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Today's best pest penny stock to buy is getting hedge fund interest. This could send its price rocketing as high as 158% in a matter of weeks.
Most institutions have specific guidelines that do not allow them to invest in stocks that trade for less than $5 a share. However, hedge funds and other traders that are not managing huge pension or endowment funds do not have these restrictions and can jump into low-priced stocks they find attractive.
At the end of the day, it is institutional buying power that pushes stocks higher over time. As long as management is performing, the funds will keep buying. If its buying pressure pushes the stock over $5, we can see a massive spike in volume as the formerly restricted funds jump in as buyers.
Tracking increases in institutional buying can help us identify penny stocks with the potential to soar as hedge fund buying pushes the shares over the $5 level, allowing bigger funds to get involved. It is the buying of the big funds along with fundamental improvement in the business that can combine to produce massive returns.
Here are a few top penny stocks that could double your money or more...
AI Penny Stock Getting VC Attention
Amyris Inc. (NASDAQ: AMRS) is an example of a stock where hedge funds and other buyers are expressing an interest with their cash. The company considers itself a science and technology leader in the research, development, and production of pure, sustainable ingredients for the Health and Wellness, Clean Beauty, and Flavors and Fragrances markets.
The driver here for potentially huge gains is that Amyris has a head start over competitors when it comes to developing molecules that can be used in beauty products, flavoring, fragrance as a well as a host of potential medical applications.
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Amyris uses artificial intelligence and machine learning to improve the process, and we should see a steady flow of new products that can be used in a growing list of products.
There is even talk of using one of their molecules in preparing the billions of doses of vaccines for COVID-19 and flu.
Hedge funds are starting to take notice of this stock. In the third quarter, funds increased their buying of the company by 37% in the third quarter of 2020.
It is worth noting that one of the most successful venture capital investors, John Doerr of Kleiner Perkins, is one of the company's largest shareholders. He bought another 13.8 million shares in that quarter.
One of the Penny Stocks in Media
Eros STX Global Corp. (NYSE: ESGC) is another low-priced stock that has the potential for enormous gains. The company has film and television all over the world with significant operations in Hollywood and India.
It was created in July by the merger between Eros Now and STX Entertainment. Eros is one of the largest Indian players and premier studios, and STX Entertainment is one of the fastest-growing independent media companies in the United States.
With a vast presence in fast-growing markets like India and China, and a huge presence in mature markets like the United States, this company has massive growth potential in a content starved world.
COVID-19 has changed how we get our entertainment. And Eros STX looks to be one of the global winners in this upheaval of the entertainment industry.
Institutions have noticed as institutional ownership increased substantially in the third quarter. Buyers include private equity firm TPG and legendary hedge fund investors like Citadel.
Now, here's a penny stock with 158% growth potential.