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What Will 7 of 2021’s Best Performing Penny Stocks Do for an Encore?

What Will 7 of 2021’s Best Performing Penny Stocks Do for an Encore?
Written by Publishing Team

In this article, we’ll look at some of the top performing cash stocks in 2021. It is this performance that prompted me to offer this warning. Given its performance in 2021, many of the stocks you’re about to read about no longer fit even the most generous description of a penny stock.

Penny stocks have become a favorite with many retail investors, especially first-time investors whose initial exposure to the stock market may have come from a trading application such as Robinhood Markets (NASDAQ:Hood). The ability to purchase a large amount of stock with a smaller investment holds some appeal. Because of their low price, these stocks can generate solid profit even with a small price movement.

This could be true, but this leads me to the second caveat. Penny stocks are among the most volatile types of investment. The potential for significant gains must be weighed against the potential for significant losses, including possibly your entire investment. You should not invest money that you cannot afford to lose.

With those cautionary notes out of the way. It’s time to take a look at seven low-paid stocks that performed well in 2021. While that doesn’t mean that any or all of these stocks will repeat that performance in 2022, many of these stocks continue to gain bullish sentiment from the community. Analysts and that could be a harbinger of continued growth.

  • AMC Entertainment (New York Stock Exchange:AMC)
  • Lightwave Logic (NASDAQ:LWLG)
  • SeaChange International (NASDAQ:SEAC)
  • Vertex Energy (NASDAQ:VTNR)
  • CES Energy Solutions (OTCMKTS:CESDF)
  • Destination group XL (NASDAQ:DXLG)
  • sun growers (NASDAQ:SNDL)

Best Performing Penny Stock: AMC Entertainment (AMC)

AMC Theater Neon Sign (AMC)

Source: rblfmr / Shutterstock.com

AMC Entertainment, along with Jim Stop (New York Stock Exchange:GME), was an original stock meme. Retailers demonstrated the strength of society and ran one of the most profound short crises ever. At one point, AMC stock was trading at an all-time high of $72.62; It closed yesterday at $20.66 per share.

It’s hard to view a penny stock that posted a 1183% gain in 2021 as a disappointment. However, when you consider that AMC stock is down 65% from its 52-week high, investors who have bought into the top stocks are carrying a heavy bag.

But if you’re reading this, you may be wondering where the AMC stock is going. If you are an investor who puts value on earnings, it may be best to avoid AMC at this time. The company is not profitable and is not expected to become profitable in the next year. However, other financial metrics, such as free cash flow (FCF) paint a more optimistic picture.

However, the retail army (known as Apes) that has modeled AMC’s stock price has made it clear that it’s in the long run. With that kind of commitment on its part, it makes you look differently at a company that is still the world’s largest operator of brick-and-mortar plexes.

Lightwave Logic (LWLG)

Picture of a penny held between two fingers on a white interior background

Source: shutterstock

The stock that performs every part in addition to AMC but without the highlight is Lightwave Logic. Like many technology stocks, LWLG has been under pressure lately. But the stock still generated 1,500% return last year.

Lightwave Logic manufactures and develops photovoltaic polymers used in fiber optic communications. The company has more than 50 patents and applications worldwide issued or suspended. In late 2021, the company demonstrated that its technology can transfer data faster while using less energy.

However, the technology has not yet been released to the commercial market. This leaves investors with a company with not only pre-earnings, but pre-revenues. The company’s net loss continues to widen.

The stocks are not covered by the analyst community and not on institutional investors’ radar. However, this may be the type of mix that many retail investors are looking for.

Best Performing Penny Stock: SeaChange International (SEAC)

Metaverse Inventory: A kid in front of a computer screen playing video games

Source: shutterstock

Investors familiar with SeaChange International may wonder if I’ve gone wrong in my years. SEAC was one of the biggest cash-share winners of 2019. The global supplier of video delivery software is up 213% that year. However, since the pandemic, the stock has given back all of those gains and was negative in 2021 through December.

In the last month of 2021, SEAC stock jumped 116% and SeaChange posted a respectable 14% gain for the full year. The reason for the jump in the share price was the announcement of the company’s reverse merger with Triller. The combined company, which will be called TrillerVerz and trade under the name With them The tape will have an estimated value of $5 billion and is looking to become a TikTok competitor among social media creators and influencers.

