Penny stock investments can be an excellent option for investors who are new to the stock markets since it gives them the option of possibly making substantial returns from a small investment. However, it needs to be kept in mind that penny stocks are generally volatile in nature, and investors need to be careful with their choices.
The markets, however, bounced back on Tuesday, and that could be an opportunity for investors to considering having a look at some of the penny stocks that recorded gains. Here is a closer look at four penny stocks that could be tracked.
Penny Stocks Making Investors Rich This Week #1 GameStop
One of the penny stocks that made a handsome move this week is that of video game retailer GameStop (GME Stock Report). On Monday, it emerged that Scion Asset Management had acquired additional shares in the company. The development was revealed after Scion made a securities filing at the Securities and Exchange Commission.
Scion is run by the celebrated investor Michael Burry, and with the latest stock purchase, the fund has taken its stake in the company to 5.3%. The latest development proved to be a cause for optimism among investors, and the stock rallied by as much as 25% since. Investors could do well to keep an eye on the stock over the coming days.
Penny Stocks Making Investors Rich This Week #2 RigNet
Another penny stock that jumped on Tuesday was that of intelligent network solutions provider RigNet (RNET Stock Report). On Tuesday, the company announced that it had been awarded a contract for U.S. General Services Administration (GSA) Multiple Award Schedule (MAS) for Information Technology Professional Services. The contract in question for five years, but it should be noted that there are provisions by way of which it can be extended for 5-year periods for a maximum of 20 years.
It goes without saying that it is a significant development for the company, and the RigNet stock jumped by as much as 39% as investors piled on to it.
Penny Stocks Making Investors Rich This Week #3 MicroVision
Investors who are looking to invest in penny stocks could also consider having a closer look at MicroVision Inc (MVIS Stock Report). The company announced that back on April 8, it had received a letter from NASDAQ Global Market indicating the fact that its shares had a total market value of less than $50,000,000 for 30 consecutive business days.
It is one of the stipulations for continued listing on NASDAQ. The company has until October 5 to regain compliance. The stock gained by 45% on Tuesday after the announcement.
Penny Stocks Making Investors Rich This Week #4 Aldeyra Therapeutics
Last but not least, it is Aldeyra Therapeutics Inc (ALDX Stock Report) that ought to be on the radars of investors after the stock gained by as much as 28% on Tuesday. The company announced encouraging top-line results from the Phase 1 clinical trial of its product ADX 629, which is meant for treating systemic immune-mediated diseases.
The company also announced that it is going to have the Phase 2 clinical trial soon.