Penny stocks are a great opportunity for investors who want the potential for triple-digit returns without pouring money into expensive stocks or options contracts.
Last Thursday (May 3), VivoPower shares soared 88%. While the solar panel company stated that it had not released any news that would cause a surge in share prices, trading volume spiked ahead of the May earnings report.
As an 88% gain shows, penny stocks can generate significant returns in a short period of time.
However, VivoPower and our other penny stocks to watch this week already saw big gains. After looking at our 10 top penny stocks to watch, we'll show you a small-cap stock with serious profit potential in its future…
|Penny Stock||Current Share Price||Law Week's Gain|
|VivoPower International Plc. (Nasdaq: VVPR)||$3.05||88.57%|
|Euro Tech Holdings Co. (Nasdaq: CLWT)||$3.77||75.11%|
|Boxlight Corp. (Nasdaq: BOXL)||$6.36||65.38%|
|Chine Recycling Energy Corp. (Nasdaq: CREG)||$2.01||45.92%|
|Vivis Inc. (Nasdaq: VVUS)||$0.52||38.82%|
|HC2 Holdings Inc. (NYSE: HCHC)||$6.79||33.49%|
|Biostar Pharmaceuticals Inc. (Nasdaq: BSPM)||$2.67||32.23%|
|Turtle Beach Corp. (Nasdaq: HEAR)||$6.99||30.19%|
|Aegean Marine Petroleum Network Inc. (NYSE: ANW)||$3.30||29.24%|
|Rexahn Pharmaceuticals Inc. (NYSE: RNN)||$2.11||29.19%|
While the gains of last week's top penny stocks are exciting, it's important to note that investing in penny stocks is also incredibly risky.
Yes, there are penny stocks that have tremendous growth potential that can easily dwarf your initial investment. However, most penny stocks lack the solid underlying financials necessary to generate a significant return.
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In order to make sure we protect ourselves from any substantial losses from investing in penny stocks, we follow five rules for penny stock investing. Take look at them on the right.
In addition to following these rules, our team uses the Money Morning Stock VQScore™ to identify stocks that have real growth potential.
Our favorite small-cap stock to buy this week has a VQScore of 4 – meaning it's a stock ready to soar.
In fact, this small cap is looking at possible returns of 430%…