Could These Top Penny Stocks Post 100%+ Gains?
With equity indices approaching all-time highs, are you struggling to find cheap stocks? Maybe you should try sifting through the market’s discount bin, aka penny stocks. To help investors get started, I’ve identified my top penny stocks to watch in 2016.
Screening hot penny stocks can be a great source of investment ideas. After all, it’s much easier for a $1.00 stock to double to $2.00 than for a giant company like Berkshire Hathaway to make the same move and double from $300,000 to $600,000. Even better, the price tags on penny stocks are usually too small to draw much attention from Wall Street. This creates an opportunity for retail investors who are willing to sift through a lot of chaff to find a top penny stock.
For those who don’t mind shopping the stock market’s bargain rack, you can find some outright steals by investigating penny stocks. Let’s get started.
1. Sandstorm Gold Ltd.
Streaming metal companies are my favorite way to invest in the mining business. You could think of them like loan sharks of the resource industry. These firms front miners with the cash they need to finance new projects in exchange for royalties on future production. This business model is less risky and far more profitable than building and operating a mine.
However, even top-tier names like Sandstorm Gold Ltd. (NYSEMKT:SAND) have been crushed by the recent sell-off in gold prices. Having said that, a host of new royalty deals coming online in 2016 could send this penny stock soaring in the New Year.