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Some companies become penny stocks due to listing on over-the-counter markets to raise capital. Other stocks start with a higher price, but throughout their trading history will drive down to the level of penny stock. In these cases investing in the stock is slightly safer than investing in a completely new company. That’s true as long as the reason for the stock’s loss in value is reversible.
By looking for opportunities like these, investors can potentially buy a stock at a significant discount while still retaining much of the original potential of the company. However, these comeback stories are few and far between. So, let’s consider the financial performance of these three penny stocks. As always, the risk is severe with penny stocks, so don’t put any money into them that you’re not willing to lose.
MGO Global (MGOL)
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Focused broadly on design, development, manufacturing, sales, marketing and distribution, MGO Global (NASDAQ:MGOL) is a branding company aiming to redefine marketing trends. The company claims its competitive edge is to act in an “agile & speedy approach to the market” by maintaining expertise in brand positioning and strategy. It intends to apply this approach to branding across apparel, accessories and footwear within the affordable luxury sector. Those range from business-to-business and direct-to-consumer business models.
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As a result, the company’s mission for investors is to develop widely recognized brands that can last in the ever-changing landscape of today’s branding market. On the financial side, MGOL operates on a small scale, with its revenues measured in the hundreds of thousands. Nevertheless, its Q1 revenue saw a 1384% increase year-over-year (YOY), which brought net income just $164,000 shy of profit. Therefore, MGOL is one of the higher-potential penny stocks to buy right now.
Sunshine Biopharma (SBFM)
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Sunshine Biopharma (NASDAQ:SBFM) is a pharmaceutical company devoted to developing medicines across both oncology and virology. It’s a classic biotech play among this list of penny stocks to buy. The company mainly operates in Canada through its two subsidiaries. Nora Pharma has 52 prescription drugs approved on the Canadian market. And, Sunshine Biopharma Canada develops and sells over-the-counter supplements.
For its newer medical offerings, the company is conducting testing of mRNA therapeutics for liver cancer, a protease inhibitor for SARS Coronavirus infections and a novel pancreatic cancer treatment. However, the third and most exciting of that list remains paused in development due to unfavorable in vitro results.