Are Penny Stocks Really Good for the Investment purpose

What are Penny Stocks?

Penny stocks are generally considered those stocks which trade in a singledigit or penny price or those which have a very low Market Capital. Because ofvery low price, such kind of stocks are easily able to rise multifold timeswhen a strong buying interest comes into that stocks. However, because of lowprice, they are able to decline by a great percentage also when someone sellthese stocks in a good quantity.Generally, a stock trading in penny price could be due to either very smallsize of the company, collapse of the business which resulted into heavydecline in shares, or financing problems. Whatever the reason is, we shouldremember that such kind of shares always carry good amount of risk and somecarries huge risk also. Risk of losing major part or even whole amount of theinvested money is always there.In Indian Stock Market, many stocks are trading in Penny prices. But not allof them really worth for taking big risk. I have taken a look at most of theliquid Penny stocks and curated a list of Top Penny stocks for investors wherethey might have some chances of earning good amount of money. If you lovetaking Huge Risk for Big returns (Risk hai to Ishq hai 😏), then you may take alook at these stocks….

List of Best Penny Stocks to Buy in India

Company Name| Share Price (on 16/9/21)| Market Capital (in crore)| Book Valueper Share —|—|—|— Reliance Power| ₹14| ₹4,767 cr| ₹36 Jaiprakash Power| ₹4.35| ₹2,961 cr| ₹9.5 South Indian Bank| ₹10.8| ₹2,254 cr| ₹27.8 Vodafone Idea| ₹11.2| ₹32,400 cr| ₹(-13.3) HCC| ₹10| ₹1,522 cr| ₹(-8.7) Dish TV| ₹19.8| ₹3,655 cr| ₹14.6 KM Sugar Mills| ₹26.6| ₹243 cr| ₹23.2 Alankit Ltd| ₹16.2| ₹232 cr| ₹6.6 Piccadilly Agro Industries| ₹20.8| ₹197 cr| ₹19.6 Orient Green| ₹3.3| ₹246 cr| ₹6 Genus Paper & Board| ₹10.2| ₹261 cr| ₹14 MSP Steel & Power| ₹10| ₹385 cr| ₹7.96 ISMT| ₹28.4| ₹410 cr| ₹(-99) Jayaswal Neco Industries| ₹20.4| ₹1,312 cr| ₹(-21) GTL| ₹16.3| ₹256 cr| ₹(-472) ASI Industries| ₹16.6| ₹150 cr| ₹39 Syncom Formulations| ₹6.01| ₹475 cr| ₹2.37 Pritika Auto| ₹17.3| ₹154 cr| ₹14.4

Jayaswal Neco Industries

Jayaswal Neco Industries is engaged in the manufacturing and supply of Ironand Steel castings. It is specialized in the manufacturing of grey ironcastings for railway tracks, brake blocks, bearing plates and municipal/publicworks castings such as soil/rain water pipes and fittings, manhole covers,etc. Production facilities of company situated in Nagpur, Bhilai, and Anjora.

Reliance Power

Reliance Power or Rpower is a part of Anil Dhirubhai Ambani Group. Company hasbeen established to develop, construct and operate power projects both inIndia as well as internationally. The company has close to 6000 MW ofoperational power generation assets. Reliance Power’s projects portfolio alsoincludes 3,960 MW Sasan Ultra Mega Power Project (Madhya Pradesh). UMPPs are asignificant part of the Indian Government’s initiative to collaborate withpower generation companies to set up 4,000 MW projects to ease the country’spower deficit situation.

Are Penny Stocks Really Good for the Investment purpose?

Some Penny stocks tend to move for only a short period of time. When they havemoved quite good in recent months, they could easily see a downward pressurefrom their highs. However, there could be some Good Penny shares which keepsmoving higher in long term and eventually turns into a 3 digit stock in thefuture!Considering these things, it would be a good decision to book some or half ofyour profits at higher levels whenever your Penny stock has seen a good rally.If your stock reversed and came down again, you will be able to protect yourprofits. In case, the Penny stock continued to climb and turns out to be aReal MULTIBAGGER, then you will still have half quantity of shares to enjoythe journey.

How Risky Penny Shares could be?

Penny shares are one of the riskiest category of stocks in the Stock Market.It is because they have a low price and any significant buying or selling caneasily bring Big changes to them. Another reason which makes them risky istheir businesses. Penny shares are trading in Penny prices because eithertheir business size is small or they are going through tough financialconditions.In past, there are examples of Penny stocks when the downfall was upto 60-90%within a few months! Additionally, many penny shares could be trading incircuits which generally makes the buying and selling process of shares littleharder in them.

Shares that are available between 1 to 10 rupees

In recent months, whole category of Penny Stocks has seen a great rally. ManyGood stocks which were trading below Rs 10 are no longer available at thisprice. But still, there are some good stocks trading below Rs 10. Here are thenames of them. * Jaiprakash Power * Syncom Formulations * Genus Paper & Boards * Vodafone Idea * South Indian Bank

Best Penny Stocks Available below Rs 20

Along with shares mentioned above, these are the stocks available below Rs 20in India. * Alankit Limited * Reliance Power * ASI Industries * Dish TV * Pritika AutoIf you want to know the names of more low price stocks, you can also checkthis article Best under 50 Stocks in India. In article, some good low pricestocks have been mentioned that are available below Rs 50. However, these arenot the Penny stocks. But as compared to Penny Stocks, these under 50 stockshave a lower risk.

