Do any penny stocks ever go big?
Sure, some penny stocks turned out to be massive success stories, like Apple, Ford Motor, and Monster Beverage. Find a similar success story like those top penny stocks, and you stand to make a fortune. However, you have to be willing to do the research to find them in a sea of duds.
Asure (ASUR) Among high-potential penny stocks with tremendous potential, Asure Software (NASDAQ:ASUR) stands out after an amazing third quarter. The company's revenues increased by 34% in the last year to $29.3 million. This growth is the outcome of Asure's strategic mergers and effective business practices.
Speculative stocks aren't for the faint of heart. However, it remains true that penny stocks do make investors rich. They remain one of the quickest ways to multiply an investor's capital. If you can get past limited disclosures and liquidity issues, real money can be made by investing in penny stocks.
The appeal of these stocks extends further. They can rebound emphatically when heavily shorted, rewarding those who invest judiciously during their undervalued phases.
- Nike (NKE)
- NVIDIA (NVDA) ...
- Monster Beverage Corporation (MNST) ...
- Tractor Supply Company (TSCO) All-Time Return: +54,978% ...
- Axon (AXON) All-Time Return: +48,911% ...
- ASML (ASML) All-Time Return: +30,001% ...
- Netflix (NFLX) All-Time Return: +27,719% ...
- Tesla (TSLA) All-Time Return: +11,641% ...
- PLUG4.020.39% Plug Power Inc.
- NYCB3.460.24% New York Community Bancorp, Inc.
- OPEN2.950.17% Opendoor Technologies Inc.
- CIFR3.630.78% Cipher Mining Inc.
- NKLA0.700.03% Nikola Corporation.
- BITF2.640.15% Bitfarms Ltd.
- TELL0.870.05% Tellurian Inc.
- EVA0.940.20% Enviva Inc.
Company | CMP (Rs) | Sales CAGR (3 yrs, %) |
---|---|---|
EMPOWER INDUSTRIES | 3.7 | 458.4% |
ELLORA TRADING | 12.0 | 446.4% |
DYNAMIC SERVICES & SECURITY LTD. | 97.0 | 439.7% |
BCC FINANCE | 37.6 | 434.0% |
These stocks are not a way to get rich. They are more likely to send you to the poorhouse. Penny stocks are bad because many of the companies have unproven business models, they are illiquid, they are exposed to scammers, and they are very volatile.
For comparison, blue-chip stocks and high-quality growth stocks that are preferred for the long-term portfolio. I largely agree with this idea, but there are some millionaire-maker penny stocks that are worth holding for few years. If these stocks fire, the health of the portfolio can change within a few quarters.
Penny stocks tend to be much riskier than other stocks.
Plus, they are often shares of unproven companies, where there's a very real risk of losing your entire investment. In other words, they simply are not worth buying for most people who want to invest in the market to take a reasonable risk and build wealth.
Was Apple ever a penny stock?
(NASDAQ: AAPL). Apple wasn't always one of the largest tech companies in the world. In fact, hardly anyone knew about the company and its products for years. Back in the early 2000s, AAPL traded for under 80 cents per share — a legit penny stock.
It's rare for a penny stock to be a long-term buy-and-hold investment. The sector is built on short-term trades. If you notch a sizeable gain over a short period, book it now rather than waiting for bigger profits that may never materialize.
- Divis Laboratories Ltd. ...
- Tata Consumer Products Ltd. ...
- Bajaj Finance Ltd. ...
- Titan Company Ltd. ...
- Reliance Industries Ltd. ...
- Apollo Hospitals Enterprise Ltd. ...
- Infosys Ltd. ...
- JSW Steel Ltd.
2. Amazon (NASDAQ: AMZN) Do you ever kick yourself for not investing in Amazon from day one? It was once a part of famous penny stocks.
The pink sheets market provides access to a wider range of stocks. Companies that can't or don't want to list on a major exchange can make their stock available to investors. For investors with high risk tolerances, volatility and low-dollar-value share prices create the potential for big gains.
Some professionals recommend that you devote no more than 10% of your individual stock holdings to penny stocks. It's also important to understand your risk tolerance. Generally speaking, the higher your risk tolerance, the more equipped you are to take on the risk that can come with investing in penny stocks.
