The 3 Top Penny Stocks to Watch in May 2018

For investors looking for huge returns with little initial investment, penny stocks are the perfect investment for making triple-digit gains in a matter of days. To help Money Morning readers profit, we're bringing you the three top penny stocks to watch in May 2018.

Top penny stocks

While many penny stocks have great growth potential, these securities are notoriously volatile and often have little potential for returns.

In order to protect our investments, we follow five rules for investing in penny stocks - take a look at them on the right.

Based on our research, these are the three top penny stocks to watch this month...

Top Penny Stocks to Watch in May, No. 3: vTv Therapeutics Inc.

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.

vTv Therapeutics Inc. (Nasdaq: VTVT) is a North Carolina-based biopharmaceutical company.

vTv concentrates on developing orally administered, small-molecule drugs to treat a variety of issues such as diabetes and Alzheimer's disease.

As a biopharmaceutical company, much of vTv's growth lies in conducting successful drug trials on its experimental products. And vTv has several in the works.

Fast Money: This powerful secret made one man a millionaire. Now he's sharing it live on camera - find out how you could use it to become $2,918 richer in less than minute. Click here...

Among those are its phase III Part B data on Azeliragon, which is due Q2 2018, and phase II data on TPP399, due by year end 2018. There is also phase II data on TPP273 due next year.

If these tests go well and FDA approval is granted, the company's stock could soar. Analysts have a high price target of $4.00 on vTv - an increase of 82%.

While an 82% gain is exciting, it's nothing compared to our No. 2 stock to watch...

Top Penny Stocks to Watch in May, No. 2: Triangle Petroleum Corp.

Triangle Petroleum Corp. (OTCMKTS: TPLM) is a Denver-based independent energy company that explores, develops, and drills for oil and natural gas throughout the United States.

The company has leasehold interests in the Bakken Shale and Three Forks formations in Montana and South Dakota. It also offers oil services including pump rental, hydraulic pressure pumping, workover, wireline, and other midstream services.

Last month, the company's share price increased 80%, from $0.25 to $0.45.

And analysts don't see this growth slowing down anytime soon. Triangle is projected increase revenue by 28.40%. This potential surge has earned the stock a high price target of $1.00 - a gain of 122%.

However, our top penny stock to watch has gains of over 900% on the table...

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

Top Penny Stocks to Watch in May, No. 1: EyeGate Pharmaceuticals Inc.

EyeGate Pharmaceuticals Inc. (Nasdaq: EYEG) is a Massachusetts-based pharmaceutical company that develops solutions to treat eye disorders and diseases.

One of the company's most exciting developments is an ocular bandage gel that is applied topically via an eye drop. This product is currently undergoing clinical trials for post-surgical use, as well as for use in the treatment of certain eye injuries.

EyeGate has licensing agreements with several schools and other companies, such as the University of Miami School of Medicine, the University of Utah Research Foundation, and Valeant Pharmaceuticals International Inc.

In April, EyeGate announced an $11.25 million public offering of more than 35 million shares of common stock, at an offer price of $0.32. This sent share prices soaring from $0.31 to $0.64 - an increase of nearly 100%.

Analysts have an average price target of $5.67 on EyeGate - a staggering 930% increase over today's price of $0.56.

That kind of gain may seem hard to beat. However, we're looking at another profit opportunity that could put these returns to shame...

This Easy-to-Follow Blueprint Could Make You $15,000 Richer

America's No. 1 Pattern Trader used to be an average Joe scraping to get by. He never graduated from college, and he spent most of his career as a Home Depot customer service rep.

He didn't want to be stuck at a job he didn't like until he was 80 - so he taught himself how to trade. He found he had a knack for it, and he became richer than he ever thought possible.

Then he invented his patent-pending "Money Calendar," and he knew it could change people's lives.

Now, for the first time ever, he's revealing all his trading secrets and strategies - so you can amass a fast fortune for yourself.

Step by step, click by click, he'll guide you through setting up your account - and show you how to set up a series of take-it-to-the-bank payouts of $605... $822... $1,190... or $2,830... every single week.

There's no guesswork involved, and the best part is, it'll only take you 10 minutes per day! Click here now to start this once-in-a-lifetime journey...

Follow Money Morning on FacebookTwitter, and LinkedIn.