This article will bring you to the list of Penny stocks poised to explode according to hedge funds. Insider Monkey has recently published an interesting article about it. Due to their low valuation, penny stocks can provide their investors with generous returns. At the same time, they are very very risky and investors can often find themselves scammed by fraudsters. In addition, many companies that list on the OTC market choose to do so because they don’t fit the requirements for major exchanges. OTC markets are less regulated and because there are so many companies, the authorities can’t control the information that these companies release, which is why the financial data and other reports issues by penny-stock companies can’t be trusted.
Now without a further ado let’s see what Insider Monkey has investigated for us. We have picked three of Penny stocks poised to explode according to hedge funds from their list.
The first one 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 second one is Bazaarvoice Inc (NASDAQ:BV). In Bazaarvoice Inc (NASDAQ:BV), 23 funds amassed $109.45 million worth of stock, representing 26.20% of float at the end of June, compared to 19 funds and $103.60 million, respectively, at the end of March. Bazaarvoice Inc (NASDAQ:BV) is a provider of an SAAS platform that allows its clients to collect and display consumer-generated content. The company’s last financial report (for fiscal 2017) showed revenue growth to $201.2 million from $199.80 million a year ago, but at the same time it showed a decline in expenses, which means the Bazaarvoice Inc (NASDAQ:BV) might be closer to becoming profitable. The last one should be Synergy Pharmatceuticals Inc (NASDAQ:SGYP). There were 20 funds tracked by Insider Monkey long Synergy Pharmaceuticals Inc (NASDAQ:SGYP) at the end of June, down by seven over the quarter. Subsequently, the total value of their holdings fell to $330.12 million from $342.30 million and represented 33% of the company’s outstanding stock. Synergy Pharmaceuticals Inc (NASDAQ:SGYP)’s stock has slid by more than 50% since the beginning of the year, amid several consecutive earnings misses. However, for the second quarter, its revenue of $2.30 million managed to beat the estimates by $340,000.
For any further useful information, read Insider Monkey’s article about 15 Penny stocks poised to explode according to hedge funds.