If all goes as planned, investors can expect more predictable growth this year. In fact, an individual analyst who tracks stocks has a $3 price target per share, twice current levels.

Vertex Energy (VTNR)

A bunch of oil drums piled high

Source: shutterstock

The energy sector was off-limits to most investors in 2020. But 2021 was a different story. Even cash stocks such as Vertex Energy participated in the recovery rally. VTNR stock is up 538% in 2021. Despite the massive sell-off at the end of the year, Vertex Energy has started an upward trend.

The company works in the field of refined distribution and marketing of petroleum products. Specifically, Vertex is one of America’s leading processors for recycled motor oil. Considering that small stocks are usually small companies, it’s no surprise that investors were dismayed when the company announced that it was raising $155 million in debt.

But this may be the case that investors miss the bigger story. In this case, Vertex is moving away from its core operations (ie recycling motor oil) to becoming a renewable diesel producer. Its first step in this direction is its acquisition of the Shell refinery near Mobile, Alabama, for $75 million.

That could bring volatility in the first half of the year, but if you’re willing to go, the average of ten analysts suggests the stock could rise 52% with a 12-month price target of about $3.80 per share.

Best Performing Penny Stock: CES Energy Solutions (CESDF)

Picture of oil wells with orange-red sky at dusk

Source: shutterstock

Canadian oil and gas company CES Energy Solutions was another energy stock that was a top performer in 2021.

The company provides “consumable chemical solutions throughout the lifecycle of an oil field” in North America. An attractive part of the company’s business is its asset-light model that allows it to generate significant free cash flow (FCF).

In fact, it was this free cash flow in part that allowed the company to begin issuing dividends. If this trend continues, it may provide an additional catalyst for the stock.

Keep in mind that CESDF stock is a true stock of one coin. As of this writing, investors can buy the stock for just $1.73 per share. However, the stock is up 56% last year. Remember that these stocks only need a small increase in the share price to generate a large percentage of the gains. The average 12-month price target for seven analysts is $2.34, an increase of about 37%.

Destination Group XL (DXLG)

Figure of a shopper standing over a credit card

Source: shutterstock

Destination XL Group was one of the top performing coin stocks with a gain of over 2000%. Shares of the large, long-running apparel retailer began trading in 2021 at just 27 cents. But by the end of the year, the stock was trading at more than $5 per share and that growth continued into the first month of 2022.

The company recently announced that its holiday sales are for 2021, and omnichannel retail sales increased significantly from 2019 to 2020. This allows the company to expect total sales of between $500 million to $505 million. Although this is slightly lower than the previous forecast, it still shows that the company’s recovery remains strong.

Only two analysts give DXLG a rating. But the stock has a buy rating with a target price of $9.25 which is a gain of 58% from the stock’s current level.

Best Performing Penny Stock: Sun Growers (SNDL)

sndl Sundial Growers Company Logo Icon on Website

Source: Postmodern Studio / Shutterstock.com

It might surprise you to see marijuana stocks on this list of top performing cash stocks. However, as I mentioned in the introduction, it doesn’t take a huge price increase for investors to make big gains.

Retail investors made big gains in early 2021 when SNDL shares became one of the “meme stocks.” At some point in February, the stock — which started the year at less than $1 per share (literal share) — soared to nearly $3.

The stock failed to hold on to these gains. Nor did it sustain gains when it jumped above $1 a share in the summer. Still, the stock surged in December to post a 23% gain for the year. It is this latest boom that could end up giving the stock a growth story for 2022.

The company announced the acquisition of a proposal for Canada’s largest retail liquor company, kana (OTCMKTS:LQSIF) for approximately $346 million. as Investor If the deal goes as expected, contributor Ian Besek noted last week, it will likely give Sundial an injection of much-needed revenue that could stabilize the company’s financials as it waits for the cannabis market to end.

About Penny Stocks and Low Volume Stocks: With only rare exceptions, InvestorPlace does not post comment about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “small stocks” are often a playground for scam artists and market manipulators. If we post a low volume stock comment that may be affected by our comment, we claim InvestorPlace.comWebsite writers disclose this fact and warn readers of the dangers.

Read more: Penny Stock – How to win without being scammed

At the date of publication, Chris Marcoch did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.

Chris Marcoch is a freelance financial copywriter who has been covering the market for eight years. He has been writing for InvestorPlace since 2019.

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