When it comes to penny stocks to buy now, be aware of the risks. While some of these little guys can rocket, some will be duds, which can wipe out your account. As noted by the U.S. Securities and Exchange Commission (SEC), “Penny stocks may trade infrequently – which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock[s] should be prepared for the possibility that they may lose their whole investment.”
So, I always ask that you never risk more than you can afford to lose. As long as you understand the risks, here are some top penny stocks I’d consider throwing a few dollars into.
|iShares Micro-Cap ETF
Corvus Pharmaceuticals (CRVS)
The last time I mentioned Corvus Pharmaceuticals (NASDAQ:CRVS), it traded at $1.13 on May 4. At the time, the company had just posted interim data demonstrating the potential of CPI-818, the company’s ITK inhibitor, for the treatment of T cell lymphoma (TCL).
Not long after, CRVS ran to a high of $3.59. All on updated trial data that’s showing meaningful objective responses in patients with multiple recurrent T cell lymphomas. Plus, CRVS is expected to meet with the US FDA in the third quarter to discuss advancing CPI818 to Phase 3 randomized trials later this year.
I think this company’s potential is starting to be recognized by the market. If that continues, CRVS stock could have a lot more room to run.
iShares Micro-Cap ETF (IWC)
Or, investors can always opt for an exchange traded fund (ETF) that provides diversification at lower cost.
With an expense ratio of 0.60%, the iShares Micro-Cap ETF (NYSEARCA:IWC) is made up entirely of penny stocks. In fact, it tracks the Russell Microcap Index, and has 1,710 current holdings in healthcare, financials, industrials, real estate, energy, consumer staples, and materials to name a few.
At the moment, the IWC ETF trades just under $104 a share. If it can break above $108 resistance, I’d like to see it refill its bearish gap around $114 shortly.
American Lithium (AMLI)
American Lithium Corp. (NASDAQ:AMLI) is a red-hot opportunity in the lithium space.
Remember, with global leaders phasing out combustion engine cars for electric vehicles, we’re running short on key metals, like lithium. Accordingly, prices are only set to soar with supply-demand issues likely to continue. Currently, automakers are scrambling for supply. In fact, there may not be enough supply to go around, says Stellantis’ CEO Carlos Tavares, which is helping to drive upside in lithium stocks,
Even better, the company just received the first of three permits from Peruvian authorities for drilling near Quelcaya, with drilling expected to start immediately.
According to CEO Simon Clarke, “This is a very significant development for the Company which validates recent supportive comments from the new government in Peru and enables us to target the discovery of new lithium mineralization on some of the best previously identified targets on the Macusani Plateau.”
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.