The 3 Best Penny Stocks To Buy In July Have 400% Upside

That won't last for long, especially as investors start to look for these gems hiding outside of their passive funds.

This is a well-run company with a growing business. Management is discussing converting to a C-corporation from, and if they make that decision, we should see a one-day pop in the stock price. Long term, this could easily surge 400% or more.

This Stock Under $5 Is Making Moves in July

Comstock Resources Inc. (NYSE: CRK) is an independent energy company that engages in the acquisition, exploration, development, and production of oil and natural gas properties, primarily in Texas, Louisiana, and North Dakota. Oil and gas stocks have been hit hard this year, especially those like Comstock that focus mainly on natural gas.

The liquidity situation was getting tight for Comstock, making a stock offering of 40 million shares. The offering was priced at $5 a share, raising about $200 million. Comstock used proceeds from an equity offering with cash on hand to redeem the $210 million Series A convertible preferred shares. In April and May, Comstock exchanged $5.6 million of 7.5% Senior Notes due 2025 for common equity. Comstock intends to use the net proceeds of the recent $400 million senior notes offering to repay borrowings under the credit facility and to enhance its financial liquidity.

Management is positioning the company for prolonged survival and eventual profits.

Wall Street likes the moves they have made. In the last few months, four major brokerage firms changed their rating to buy.

Insiders expect the moves to pay off. Several of them, including the CEO and CFO, have been buying shares in the open market.

When natural gas prices eventually firm, this stock could easily double or more. It's already recovered from its June lows and is trending higher, making July the right time to buy-in.

Jerry Jones, the Dallas Cowboys owner, is betting the stock has a huge move ahead. Over the past two years, he has put more than $1 billion into the company and has a controlling interest of more than 80% of the company.

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