This week, we're bringing our readers five new picks on our best penny stocks list. All of these winners posted at least double-digit gains last week, with the top penny stock posting gains of 53%.
Every week, we update our penny stock list. In case readers missed last week's update, you can get that right here.
As a reminder for new readers, we don't typically recommend any of the stocks on our list. Since penny stocks can be risky investments, we leave it up to you to decide what stocks fit in with your personal investment strategy.
Lastly, as a bonus to our list this week, we're giving readers a free penny stock trading tip. This tip is one of the most useful ways to avoid bad penny stock investments.
We'll get to this penny stock trading tip in just a moment. But before we do, check out the best penny stocks list for this week, including the No. 1 penny stock that posted gains of 53%.
This Week's Best Penny Stocks List
Best Penny Stocks List No. 5: Lpath Inc. (Nasdaq: LPTN)
Lpath is a biotech company that makes therapeutic antibodies. LPTN rose 16% last week after it signed a merger agreement with Apollo Endosurgery on Sept. 8. LPTN is trading at $3.56 Monday intraday and is up nearly 9% year to date (YTD).
Best Penny Stocks List No. 4: Sorl Auto Parts Inc. (Nasdaq: SORL)
Sorl is an auto manufacturer that makes brake systems and other safety-related auto parts for original equipment manufacturers. SORL rose 32% last week after it reported a 24% increase in sales during the second quarter. The stock is trading at $4.37 Monday intraday and is up nearly 73% YTD.
Best Penny Stocks List No. 3: Corbus Pharmaceuticals Holdings Inc. (Nasdaq: CRBP)
Corbus is a clinical-stage pharmaceuticals company that develops therapeutics to treat rare inflammatory and fibrotic diseases. CRBP rose 37% last week, but there was no single catalyst for its rise. This usually means the stock was propped up by general investor speculation. CRBP is trading at $7.11 Monday intraday and is up 337% YTD.
Best Penny Stocks List No. 2: Alphatec Holdings Inc. (Nasdaq: ATEC)
Alphatec is a medical technology company that makes devices for the treatment of spinal disorders. ATEC rose 48% last week, but there was no single catalyst behind the surge. The stock is trading at $6.58 Monday intraday and is up 2,099% after a 1-for-12 reverse stock split on Aug. 24.
Best Penny Stocks List No. 1: Acasti Pharma Inc. (Nasdaq: ACST)
Acasti is a clinical-stage biopharmaceutical company that develops drugs to combat cardiovascular conditions. ACST rose 53% last week after it announced on Sept. 14 that one of its drugs, CaPre, has successfully met its objectives. The company is now seeking to gain approval for the drug from the U.S. Food and Drug Administration. The stock is trading at $2.02 Monday intraday and is down 20% YTD.
Now that you've seen the top penny stocks for last week, continue reading to get a free, bonus penny stock trading tip. This tip will help you avoid bad penny stock investments - and there are plenty of them out there.
The Best Tip to Avoid Bad Penny Stock Investments
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Pump-and-dump schemes are one of the most dangerous traps penny stock traders can fall into. They're a type of stock manipulation where investors are urged - through marketing or Internet tips - to buy a stock because it will allegedly move higher. The urging is often extreme, and the stock is usually described as "hot" and "too good to miss."
Sometimes, the stock will skyrocket as investors buy into the scheme. Their investment soon becomes worthless, however, after those pushing the scheme sell rapidly and take their gains.
Penny stock traders can avoid pump-and-dump schemes by sticking to the major stock exchanges, like the Nasdaq and NYSE. These exchanges require strict standards that help prevent phony marketing ploys. You can also research a company by looking over its financials, like its 10-K annual report. This report will help you find out how much money a company makes, as well as its corporate structure.
Up Next
Finding a must-have penny stock isn't easy.
Most simply aren't worth your time or money.
But this one penny stock is worth both - and it could even double your money by the end of 2016.
Check out this stock, right here...
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