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As the broad-based S&P 500 Index toyed with a new record, a number of penny stocks this week are also hitting record highs.
Several equities that began the year as penny stocks, defined as shares that trade for under $5 each, no longer fit into that category.
Chelsea Therapeutics International Ltd. (Nasdaq: CHTP) started 2014 at around $4 a share. Shares surged to 52-week high of $6.83 this month after receiving fast-track approval from the U.S. Food and Drug Administration (FDA) for its drug Northera to treat a rare form of low blood pressure.
Shanda Games Ltd. (Nasdaq ADR: GAME) began the year at $4.54 and is currently trading close to $7. In late January, the company received a non-binding proposal to take the company private for $6.90.
Rite Aid Corp. (NYSE: RAD) was trading right around $5 in early January, rising from $1.57 a year earlier. Shares have since risen to $6.72 as the pharmacy chain works on a turnaround. Helping RAD reach its year-to-date high of $6.87 was an expansion of its distribution agreement with McKesson Corp. (NYSE: MCK).
It's double- and triple-digit gains like those that lure investors to this lucrative, yet risky, group. For those able to handle the risks that come with investing in penny stocks, the rewards can be bigger and faster than other investments.
Following are four micro-cap stocks that have soared this week in price and volume. These are names you'll definitely want to add to 2014's penny stocks to watch list.
Penny Stocks to Watch 2014
Dynasil Corp of America (Nasdaq: DYSL) soared 55.17% to $1.89 intraday Monday. Shares of the Waretown, Mass.-company closed the session at $1.76, up 45% on brisk volume. Sending shares higher was an announcement that tiny DYSL entered into an agreement with giant L-3 Communications Holdings Inc. (NYSE: LLL) for the supply of high-quality optical components. Dynasil develops, manufactures, and markets detection, sensing, and analysis technology products for medical, industrial, and homeland security/defense sectors in the United States and internationally. Over the last 52 weeks, DYSL has traded as low as $0.40 and as high as $2.24.