In this article, we will take a look at some of the most successful penny stocks in 2021. This show is what made me make this warning. Due to their success in 2021, many of the stocks you will read about no longer fit even the most generous description of a penny stock.
Penny stocks have become popular with many retail investors, especially those first exposed to the stock market, whose initial exposure to the stock market may come from a trading application such as Robinhood Markets (NASDAQ:HOOD). The option to buy a large amount of shares with a smaller investment is somewhat attractive. And because of their low price, these stocks can make a strong profit even with a small price shift.
That may be true, but it brings me to my second warning. Penny stocks are among the most volatile types of investment. The possibility of large profits must be balanced with the possibility of large losses, including perhaps the entire investment. You should not invest money that you cannot afford to lose.
With these warning notes away. It’s time to look at seven-penny stocks that did well in 2021. While that doesn’t mean some or all of these stocks will repeat that performance in 2022, many of those stocks continue to stir the bullish mood of the analyst community. could be a harbinger of further growth.
- AMC Entertainment (NYSE:AMC)
- Light logic (NASDAQ:LWLG)
- SeaChange International (NASDAQ:SEAC)
- Vertex Energy (NASDAQ:VTNR)
- CES energy solutions (OTCMKTS:CESDF)
- Destination XL Group (NASDAQ:DXLG)
- Sundial growers (NASDAQ:SNDL)
Penny’s most successful stocks: AMC Entertainment (AMC)
AMC Entertainment, together with GameStop (NYSE:GME), was the original stock of the meme. Retailers exemplified the power of community and propelled one of the deepest shortcuts of all time. At one point, the AMC share was trading at a high of $ 72.62; it closed at $ 20.66 per share yesterday.
It’s hard to look at the penny stock, which grew 1,183% in 2021, as a disappointment. However, if you think AMC shares have fallen 65% from a 52-week high, investors who bought on top have a heavy bag.
But if you’re reading this, you may be wondering where AMC shares are going. If you are an investor who values earnings, it may be best to avoid AMC at this point. The the company is not profitable and is not expected to become profitable next year. However, other financial metrics, such as free cash flow (FCF) paint a more optimistic picture.
As stated, retail army (known as monkeys) who shaped the price of AMC shares have made it clear that it awaits them in the long run. With such commitment on your part, you can look at a company that is still there differently the largest operator in the world brick film plexuses.
Lighting Logic (LWLG)
The stock that worked as well as AMC, but without attention, is Lightwave Logic. Like many technology stocks, LWLG stocks have been under pressure recently. But the stock still yielded 1,500 percent last year.
Lightwave Logic manufactures and develops electro-optical polymers used in fiber optic communications. The company holds more than 50 global patents and applications, either issued or pending. It is the end of 2021 the company showed so that its technology can transfer data faster while consuming less power.
However, the technology has not yet been introduced to the commercial market. This leaves investors with the company that is not only prior earnings but prior income. And the company’s net losses continue to rise.
The community of analysts does not yet cover stocks and it is not on the radar of institutional investors. However, this may just be the type of combination that many small investors are looking for.
Penny’s most successful stocks: SeaChange International (SEAC)
Investors who know SeaChange International may be wondering if I was wrong in my years. SEAC shares were one of the big winners of the shares in 2019. The global video delivery software vendor increased 213% that year. Since the pandemic, however, the stock has recouped all these gains and was negative from 2021 to December.
In the last month of 2021, SEAC shares jumped 116%, and SeaChange recorded a respectable 14% growth throughout the year. The reason for the jump in stock prices was the announcement the reunion of the company with Triller. A merged entity that will be called TrillerVerz and will operate under ILLR Ticker will have an estimated value of $ 5 billion and wants to become a competitor to TikTok among social media creators and influencers.
If all goes according to plan, investors can expect more predictable growth this year. In fact, it is a single stock analyst has a target price of $ 3 per share, double current levels.
Vertex Energy (VTNR)
The energy sector was banned for most investors in 2020. But 2021 was a different story. And even shares of pennies like Vertex Energy have been involved in the recovery. VTNR shares rose by 538% in 2021. And despite the sale at the end of the year, Vertex Energy is starting to grow.
The company is engaged in the refined distribution and marketing of petroleum products. Specifically, Vertex is one of the leading U.S. recyclers of recycled motor oil. Given that penny stocks are usually small-cap companies, it’s no surprise that investors were intimidated when the company announced it was raising $ 155 million in debt.
But this may be the case when investors are missing a bigger story. In this case, Vertex moves away from its core business (ie motor oil recycling) and becomes manufacturer of renewable diesel fuel. And her first step in that direction is a $ 75 million purchase of a Shell refinery near Mobile in Alabama.
This could lead to a turbulent first half of the year, but if you’re willing to persevere, an average of 10 analysts suggests the stock could have 52% growth with a 12-month price target about $ 3.80 per share.
Most successful penny stocks: CES Energy Solutions (CESDF)
The second energy share, which was one of the most successful penny shares in 2021, was the Canadian oil and gas company CES Energy Solutions.
The company provides “consumable chemical solutions throughout the life cycle of the oil field” in North America. An attractive part of a company’s business is its asset model, which allows it to generate significant free cash flow (FCF).
In fact, it was this free cash flow that partly enabled the company to start issuing dividends. If this trend continues, this could provide an additional catalyst for stocks.
Remember that CESDF shares are real shares. From this writing, investors can buy shares for only $ 1.73 per share. However, shares rose 56 percent last year. Remember that these stocks only need a small increase in the share price to generate a significant percentage of profits. In average 12-month target price of the seven analysts, $ 2.34, a gain of about 37%.
Target group XL (DXLG)
Destination XL Group was one of the most successful penny stocks with more than 2,000 percent profit. Shares of a major clothing retailer began trading at just 27 cents in 2021. But by the end of the year, the stock was trading at more than $ 5 per share and this growth continued in the first month of 2022.
The company recently announced its holiday sales for 2021 and in particular comparable sales in its all-channel retail business increased compared to 2019 and 2020. This allows the company to plan total sales of between $ 500 million and $ 505 million. Although this is slightly less than the previous forecast, it still shows that the company’s recovery remains strong.
Only two analysts give a DXLG score. But the stock gets a purchase estimate with a target price of $ 9.25, an 58 percent increase from the current share level.
Most successful penny stocks: sundial growers (SNDL)
You may be surprised to see a supply of marijuana on this list of the most successful penny stocks. However, as I mentioned in the introduction, it does not take much of a price increase for investors to make a significant profit.
Retail investors made significant profits in early 2021 when SNDL shares became one of the “meme shares”. At some point in February, the stock – which started the year under $ 1 per share (literally a penny share) rose to nearly $ 3.
The stock failed to retain these gains. It also did not maintain earnings when it exceeded $ 1 per share in the summer. Nevertheless, shares strengthened in December, recording 23% growth this year. And it is this final blow that could bring shares a 2022 growth story.
The company published a proposed acquisition the largest private seller of alcoholic beverages in Canada, Alcanna (OTCMKTS:LQSIF) for about $ 346 million. Cat InvestorPlace author Ian Bezek pointed out last week if the transaction goes as expected, Sundial is likely to give an injection of much-needed revenue that can stabilize the company’s financial situation as it waits for the end of the cannabis market.
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Read more: Penny Stocks – How to earn without being deceived
At the time of publication, Chris Markoch did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.
Chris Markoch is a freelance financial author of texts that has covered the market for eight years. He has been writing for InvestorPlace since 2019.