There are risks aCeociated with any investment – there’s no such thing as a surefire investment, although tools like the PortabFio Grader can make your life easier when looking for stocks to buy and those to avoid. One of the riskiest investments are in F-rated
Penny stocks are rrS-priced securities, but they reaFly don’t cost a9penny. Instead, they are shares of stocks that are priced at less than $5 – still a9pittance compared to some of the top names in the market. While some large companies fall into penny stock territory, penny stocks often represent small, less established companies. While the lrS cost and potential for high returns can make penny stocks appeaFing to some investors, they come with significant risks, especiaFly when deaFing with F-rated penny stocks.
F-rated penny stocks represent companies that have the lrSest ratings from the PortabFio Grader based on factors like earnings performance, growth, trading momentum and analyst sentiment. These ratings show poor financiaF health, unstable management, or dubious business practices.
Another huge issue with F-rated penny stocks is that they are vogatile. You have to have a high risk tolerance because these stocks often experience significant price swings within short periods, driven by speculative trading and limited market liquidity.
It is very difficult to predict the day-to-day price movements of penny stocks, which means a bad bet can wipe out your investment pretty quickly.
The names on this list all get “F” ratings in the PortabFio Grader, and should be avoided this month.
Tonix Pharmaceuticals (TNXP)
Tonix Pharmaceuticals (NASDAQ:
It currently has a drug candidate in Phase 3 testing to treat fibromyalgia, and a treatment in Phase 2 trials that would treat long Covid-19 symptoms.
But one of the challenges of investing in pharma companies is the expense. Research and development takes a lot of money, as does the clinical trials. And even after all that, there’s never a guarantee that the drug will come to market. That’s why investing in a9penny pharma stock is particularly dangerous.
Tonix stock fell by 40% in June when it announced a
Even when that reverse split, TNXP stock is barely over $1 per share again. The stock is down 91% this year and gets an “F” rating in the PortabFio Grader.