Top Penny 10 Stocks in March 2014: Gains Near 2,000%

When looking at the gains of the top 10 penny stocks in March 2014, it’s clear why so many people invest in penny stocks.

Penny stocks have the ability to bring triple-digit gains in just days, and the top stocks on this month’s list brought in monthly returns of 1,977%, 627%, and 400%.

While the rewards from penny stocks can be huge, so too are the risks. Many penny stocks trade “Over-The-Counter” (OTC) or on the Pink Sheets, meaning they are not subject to the same strict financial filing standards as the New York Stock Exchange (NYSE) or Nasdaq. Also, because penny stocks can be so illiquid, it can be difficult for investors to sell shares.

For investors who added one of these 10 penny stocks to their portfolios in March, the risks were worth it.

Here are the top 10 penny stocks from March 2014.

Top 10 Penny Stocks in March 2014

Canadian Tactical Training Academy Inc. (OTCMKTS: CTTG) is by far the biggest penny stock winner from the month of March, seeing its share price gain an incredible 1,977%. The company is headquartered in Quebec and provides various types of courses including private security, surveillance, and executive protection services. Like many penny stocks that trade OTC, CTTG is extremely illiquid, meaning it is not often traded. On the last day of March, more than 7.9 million shares of CTTG exchanged hands, when most of the month had seen very few CTTG shares traded. At the beginning of March, CTTG was worth a fraction of a penny. Now it’s valued at a little more than $0.02. While the stock posted an unbelievable gain in March, those who purchased CTTG will have hard time selling the stock because it is so illiquid. If there isn’t another buyer interested, shareholders might now be stuck with CTTG stock without anywhere to unload it.

Bravada Gold Corp. (OTCMKTS: BGAVD) shares shot up 627% in March and now trade at $0.08 per share. Investors looking for strong financial backings in their stock picks would have trouble choosing Bravada, as its market cap is just $179,000. BGAVD is also very illiquid, averaging just 727 shares traded daily. On the last day of the month, more than 27,000 shares were traded, sending the stock price higher.

North American Energy Resources Inc. (OTCMKTS: NAEY) is another illiquid penny stock that posted a serious gain in March, up 400%. At the beginning of the month, NAEY was trading at just $0.01. At the end of March the stock was worth $0.04. Adding three pennies doesn’t seem overwhelming, but NAEY shareholders quadrupled their investments. NAEY is an independent oil and gas company that has a market cap under $1 million.

But those weren’t the only huge winners in March. These next seven all nearly doubled or tripled their share prices in just one month…

IsoRay Inc. (NYSE: ISR) develops isotope-based medical products for the treatment of cancer and other malignant diseases. Unlike the first three stocks on this list, ISR trades on the NYSE, making it much more liquid. In the month of March, ISR stock climbed from $0.79 to $2.20, good for a 180% increase. IsoRay stock made its biggest jump of the month when news broke that two activist investors had purchased 5.6 million additional shares.

Digital Power Corp. (NYSE: DPW) develops power system solutions that are used in the medical, military, telecom, and industrial markets. After a 155% gain in the month of March, DPW stock trades at $1.68. The stock shot up 45% on March 19 after it was announced that Digital Power Corp. had signed a five-year contract with Israel Aerospace Industries. DPW has a market cap of $11.5 million and trades within a 52-week range of $0.50 to $3.50.

Biofuel Energy Corp. (Nasdaq: BIOF) was up nearly 151% in the month of March. Biofuel Energy produces and sells ethanol and related products. The company owns two major plants, one in Wood River, Neb., and one in Fairmont, Minn. BIOF started the month at $2.91 per share and closed the month at $7.30. At its current trading price, BIOF would no longer be considered a penny stock, as generally only stocks under $5 are considered penny stocks. During March, BIOF touched its 52-week high of $7.80 per share.

MagneGas Corp. (Nasdaq: MNGA) is an alternative energy company that creates hydrogen-based fuel through the gasification of liquid waste. In March, MNGA gained 116%, climbing from $0.75 to $1.62 per share. MNGA stock gained 75% from March 19 through March 22 after it was announced that the company’s fuel had been selected for four major demolition projects that require torch cutting. The company has a market cap of more than $41 million and is headquartered in Tarpon Springs, Fla. MNGA trades in its 52-week range of $0.40 to $2.45.

xG Technology Inc. (Nasdaq: XGTI) makes the list having jumped 112% in March 2014. XGTI began the month trading at $1.29 and closed out March at $2.74 per share. The company develops cognitive radio technologies that are used by clients in the wireless communications field. XGTI is based in Sarasota, Fla., and has a market cap of nearly $52 million. Shares of XGTI soared more than 128% on March 5, when news broke that xG Technology had secured a patent for one of its new technologies. Since then, the stock has settled back down, but investors who held on all month banked a 112% gain.

Celsius Holdings Inc. (OTCMKTS: CELH) develops and sells calorie-burning beverages under its Celsius brand name. In March, shares of CELH soared almost 98%, and the stock ended the month at $0.85 per share. During March, CELH touched its 52-week high of $1.20. Celsius has a market cap of $18 million and is headquartered in Boca Raton, Fla.

ZBB Energy Corp. (NYSE: ZBB) rounds out the list with a gain of 84% in the month of March. ZBB is primarily focused on energy storage and power electronic systems, and the company works with utility, governmental, commercial, industrial, and residential customers. ZBB traded over $4 per share in March before closing the month at $1.73 per share.

Do you invest in penny stocks? What are some penny stocks that you have on your radar? Let us know on Twitter @moneymorning using #PennyStocks.

Risk management is imperative to penny stock investing. With this strategy, you can seize the great opportunities for massive wins… and still sleep easily at night.