Investors that ended 2020 with a 20% return are patting themselves on the back for a job well done -- and rightfully so. By all measures, 2020 was a difficult year for investors so outperforming the 16.2% gain in the S&P 500 index was no easy task.
Penny stock traders and investors on the other hand? A 20% return could be accomplished in one day, if not less. Granted, low-priced and highly volatile shares of companies with minimal or no reputation is a risky proposition. But small and overlooked companies
can provide outsized returns in a short period of time.
Alpine 4 Technologies and BioNana are two
penny stocks to watch after each recorded monster gains at the tail-end of 2020.
Alpine 4 Technologies: From Fraction Of A Penny to $5
Alpine 4 Technologies (OTCQB: ALPP) is a company that very few investors heard of until late 2020. Alpine is a conglomerate that owns small market businesses with exposure to software, automotive technologies, electronic manufacturing, and fabrication technologies.
The stock traded below $1 per share from early 2017 and recorded a 2020 low of a fraction of a penny at $0.0001.
But the penny stock started to attract new trader and investor attention in November 2020. On Nov. 17, Alpine announced an entry into the commercial drone market through the acquisition of Impossible Aerospace Corporation.
This announcement lifted Alpine’s stock to trade above the 10 cents per share mark but it was only the beginning of a move higher. The buying momentum was further fueled by a company announcement on Dec. 24 that its Board of Directors voted to up listing
its stock on the more reputable Nasdaq exchange.
“To continue driving shareholder value and subsequently grow our market capitalization, we need to advance our business model of DSF (Drivers, Stabilizer, Facilitators),” Alpine 4 CEO Kent Wilson
said in the press release. “Therefore, it is my firm belief that our already successful business model of DSF will flourish even more when Alpine 4 is listed on a national exchange like the NASDAQ.”
The company ended 2020 on a very strong note as it announced on Dec. 28 a binding letter of intent to acquire another drone maker, Vayu US.
Penny stock traders and investors reacted positively to the acquisition as it quickly expanded Alpine 4’s very young drone portfolio. Specifically, Vayu builds high-performance vertical take-off and landing autonomous aircraft and represents a vital addition
to its growing platform.
"Vayu's platforms complement the multicopters from Impossible Aerospace,” Wilson commented in a Dec. 28 press release. “Both Vayu and Impossible Aerospace have unique qualities that make their respective platforms advantageous and complementary, depending
on the requirements of the end-user. “
Source: Google Finance
BioNano: From $0.25 To $9.50
BioNano (NASDAQ: BNGO) is a genome analysis company that helps scientists and researchers conduct genetic research based on its proprietary Saphyr system. Similar to Alpine 4, BioNana was an overlooked penny stock that proved to be a hidden gem.
On Dec. 21 the penny stock company said in a press release that a new version of its Saphyr system can handle imaging of up to 96 human genomes per week or 4,992 samples per year. This represents an increase of 1,400% versus 2017’s capabilities.
The company followed up on Dec. 23 with
results from a study by The Human Genome Structural Variation
Consortium that found its genome optical mapping technology for detecting large structural variations in de novo sequencing data to be far superior compared to a more expensive competitor, PacBio.
The announcement caught the attention of Wall Street analyst Kevin DeGeeter, a researcher with Oppenheimer. According to the researcher, BioNano and its Saphyr will gain traction in 2021.
“We expect the data to support broader adoption of Saphyr for de novo sequencing and research applications,” the analyst was
quoted as saying in a note. “Furthermore, we expect 2021 to be an important year for adoption of Saphyr for clinical cytogenetics market based on a series of positive recent publications… Based on our current assessment of the competitive landscape, we
do not believe long-read sequencing technologies can replicate Saphyr’s performance and cost structure for digital cytogenetics testing.”
The bullish study also helped push BioNano’s stock above $1, the minimum listing price required to remain on the Nasdaq exchange. On Dec. 30, the company confirmed approval to remain a Nasdaq-listed stock until at least June 28, 2021 to regain full compliance
with the exchange.
Erik Holmlin, PhD, CEO of Bionano Genomics commented in a press release: "We have been making steady progress with our business and this extension gives us extra time to regain compliance as we continue to advance the Saphyr System in our target markets
of discovery research and Cytogenomics."
The stocks’ momentum handily continued into the first quarter of 2021 and even “graduated” out of the penny stock category by trading above $5.