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DailyBubble News

7 Penny Stocks to Sell in June Before They Crash & Burn

The stock market is on the rise, but not all companies are benefiting from this trend. High interest rates, geopolitical issues, and a challenging macroeconomic environment have created problems for many firms. Traders are turning to penny stocks for potential gains, but there are seven penny stocks that investors should avoid. These struggling companies are in poor condition and it is advised to pull out of these stocks before it’s too late.

One such company to be wary of is Ginkgo Bioworks (NYSE: DNA), a specialty chemical company operating in the healthcare and life sciences space. While initially showing promise with its synthetic biology platform for cell programming, the company has faced allegations from short sellers regarding its revenues, corporate strategy, and third-party relationships. These allegations seem to have merit as Ginkgo Bioworks’ revenues have seen a significant decline from $478 million in fiscal year 2022 to $251 million last year. Analysts are predicting a further drop to $186 million in revenues for the current year. With losses of $854 million over the past 12 months, it is clear that DNA is a penny stock that should be sold immediately.

It’s important to note that InvestorPlace does not typically publish commentary on companies with a market cap of less than $100 million or those that trade less than 100,000 shares per day, as these “penny stocks” can be risky due to potential manipulation. It’s advised to proceed with caution when investing in such stocks.

Ian Bezek, a seasoned writer for InvestorPlace.com and Seeking Alpha, warns investors to be wary of certain penny stocks that may not be sustainable in the long run. It’s crucial to do thorough research and understand the risks involved before investing in any stock.

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