15 Penny Stocks Poised To Explode According To Hedge Funds

Now we are learning about penny stocks poised to explode according to hedge funds. Insider Monkey has recently published an interesting article about this topic. Penny stocks are usually defined as shares of small companies that trade under $1 per share, although the SEC defines a penny stock as a security that trades under $5 per share. There are thousands or even tens of thousands of penny stocks trading on the stock exchange every day.

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Now without a further ado let’s see what Insider Monkey has investigated for us. We have picked three penny stocks poised to explode according to hedge funds.

The fist one is Zynga Inc (NASDAQ:ZNGA). In Zynga Inc (NASDAQ:ZNGA), the number of funds long the stock advanced by 13 to 38 during the second quarter. Collectively those funds held $694.30 million worth of stock at the end of June, which represented 22.20% of the float. Zynga Inc (NASDAQ:ZNGA)’s stock slid into the penny-stock territory pretty much right after the IPO, but the company may be gaining momentum. The company’s mobile revenue has been growing and currently represents 86% of the total and its gross margin of over 69% is the highest in the last five quarters. The second penny stock is WMIH Corp. (NASDAQ:WMIH). WMIH Corp. (NASDAQ:WMIH) saw the number of bullish investors from our database increase by one to 26 between April and June. On the other hand, the aggregate value of their positions declined to $57.80 million from $68.82 million amid a 14% drop registered by the stock. In this way, the funds held 22.40% of WMIH Corp. (NASDAQ:WMIH)’s outstanding stock at the end of June. WMIH Corp. (NASDAQ:WMIH) is the successor of Washington Mutual and it emerged from bankruptcy in 2012. The company’s stock has gained 44% since it started trading, but it still has more room to grow as WMIH Corp. (NASDAQ:WMIH) continues its recovery. And the last penny stock for today is Fairmount Santrol Holdings Inc (NYSE:FMSA). At the end of June, 25 funds from our database held shares of Fairmount Santrol Holdings Inc (NYSE:FMSA) worth $223.41 million in aggregate, which represented 25.60% of the outstanding stock, down from 29 funds with stakes worth $372.10 million a quarter earlier. Fairmount Santrol Holdings Inc (NYSE:FMSA) is a company that provides sand-based proppant solutions and its stock has slid below $5 per share just earlier this year, as it has dropped by 74% year-to-date.

For any further useful information, read Insider Monkey’s article about 15 penny stocks poised to explode according to hedge funds.

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