Penny stocks are nowadays preferred by people as these are of low price that permits them to purchase a huge quantity of shares for less sum of money. These shares are purchased with an expectation that when the stock value goes up, then they will earn huge returns. Therefore, purchasing penny stocks will offer an opportunity for investors to remain on the company’s “ground zero”. Or at least this is how these are presented.
Here is how Insider Monkey has picked the top 10 penny stocks:
“So, while there are many other rules that can guide you about how to trade penny stocks, we would like to talk to you about how to pick them. More specifically, we would like to present you with a list of the 10 best penny stocks to buy now based on hedge fund sentiment, a metric that we believe is a good indicator of a stock’s reliability. Hedge funds spend a lot of resources on researching their trades and when they’re bullish on a penny stock, it means that it has potential for a solid growth over the long-run.”
Let’s start with the list of Top 10 Penny Stocks in 2021 by keeping in mind the list of Insider Monkey. The list starts with Ambev ADR which is at 10th place in the list of top 10 best penny stocks. The number of hedge funds that are bullish on this stock increases from 13 to 21 in Q3 of 2020. Furthermore, the aggregate worth of their stake holdings increased from $517.66 million to around $790.35 million. The top stake position of this company is held by First Eagle Investment Management of Jean Marie Eveillard. This hedge fund holds 216.29 million shares of Ambev ADR and the total worth of these shares is $488.81 million. The shares of ABEV experienced a 50% increase since May which is expected to increase more by 30% during next year.
On 9th place in the list is WisdomTree Investments Inc. which is another best penny stock for 2021. In July, there were 4 hedge funds who were bullish on this stock and this number increased to 22 in September. Renaissance Technologies of Jim Simons has disclosed $10.86 million share holdings of WisdomTree Investment while $4.92 million worth of share holdings are revealed by Gillson Capital of Daniel Johnson. Since the September quarter, 40% of the investment returns are made by WisdomTree. More can be read at 10 Best Penny Stocks To Buy Now.