Hot Penny Stocks: This Week’s Biggest Winner Gained More Than 1,600%

This week's hot penny stocks brought investors gains as high as 1,660% and 1,557% in just days.

hot penny stocksThat's what makes penny stock investing so alluring to so many investors. By picking the right under-the-radar - and cheap - stock at exactly the right time, they can bring home extraordinary gains in just a day or two.

However, penny stock investing is also filled with risks. Many of the stocks on this list are very illiquid, and once an investor buys in, he or she can have a very difficult time selling the stock. Likewise, stocks that trade "Over-the-Counter" (OTC) or on the Pink Sheets are not subject to the same strict financial filing standards as those on the NYSE or Nasdaq.

While the risks are real, so are the wild swings. And for investors who purchased these five stocks this week, the risks were worth the reward...

Hot Penny Stocks This Week

2050 Motors Inc. (OTCMKTS: ZEGGD) is the biggest penny stock winner this week with a gain of more than 1,660% in just several days. The company has a license to sell Chinese-made carbon-fiber electric vehicle designs in the United States and its territories. The company is owned by the Chinese auto company DongFeng Motors Corp. In the last week, the company's shares soared from just $0.25 to $4.40. That's the stock's all-time high since it went public in 2009. ZEGGD has a market cap of just $24 million.

Omega Ventures Inc. (OTCMKTS: OMVN) is a registrar for corporations whose shares are publicly traded on the Nasdaq, AMEX, OTC markets, and Pink Sheets. The company maintains shareholder ledgers and maintains certificate detail files, among other services. The stock gained an impressive 1,557% this week when it jumped from $0.06 to $1.00 per share. It must be mentioned, however, that this was the first week OMVN shares were traded since 2011, meaning the stock is very illiquid. Most likely, one shareholder purchased a large quantity of shares, driving prices up. When shares are that illiquid, it can be difficult for investors to lock in these huge gains, because they cannot find a buyer.

Those weren't this week's only big winners. Check out these three that all posted huge gains...

Colossus Minerals (OTCMKTS: COLUD) is a mining company that is looking to develop a high-grade platinum, gold, and palladium project in Brazil. The company has a 75% share in the Serra Pelada mine in the state of Para, Brazil. COLUD stock gained 410% this week and is currently trading at $0.50 per share. The stock had actually hit a 52-week high of $2.00 during the week, but has since pared its gains. The company has an incredibly small market cap, under $100,000.

Asura Development Group Inc. (OTCMKTS: IAGI) is a construction, development, and clean technology company that works in Japan. The company primarily focuses on home design and other construction businesses. This week, shares of IAGI jumped 150%, and the stock is now worth $0.05 per share. This is another micro-cap company, as its market cap is just $650,000. Based in San Francisco, the company had a profit margin of 45% in the last quarter.

Hyperdynamics Corp. (NYSE: HDY) is an oil and gas exploration company that works in the Republic of Guinea. The company controls a 77% stake in its main project in the country. Based in Houston, Texas, HDY is easily the biggest company on this list with a market cap of $57 million. In the past week, HDY shares have gained 82%, and the stock now trades at $2.73. The stock has a 52-week range of $1.13 to $7.

Do you invest in penny stocks? Which penny stock is the next to soar? Share your thoughts on Twitter @moneymorning using #PennyStocks.

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