Many investors shy away from penny stocks because of their low prices and high volatility. However, the right penny stocks offer immense profit potential. That's why we're bring you our two top penny stocks to watch.
You see, penny stocks give an investor the opportunity to reap a massive profit with very little initial investment. Take Jaguar Health Inc. (Nasdaq: JAGX). On March 8, Jaguar climbed from $0.14 to $0.34 in one day – a gain of over 140%.
While this kind of gain is exciting, it also highlights the danger of investing in penny stocks.
You see, if any penny stock can climb over 140% on good news, it can also fall just as quickly on bad news.
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.
Because these investments can be so speculative, we've created a list of rules for penny stock investing, which you can see to the right.
Now, let's look at our top two penny stocks to watch right now. Our first one is a stock from the aerospace industry that is forecast to rise over 50%…
Air Industries Group Is One of Our Top Penny Stock to Watch
Air Industries Group Inc. (NYSE: AIRI) is a New York-based company focused on the manufacturing of aerostructure, complex machinery, and turbines.
AIRI's Complex Machining sector, its largest division, is made up of two subsidiaries – Air Industries Machining and Nassau Tool Works. These subsidiaries produce assemblies and essential machined components constructed from hard metals, such as 300M, Inconel, and titanium.
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Other products include everything from milled parts, to drilled pistons and honed cylinders, to turned components, as well as flight critical components, and even hydraulic cylinder testing.
In a recent announcement, AIRI's President and CEO, Daniel Godin, announced that the company is entering into a partnership with Westworld, a European manufacture based in the United Kingdom.
Westworld has been engaged in the defense and space markets for more than 30 years and has developed a strong network of contacts in the industry – key relationships that AIRI is planning to capitalize on as the company expands its global presence.
AIRI currently trades for $1.60. However, with the company eying global expansion, analysts see the company's stock heading as high as $2.50 – a gain of over 56%.
While those are solid gains, our top penny stock to watch right now has even greater profit potential.
It a biotech firm that's staring down the barrel at gains of over 1,000%…