Stein Mart Inc. (Nasdaq: SMRT) took the lion's share of gains this week, with a staggering 86% rise. Since the rest of this week's top penny stocks to watch produced modest returns, we're turning to Money Morning Small-Cap Strategist Sid Riggs for real profit opportunities...
Last Thursday (March 19), Stein Mart Inc. gained 149% after reporting strong quarterly earnings. According to company CEO Hunt Hawkins, Stein Mart's earnings were the result of an effort to reduce capital spending while expanding the company's e-commerce platform.
Stein Mart's President, Mary Ann Morin, attributed the company's success to the fact that the average store inventory was down 10% while e-commerce was up 80% for the year.
Stein Mart closed out the week at $1.53 - an 86.13% gain for the week. While gains like this are impressive, they're already in the history books. After looking at this week's list of penny stocks to watch, we'll show you the top stock Sid is currently recommending...
|Penny Stock||Current Share Price (As of March 19)||Last Week's Gain|
|Stein Mart Inc. (Nasdaq: SMRT)||$1.39||86.13%|
|Seaspan Corp. (NYSE: SSW)||$6.44||19.51%|
|Barns & Noble Inc. (NYSE: BKS)||$5.28||13.83%|
|Big 5 Sporting Goods Corp. (Nasdaq: BGFV)||$6.82||12.20%|
|DHT Holdings, Inc. (NYSE: DHT)||$3.75||7.22%|
|DryShips Inc. (Nasdaq: DRYS)||$4.12||6.09%|
|Silvercorp Metals Inc. (TSE: SVM)||$3.46||5.51%|
|Investors Real Estate Trust (NYE: IRET)||$5.01||4.22%|
|Capital Product Partners LP (Nasdaq: CPLP)||$3.25||3.13%|
|Nordic American Tanker Ltd. (NYSE: NAT)||$2.23||2.24%|
While penny stocks offer the potential of explosive gains with a share price under $5, they are also risky plays.
You see, if any penny stock can jump 149% like Stein Mart, then it can fall to $0.00 just as quickly.
BIG, FAST PROFITS: This one pick paid 100% in seven days, then 205% the next day, and 410% by the next week. You've got to see how it's done...
Just look at VistaGen Therapeutics Inc. (Nasdaq: VTGN) as an example. Last December, 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.
Events like these are why we follow five rules for safely investing in penny stocks - take a look at them on the right.
Penny stock's speculative nature can be too dangerous for many investors. That's why Money Morning Small-Cap Strategist Sid Riggs looks for stocks backed by strong underlying value and spectacular growth potential.
This is how Sid found Neurocrine Biosciences Inc. (Nasdaq: NBIX). In December 2013, the company was trading at just $9, and Sid believed it was incredibly undervalued.
Today (March 19), the company trades for over $84 - an increase of over 800%.
And Sid is continuing his streak with a new small-cap recommendation.
It's a medical products company on track to receive FDA approval for self-testing medical devices.
Here's Sid's pick...
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OraSure Technologies Inc. Is Sid's Top Small-Cap Company to Watch
Sid's favorite small-cap company is OraSure Technologies Inc. (Nasdaq: OSUR).
OraSure's central business is developing tests to detect a range of diseases such as HIV, Zika, and influenza. Plus, the company also sells popular cryosurgical products that allow people to remove and treat warts, lesions, and other unwanted blemishes.
The company's main attraction is its solid track record of quick FDA approval for its products.
In just three years, OraSure received approval for two methods to detect HCV, as well as the first at-home HIV test - something that no other company has been able to do.
Sid first recommended OraSure in February of last year, when the company was trading for $11.12 a share. Today, OraSure trades for $17.66 - a gain of over 58%.
However, Sid still thinks the stock is underrated by Wall Street, which means even more opportunity for you.
Since Q4 2016, OraSure has beaten analyst earnings report estimates by 40.5% on average. With continued growth in the healthcare industry thanks to an aging population, Sid thinks there's little reason for OraSure's performance to slow down anytime soon.
And Wall Street agrees with him. Analysts see OraSure climbing to $24 from $17.66 in just 12 months - a gain of over 35%.
But that could be too conservative, especially since Wall Street is underestimating the stock.
While these gains are impressive, there's another profit opportunity we're closely following for windfall profits...
Critical: FCC Approves Revolutionary Device
It's a stunning breakthrough that's set to spark the most monumental life-changing transformation you'll ever see.
The Washington Times says the technology behind this revolutionary innovation "will change the world on a scale hardly seen in human history."
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.