Last year around this time, there was a lot of fear among investors. While the stock markets colored deep red in the last months of 2018, analysts were saying that a crash was coming soon. The opposite happened. It became a great year for stock market investors. Records were broken many times last year, that leads to expensive stocks on the markets today.
However, I was able to pick 4 promissing penny stocks for 2020. Great chance that these stocks will moon this year!
- Alliance Pharmaceuticalls
This beautiful growth company has or owns licenses for the rights of more than 90 pharmaceutical
and healthcare products. You can think of known products for the treatment of nausea, vomiting or dandruff. The company only invests in marketing for a few brands. The rest of the sales comes from organic growth. Besides that, the company growths by buying rights from profiting products. Recently a product from Johnson & Johnson was bought.
Which is exceptional for this penny stock is that it pays dividend. The dividend is around 2%. The
intention of the management is to let the dividend grow every year. I have much confidence in the proven strategy of the company. Thanks to this, the company could grow into a big one in the next decade.
De price of the stock is currently €0,93
- Restorbio
This company develops innovative medicines against aging-related diseases. At the moment
elderly are the fastest growing demographic group. As the age increases the chance to chronic diseases increases as well.
Most elderly people have at least two chronic diseases. Restorbio focusses on prevention and treatment of these elderly diseases. At the moment a medicine for the treatment of Parkinson is the most advanced medicine in Restorbio’s pipeline.
Why is this stock interesting? The stock dropped in November from $7,- to less than a dollar.
Reason for this was because of the bad results of an advanced medicine regards to respiratory problems. After this, investors dumped their stocks.
Investors seem to have lost rationality. De price is trading around $1,24. The current cash
position is higher than the current trading price.
When you buy this stock you will buy more cash than the price does. Besides that, you will
own a share of the promising pipeline. This is going to be a risky investment,
because the company does not make any profits yet.
- Accsys
The price of the company that’s active in the wood sector rose sharply at the beginning
of this year. Subsequently the price dropped back to the starting levels.
The company Accsys processes cheap wood from fast growing trees. After the process the wood
obtains the same properties as tropical hard wood. After processing the product repels water. This prevents the wood from rotting processes. This means that the product is very sustainable.
Despite the fact the price of this stock didn’t move, the company is working hard. The
demand of the products is higher than the capacity. This has led to a new production plant in Hull, England and the management also said that they will expand the capacity of the production plant in Arnhem, the Netherlands.
In short, a very interesting penny stock for investors with a long investment horizon. The
price of the stock is €1,08.
- Nokia
The coming decades will be dominated by the transition from 4g to 5g. Nokia, known for the
robust mobile phones, is fully focused on this transition.
Nokia has only a few competitors in its market, while the market is huge. The
reason for that, is that investments in 5g are very high.
Because Nokia had also to make these investments, the management temporarily put the dividend
on hold. Personally, I think that this is a good way to lead a company from management perspective. Investors thought differently and the stock plummeted by 25%. The stock trades at the time of writing €3,25.
The book value of the company is €2,56. In combination with the great future
expectations, makes that the stock is very promising for the future.
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