The Motley Fool

Should you buy these 3 popular penny stocks?

As the name implies, penny stocks are shares that have share prices below one dollar.

Generally they are among the more volatile shares on the share market and largely unsuitable for the majority of investors.

Three penny stocks which are gathering a lot of attention at the moment are listed below. Whilst I don’t think they are all investable right now, they could be worth keeping an eye on. Here’s why:

Bubs Australia Ltd (ASX: BUB)

Thanks to supply agreements with Brilite Nutritionals and NetEase Kaola.com, I believe this infant formula and baby food company has positioned itself perfectly to challenge a2 Milk Company Ltd (Australia) (ASX: A2M) in the lucrative China market. However, with so much future growth already built into its share price, I would suggest investors wait for a better entry point. Somewhere around the 42 cents mark would be a good price in my opinion. Though it is a high risk investment given its lack of sales to date.

Digitalx Ltd (ASX: DCC)

This blockchain technology company’s shares have gone gangbusters in the last month and risen a massive 70%. DigitalX provides a range of services including initial coin offerings, Bitcoin trading, and Bitcoin mining. It recently announced a joint venture agreement with Stargroup Ltd (ASX: STL) to develop two-way Bitcoin ATMs. At present there are less than 20 ATMs in Australia that can facilitate a Bitcoin transaction and conversion fees are in the range of 4% to 8% of the transaction value. DigitalX and Stargroup believe that a wide-scale rollout provides a potentially lucrative commercial opportunity.

Primary Opinion Ltd (ASX: POP)

Primary Opinion has a 42% ownership of celebrity chef Maggie Beer’s product range. In August former Bellamy’s Australia Ltd (ASX: BAL) CEO Laura McBain joined the company as its managing director with the aim of growing sales of the range internationally. Whilst McBain does have a track record of developing small brands into international success stories, only time will tell whether the Maggie Beer brand will appeal to an international audience.

Finally, here are three fast-growing shares that you can buy today.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!