What Were the Top Penny Stock Performers in 2016?

What Were the Top Penny Stock Performers in 2016?

Penny stocks are an attractive investment option for many investors due to their low prices and potential for high returns. While investing in penny stocks can be risky, there are some that performed exceptionally well in 2016. In this article, we will explore the top penny stock performers of 2016 and what made them successful.

1. Novabay Pharmaceuticals Inc.

Novabay Pharmaceuticals Inc. (NBY) was the top-performing penny stock in 2016, with a staggering 3,000% increase in value. This California-based company specializes in developing eye care products and therapies. Their success was largely due to the launch of their i-Lid Cleanser, which proved to be a popular and effective product.

2. BioPharma Corp.

BioPharma Corp. (CTIC) was another penny stock that performed exceptionally well in 2016, with a 1,600% increase in value. The company specializes in developing cancer treatments and their success was due to a number of positive clinical trial results.

3. Inpixon

Inpixon (INPX) is a technology company that specializes in indoor positioning and data analytics. Their success in 2016 was due to a number of new partnerships and product launches, which led to a 1,000% increase in value.

Investment Strategies for Penny Stocks

While penny stocks can offer high returns, they are also associated with high risks. As such, it is important to have a clearinvestment strategywhen investing in these stocks. Here are some tips to keep in mind:

1. Do your research: Before investing in any penny stock, make sure to conduct thorough research on the company's financials, management team, and industry trends.

2. Diversify your portfolio: It is important to diversify your portfolio to minimize risk. Invest in a mix of penny stocks and other investments, such as mutual funds or ETFs.

3. Set stop-loss orders: Stop-loss orders are a great way to limit your losses in case a stock takes an unexpected turn. Set a stop-loss order at a price that you are comfortable with.

4. Be patient: Investing in penny stocks requires patience. Don't expect to see immediate returns and be prepared to hold onto your investments for the long term.

Conclusion

Penny stocks can offer high returns, but they are also associated with high risks. The top-performing penny stocks of 2016, such as Novabay Pharmaceuticals Inc., BioPharma Corp., and Inpixon, were successful due to a number of factors, including new product launches and positive clinical trial results. When investing in penny stocks, it is important to have a clear investment strategy, conduct thorough research, diversify your portfolio, set stop-loss orders, and be patient.