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Should you buy these 3 ASX penny stocks?

As the name implies, penny stocks are shares that have share prices below $1.00.

Whilst the majority of these shares are not at all investable and could be a quick way to lose a lot of money, every so often a few pop up which I believe are worth getting better acquainted with.

Here are three penny stocks to watch:

Avz Minerals Ltd (ASX: AVZ)

This mineral exploration company’s shares are currently priced at 9.2 cents, but could have significant upside ahead of them in the future in my opinion. Earlier this year the company acquired the Manono lithium project in the Democratic Republic of Congo. Early drilling results have shown the presence of high-grade lithium mineralisation, hinting that the company may have a world class asset on its hands. Whilst it is a little too soon for an investment in my opinion, it certainly is one to watch.

Collaborate Corporation Ltd (ASX: CL8)

The shares of this operator of peer-to-peer and online marketplaces are currently priced at 2.7 cents after a 40% gain this year. The main catalyst for this gain has been the strong growth of its DriveMyCar peer-to-peer car rental business. So far this year the DriveMyCar business has delivered extremely high levels of rental transaction value and net rental days realised. With strategic partners such as Aon, Uber and RACV, Collaborate could be worth keeping an eye on.

Primary Opinion Ltd (ASX: POP)

After reinventing itself several times, Primary Opinion’s only asset now is its 42% ownership of celebrity chef Maggie Beer’s product range. This week the company announced the arrival of former Bellamy’s Australia Ltd (ASX: BAL) CEO Laura McBain as its managing director. Only time will tell whether or not McBain can recreate the early success of Bellamy’s at Primary Opinion, but I feel it is worth adding its shares to your watchlist to find out. Its shares are currently priced at 3.3 cents.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.