What are the Top Penny Stocks of 2016?

What are the Top Penny Stocks of 2016?

Penny stocks, also known as micro-cap stocks, are stocks that trade for less than $5 per share. They are often considered to be high-risk investments due to their low market capitalization and lack of liquidity. However, for those who are willing to take on the risk, penny stocks can offer the potential for high returns. In 2016, there were several penny stocks that performed exceptionally well. In this article, we will take a closer look at some of the top penny stocks of 2016 and what made them successful.

1. Novavax Inc. (NVAX)

Novavax Inc. is a clinical-stage biotech company that focuses on developing vaccines for infectious diseases. In 2016, Novavax's stock price increased by over 200%. The company's success can be attributed to the positive results of its phase 3 clinical trial for a respiratory syncytial virus vaccine. The trial showed that the vaccine was highly effective in preventing RSV infections in infants.

2. Rite Aid Corporation (RAD)

Rite Aid Corporation is a retail drugstore chain that operates over 4,500 stores in the United States. In 2016, Rite Aid's stock price increased by over 60%. The company's success can be attributed to its merger agreement with Walgreens Boots Alliance. The merger will create a new company with approximately 12,000 stores in 25 countries.

3. Inovio Pharmaceuticals Inc. (INO)

Inovio Pharmaceuticals Inc. is a biotech company that focuses on developing DNA-based immunotherapies and vaccines. In 2016, Inovio's stock price increased by over 200%. The company's success can be attributed to the positive results of its phase 1 clinical trial for a Zika virus vaccine. The trial showed that the vaccine was safe and well-tolerated and produced a strong immune response in all participants.

4. Plug Power Inc. (PLUG)

Plug Power Inc. is a provider of alternative energy technology, specifically fuel cells. In 2016, Plug Power's stock price increased by over 400%. The company's success can be attributed to the growing demand for clean energy solutions and the successful deployment of its GenKey hydrogen and fuel cell system to multiple customers.

5. Adeptus Health Inc. (ADPT)

Adeptus Health Inc. is a provider of emergency medical care services through a network of freestanding emergency rooms. In 2016, Adeptus Health's stock price increased by over 100%. The company's success can be attributed to its expansion into new markets and the growing demand for convenient and accessible emergency medical care.

Investment Strategies for Penny Stocks

Investing in penny stocks can be a risky endeavor, but there are strategies that can help mitigate some of the risk. One strategy is to focus on penny stocks that have a solid business plan and a proven track record of success. Another strategy is to diversify your portfolio by investing in a variety of penny stocks across different industries. It's also important to do your due diligence and research the company's financials, management team, and industry trends before investing.

In conclusion, penny stocks can offer the potential for high returns, but they are not without risk. The top penny stocks of 2016 were able to achieve success through a variety of factors, including positiveclinical trial results, mergers, and growing demand foralternative energy solutionsand emergency medical care. By implementing soundinvestment strategiesand conducting thorough research, investors can increase their chances of success in the penny stock market.