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4 Red-Hot Penny Stocks Flying High By StockNews

© Reuters. 4 Red-Hot Penny Stocks Flying High

The commodity sector has been gaining prominence on the back of an improving global economy. Consequently, investors have been scooping up commodity-related penny stocks to play the trend. Despite the high investment risks that penny stocks can possess, we believe Acerinox (ANIOY (OTC:)), ARC Resources (AETUF), Alliance Resource Partners (NASDAQ:), and Champion Iron (CHPRF) are worth keeping an eye on. As such, let’s review these names.The global commodity market is on a roll. An expected inflationary environment in the United States and the rapid recovery of industrial activities have been driving commodity prices higher. In addition, with consumer spending steadily rising, primarily on the back of the recent federal rescue package and an improving job market, commodity prices have begun to spike. Consequently, commodity-related penny stocks have emerged as the most sought-after investments on Wall Street currently.

A penny stock (also known as a microcap or nano stock) refers to a small company’s stock that usually trades at less than $5. Many of these stocks are from upstart and struggling companies. However, given their low-price levels, investors often target the best of them for the higher-than-usual upside that they can offer.

While it’s true that penny stocks are quite volatile and are usually speculative investments that doesn’t mean that they do not sometimes represent promising opportunities. Acerinox, S.A. (ANIOY), ARC Resources Ltd. (AETUF), Alliance Resource Partners (ARLP), and Champion Iron Limited (CHPRF) have been blazing hot this year and we think could be high-risk, high-reward bets.

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