10 Penny Stocks Under $5 that Will Make You Rich

hey bowtie nation joseph hogue here with the let's talk money channel with a penny stock countdown video you've been asking about for months but i wanted to wait to find the best penny stocks to buy for this list in this video not only will i reveal those ten penny stocks under five dollars a share but i'm also going to share with you a strategy to invest that will make you rich we're going to get right into it but you know i've got to send a special shout out to all you out there in the nation thank you for spending a part of your day to be here if you're not part of that community yet just click that little red subscribe button it's free and you'll never miss an episode nation penny stocks can make you rich but if you're like most investors you're doing it wrong investors buy and sell their penny stocks like their daily moca frappa cocacino buying and selling for that quick profit and this kind of short-term investing can make you money and we've done really well with our penny stocks recommended over the last year with an average 206 percent return even after that recent sell-off on stocks like veritone tellurian and ryerson so you can make money trading penny stocks but it won't make you rich now why because it's a two steps forward and one step back mentality you take those penny stock profits too early when a stock hits 40 or 50 return investors just get excited and want to book that money but they hold on to their losers and nation there are always going to be losers and no investor is going to have a perfect track record and there will be penny stocks that dump 20 or even 30 immediately so you make money here and your portfolio takes those two steps forward but the losses drive you back a step you make that forward progress but it's hard going anywhere on just one step at a time you're constantly searching for that next hot stock and that's not a winning strategy in penny stocks instead i want you to think of penny stock investing like a venture capital investor now those of you in the nation are going to recognize that analogy and maybe i draw on that world of startup investing too much but that's where i come from that world of pre-ipo investing war where you can make a 4 000 return like peter thiel did as one of the first outside investors in facebook as a venture capital analyst i advised millionaire investors in those startup companies they would hold for three five even as long as 10 years investing in these small micro cap companies on the idea that a very few could become billion dollar leader someday now the idea here isn't that every investment is going to 10x your money in fact a study of these kinds of pre-ipo investments by willamette university found that more than half lost money that's the bar all the way on the far left here about 55 of those investments produced a return of less than the initial investment but then here look at the bars on the right those exit multiples of 5 10 and more than 30 times the investment it's this 15 of the investments maybe one or two out of 10 investments that produces the majority of your returns in that venture capital portfolio and circle here you can see this overall portfolio return that even with those dud investments all it takes is a few big winners to get that 2.6 fold return that's 160 on your money it is this kind of return without that two steps forward one step back trading that will make you rich over a period of five or ten years so instead of jumping in and out of your penny stocks the best strategy here is going to be building that portfolio of maybe 10 or 15 great companies over a few years and holding them giving them three to five years to grow into that 30 times return and instead of selling them for a quick 50 game in fact maybe you only add three to five new penny stocks to your portfolio each year just being super selective in terms of of what you buy and what you put your money in okay that's the strategy now for the fun part ten penny stocks under five dollars a share each and here i'm going to offer up a new way to look at these counting down on the best stocks at each dollar value we'll start with the first two stocks under five dollars then four and three until we get to the last two stocks under a dollar per share i'll be putting all 10 of these penny stocks into my paper portfolio on weeble to follow i like the research i get with weibo but i love the stock simulator feature the app gives you a million dollars to use in your paper portfolio to track your favorite ideas before you invest real money i'll leave a link to weeble in the video description below use that link and you'll get two free shares of stock worth up to sixteen hundred dollars when you open an account and make your first deposit you'll get two free shares a great app for investing and you'll be supporting this channel so i appreciate it now let's get to those 10 stocks under five dollars a share but understand these stock prices move fast by the time you watch you they could be higher so i've tried to pick penny stocks that i think are worth way more no matter when you see the video i'll reveal those 10 stocks to buy show you how to use the screener for penny stocks and how to narrow your list our first stock here under five dollars a view rate inc ticker v-r-a-y a specialty medical device maker out of ohio now vuerey produces and sells a unique radiation therapy system the world's first mri guided system that can simultaneously image and treat cancer patients the propriety software locates targets and tracks soft tissue tumors while radiation is delivered the company already has more than 41 systems installed and 11 000 patients treated with trials showing an increase in first and second year survival rates under the system management estimates a six and a half billion dollar market opportunity in that global radiation market and just a fraction of that could 10x the company's sales already at 60 million dollars annually v-ray had a backlog of 241 million dollars in orders as of last year that's more than four years