When discussing penny stocks to buy, many people may think of high-risk-high-reward opportunities, overnight wealth generation, and potential scams. However, investing in carefully-selected penny stocks can actually provide a less volatile experience.
It is important to note that not all penny stocks come from unknown companies. Even publicly traded companies with genuine potential can be considered penny stocks. Factors such as macroeconomic trends and legal actions can impact any company, regardless of its size. Every company started somewhere, and while some private companies go public with a substantial track record, newer public companies can still offer legitimate potential.
For investors willing to take a chance on smaller and newer companies that have yet to fulfill their financial potential, here are three penny stocks to consider:
1. CytomX Therapeutics (CTMX): CytomX Therapeutics is a real estate investment trust specializing in the multi-family market. With a low entry price and high return potential, CTMX could be a lucrative addition to any portfolio. As multi-family buildings become increasingly popular due to smaller families and rising housing costs, CTMX stands to benefit from this trend.
2. Lument Finance Trust (LFT): Lument Finance Trust is another real estate investment trust that could offer steady, long-term growth at a low price. Specializing in multi-family buildings, LFT is well-positioned to capitalize on the future of housing as more people seek affordable living options.
It’s important to note that penny stocks and low-volume stocks can be risky investments. It is recommended to exercise caution and thoroughly research any company before investing. Remember, not all penny stocks are scams, but it’s essential to be informed and make educated decisions when considering purchasing penny stocks.