Stocks that trade under 50 cents USD fall under the category of penny stocks; these stocks are sometimes highly unpredictable and impose greater risk to a trader. However, many traders have ventured into buying and selling penny stocks, resulting in immense growth opportunities.
Traders buy and sell penny stocks because they can make higher returns within a shorter period than other more stable types of securities. Penny stocks are usually issued by micro-cap companies, meaning they have a massive growth potential even with the risks involved.
What is a Penny Stock?
Penny stocks are market traded securities that come with very low prices and have minimal market capitalization; below the share price of £1 in the UK and below 5 USD in the US. They tend to be illiquid and mostly listed on smaller exchanges.
Depending on the outlook of businesses, penny stocks may make a decent speculative investment. With extensive research, knowledge about the stock market, and an effective strategy, you can use the ups and downs of penny stocks to your advantage.
Let’s explore five stocks under 50 cents USD.
1. Majic Wheels Corporation (OTC: MJWL)
As a Delaware Corporation, Majic Wheels has positioned itself as part of the fintech industries and software development through acquisitions and mergers. In June of 2021, it announced that Calfin Global Crypto Exchange (CGCX)-its fully owned subsidiary, agreed to issue custody services to iBG.Finance, thus acquiring the CGCX valued at USD 153.2 million. The exchange has already established a cryptocurrency mining platform that offers more advanced trading solutions worldwide—resulting in a rapid increase in their stock price.
Additionally, Majic Wheels has emerged as one of the first contributors to provide insurance to its clients for safer trading. Investors also need to be aware that this company initially operated a waste management sector while developing mining technology. The rising demand for crypto solutions and the exceptional range of value propositions are likely to expand the company’s services.
2. Postd Merchant Banque (OTC: PMBY)
Postd Merchant Banque runs as a non-depository financial institute by offering corporate finance advisory services to private markets in the United States including, digital exchange services, credit enhancement, e-checks, etc.
Since Postd Merchant Banque acquired Banco-PyME, the stock has made a vast increase in prices. The Banco-PyME mineral recovery project offers finance options to gold, zinc, aluminium, and silver, among other valuable minerals from the mining sectors.
Postd Merchant Banque has also developed construction projects to construct more than 250 homes with more than USD 25 million investment and making a profit in construction and sales of about USD 12 million. This project marks Postd Merchant Banque’s first attempt into international operations, which could generate multiple revenues.
3. Virtual Medical International (OTC: QEBR)
Virtual Medical International is a wellness company of medical education carried out online and based in the United States. Most online programs are used to teach patients the risks and advantages of medical procedures easily and understandably.
Through the services at Virtual Medical International, patients from various states will help themselves make clear decisions regarding their health and treatments, thereby lowering misinformation against doctors, hospitals, and other medical workers.
The company is currently finalizing its agreements of medical-grade oil production, including CBD-related products and running farming related to the harvesting and processing of the products. By expanding its board of directors, there is a possibility for positive stock prices. As of late August 2021, there was an increase of 27,100.0% from the short interest of 27,200 shares.
4. Globe Metals & Mining Limited (ASX: GBE)
Globe Metals & Mining Limited is an African resources company with its Kanyika Niobium Project in Malawi and a corporate head office in Perth, Australia. It was created to produce niobium and tantalum products-main extracts in a high strength low alloy (HSLA) electronics and steel.
Globe Metals & Mining shareholders have improved over the last year with a share price of 1,015%. Now the company is making it the perfect time for investors to put some money on its stock. The company did not receive any revenue in 2020 since its early stages of development, with a cash burn of 20% increase which could mean that the management is gradually increasing investment for future growth.
Earlier this year, the company’s shares increased significantly in a 281% year-to-date return. It could be a better opportunity for this stock after it announced its official notification from the Mining Principal Secretary as a go-ahead with the project.
5. Carpentaria Resources Limited (ASX: CAP)
Carpentaria Resources Limited is an industrial metals and mining company based in Australia. With the leading high-quality iron ore project. Its shares are on the Australian Securities Exchange (ASX), priced in Australian Dollars AUD. Unfortunately, the company underperformed in the last year with a loss of about 52% against the market profit of approximately 19%. This stock has time to stand back on its feet; it has since performed better this year.
Since May 2021, the Carpentaria share price has immensely increased after announcing that it received interest from national and international third parties for Hawsons Iron Project. In July 2021, its share price skyrocketed to 22.1 cents USD making its market capitalization to about USD 83 million with a 291.30% year-to-date return.
Stocks under 50 cents USD have exciting potential. Numerous well-known companies started as penny stocks, and those who invested back then have made a significant profit. Still, it is crucial to note that numerous penny stocks eventually fail due to the volatility of the stock market or even market developments within their business operations.
It is crucial to note that investing in penny stocks may not get you rich, and even if you do earn, you will have to earn for a long time before you consider yourself “rich”. Since the stock market is volatile, you can watch trading patterns to limit when to buy low and sell high. You may also consider stocks with consistent daily volume when looking at penny stocks at the price point.