Former Penny Stocks That Exploded in Value, One Up Over 3,500%


4 penny stocks that made it big in the last year

As penny stock investors, we love seeing a company go from under $ 5 to well above that number. Although this is a rare occurrence, it does happen. And when it does, investors will become aware of it.

Most of the time, those who trade penny stocks tend to make short term profits. This is known as swing trading. However, some investors choose to ride the long wave in the hopes that a long time frame will result in big returns. There are a few ways that a penny stock can break out of small-cap territory. And before we get into that, we need to note that the term penny stock simply means any stock that trades below $ 5.

One reason a company could cross this threshold is a new product or a strong increase in demand for a current product. This is the most common and tends to be a combination of speculation and fundamentals.

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In addition, this method can result in long-term, sustainable profits instead of the company falling back into the penny stocks realm. The next reason a stock could move above $ 5 is pure speculation. This could relate to a news event or the potential for a future event.

Such an event is also common, but it can result in short-term gains and eventually a stock dropping below $ 5. When looking for a penny stock that has gone up, it's important to consider why and what moved it. Is the trend sustainable and can it hold this higher price? These are questions every trader should ask themselves before pulling the trigger. With that in mind, let's take a look at ex-penny stocks that have skyrocketed in value.

4 penny stocks that made it big

  1. Novavax Inc. (NASDAQ: NVAX)
  2. Microvision Inc. (NASDAQ: MVIS)
  3. MiMedx Group Inc. (NASDAQ: MDXG)
  4. Plug Power Inc. (NASDAQ: PLUG)

Novavax Inc. (NASDAQ: NVAX)

Last time it was a penny stick: 17th January 2020
Profit since June 3, 2021: + 3,290%

With a nearly 20% increase in value in the past two days alone, Novavax is arguably one of the biggest former penny stock gains we have ever seen. In February of that year, the stock hit a high of over $ 290. That's more than 5,900% gain over the $ 5 mark. While NVAX stock history is a rarity, it's a great example of a penny stock that has risen sharply based on both speculation and fundamentals.

In some context, Novavax is a biotech company that is active in many different areas of the sector. When the pandemic broke out last year, investors were looking for biotech penny stocks that might have a role in treating or vaccinating against the pandemic. And Novavax became the first choice for many. With the Covid-19 vaccine NVX-CoV2373 to be released shortly with data from a phase 3 study, many investors are betting on the long-term potential of Novavax.

And if you had invested $ 5 in NVAX shares back then, you would have made over 3,200% profit on June 3rd. Novavax was one of the first companies to bring a vaccine candidate to market, although it is still in testing. However, it became a big name in all things pandemic related. And that's why stocks have skyrocketed in the past year and a half. So while Novavax is a rare case study, it's a prime example of a penny stock that made it big.

Microvision Inc. (NASDAQ: MVIS)

Last time it was a penny stick: December 21, 2020
Profit since June 3, 2021: + 268%

Microvision is another great example of a former penny stock that came across gold. While its earnings haven't been on par with NVAX stocks for the past year and a half or so, an increase of over 260% is nothing to complain about. There are a few reasons for the massive surge in MVIS stock over this period. One of them is working on LiDAR sensors as well as microchips and various computer-related products.

There is currently a great shortage of microprocessors. When we consider the basic supply and demand principles, we see that a massive profit makes sense for MVIS stock. However, its LiDAR sensors are also used in self-driving cars, which have become a major focus for Reddit stock investors over the past year. Reddit investors' focus on MVIS is another example of retailers pushing a stock with high institutional short interest.

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We have this at GameStop Corp. (NYSE: GME) and as seen at AMC Entertainment Holdings Inc. (NYSE: AMC). A result of the famous WallStreetBets subreddit is the rise of many penny stocks to the post-penny stock range. And while MVIS stock is still at a pretty affordable $ 18, autonomous vehicles have only just started to catch on. With this in mind, will MVIS be on your penny stocks watchlist?

MiMedx Group Inc. (NASDAQ: MDXG)

Last time it was a penny stick: July 6, 2020
Profit since June 3, 2021: + 114%

MDXG stock is arguably the lowest winner on this list, while still posting over 110% gains since July last year. In a certain context, the MiMedx Group is a leader in regenerative medicine. This includes the use of amniotic fluid for the transplant. The core business is with people with acute and chronic non-healing wounds. The Purion Process is a proprietary platform that uses human placental tissue to more effectively complete the skin graft.

The company claims to have shipped over 2 million allografts through both direct and consignment orders. Since this gain is arguably not as large as the others and has occurred over a long period of time, we cannot say for sure if there is a primary reason for it. However, MDXG is a leader in the biotech industry and its specific allograft sector.

In its most recent financial report, the company had net sales of approximately $ 61 million on sales of $ 59.7 million. That is more than in the same period last year. Although it grossed a net loss of approximately $ 8.4 million, this was mainly due to $ 7.2 million in costs related to investigative and restatement activities. While there's no specific reason for this solid increase, 114% in over a year is definitely worth paying attention to. It is up to you whether MDXG is worthwhile.

Plug Power Inc. (NASDAQ: PLUG)

Last time it was a penny stick: June 15, 2020
Profit since June 3, 2021: + 519%

The PLUG share is one of the main winners of the last year and a half and has attracted over 500% among investors. Although PLUG's shares hit a 52-week high of over $ 75, PLUG is currently comfortably at around $ 30. For those unfamiliar, Plug Power is at the forefront of the hydrogen fuel cell market.

Stocks got a big boost after Biden announced his high preference for the potential of hydrogen energy. And since it is a leader in this regard, it could benefit greatly from Biden's latest infrastructure plan. It's also worth noting that along with some encouraging financials, it has huge cash holdings of more than $ 5 billion. This year, many investors have hedged their bets on the renewable energy revolution. And hydrogen offers a great opportunity for an economical and already existing form of energy.

The only obstacle to the PLUG share are the economic and infrastructural obstacles. This is due to the massive investment that would be required to make hydrogen propulsion as popular as fossil fuels. Regardless, the world is changing and President Biden wants to make that change as soon as possible. So whether in the short or long term, the PLUG share remains a big winner that has left penny stock territory.

Finding penny stocks to buy can be a challenge

There is no doubt that finding a penny stock that could get past the $ 5 mark is tough. Most of the time, investors are looking for penny stocks that will make decent profits over a short period of time. However, there are occasional weird small caps that go well beyond the penny stock cap.

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The best course of action to come across any of these is to do as much research as possible. Those with the most information are definitely favorably positioned in the stock market. Considering what penny stocks are you watching?

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | news@pennystocks.com

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