Current & Former Biotech Penny Stocks To Watch Right Now

When it comes to hot sectors to watch in the stock market this year, biotechis definitely one that comes to mind. Thanks to excitement stemming fromcountless penny stocks, the mix of volatility and trading action have focusedon the biotech space. Working in tandem, the speculative market conditionslend themselves to the potential of the companies within the space.Essentially, when you think about penny stocks, a few things come to mind.First and foremost, we’ve got to think about early-stage companies. These areusually in pre-revenue or early revenue phases. Biotechnology is easily one ofthe most pronounced industries investors look at for these types ofopportunities. Essentially, we’re talking about companies in stages ofdevelopment that are pre-commercialization.Why would anyone invest in biotech penny stocks, to begin with? A few anglescan be considered. First, the development of treatments from the ground up isone direction to take. This is something we saw happen over the last year withNovavax (NASDAQ: NVAX), for instance. Shares were trading below $5 a share asthe pandemic rolled in. The company took its coronavirus vaccine candidatefrom an idea to a proof of concept and then gained approvals to potentiallycompete with Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA). So you could markthis as the first former penny stock to watch in July. Below we’ll discuss 7others that have gained momentum in June so far.

Biotech Penny Stocks & Potential For M&A

Then you’ve got the other side of the coin where a company develops atreatment or biologic technology to a stage where it becomes a target for atake-over. This is where we’ve seen companies in clinical stages getting eatenup by leading biotech companies. For example, global pharmaceutical companyServier acquired Agios Pharmaceuticals’ oncology business, including itscommercial, clinical, and research-stage oncology portfolio, for up to $2billion.[READ MORE] 10 Penny Stocks to Watch as DogeCoin and Bitcoin Push UpMerck (NYSE: MRK) bought cancer drug research company VelosBio Inc. fromPappas Capital and other investors for $2.75 billion. Furthermore, lastSeptember, Gilead Sciences (NASDAQ: GILD) acquired Immunomedics for a cool $21billion to gain access to a breast cancer treatment, Trodelvy.With this in mind, there are several current and former penny stocks that’vegained the interest of traders this year. Are they the best biotech stocks tobuy now? I’ll leave that answer up to you to decide. 2. GT Biopharma Inc. (NASDAQ: GTBP) 3. Entera Bio Ltd (NASDAQ: ENTX) 4. Orphazyme (NASDAQ: ORPH) 5. Ocugen inc. (NASDAQ: OCGN) 6. Bellerophon Therapeutics (NASDAQ: BLPH)

Hot Penny Stocks To Watch: GT Biopharma Inc. (NASDAQ: GTBP)

GT Biopharma has been on the rise ever since late last year. A mix of soundleadership and a novel treatment technology have captivated the attention ofboth retail traders and analysts alike. GT’s TriKE treatment platform hasbecome the backbone of its therapeutic pipeline.The company’s solid tumor TriKEs are under evaluation for breast, lung,gastric, colorectal, and ovarian cancer indications. These are cancersexpressing HER2 (GTB-6550), PD-L1 (GTB-4550), and B7H3 (GTB-5550). GTBiopharma’s lead treatment candidate, GTB-3550, is in Phase 1/2 trialstargeting acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS).This week the company released new data on its Phase I/II trial for GTB-3550.Anthony Cataldo, GT Biopharma’s Chairman and Chief Executive Officerexplained, “We have now completed treatment of eleven patients. In addition tostrong safety results, we have seen significant reductions in CD33+ cancercells in four of the last seven patients (57%) treated with doses of GTB-3550ranging from 25mcg/kg/day to 150mcg/kg/day. This early sign of CD33+ target-specific cancer cell killing is very encouraging as we begin to focus ontransitioning to the expanded efficacy part of the current GTB-3550 clinicaltrial.”Considering the attention that cancer stocks have received lately, it makessense that GTBP stock has gained attention. Roth Capital, B. Riley, and HCWainwright all have to Buy ratings on GT Biopharma and price targets rangingfrom $21 to $25 for the former penny stock.

Are Penny Stocks On Your Watch List Right Now?

A few other biotech penny stocks to watch right now include: 7. Clearside Biomedical (NASDAQ: CLSD) 8. Syros Pharmaceuticals Inc. (NASDAQ: SYRS)Both have seen a reversal in trend recently and have interesting updates thatwere released in the last few weeks. Thanks to the excitement in the biotechspace, penny stocks remain a core focus for retail traders right now. Will anyof these current or former stocks under $5 be on your watch list heading intoJuly?Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP)Midam has been paid $150,000 for a period from March 1, 2021, to April 1,2021. This compensation is payment 1 of 12 as part of a 12-month agreementbetween Midam Ventures LLC & GT Biopharma (GTBP), for a period from March 1,2021, to February 28, 2022. Midam Ventures LLC expects to be paid $150,000 permonth for a total of 12 months by GT Biopharma (GTBP). Midam has been paid anadditional $150,000 for a period from April 2, 2021, to May 1, 2021. Thiscompensation is payment 2 of 12 as part of the Agreement. Midam has been paidan additional $150,000 for a period from May 2, 2021, to June 1, 2021. Thiscompensation is payment 3 of 12 as part of the Agreement. Midam has been paidan additional $150,000 for a period from June 2, 2021, to July 1, 2021. Thiscompensation is payment 4 of 12 as part of the Agreement. We may buy or selladditional shares of GT Biopharma (GTBP) in the open market at any time,including before, during, or after the Website and Information, to providepublic dissemination of favorable Information about GT Biopharma (GTBP). ClickHere For Full Disclaimer* * ** * *Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146|

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