While virtually every financial advisor will steer you away from these picks, invariably, investors eventually gravitate toward cheap penny stocks to buy. Some might end their fascination with the topic at the investigatory stage. Others, though, will take the leap of faith. Before we move forward, these ideas are simply that: wild bursts of speculation.
Still, we are reminded that many of the blue-chip stocks that we praise today first started off as cheap penny stocks to buy. Further, we kick ourselves for not taking a shot when we had the chance. So, will this list of high-risk, high-reward ideas provide you with a time-capsule opportunity? You just never know until you try.
Cheap penny stocks are incredibly dangerous. Moreover, you would be utterly foolish to put down more money than you can afford to lose. Therefore, treat the below picks as whimsical, entertaining ideas only.
Cheap Penny Stocks: Bionano Genomics (BNGO)
We’re going to start off this list of cheap penny stocks to buy with the most credible name, then move on to the wild side of the spectrum. If you’ve been paying attention to any biotechnology-related news, chances are, you’ve heard of Bionano Genomics (NASDAQ:BNGO). Specializing in nanoscale imaging and analytics, Bionano has made incredible clinical progress recently.
In early August, the company announced landmark research centering on its optical genome mapping (OGM) technology to accurately identify certain rare diseases. Just recently, Bionano leveraged the same OGM platform to detect repeat sequences associated with diseases that unnaturally expand DNA-based progressions. Essentially, the finding was important because it opens the door for OGM to replace more time-consuming methodologies like Southern blotting.
Over the trailing month, BNGO is up over 67%. While it’s not quite the cheapest of cheap penny stocks to buy, the underlying scientific achievements give Bionano a significant edge.
UpHealth (UPH)
Billed as a digital-first healthcare solutions platform, UpHealth (NYSE:UPH) features a three-tiered business model: integrated care management, virtual care infrastructure and services (such as primary, specialty and behavioral health). Over the last 2.5 years, interested toward the middle component of virtual care has risen in relevance.
Obviously, the telehealth sector enjoyed a dramatic surge during the initial onslaught of Covid-19. Now that pandemic fears are fading into the background, UPH might seem like a lost cause. However, with monkeypox cases rising, more people may choose to go the virtual care route.
Perhaps that’s one major reason why UpHealth is up over 14% in the trailing month. Should monkeypox cases continue to spread, UPH could swing even higher.
Cheap Penny Stocks: Bark (BARK)
If you want to know a market aphorism you can really depend on, it’s that Americans love their pets. And that’s why Bark (NYSE:BARK), which distributes pet toys and treats, may be a big winner over the long haul, even if it’s today one of the cheap penny stocks to buy.
For me, it comes down to the hard numbers. According to the American Pet Products Association, 2021 saw the pet industry ring up $123.6 billion in revenue. In magnitude terms, this tally represented a 19.3% lift against 2020 results. Just for reference, 2020’s sales of $103.6 billion represented a 6.7% increase from 2019 sales.
In other words, whether you’re talking pandemics, inflation or other calamities, Americans prioritize their non-human family members.
Now, BARK could be one of the most viable cheap penny stocks to buy because of its unique business model. Essentially, it makes mystery boxes filled with an assortment of toys and treats for dogs and their humans.
Esports Entertainment (GMBL)
With Esports Entertainment (NASDAQ:GMBL), we’re going to dial up the risk-reward component of cheap penny stocks to buy. To be clear, it’s not that Esports Entertainment is a bad concept. Marketed as a full-stack esports and gambling firm, GMBL plays into trends that have long been marinating.
In recent years, some loose talk materialized about esports integration with the Olympics tournament. My gut feeling is that this won’t ever happen. However, just the mere fact that people can mention this integration without being laughed off the stage represents huge progress.
You want more? Grand View Research assessed the global esports market at a valuation of $2 billion last year. From 20220 to 2030, the sector might expand at a compound annual growth rate of 21.9%. This would translate to a $12.49 billion valuation.
However, investors should realize that the consumer economy currently prioritizes actual experiences over digitalized entertainment. Therefore, proceed with extreme caution regarding GMBL stock.
Cheap Penny Stocks: Brookmount Explorations (BMXI)
While I didn’t place Brookmount Explorations (OTCMKTS:BMXI) last on this list of cheap penny stocks to buy, here’s the deal. A strong possibility exists that Brookmount is the riskiest idea here. As a gold exploration firm, arguably more things can go wrong than can go right.
So, why bother talking about BMXI? BMXI could be relevant because of the present inflation problem. While consumer prices did ease a bit, American households are still hurting. Considering that Brookmount’s underlying asset enjoys a historical status as a safe haven, speculators might appreciate the wealth-preserving implications.
Further, it has momentum (up more than 1,000% in the trailing month). Should the fear trade kick in more aggressively, BMXI could swing even higher.
Lake Resources (LLKKF)
Unless you’re a serious commodities fan, you probably haven’t heard of Lake Resources (OTCMKTS:LLKKF). Headquartered in Australia, Lake Resources is a mining firm, specifically specializing in the extraction of lithium.
According to the company’s website, “Lake has the largest lithium lease holding in Argentina. Our four projects encompass 2,200 [square kilometers] and are 100% owned and operated by the company.” Argentina of course is one of the nations located in the so-called Lithium Triangle, where mining firms produce 40% of the world’s lithium.
Enticingly, LLKKF has been on an absolute tear, even compared to other cheap penny stocks to buy. In the trailing month, shares have skyrocketed 90%. The primary catalyst is Shanghai reopening following its weeks of Covid-19-related lockdowns. Therefore, demand for the metal surged.
Even better, LLKKF commands longer-term relevance, particularly as geopolitical tensions make lithium supplies a security issue. Therefore, you should keep close tabs on Lake Resources.
Cheap Penny Stocks: Sayona Mining (SYAXF)
If you want lithium exposure but want a better deal, you should look into Sayona Mining (OTCMKTS:SYAXF). Another Australia-headquartered company, Sayona features lithium mining projects in Quebec, Canada and western Australia. As well, management is exploring the potential of gold-mining projects in its home market.
Over the trailing month, SYAXF is up 92%. While it’s still a massive burst of bullishness, it suggests there could be some more room to run. Still, as with any speculative mining venture, extreme caution is your best friend.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.