Investing in penny stocks can be a good strategy to diversify your portfolio. These small-cap companies provide opportunities to be exposed to exponential gains due to their volatility and fast growth. To invest in any company you need to have a good knowledge about it and we can not allow ourselves to get carried away by emotions, you should always maintain an adequate risk management and be faithful to your investment thesis.
Today we are going to know 3 of these companies in different market sectors that can open a great opportunity to turn a small investment into a considerable amount.
Applied Digital (APLD)
Applied Digital (NASDAQ:APLD) provides digital infrastructures for High Performance Computing (HPC) applications. HPC refers to computing systems offering high processing power and speed for tasks including scientific research, data analysis and simulations.
This company has the potential to generate exponential profit growth for several reasons. First, it has achieved sequential revenue growth of 14% in fiscal Q3 2023. Additionally, in fiscal Q3 2023, Applied Digital reported revenue of $14.1 million and EBITDA of $0.9 million. Although it had an adjusted loss of $1.4 million or an adjusted loss per share of $0.01, it is important to note that the company is making progress in its operations and has expansion plans.
Applied Digital has also achieved significant milestones in terms of its infrastructure development. Its second hosting facility in North Dakota has been fully commissioned, and the company is moving forward with its third hosting facility in Texas.
Senseonics (SENS)
Senseonics Holdings (NYSEMKT:SENS) is a company specialized in the development and commercialization of medical devices for glucose monitoring. Its flagship product, Eversense Continuous Glucose Monitoring System (CGM), was designed to provide long-term implantable glucose monitoring for people with diabetes.
By investing in this company you open yourself up to the opportunity to generate exponential returns for several reasons. Firstly, the global prevalence of diabetes is increasing, creating a growing market for glucose monitoring solutions. Of these systems, the Eversense CGM System is at an advantage due to its long-term implantable sensor. This sensor improves user experience by eliminating the need for frequent insertions.
Finally, the company’s most recently reported financials show positive trends. In Q1 2023, Senseonics reported total revenue of $4.1 million, a substantial increase from $2.5 million Q1 2022.
Through March 31, 2023, Senseonics had a strong financial position with $136.6 million in cash, cash equivalents and short-term and long-term investments. It also had $51.8 million in outstanding debt. This healthy financial position provides the company with resources to invest in research and development and expand its market presence.
Vaalco Energy (EGY)
Vaalco Energy Inc. (NYSE:EGY) is an independent energy company primarily engaged in the exploration, development and production of oil and natural gas. Its operations are primarily in West African countries such as Equatorial Guinea and Gabon.
In the first quarter of 2023, it presented a positive financial report. Vaalco increased dividends paid to shareholders by 92%, demonstrating its commitment to providing returns to its investors. Additionally, the company has repurchased shares, indicating management’s confidence in the company’s future.
The company achieved a significant increase in its average daily production, demonstrating its ability to generate higher revenues and earnings. Furthermore, it reported solid earnings in the first quarter, indicating its ability to generate profits. It also sold a considerable amount of oil barrels in the first quarter with growth expected in the second quarter.
Finally, Vaalco Energy has finalized important agreements with partners and government entities in Equatorial Guinea. These achievements represent opportunities for future growth and demonstrate progress in its project portfolio.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
