In this article, we discuss 10 penny stocks with upcoming growth catalysts. If you want to skip our detailed discussion on penny stocks, go directly to 5 Penny Stocks with Upcoming Growth Catalysts.
Penny stocks typically represent small companies that are either just getting started or are struggling to grow their business. These stocks often display a high level of volatility and risk, and are usually priced under $5, but these companies also tend to have monumental growth plans and strong forthcoming catalysts that can support major share price appreciation. Penny stocks are usually preferred by retail and amateur investors, who are looking to indulge in inexpensive trades that offer the potential for increasing their wealth many times over.
Although there is always a risk of fraud and losses when trading in penny stocks, there is also the potential for exorbitant gains if the companies go on to be listed on large exchanges. During the peak of the COVID-19 pandemic, the trading platform Robinhood Markets, Inc. (NASDAQ:HOOD) normalized retail investing amid nationwide lockdowns, and individuals who had no means of leisure activities used the platform to trade in penny stocks, which were attractive to amateur traders owing to their ridiculously cheap prices and the chance of high returns that they offered regardless of the stock’s underlying fundamentals.
Penny Stocks in 2022
After trying their luck with meme stocks and cryptocurrencies, retail investors flocked to penny stocks in 2021. However, on February 23, 2022, Finra, the regulator of brokerage firms and exchange markets, stated that penny stocks were trading 70% lower than the all-time high they reached last February. As the stock market becomes more volatile in the wake of the Fed raising rates, inflationary pressure, and the Russia-Ukraine war, both retail and institutional investors gravitate towards larger companies, given the stability of their performance and strong fundamentals which will help them survive turbulent economic conditions.
Jason Paltrowitz, the executive vice president at OTC Markets Group, told Financial Times that there is a definitive “leveling off” in trading activity from those investors who “just had extra money sitting around”. However, in 2022, over-the-counter trading levels remain above pre-pandemic activity, and he expects this “new normal” level to persist into the future.
In addition to buying shares of Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Visa Inc. (NYSE:V), investors should remain on the lookout for penny stocks with strong growth catalysts, as these companies sometimes tend to explode and benefit shareholders when they least expect it.
Our Methodology
We selected these penny stocks based on the growth catalysts associated with the companies, which are priced under $5 as of March 14. For further context for investors, we have mentioned the business fundamentals for the companies and their upcoming endeavors which could potentially increase future earnings and revenue.
Note: All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.
Penny Stocks with Upcoming Growth Catalysts
10. MariMed Inc. (OTC:MRMD)
Number of Hedge Fund Holders: N/A
Share Price as of March 14: $0.7254
MariMed Inc. (OTC:MRMD) was incorporated in 2011 and is headquartered in Norwood, Massachusetts. MariMed Inc. (OTC:MRMD) cultivates and markets medicinal and recreational cannabis products in the United States and internationally. MariMed Inc. (OTC:MRMD)’s cannabis products are sold under three brands: Nature’s Heritage, Kalm Fusion, and Florance.
With its eyes on growth initiatives heading into 2022, MariMed Inc. (OTC:MRMD) purchased two cannabis businesses in January, Kind Therapeutics U.S.A. and Green Growth Group. These businesses are licensed to distribute cannabis products in Maryland and Illinois, furthering MariMed Inc. (OTC:MRMD)’s distribution network.
The company disclosed on March 8 plans to acquire a provisional dispensary license from Green House Naturals LLC, which will be situated in Beverly, near the Boston metropolitan area. This will be the second cannabis retail operation in Massachusetts by MariMed Inc. (OTC:MRMD), and it will be open for business in the second half of 2022. MariMed Inc. (OTC:MRMD) also plans to develop a third cannabis dispensary in 2022.
MariMed Inc. (OTC:MRMD) is a good bet for traders who are looking to invest in the cannabis market, and this penny stock can diversify portfolios which normally consist of names like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Visa Inc. (NYSE:V).
9. MDM Permian, Inc. (OTC:MDMP)
Number of Hedge Fund Holders: N/A
Share Price as of March 14: $0.149
MDM Permian, Inc. (OTC:MDMP) is a Texas-based company engaged in oil and gas drilling across the Midland Basin of West Texas. Priced at $0.149, MDM Permian, Inc. (OTC:MDMP) made it to our list of penny stocks with upcoming growth catalysts, given its plans to drill a well in the Irion County of Texas.
