With the top six penny stocks gaining over 100% in May, we've assembled the 10 top penny stocks to watch for June to help you keep track of this lucrative market.
Plus, we've also found the one affordable stock you need in your portfolio right now…
The top-performing penny stock in May was Blink Charging Co. (Nasdaq: BLNK), a company that develops electric vehicle charging ports. Thanks to several partnerships the company made in May, Blink stock surged an astonishing 439%.
On May 11, Blink stock gained over 100% after the company announced a partnership with the city of Miami, Fla., to install its ports in the city's garages.
Blink's Miami deal came right after a deal with Whole Foods Inc. to install similar chargers in store parking lots. Blink's surge shows just how lucrative a small company's stock can be once it achieves a few critical breakthroughs.
But Blink and our other penny stocks to watch are unlikely to continue to lock in such spectacular gains in June. After looking at our 10 top penny stocks to watch this month, we'll show you a small-cap stock with great profit potential in its future…
|Penny Stock||Current Share Price||Last Month's Gain|
|Blink Charging Co. (Nasdaq: BLNK)||$7.07||439.85%|
|Senes Tech Inc. (Nasdaq: SNES)||$1.27||175.40%|
|Vivis Inc. (Nasdaq: VVUS)||$0.77||150.41%|
|Adomani Inc. (Nasdaq: ADOM)||$1.49||137.68%|
|NF Energy Saving Co. (Nasdaq: NFEC)||$2.34||134.88%|
|Vaalco Energy Inc. (NYSE: EGY)||$2.15||109.06%|
|Heat Biologics Inc. (Nasdaq: HTBX)||$2.35||99.12%|
|ArQule Inc. (Nasdaq: ARQL)||$4.88||90.74%|
|LiqTech International Inc. (NYSE: LIQT)||$0.66||85.60%|
|Transenterix Inc. (NYSE: TRXC)||$3.46||77.84%|
While last month's gains are tremendous, they also illustrate the inherent dangers that come with investing in penny stocks.
While there are penny stocks that have the potential to generate immense returns like these, many penny stocks lack the solid underlying financials necessary to generate a significant return.
To protect our readers from any significant losses due to penny stock investing, we follow five rules for penny stock investing. Take look at them 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.
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, our top score, and it just signed a blockbuster, quarter-billion-dollar deal with oil giant Saudi Aramco.
Here's our pick…