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3 Strategies for Trading Penny Stocks Today
As of today's trading session (Tuesday, Nov. 7), the biggest penny stock gainer of 2017 is Marinus Pharmaceuticals Inc. (Nasdaq: MRNS). Shares of the company are up 556.4% this year thanks to a medical breakthrough.
While MRNS stock is up triple-digits this year, we're not recommending it as a stock to buy right now. Here at Money Morning, we're more interested in recommending stocks with profit potential ahead of them instead of big gains behind them.
Today, we're going to show you a different stock to buy and hold for 2018. It's a company in the rapidly growing mobile banking industry. According to Money Morning Small-Cap Specialist Sid Riggs, this industry is expected to grow by a whopping 716% over just the next four years.
First, here's why MRNS is the top penny stock of 2017 so far...
Why Marinus Is the Biggest Penny Stock Gainer of 2017
About 116.3% of MRNS's 2017 rally has happened since September. That was when the company announced trials for its newest epilepsy drug were successful.
The treatment is called Ganaxolone, and it's shown to be effective against PCDH19 pediatric epilepsy and Fragile X syndrome. PCDH19 is a rare type of epilepsy that affects females during infancy or early childhood, while Fragile X is a genetic disorder that causes seizures and intellectual disability.
Ganaxolone is currently in phase 2 trials, where most patients have shown a reduction in seizure frequency. We'll be keeping an eye on MRNS the rest of the year to see if the ongoing trials move shares of the stock at all.
Marinus proves that penny stocks can offer market-crushing returns in a short amount of time. While the MRNS stock price is up 116.3% since Sept. 1, the S&P 500 and Dow Jones are only up 4.7% and 7.2% over the same period, respectively.
But as we mentioned, we don't recommend investing in MRNS stock. Its triple-digit gain this year has pushed it to its highest level since December 2015. Buying in at such a high price right now means you may not see much of a profit, even if share prices climb.
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Instead, Money Morning Small-Cap Specialist Sid Riggs is giving you one of the best small-cap stocks to invest in for 2018.
This firm operates in the mobile banking transactions market, which is set to grow 716% over the next four years. The company also offers one of the best cybersecurity products out there for mobile banking.
While shares of the company trade near $13 - slightly more expensive than your average penny stock - its dominance in the exploding mobile banking industry make it more than worth the extra cash...
This Is One of the Best Stocks to Buy Right Now in Mobile Banking
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VASCO Data Security International Inc. (Nasdaq: VDSI) is the best way to profit from the rise in mobile banking transactions.
VASCO provides encryption services for companies that offer or use digital and mobile banking. Its most popular services include electronic signatures and mobile app security. The company's 10,000-plus customers include healthcare companies, government agencies, and multinational banks, including BCR, which is Romania's largest bank by clientele.
Sid likes VASCO's main product, DIGIPASS for Apps, which rolled out behavioral, fingerprint, and face authentication in May 2016. By recognizing a person's distinct physical features, DIGIPASS ensures only the intended user can access the banking data. In the past, a hacker could guess a user's password or trick them into divulging it.
This has singled out DIGIPASS as one of the best personal cybersecurity products out there, even earning a 2017 Global Excellence Award from leading security publication Info Security Products Guide.
The growth of mobile banking will let the company expand its customer base and rake in more profits. Analyst data compiled by Yahoo Finance shows that VASCO's yearly revenue could rise from an expected $185.7 million in 2017 to $192 million in 2018.
This will likely lead to a rebound in the VDSI stock price. Shares are down 2.4% this year to $13.32, as revenue has dipped 8.2% from Q1 to Q2. But we think that makes now a great time to buy at a discount before shares climb back up in 2018.
Stocks like VASCO are great ways to "ride" the booming mobile banking market for a mere $13 per share. Money Morning Chief Investment Strategist Keith Fitz-Gerald has been researching even more aggressive income potential, too. He's found a special class of investments he calls "26(f) programs," which give investors the opportunity to tap into huge monthly income - $2,000... $5,000... or more - every month for the rest of their lives. Click here to learn how it works...