The drilling by MDM Permian, Inc. (OTC:MDMP) is expected to commence in the last week of April, according to March 8 reports. The target zone displays high permeability and oil saturation. Over the life of the well, 100,000 barrels of oil can likely be extracted, which is a lucrative prospect for MDM Permian, Inc. (OTC:MDMP). The potential upside for earnings in 2022 is significant given the expectations for this project.
8. Goodbody Health Inc. (OTC:GDBYF)
Number of Hedge Fund Holders: N/A
Share Price as of March 14: $0.0425
Goodbody Health Inc. (OTC:GDBYF) is a wellness company that has combined diagnostic testing technology with modern equipment to deliver laboratory-style testing to patients. The company gained recognition when it set up COVID-19 testing clinics for travelers.
On March 10, Goodbody Health Inc. (OTC:GDBYF) announced that its unaudited revenue for FY2021 came in around C$29 million ($22.81 million), which is 8-times more than its 2020 revenue. While COVID-19 testing rates are dropping in 2022, the company reported that it is still performing well in Q1 and expects to close the year profitably, owing to the blood testing technology and other medical services provided through the Goodbody Health Inc. (OTC:GDBYF) clinic network. The company is also setting up new clinics to make up for the lower PCR testing revenue, which will carry out cardiovascular and diabetes testing.
7. Jones Soda Co. (OTC:JSDA)
Number of Hedge Fund Holders: N/A
Share Price as of March 14: $0.64
Jones Soda Co. (OTC:JSDA) is a beverage company that was founded in 1986 and is headquartered in Seattle, Washington. Jones Soda Co. (OTC:JSDA)’s portfolio of drinks includes non-carbonated beverages, cane sugar cola, and sugar-free sodas. Its customers are primarily located in the United States and Canada.
Jones Soda Co. (OTC:JSDA) reported on February 15 that it has completed the previously announced acquisition of all the issued and outstanding common shares of Pinestar Gold. This is an important step towards Jones Soda Co. (OTC:JSDA)’s planned expansion into the cannabis sector. The company will dive into the cannabis-infused beverages and edibles business lines with the acquisition of Pinestar. The acquisition will also allow Jones Soda Co. (OTC:JSDA) to be listed on the Canadian Securities Exchange, pursuant to a few conditions.
On April 1, Jones Soda Co. (OTC:JSDA) will launch a range of cannabis-infused sodas, gummies, and syrups in California under the Mary Jones brand. This is a major step for Jones Soda Co. (OTC:JSDA), since California is home to a legal cannabis market worth approximately $4 billion.
Institutional investors disclosed their positions in Jones Soda Co. (OTC:JSDA) as the end of the fourth quarter of 2021 last month. According to Insider Monkey’s data, Private Capital Advisors, Inc. owned 83,000 shares of the company, worth $61,000, while Emerald Advisers Inc reported holding 74,124 shares valued at $54,000.
6. Livewire Ergogenics Inc. (OTC:LVVV)
Number of Hedge Fund Holders: N/A
Share Price as of March 14: $0.0062
Livewire Ergogenics Inc. (OTC:LVVV) is a company that acquires and manages special purpose real estate properties to cultivate cannabis products for medical and recreational use in California. Priced at $0.0062, Livewire Ergogenics Inc. (OTC:LVVV) is a notable penny stock with upcoming growth catalysts.
The company reported on March 1 that it has completed the previously announced acquisition of Makana Ola Farms based in Humboldt, California. This acquisition will add a strong cultivation facility to Livewire Ergogenics Inc. (OTC:LVVV)’s portfolio of assets, where eco-friendly and sustainable cannabis products can be grown. The cannabis products handcrafted at Makana Ola Farms will be widely marketed by Livewire Ergogenics Inc. (OTC:LVVV) and distributed to customers via its affiliate companies.
Investors who cannot afford to acquire positions in Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Visa Inc. (NYSE:V) can begin their trading journeys with penny stocks like Livewire Ergogenics Inc. (OTC:LVVV).
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Disclosure: None. 10 Penny Stocks with Upcoming Growth Catalysts is originally published on Insider Monkey.
