Top Penny Stocks to Watch This Week (March 12)

Today, we're bringing you the top 10 penny stocks to watch this week based on their combined 272% rise over the last week. Plus, we'll take a look at one of the best small-cap stocks you can buy to lock in your portfolio's profit potential...

Just look at the numbers posted by Jaguar Health Inc. (Nasdaq: JAGX), last week's biggest gainer. Jaguar climbed from $0.14 to $0.34 in one day - a gain of over 140%.

Jaguar's bump came after the company received conditional approval from the FDA's Center for Veterinary Medicine for Canalevia - a drug developed by Jaguar to treat the side effects of chemotherapy in dogs.

According to Jaguar Vice President Dr. Michael Guy, Canalevia's conditional approval puts the treatment on the fast track to commercial release in the near future.

"With receipt of conditional approval for this indication, we would expect to conduct the commercial launch of Canalevia for CID in dogs in mid-2019," he said.

While Jaguar's gains are exciting, they're already in the books, just like the other penny stocks to watch this week.

To help you find the next stock with the most potential, Money Morning's Small-Cap Strategist Sid Riggs has done the research to find the next big winner. We'll show you his latest stock pick after the recap of the top penny stocks to watch...

Penny Stock Current Share Price Last Week's Gain
Jaguar Health Inc. (Nasdaq: JAGX) $0.27 58.16%
Sky Solar Holdings Ltd. (Nasdaq: SKYS) $1.34 31.37%
Genesis Healthcare Inc. (NYSE: GEN) $1.55 30.65%
JRJR Networks (NYSE: JRJR) $0.16 28.01%
Durect Corp. (Nasdaq: DRRX) $1.87 27.59%
Achillion Pharmaceutical Inc. (Nasdaq: ACHN) $4.20 20.51%
CPI Card Group Inc. (Nasdaq: PMTS) $3.02 30.31%
PDL Biopharma Inc. (Nasdaq: PDLI) $3.02 19.69%
Inseego Corp. (Nasdaq: INSG) $2.22 19.05%
Rex Energy Corp. (Nasdaq: REXX) $1.05 17.57%

While these kinds of gains are impressive, they also reveal the risk that comes with investing in penny stocks.

You see, if a small-cap stock like Jaguar can gain nearly 60% in one week, it can also fall 60% in the same period of time.

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This is why penny stocks are considered highly speculative investments and are incredibly risky for the average investor. Just look at the performance of VistaGen Therapeutics Inc. (Nasdaq: VTGN) last December.

On Dec. 6, VistaGen shot up 177%, from $0.92 to $2.55. Over the next two weeks, the stock pulled back to $1.08, leaving investors who bought at $2.55 with an almost 60% loss.

Before you consider making speculative investments like penny stocks, consider our rules for safely trading penny stocks, on the right.

Rules for Safely Trading Penny Stocks

  • No more than 2% of your overall stock portfolio should consist of penny stocks.
  • Avoid stocks with average daily trading volume of less than 500,000 shares.
  • Avoid penny stocks being aggressively promoted on public discussion forums or websites not focused on investing.

Here are the top three warning signs of a shell company scam, according to the SEC and FINRA...

  • If a company has been dormant for many years and then brought back to life.
  • If a company has changed its name and, especially, business focus multiple times.
  • Check for massive reverse stock splits like 1-for-20,000 or 1-for-50,000.

While penny stocks have great profit potential, their speculative nature can be too risky for many investors. That's why Money Morning Small-Cap Specialist Sid Riggs looks for small companies with strong earnings, sound management, exciting products, and explosive profit potential.

You see, Sid is an expert in identifying companies with massive profit potential. When Sid singled out Neurocrine Biosciences Inc. (Nasdaq: NBIX) in December 2013, the company was trading at just $9.

As of March 12, the company trades for $90 - an increase of over 900%.

Sid is continuing his streak with a new small-cap recommendation. It's a company in the semiconductor industry with massive profit potential. Its revenue is currently growing at a rate of 20% a year - nearly twice the speed of the rest of the semiconductor industry.

Sid's pick also trades for less than $10 a share, giving you the affordability of a penny stock without the risk of speculation.

Here's Sid newest pick, and how it can position you to bank profits...

The Best Penny Stock to Buy Right Now

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Sid's favorite small-cap company is AXT Inc. (Nasdaq: AXTI), a semiconductor company based out of Fremont, Calif. AXT creates semiconductor chip substrates, an important component in microchips, lasers, and solar panels.

AXT's real attraction is the company's revolutionary freezing technology. AXT's freezing process makes the company's substrates almost twice as efficient as their standard counterparts.

This kind of effectiveness has allowed the company to grow its revenue 50% faster than most of the semiconductor industry.

In just the last 12 months, the company's stock has gained a staggering 78%.

However, Sid thinks investors are still missing out on AXT's true profit potential.

Over the last five years, the company has beaten quarterly earnings estimates by an average of 94.44%. Not only does Sid predict that AXT's winning streak will continue, but their earnings beats show that Wall Street is still underestimating this company's potential.

And Sid isn't the only one bullish on this semiconductor company. Wall Street analysts see AXT hitting $12, a nearly 60% gain from today's price of $8.28.

While AXT is a great play in the semiconductor industry, another new technological breakthrough is changing everything for another little-known company...

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It's a stunning breakthrough that's set to spark the most monumental life-changing transformation you'll ever see.

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And now that it's approved by the FCC, the floodgates are set to open - and could reward early investors with astronomical gains.

With one tiny company at the heart of this massive shift, even a small investment could create staggering wealth for years to come.

Continue here to learn more...

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