Plug Power is a hydrogen vehicle developer and has just landed a promising deal with Amazon to go alongside its 2014 deal with Walmart and early 2018 deal with FedEx.
Although the company is yet to turn a profit, losses are decreasing, and revenue is up 90% year-over-year for Q1. It might be a slow riser, but for patient investors with an appetite for risk, the $2 a share price tag should finally hold some allure.
