To The Moon

New kids on the block If you have been around the block a few times, did you notice that it can be rewarding at times to “invest” in “popular or it" US equities (usually well-known companies that dominate headlines and attract significant investor attention), although it is not a guaranteed path to outperformance. Reasons behind popular stocks: (1) Market momentum & self-perpetuating trend. I cannot think of a better example than $NIO Inc.(NIO)$. At the peak of its hype, it commanded a $66 per share value, thanks to speculation driving its price higher & higher. Look at where it is now. (2) Strong fundamentals. Wanted to say the Magnificent 7. Might have to exclude 1 or 2 from the list, due to poor earnings performances, weak product range and distracted CEO at helm. (3) Index inclusions and Passive flows. A salient example would have to be $Palantir Technologies Inc.(PLTR)$. Its initial inclusion in the S&P 500 index pushed its stock price higher. When it transitioned from the S&P 500 to Nasdaq index, things got better with a “proper” business alignment. (4) Stability & Dividends. Mega-cap stocks can offer (a) stability, (b) steady dividend payouts, and (c) resilience during market downturns. For all the “right” reasons (see above) to buy “popular” US stocks, there are “opposing” reasons not to. (see below) Due to real-estate, I will not elaborate but included them in above table for reference. Exchange of Opportunities. I really believe the US market is a Stock Exchange with infinite opportunities. There are many diamonds in the rough, awaiting to be discovered. Whoever have the patience to dig & discover, rewards will commensurate accordingly. This is why I am always “intrigued” by posts on penny stocks. Isn’t NIO a penny stock now, not to mention GRAB. Ha, ha, ha. US coin - the Penny Multi-bagger Penny Stocks. Penny stocks always seem like bargains for gaining exposure to some of the fastest-growing segments, especially when Mega-cap stocks cost hundreds or thousands of dollars. Given that some cost as little as $2, they can be tempting for growing money quickly without spending much. Caveat. While it’s possible to achieve significant returns, when investing in companies with depressed stock prices, caution is always of utmost importance! Penny stocks come with elevated levels of volatility as reduced liquidity makes them speculative, high-risk investments. The Allure. Over the years, massive penny-stock scams have cheated thousands of investors out of millions of dollars, even as others have generated a fortune out of them. Explosive gains came into play as the equity outlook improved on expectations that the US Federal Reserve would cut interest rates. Amid the current correction in the stock market after 2 years of blockbuster gains, penny stocks are increasingly becoming popular owing to their depressed valuations. Relevance in Chaotic Market. In the face of rising trade tensions and the lowest consumer confidence seen in almost 3 years, US markets have faced significant fluctuations. Despite these obstacles, the idea of penny stocks continues to hold relevance as investors hunt for low-cost options with potential for growth. Often linked with smaller or emerging companies, these stocks can present considerable upside when underpinned by sound fundamentals and robust financials. This is the case (now) when Trump is aggressively pushing for lower interest rates in the US. Like mega-cap stocks, penny stocks tend to do well in low-interest rates environments as acquiring capital to accelerate operations and generate shareholder value becomes easier and more affordable for new and emerging companies. Selection Process. Below is Insider Monkey’s penny stocks selection criteria. Stocks priced under $5. Have posted ‘huge’ gains over the past year (at least 100%). Stocks with highest percentage gains in stock performance over the past year (as of 21 Apr 2025). Lastly, they are ranked based on the number of billionaires that hold stakes in them. Why Penny Stocks ? Insider Monkey’s research has shown that investors can outperform the market by imitating the top stock picks of the best hedge funds. Best Penny Stocks - According to Billionaires #10. $Trilogy Metals(TMQ)$ Nbr of Billionaire Holders: 4 1-Year Gain (as of 24 Apr 2025): +297.62% Share Price (as of 24 Apr 2025): $1.67 Facts & Figures. TMQ specializes in exploring & developing high-grade mineral deposits in Alaska’s Ambler Mining District, focusing on copper and polymetallic resources. It stands out for its advanced geological studies, strategic drilling programs, and targeted acquisition of mineral rights in one of North America’s richest mining regions. By adhering to strict NI 43-101 standards and using industry-specific techniques, TMQ has earned a strong reputation for credibility & expertise. Quarterly Earnings. TMQ reported its Q1 2025 earnings results on 20 Apr 2025: Revenue (loss): came in at -$3.6 million vs Q1 2024’s -$3.6 million, unchanged YoY. Despite total operating expenses increased to $3.2 million from Q1 2024’s $2.8 million. On a ‘brighter’ note, TMQ reported a strong financial position with (a) $25.2 million in cash and (b) $24.6 million in working capital. TMQ also expects 1.9 billion pounds of copper production over a 17-year mine life following positive results from the Bornite Preliminary Economic Assessment (PEA). #9. $Corvus Pharmaceuticals(CRVS)$ Nbr of Billionaire Holders: 4 1-Year Gain (as of 24 Apr 2025): +147.30% Share Price (as of 24 Apr 2025): $3.66. Facts & Figures. CRVS is a clinical-stage biopharmaceutical company. Develops and commercializes immune modulator therapies for a range of cancers, immune disorders, and infectious diseases. Its lead product candidate, Soquelitinib, is an oral, small-molecule ITK inhibitor currently in clinical trials for T-cell lymphoma and atopic dermatitis. CRVS has rallied +125% over the past year on positive clinical trial results over the past year. Trial Drug - Sokolitinib. In December 2024, CRVS delivered positive interim results from its Phase 1 trial of Sokolitinib. This clinical-trial drug is used for treating moderate to severe atopic dermatitis. The results showed a favorable safety & efficacy profile, affirming the drug’s potential for chronic skin conditions. CRVS has already begun to enrol patients for the Phase 3 drug trial for relapsed peripheral T-cell lymphoma. Last Quarter’s Earnings. In Q4 2024, CRVS reported a wider-than-expected loss of $12.1 million. This was because of increased expenses and strategic investments in CRVS’s product line. It’s a good thing that CRVS remains in a strong cash position with $52 million in cash and cash equivalent to develop its pipeline. About a month ago, 25 Mar 2025, Oppenheimer reiterated the “Buy” rating and increased the price target to $15, buoyed by the company’s pipeline development and financial stability. #8. $New Gold(NGD)$. Nbr of Billionaire Holders: 5 1-Year Gain (as of 24 Apr 2025): +92.22% Share Price (as of 24 Apr 2025): $3.46 Facts & Figures. NGD is an intermediate gold mining company that develops and operates mineral properties. Primarily it explores gold, silver, and copper deposits. NGD’s principal operating properties include a 111.63% interest in the Rainy River mine located in Northwestern Ontario, Canada. NGD has skyrocketed over the past year as the company increasingly capitalizes on the soaring gold prices above $3,000 an ounce. On 8 Apr 2025, NGD signed a deal with Ontario Teachers’ Pension Plan to buy a 19.9% share of the leftover money from the New Afton Mine. The purchase gives NGD — (a) a better collection of gold resources and (b) a mine that could produce more gold for a longer time. Scotiabank thinks this is a good move to combine an important copper and gold resource. Because of this, they increased their expected stock price for NGD to $4.25 from $4.00 and still think the stock will do better than others in the same group. Last Quarter’s earnings. For Q4 2024, NGD handed in a stellar earnings’ report card: Revenue : came in at $262 million, a +31.63% YoY gain from Q4 2023. Earnings per share(diluted) : was $0.08, a +300% YoY gain from Q4 2023. Net income: was $55.1 million, a +301.09% YoY gain from Q4 2023. Guidance for FY 2025. With the price of gold hitting $3,314 per ounce (as of 24 Apr 2025), NGD will try to maintain production to average 265,000 ounces - 295,000 ounces in 2025, as it seeks to take advantage of higher gold prices. With that, free cash flow (FCF) will expected to reach between $1.7 - $2 billion over the next 3 years, driven by higher production and cost efficiencies. My viewpoints: (mine only) With the recent revenge-rally, these penny stocks’ prices may have risen more than desired for those who are itching to take a leap of faith. Now might not be the right time to enter. However, if you have been around the blocks, you would also realize that what goes up will come back down eventually. Second time might be the charm to look out for. As many have rightly pointed out, investing in US stocks is a marathon; not necessarily a sprint, not unless you the investor wants it to be. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Jobs & Earnings Rock US Market This Week ? ENB : Stable stock in a Volatile US market ? Few US's CEOs "Buy The Dip", should U ? Do you think you like the idea of penny stocks in your portfolio ? Do you think the billionaires are whales out to make a quick buck when the pennies take off? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents