Are these nine penny stocks worth the penny?

Highlights

• VOC Energy Trust (NYSE: VOC) stock grew 121.17% YTD. Its dividend yield is 16.23%, and its annualized dividend is US$0.80. 
• Clinigence Holdings, Inc. (OTC: CLNH) is a healthcare technology company. Its stock grew 196.30% YTD.
  
  
• Galaxy Gaming Inc (OTC: GLXZ), a gaming company, has a market capitalization of US$92.94 million. It gave a 157.74% return YTD.

Veteran investors have the knowledge and experience to help minimize risks in the stock market - be it trading in penny stocks or mid and large-cap stocks. On the contrary, newcomers are often drawn to penny stocks despite significant risks because of their low prices.

Penny stocks are uncertain mainly due to insufficient public information about their businesses. However, these stocks might still provide good returns if they are chosen prudently.

Here we discuss nine penny stocks that generated more than 90% year-to-date return.

Amplify Energy Corp. (NYSE: AMPY)

Market capitalization – US$133.4 million

YTD return – 172.52%

The energy company is based in Houston, Texas. The independent oil and gas company is engaged in acquiring, developing, and producing oil and gas properties in the US. Its properties are in Oklahoma, East Texas, Louisiana, and southern California.

Are these nine penny stocks worth the penny?

Its revenue for the June quarter was US$80.4 million compared to US$35.2 million in the same quarter a year ago. The loss per share diluted was US$(0.92) compared to US$(1.10) in the June quarter of 2020.

The stock closed at US$3.51 on November 5, 2021. 

Source – Pixabay

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Sypris Solutions, Inc. (NASDAQ: SYPR)

Market capitalization – US$88 million

YTD return – 162.23%

Louisville, Kentucky based company provides specialty products and outsourced services ranging from manufacturing, engineering, technical, and designing. The company has two reportable segments, Sypris technology, and Sypris Electronics. 

For the June quarter of 2021, the company earned revenue of US$26 million compared to US$17.15 million in the same quarter in 2020. The earning per share diluted was US$0.17 compared to US$(0.02) in the same quarter the previous year.

The SYPR stock closed at US$4.06 on November 5, 2021. 

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VOC Energy Trust Units of Beneficial Interest (NYSE: VOC)

Market capitalization – US$82.6 million

YTD return – 121.17%

The Houston, Texas-based VOC is a statutory trust. It aims to acquire and hold a term net profit interest for VOC unitholders. The energy trust has an interest in the properties in Kansas and Texas. The trust receives proceeds from the oil and gas production in these properties. 

The trust has a dividend yield of 16.23% and annualized dividend of US$0.80.

The trust’s net income attributable to shareholders was US$2.04 million for the June end quarter of 2021, and cash and cash equivalents were US$0.380 million.

The VOC stock closed at US$4.93 on November 5, 2021.

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VAALCO Energy, Inc. (NYSE: EGY)

Market capitalization – US$249 million

YTD return – 124.29%

The company is engaged in acquiring, exploring, developing, and producing crude oil and gas. It is an independent energy company based in Houston, Texas. It has a P/E ratio of 5.75.

For the September quarter of 2021, the company reported revenue of US$55.9 million, compared to US$18.26 million in the same quarter a year ago. The net income per share diluted was US$0.53 compared to US$0.13 in the same quarter of 2020.

The stock closed at US$4.21 on November 5, 2021.                                   

Also Read: Top oil and gas stocks to explore in November

Atlantic American Corporation (NASDAQ: AAME)

Market capitalization – US$91.6 million

YTD return – 113.72%

The Atlanta, Georgia-based finance company offers life, health, property, and casualty insurance. It also provides automobile insurance coverage to businesses with multi-year contracts. The company has a P/E ratio of US$6.07, a dividend yield of 0.44%, and an annualized dividend of US$0.02.

Its total revenue was US$51.46 million in the June quarter of 2021 compared to US$49.7 million for the same quarter of 2020. The net earnings per share diluted were US$0.14 compared to US$0.30 per share diluted in the corresponding quarter of 2020.

The stock closed at US$4.51 on November 5, 2021.

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TDH Holdings, Inc. (NASDAQ: PETZ)

Market capitalization – US$164 million

YTD return – 91.94%

The Qingdao, China-based company produces pet food like biscuits, canned food, dry meat treats, etc. In addition, it also provides non-food items such as dog leashes, pet toys, etc.

For the fiscal year ended December 2020, its revenue was US$815 thousand, and the net loss to common shareholders was US$875 thousand.

The stock registered significant YTD growth. It closed at US$3.88 on November 5, 2021.

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Clinigence Holdings, Inc. (OTC: CLNH)

Market capitalization – US$175.23 million

YTD return – 196.30%

The St. Petersburg, Florida-based Clinigence is a healthcare technology company. It provides an advanced, cloud-based platform to healthcare companies for value-based care and population health management.

For the June quarter of 2021, the revenue of the company was US$5.29 million compared to US$378 million for the same period in 2020. The net loss per share diluted was US$(0.07) compared to US$0.05 in the prior year's June quarter.

The CLNH stock closed at US$4.0 on Nov 5, 2021.

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Source – Pixabay

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Tingo Inc (OTC: IWBB) 

Market capitalization – US$165.66 million

YTD return – 107.50%

The Bangkok-based technology company provides coding services through its subsidiaries. The coding services include audio coding, web coding, security coding, and image coding.

For the June quarter of 2021, it didn’t earn any revenue. However, the net income of the company was US$227 thousand compared to the net loss of US$315 thousand in the same period a year ago.

The IWBB stock closed at US$4.11 on November 5, 2021.

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Galaxy Gaming Inc (OTC: GLXZ)

Market capitalization – US$92.94 million

YTD return – 157.74%

The Las Vegas, Nevada-based Galaxy Gaming specializes in developing, manufacturing, marketing, and acquiring proprietary casino table games and other platforms and systems for the casino industry.

For the June quarter of 2021, the company posted revenue of US$4.75 million compared to US$663 thousand in the previous year's June quarter. The net income was US$550 thousand compared to a net loss of US$2.2 million in the corresponding period of 2020.

The stock closed at US$4.21 on November 5, 2021.

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Bottomline

Penny stocks are volatile. Hence, investors should evaluate them carefully before investing in these companies. Typically, investors who have a risk-bearing capacity fall for these stocks.