We asked Chat GPT-4 to analyze sources and data across the entire internet for what it thought are the top penny stocks in 2023. Here are A.I.’s answers:
- Hemisphere Energy (HMENF): An independent oil and gas exploration and production company based in Vancouver, Canada. Its primary E&P asset is located in the Canadian province of Alberta. Trading for less than 6 times earnings, and less than $1 per share, HMENF is considered a bargain if oil prices hold steady/rise from here.
- MariMed (MRMD): An integrated cannabis company that is operating in multiple U.S. states. It trades for less than 10 times earnings, and could potentially see strong growth if cannabis reform happens on the U.S. federal level.
- Nanophase Technologies (NANX): A specialty chemicals manufacturer primarily providing nano zinc oxide compounds for use in personal care products such as cosmetics and sunscreens. The company is currently dealing with a lawsuit filed by its main customer, BASF, which has created some uncertainty around the stock.
- Pacific Health Care (PFHO): A provider of workers' compensation claims services. It has a high cash and investments balance representing more than 91.5% of its market cap, which is why it is considered undervalued.
- POSaBIT Systems (POSAF): A fintech firm specializing in providing payment services for cannabis dispensaries with a current market cap of roughly $100 million. It reported a revenue increase of 134% last year and swung to profitability.
- Super Group (SGHC): Super Group is a global digital gaming company with a market capitalization of $1.92 billion. It has a strong balance sheet, with a cash-to-debt ratio above 84.5% of sector players. The company's three-year revenue growth rate is 36.7%, which is higher than 95.85% of its rivals. Wall Street analysts suggest an average price target of $5, implying almost 30% upside potential1.
- RLX Technology (RLX): RLX Technology is a leading branded e-vapor business based in China. It has a market cap of $3.72 billion and a very strong balance sheet. Its cash-to-debt ratio is 125.55, above 85.42% of companies listed in the tobacco products industry. RLX features a trailing-year net margin of 27.41%, beating out 91.67% of its peers. The expected price target is $3.15, implying nearly 33% upside potential1.
- B2Gold (BTG): B2Gold is a mining enterprise with underlying gold sector enthusiasm. It has an Altman Z-Score of 7, indicating high fiscal stability and low bankruptcy risk. Its debt-to-equity ratio is 0.02, ranked better than 82.14% of its peers. B2Gold’s three-year revenue growth rate is 13.9%, above 62.8% of companies listed in the metals and mining industry. The average price target is $6.10, implying nearly 44% upside potential.
- Savara Inc. (SVRA): Savara Inc. is a specialized pharmaceutical company that develops and commercializes novel therapies for the treatment of rare respiratory diseases. Their core therapeutic areas include pulmonary alveolar proteinosis (PAP), cystic fibrosis (CF), and nontuberculous mycobacterial (NTM) lung infections. With a market cap of $300 million, SVRA shares trade for around $2.60.
- Nordic American Tankers Ltd. (NAT): A Bermuda-based international shipping company that owns and operates oil tankers around the world. Shares are up 100% over the past year, and currently has a market cap of $800 million.
