How do you know which penny stocks have the most potential to produce returns? The truth is that you don’t. But you can hedge your bets by investing in stocks likely to produce multiple catalysts.
That’s why when I invest in penny stocks, I tend to look for companies in the biotech sector. These companies are typically in the process of developing therapeutics, which leads to multiple catalysts that could drive prices up.
Here are a few I’m watching right now.
This post originally appeared at 24/7 Wall St.