worth of sales so so that top line revenue number is growing fast it booked sales growth of 19 annually over the last three years and this could really pick up soon resonant ticker res in is a late stage development company designing rf filters for non-mobile devices and with all the talk around 5g mobile it's easy to forget that the majority of devices are going to be non-mobile all those internet of things connected devices that are going to need those filters resonant is on target with a strategic partnership of manufacturing and scheduled to complete its first production volume this year revenue jumped to 1.4 million dollars last quarter doubled the previous quarter and a 14-fold increase from the same quarter in 2019. now i had a price to sales ratio of 48 times that's not cheap here but the market for this is huge as that 5g starts ramping up in those non-mobile devices we've still got eight more in our penny stocks list but i wanted to share the stock screener that i used to find these and then how to narrow down your list to the best penny stocks to buy for that penny stock screener i can go into the weeble app click on markets in the menu and then go to the screener and a great feature here is that i can save my screens and then go back to them anytime i want for stock picks in that theme first in our screen is filtering by market cap the size of the company and here a penny stock size company is anything under a billion dollars market cap but i usually like to narrow it down a little further to less than five or six hundred million dollars next since we're talking about stocks under five dollars a share we'll filter for stocks under that share price hand and we can actually make a new screen for every level here so i can screen for stocks under five under four and one for everything under stocks to a dollar now i also like to use this return on equity the roe and the return on assets roa filters to narrow down that initial list it's not a must but it just helps you limit the stocks that you have to research and make sure you're only investing in where management is able to drive that profitable return on shareholder equity and assets you can see how many stocks meet the criteria and i can click through and start my research i recommended obziva ticker obsv in a video last august when it was 2.70 cents a share it's up 18 percent but still a solid pick for one of our penny stocks under four dollars the company is a clinical stage biopharmaceutical focused on treatment for women's reproductive health it's advancing three products across four indications with one that could file its new drug application in just a few months that and these other products could be big catalysts for the company and the shares these types of clinical stage penny stock companies don't have any revenue but obseva does have a solid balance sheet with 50 million dollars in cash against just 27 million in debt and that near-term catalyst now this next penny stock may be perfectly timed 161 million ocean power technologies ticker opt the company is a pioneer in renewable wave energy technology converting ocean waves into electricity through advanced autonomous power generating buoys the floating system drives an electric generator stores the power in a lithium-ion battery that can be transmitted through a fiber optic cable ocean power has four products already available including a solar power generating buoy along with three more products in development it's estimating an eight and a half billion dollar market across four target industries including other product uses in maritime security and reporting we've still got six more penny stocks to watch but i want to take a minute to share what i'm looking for in a good penny stock investment how to narrow your list those of you in the nation you know i'm not about to just drop 10 stock picks in your lap that does nothing for you and i want you to be able to find these investments on your own so there's really four keys i'm looking for when searching for these penny stocks to buy these go back to my days as a venture capital analyst the process that i created to find those early stage companies with 10 and 20x return potential first here is a management team that includes founders as well as some experience in finance and marketing and now this list of what i watch for is going to be in no particular order but a good management team is critical in fact i'd say at least half of the startup investment deals that i passed on working for venture capital were for weakness and people leading the company next here it's all about growth and how big the company can become now i'm looking for companies here with a giant addressable market and proven sales growth over the last few years now generally that means sales growth of at least 20 or more over the last couple of years so that's easy enough to screen for when you're looking for these stocks to buy and for that addressable market that's the size of the potential customer base and management's estimate for for what market share they think they can take in the future now that information is usually found in the company's financial reports or in the presentations on its investor relations page for example researching fastly i found it was estimating a 35 billion dollar market for its two segments and a compelling case for being able to take that market share that that's turned it into a nearly 200 return on the shares now most of these early stage penny stock companies aren't going to be profitable yet but you'll want to see those companies that are growing their sales while keeping costs under control so so you've got at least a pathway to profitability now finally here is going to take some research because you've got to find the companies with a competitive advantage these companies aren't competing in an empty market right these startups are coming into industries with established players and they need a compelling reason why customers should switch for example with zscaler i saw a unique cloud-based security product that could take that market