In essence, allocating into the best penny stocks requires identifying value-added products and services, whose utility is sufficiently groundbreaking and cost-enhancing to weather growing pains towards outsized returns.
During their earliest years, many small-cap and micro-cap stocks cannot depend on a solid balance sheet to garner shareholder interest, because they may have little to show beyond initial revenue, and ballooning SG&A expenses, as they seek to grow market share. Instead, these stocks must rely on the innovative quality of their offerings, and how they stack up against the competition, to get investors to recognize their differentiated positioning with an allocation. This task is, of course, easier said than done, given the wealth of experience and investigational rigor required to look past consistent annual net losses and see a worthwhile investment over time.
With the intention of nudging new Stockhouse readers in the direction of the best penny stocks, we’ll now introduce three picks bringing tangible improvements to their industries and customer bases:
GlucoTrack
GlucoTrack (NDAQ:GCTK) is dedicated to the design, development and commercialization of innovative technologies for people with diabetes and prediabetes.
The company is focused on an implantable continuous glucose monitoring system with two years of functionality, over 3x the industry standard of six months, representing a significant improvement in patients’ quality of life.
Drinda Benjamin, GlucoTrack’s vice president of marketing, spoke with Stockhouse’s Ryan Dhillon about the company’s flagship device, the benefits of continuous glucose monitoring, and the unmet need at the heart of the company’s value proposition.
GlucoTrack’s pre-revenue operations, coupled with its stock’s more than 91 per cent year-over-year loss, makes for a thinly populated market, opening the door for a full due diligence process at a depressed price.
With the device’s sensor performing well during a 30-day preclinical study, management’s confidence in its implantable continuous glucose monitor has never been higher.
Click here to visit GlucoTrack’s official website.
CO2 GRO
Our next best penny stock pick is CO2 GRO (TSXV:GROW), a provider of precision agriculture technology that enhances crop production and profitability.
The company’s patented CO2 Enrichment Solutions fortify plants with CO2 by misting them with an aqueous solution in greenhouses and other protected facilities. This simple addition, which 98 per cent of the 800 billion square foot global protected grower market has not instituted, represents up to a 30 per cent increase in yield potential and up to 100 per cent growth in gross profit.
CO2 GRO’s technology also suppresses the growth of micro-pathogens such as E.coli and powdery mildew, and allows for up to 90 per cent in savings compared with competing CO2 gassing technology.
By pricing its technology to ensure clients a high return on investment, as well as margins accretive towards shareholder value, the company has been able to rapidly expand its global partner relationships into Mexico, Spain, the European Union, the U.K., South Africa, the Middle East, Southeast Asia and Latin America, as well as in Canada and the United States.
CEO John Archibald spoke with Stockhouse’s Brieanna McCutcheon about CO2 GRO’s latest contract win with a major U.S. greenhouse lettuce grower, following success with a similar project with roses in Colombia.
With expectations of positive EBITDA and $10 million in sales orders in 2024, and more than $50 million in international sales over the next three years, CO2 GRO is eyeing a considerable increase in economies of scale, with 210x growth from $10,000 in sales orders in 2019 to $2.1 million cumulative as of Q2 2023 capturing the massive potential of the company’s proven innovation.
Despite rampant food insecurity and the clear benefit of making sure there’s enough food to go around, the market has failed to capitalize on CO2 GRO’s nature-enhancing technology, as evidenced by GROW shares’ 46.67 per cent loss since 2018.
Click here to read CO2 GRO’s latest investor presentation.
Antibe Therapeutics
Our last, but not least, best penny stock pick is Antibe Therapeutics (TSX:ATE), a clinical-stage biotechnology company targeting inflammation through its proprietary hydrogen sulfide platform.
Hydrogen sulfide benefits from more than 20 years of research substantiating its ability to improve the safety and potency of anti-inflammatory medicines.
The company is currently focused on avoiding the gastrointestinal ulcers and bleeding associated with nonsteroidal anti-inflammatory drugs (NSAIDs), which are key to minimizing prescriptions of addictive drugs at the centre of the ongoing opioid crisis.
Antibe’s lead drug, otenaproxesul, is in clinical development as a safer alternative to opioids and NSAIDs for acute pain. Otenaproxesul has demonstrated profound gastrointestinal safety and strong effectiveness against chronic pain in Phase IIB trials, bringing it one step closer to establishing itself in the over $25 billion acute pain market across post-operative pain, acute musculoskeletal pain, dysmenorrhea, migraine, gout and dental pain, among other indications. Otenaproxesul has been licensed in 58 countries to four licensees, including major markets such as Canada, China, Israel and South Korea.
Antibe’s second pipeline drug, ATB-352, is being developed for a specialized pain indication with a significant unmet medical need – so significant, in fact, that further information will only be released upon a patent application – while management prepares to tackle its next major target, inflammatory bowel disease, an over $20 billion market with more than 3 million people afflicted in the U.S.
Bolstered by the success of otenaproxesul’s faster-absorbing formulation – which is better suited for acute pain – and high expectations for the new formulation’s phase II trial slated for Q1 2024, Antibe stock has added 51.06 per cent year-over-year, with the company quickly establishing itself as a torchbearer for returning high-risk patients back to day-to-day relief.
Join the discussion: Find out what everybody’s saying about the best penny stocks on the GlucoTrack, CO2 GRO and Antibe Therapeutics Bullboards, and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of GlucoTrack, CO2 GRO and Antibe Therapeutics, please see full disclaimer here.