In this article, we discuss the 10 penny stocks with upcoming growth catalysts. If you want to skip our detailed analysis of these stocks, go directly to the 5 Penny Stocks with Upcoming Growth Catalysts.
Penny stocks generally slip under the radar in conversations around the stock market despite the fact that they have come to command great bearing on the overall dynamics in the finance world. Retail investors, who are pouring hundreds of billions of dollars into equities, generally favor investing in cheap but risky options, a profile that fits penny firms very well. According to industry regulator FIRNA, in February, at the height of the retail investor frenzy at the market, there were 1.9 trillion transactions on the over-the-counter markets, up 2,000% year-on-year.
These markets generally trade in penny stocks. The explosive growth was facilitated by trading applications like Robinhood. Millions of users now have registered accounts with these brokerages. There has also been an increase in the average daily trading volume, attesting to the greater influence of retail investors and penny stocks on the overall market. Business news publication CNBC reported earlier this year that the average daily volume of the market stood at over 14 billion in January this year, up from 7 billion in 2019.
Retail investors often use the Reddit platform to exchange investment ideas. Reddit threads have been choked with discussions related to penny stocks. There are also threads filled with mentions of more expensive and disruptive firms. Some of the stocks presently popular on Reddit include Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA), among others.
The increased interest in penny stocks has also led to concerns about the rise in pump and dump schemes. In a pump and dump scheme, promoters, who can easily push a stock on investors through blatant manipulation of news on social media, quietly buy the stock and sell it to unsuspecting investors. Since the stock is devoid of any basic business fundamentals, it quickly drops in value, resulting in almost instant losses. It would not be an exaggeration to state that these new market forces are fast transforming the world of finance.
Our Methodology
With this context in mind, here is our list of the 10 penny stocks with upcoming growth catalysts. They were picked keeping in mind the upcoming growth catalysts for the companies. Some of the best penny stocks with long-term growth potential were selected for the final listing.
The hedge fund sentiment around the stocks was gauged using data of 873 hedge funds tracked by Insider Monkey. The analyst ratings of the companies and their basic business fundamentals are also discussed to provide readers with some more context for their investment decisions.
Why use hedge fund sentiment to choose stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Penny Stocks with Upcoming Growth Catalysts
10. Kontrol Technologies Corp. (NEO: KNR.NE)
Number of Hedge Fund Holders: N/A
Kontrol Technologies Corp. (NEO: KNR.NE) is placed tenth on our list of 10 penny stocks with upcoming growth catalysts. The company provides energy efficiency solutions to commercial consumers and is headquartered in Canada.
Kontrol Technologies Corp. (NEO: KNR.NE) has projected solid growth in the coming months on the back of increasing popularity of Kontrol BioCloud, a real time air quality monitoring and aerosol detection device that has already attracted a lot of enterprise interest. The device can detect COVID at a low particulate level, allowing evacuations in tight spaces before infection.
Kontrol Technologies Corp. (NEO: KNR.NE) has reportedly signed distribution agreements for the new product with Marshall Communications and Steelcase. The firm has said it will produce 20,000 units of the product per month, which, at a price of $12,000 per unit, could equate to $240 million in revenue every thirty days.
Just like Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA), Kontrol Technologies Corp. (NEO: KNR.NE) is one of the stocks attracting the interest of investors because of the long-term potential it offers.
9. Patient Access Solutions, Inc. (OTC: PASO)
Number of Hedge Fund Holders: N/A
Patient Access Solutions, Inc. (OTC: PASO) is ranked ninth on our list of 10 penny stocks with upcoming growth catalysts. The firm markets healthcare and financial processing solutions, mostly for the dental industry. It operates from New York.
Patient Access Solutions, Inc. (OTC: PASO) recently announced that it had completed the acquisition of Tela Mental Health, a firm that provides telephonic consultation, online therapy, and referral services for mental health problems.
Patient Access Solutions, Inc. (OTC: PASO) is expected to benefit from the purchase in the coming weeks as it plans to achieve more than 10,000 participants over a period of six months and grow gradually.
In addition to Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA), Patient Access Solutions, Inc. (OTC: PASO) is one of the stocks commanding attention in the finance world based on its growth trajectory.
8. PowerBand Solutions Inc. (OTC: PWWBF)
Number of Hedge Fund Holders: N/A
PowerBand Solutions Inc. (OTC: PWWBF) is a Canada-based technology firm that provides software and financing services. It is placed eighth on our list of 10 penny stocks with upcoming growth catalysts.
Led by growing lease originations, PowerBand Solutions Inc. (OTC: PWWBF) has recorded a surge in revenue over the past few weeks, reporting a 56% month-on-month increase in revenue at the end of August with a gross margin of 50%.
PowerBand Solutions Inc. (OTC: PWWBF) is expected to continue on this growth trajectory as it adds more dealers to its network. Kelly Jennings, the CEO of the firm, said last month that the market was only waking up to the significant synergies the firm had developed across business segments.
Along with Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA), PowerBand Solutions Inc. (OTC: PWWBF) is one of the stocks trending on internet platforms as users discuss the growth catalysts related to the firm.
7. Reliq Health Technologies Inc. (TSX: RHT.V)
Number of Hedge Fund Holders: N/A
Reliq Health Technologies Inc. (TSX: RHT.V) is a Canada-based firm that markets healthcare technology solutions and mobile software services. It is ranked seventh on our list of 10 penny stocks with upcoming growth catalysts.
Reliq Health Technologies Inc. (TSX: RHT.V) will likely post the first ever profit in the earnings report due at the end of the third quarter of 2021, according to Lisa Crossley, the CEO of the company. It also expects to enroll 4,000 new chronic disease patients to a remote-monitoring patient platform this year.
Since chronic diseases account for 70 to 80% of US healthcare spending, Reliq Health Technologies Inc. (TSX: RHT.V) stands to benefit from the program in the long run. It has also recently announced the addition of HIV care services to its iUGO care platform.
Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA) are some of the most popular high growth stocks, just like Reliq Health Technologies Inc. (TSX: RHT.V).
6. Hydro Power Technologies Inc. (OTC: PYBX)
Number of Hedge Fund Holders: N/A
Hydro Power Technologies Inc. (OTC: PYBX) is placed sixth on our list of 10 penny stocks with upcoming growth catalysts. The firm provides renewable energy solutions to business clients and is headquartered in Canada.
Hydro Power Technologies Inc. (OTC: PYBX) recently revealed that it had signed a joint venture agreement with Middle East Solutions and Technologies for Energy and Environment, a Lebanese renewable energy firm, for three solar projects for the Lebanon government.
The projects will be completed between 2021 and 2026 and are expected to give the share price of Hydro Power Technologies Inc. (OTC: PYBX) a boost in the coming months. Michael Shamber, the president of the Canadian firm, has said he is “very pleased” with the agreement.
Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices, Inc. (NASDAQ: AMD), Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Limited (NYSE: BABA), and NVIDIA Corporation (NASDAQ: NVDA) are some of the top stocks in the market, just like cheaper options like Hydro Power Technologies Inc. (OTC: PYBX).
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Disclosure. None. 10 Penny Stocks with Upcoming Growth Catalysts is originally published on Insider Monkey.