share from the legacy providers that were still dependent on the hardware and the data centers takes a little time and some research but that's why you're only investing in maybe three or five new penny stocks a year nation don't just depend on some yahoo that looks great in a bow tie to be picking your stocks for you electrocore inc ticker ecor is a bioelectronic medical device company with a non-invasive nerve stimulator for migraine sufferers the product is the first cleared by the fda to target the 39 million person market of cluster headache and migraine sufferers in the usn and has patent coverage to 2033. revenue was up 46 last year with product reimbursement available through cvs caremark and express scripts this is a huge market that the company is just beginning to tap into remark holdings ticker mark is a 265 million dollar leader in ai solutions for business applications and that artificial intelligence theme is one of the biggest in our arc invest big ideas report arc estimates that the market cap for ai companies could grow to 30 trillion dollars over the next 16 years at a 17 annual growth rate and contribute more than the internet and i.t companies combined the company makes ai software and solutions in retail smart city and workplace safety with some real cutting edge ideas for example in retail the software produces real-time customer analytics that can be actually used to analyze a customer's path throughout the store it can then combine this with prior data and use that to guide marketing in store the company won a master contract to transform all 18 000 china mobile stores into smart stores and its biosafety solutions is being used for pandemic response with thermal imaging that can monitor the health of students in real time in the classroom this company could see huge growth in any of these segments but over the next few years that push for smart cities could really drive it being able to analyze the road traffic crime and urban planning moroni bioinnovations ticker mbi is our first penny stock under two dollars a share moroni offers a biologically based solution for crops turf protection and seed treatments as an alternative to those traditional pesticides and besides that trend to sustainability it's also benefiting from strength in the agricultural market over the last year and estimates a 7.2 billion biologicals market on 50 billion dollars in u.s organic food sales organic produce is now 15 of all u.s fruit and vegetable sales after having doubled over the last decade the company books 93 of its sales from north america but already has a strong start and expansion plans internationally sales were up 31 last year and three-year annualized growth of 28 now management is guiding to 50 million dollars in incremental sales by 2026 on a strong market only getting stronger burner technologies ticker byrn is 183 million dollar company making non-lethal protection and munitions like its flagship product that shoots a 68-caliber ball of chemical irritants that neutralizes a threat without the consequences of a conventional firearm nation i don't know if it is or if it just seems that way but the last couple of years it seems chaos is all around us and the demand for self-protection is another of those universal trends that i'm watching over the next decade the less lethal market is expected to double from 5 billion a year to 10 billion by 2025 and berna is well positioned in that civilian and law enforcement market with its 68 caliber product it's lower cost compared to tasers and bowler wrap and has a longer range than pepper spray in fact revenue surged 16 fold last year to 16 million the company has more than 4.6 million in balance sheet cash and turned cash flow positive their shares aren't cheap at 11 times on a price to sales basis but with that kind of growth this is one to put on your radar our first stock under a dollar per share is health linked corporation ticker hlyk in one of the biggest trends of last year the company provides a cloud-based network in healthcare connecting patients doctors and data patients and doctors can check their records enter symptoms and schedule all online these kinds of virtual services and software are the future of healthcare it may not replace all your doctor visits but it will replace many mobile and telehealth is already an 18 billion dollar market according to bloomberg analytics and growing at a 30 plus pace every year revenue jumped 52 last year to 6.1 million dollars after nearly doubling in 2019 and the company books multiple revenue streams through reimbursement and marketing this next stock under a dollar a share is 59 million dollar gatekeeper systems a provider of tech hardware and video solutions to the public and private markets i really like this theme and the fact that the company is in two of the biggest trends i'm watching the company is providing those video capabilities to smart cities and security as well as using its ai driven analytics to make better decisions that platform as a service model means consistently growing revenues as cities adapt to that revolution and internet of things through wirelessly connected vehicles and video monitoring sales have grown at an eleven percent annual pace over the last three years but are up over 27 in the last year so increasing there and it's a cash positive company with 1.75 million in balanced cash versus just 240 000 in total debt click on the video to the right for seven penny stocks that pay dividends seven companies that are going to pay you to invest don't forget to join the let's talk money community by tapping the subscribe button and clicking the bell notification

Channel: Let's Talk Money! with Joseph Hogue, CFA

Views: 268,523

Rating: 4.9382257 out of 5

Keywords: penny stocks, best stocks under 5, stocks under 5 dollars, cheap penny stocks, penny stocks to buy, penny stocks list, top penny stocks, best penny stocks, low price stocks, stocks under $5, penney stocks, pennie stocks, penny stocks to buy now

Id: 7B0Rr4n6e_4

Length: 15min 33sec (933 seconds)

Published: Fri Apr 16 2021