- Drive Shack’s market cap is US$297.4 million, with some 92 million outstanding shares.
- Boxlight designs and operates online interactive classrooms; the stock gained 68% YTD.
- Foresight is Israel-based and provides safe driving solutions to the auto industry.
Penny stocks are typically micro-cap companies with low share prices. These stocks often attract investors as they have the potential to grow. Investors can earn profits on their investment if the stock price goes up.
Penny stocks, though, have certain disadvantages and risks. Investors may find little information about them in the market as they are usually new entrants. Stock buyers may struggle to obtain accurate information about their past performance, trade history, or financials. Thus, the potential risks may outweigh the benefits of such investments.
However, these stocks also provide an opportunity for growth if they are selected judiciously. For instance, an investor can collect company information directly from the firm or from the stock exchanges, where businesses must periodically file financial reports for shareholders.
We explore 10 penny stocks here to understand what they do and how they performed.
Drive Shack Inc. (NYSE: DS)
This Texas-headquartered company develops leisure and entertainment venues, primarily focusing on golfing-related activities and the real estate business.
Drive Shack has a market cap of US$297.4 million, with some 92 million outstanding shares.
The stock gained 29% YTD. It was trading at US$3.27 at the market close on June 4, up 0.62% from the previous close.
It collected revenue of US$61.1 million in Q1 ended March 31, almost the same as the year-ago period. Of the US$10.9 million net loss during the period, US$7.9 million were from operations.
Boxlight Corp (NASDAQ: BOXL)
Boxlight is a technology-driven education company based in Georgia. It designs and operates online interactive classrooms. It uses projectors, LED panels, 3D tools, etc., to make the sessions engaging and effective.
Boxlight’s software offers courses in 33 languages in 60 countries.
It has a market cap of US$ 143.7 million, with around 56.8 million outstanding shares.
In Q1 ended March, Boxlight logged revenue of US$33.4 million and a loss of US$5 million.
The stock gained around 68% YTD. Boxlight shares were trading at US$2.60 apiece at the market close on June 4, an increase of 1.17% from the previous closing price.
On May 27, the company had announced a four-year agreement with Hickory Creek Elementary School in Tennessee to supply interactive panel displays.
Electrameccanica Vehicles Corp. Ltd. (NASDAQ: SOLO)
The company designs and manufactures electric vehicles. It is based in Vancouver, Canada, and specializes in single-seat EV vehicles. Its market cap is around US$258.4 million, with around 64.1 million outstanding shares.
The stock jumped around 218% in the past year but shed about 43% YTD. It was down 3.58% to US$4.31 at the market close on June 4.
It reported a Q1 operating loss of US$8.9 million and had an overall cash reserve of US$260.4 million against US$129.5 million in the previous quarter. The company has assets in five US states. It targets to roll out 20,000 cars annually from its plant in Arizona.
Liquid Media Group Ltd. (NASDAQ: YVR)
It is an entertainment company based in Vancouver and produces content for films, television, and online platform. Its market capitalization is around US$21.6 million, with about 10 million outstanding shares. The stock price increased around 23.5% YTD.
Its last trading price on June 4 was US$1.88, up 0.53% from the previous close. In March this year, it sold common shares worth US$6 million in a direct offering.
Last month, the company had announced its intent to acquire the subscription-based video streaming platform Indiflex Group Inc.
Foresight Autonomous Holdings Ltd. (NASDAQ: FRSX)
The company is based in Israel and provides safe driving solutions for the auto industry. Foresight’s market cap is around US$285 million with 64.5 million outstanding shares.
In Q1 ended March 31, the company logged a net loss of $4.4 million and reserves of US$56.5 million against US$43.9 million in the previous quarter.
The stock grew marginally by 0.69% YTD. Its last trading price on June 4 was US$4.45. On May 28, it signed a proof of concept (POC), estimated at US$120,000, with a US subsidiary of a European passenger carmaker.
Tyme Technologies, Inc. (NASDAQ: TYME)
It is a biotechnology company headquartered in New Jersey and develops cancer drugs.
Tyme’s market cap is US$280 million, with outstanding shares of around 170.4 million.
On May 13, the company had named Frank L. Porfido as its new CFO.
The stock price increased around 15% YTD. However, it was down 1.95% to US$1.51 at the market close on June 4. Tyme is expected to announce its Q4 earnings report for FY 2021, along with business updates on June 10.
MICT, Inc. (NASDAQ: MICT)
It is a technology-driven financial services company headquartered in New Jersey. It offers trading and wealth management services and mobile computing solutions. Its market cap is US$242 million with 113.9 million outstanding shares.
In the March quarter, it logged revenue of US$8.9 million, up from US$824,000 in the prior three-month period. Its net loss narrowed from US$7.4 million in the December quarter to US$4.5 million in the reporting quarter.
The stock price increased by 1.5% YTD. Its last trading price on June 4 was US$2.34, an increase of 8.33%. On May 27, the stock was added to MSCI USA Microcap Index.
Evofem Biosciences, Inc. (NASDAQ: EVFM)
It is a pharmaceutical company based in California and develops women’s health products. It has three subsidiaries, including Evofem Inc. Its market cap is around US$72.3 million and has around 81.3 million outstanding shares.
In the March quarter, its net loss swelled to US$46 million YoY from US$19.1 million. Since January this year, the stock dropped 66%. It was down 1.76% to US$0.8654 in the last trading session on June 4.
Its newest product, Phexxi, was launched in the US in September 2020. It is currently conducting trials for another product called EVO100.
Iterum Therapeutics plc. (NASDAQ: ITRM)
It is an Ireland-based pharmaceutical company. Its leading drugs include Sulopenem, administered orally. Iterum’s market cap is around US$270.5 million, with 179.1 million outstanding shares as of March 31, 2021.
Its net loss surged to US$98.9 million in the latest reporting quarter from US$16.1 million YoY.
The stock soared 45% YTD. It was trading 3.9% up at US$1.60 in the last session on June 4.
The company has applied for FDA approval for the drug sulopenem etzadroxil.
T2 Biosystems, Inc. (NASDAQ: TTOO)
It is a diagnostic company and offers services to hospitals and laboratories. The company has developed a magnetic resonance tool to collect blood, saliva, and urine samples for tests.
Its market cap is around US$194.4 million. The stock gained 4.1% to US$1.27 in the last trading session on June 4, and it rose 4.5% YTD. In the March quarter, T2 revenue surged to US$6.96 million from US$2.5 million YoY. However, it also logged a loss of US$10.6 million during the period.