Name | Price | Analyst Price Target |
---|---|---|
CLNN Clene | $0.39 | $7.00 (1699.49% Upside) |
BLRX Bioline RX Ltd Sponsored ADR | $1.33 | $21.00 (1478.95% Upside) |
MIST Milestone Pharmaceuticals | $1.61 | $17.00 (955.90% Upside) |
GMDA Gamida Cell | $0.38 | $4.00 (944.39% Upside) |
"Red hot penny stocks" - perhaps the most common example - is used by tipsters to indicate they have identified cheap stocks which they believe will very shortly increase dramatically in value.
S.No. | Name | P/E |
---|---|---|
4. | Waaree Renewab. | 139.18 |
5. | Network People | 116.42 |
6. | Cupid | 130.53 |
7. | GE T&D India | 266.37 |
- 1.Bharat Electronics Ltd (BEL): Current Market Price (CMP): ₹185.90; Target: ₹215; Upside Potential: 14 per cent. ...
- 2.Hero Motocorp Limited: CMP: ₹4,818.55; Target: ₹5,020; Upside Potential: 14 per cent.
How often do penny stocks go big?
Do penny stocks ever "go big"? Penny stocks can certainly "go big," but the problem is these parabolic moves are usually short-lived. Penny stocks frequently double or triple in price in short periods, but these companies usually have a very bleak 5-year chart.
Once you get your money working for you, it can grow quickly even if you aren't investing a lot. Investing $1 a day can turn into tens of thousands of dollars over a long period of time. You can get started by opening a brokerage account and researching low-cost index funds.
Less stringent disclosure requirements can make penny stocks particularly susceptible to illegal "pump-and-dump" schemes where unscrupulous investors buy the stock, actively promote only its virtues (e.g., "pump it up"), and then, if the stock price appreciates, sell it (e.g., "dump") at an artificially inflated price.
Are Penny Stocks Illegal? Penny stocks are legal, but they are often manipulated. Penny stocks get their name because of their low share price. Any stock trading below $5 a share is generally considered a penny stock.
Lack of liquidity: Penny stocks are often illiquid, meaning it can be difficult to buy or sell your shares quickly without impacting the price. Unprofitable: Many penny stocks represent a stake in a company that has not and will not generate earnings for its shareholders.
References
- https://www.quantifiedstrategies.com/why-are-penny-stocks-bad/
- https://www.nasdaq.com/articles/3-smart-penny-stocks-with-huge-potential
- https://finance.yahoo.com/news/genius-ways-1-000-month-105500970.html
- https://finance.yahoo.com/news/want-300-super-safe-monthly-100600636.html
- https://www.cnbc.com/select/what-are-dividends/
- https://finance.yahoo.com/news/only-buy-one-penny-stock-180840768.html
- https://finance.yahoo.com/u/yahoo-finance/watchlists/most-active-penny-stocks/
- https://uk.advfn.com/trading/red-hot-penny-shares
- https://www.fool.com/investing/2023/12/29/3-super-safe-dividend-stocks-to-buy-for-2024-and-b/
- https://www.nasdaq.com/articles/got-%24500-a-month-to-invest-heres-how-the-sp-500-could-make-you-a-millionaire
- https://www.5paisa.com/blog/fundamentally-strong-penny-stocks-in-india
- https://www.equitymaster.com/stock-screener/fastest-growing-penny-stocks
- https://www.nasdaq.com/articles/3-penny-stocks-with-unbelievable-growth-potential
- https://money.usnews.com/investing/articles/cheap-dividend-stocks-under-10
- https://money.howstuffworks.com/penny-stocks.htm
- https://www.nasdaq.com/articles/here-are-the-2-warren-buffett-investments-he-recommends-the-most
- https://ca.finance.yahoo.com/news/much-invest-2-000-monthly-160000919.html
- https://time.com/personal-finance/article/ways-to-invest-1k/
- https://www.nasdaq.com/articles/3-millionaire-maker-penny-stocks-to-hold-for-36-months
- https://www.investopedia.com/terms/p/pennystock.asp
- https://stockanalysis.com/list/monthly-dividend-stocks/
- https://www.snideradvisors.com/blog/how-to-estimate-dividend-income/
- https://medium.com/@Levente22/16-proven-ways-to-make-3-000-4-000-per-month-in-passive-income-09b87497c525
- https://www.bankrate.com/investing/what-are-penny-stocks/
- https://bullishbears.com/famous-penny-stocks/
- https://www.fidelity.com/learning-center/investment-products/stocks/dividends-and-taxes
- https://www.screener.in/screens/801676/6-months-double/
- https://seekingalpha.com/article/4652634-how-to-live-off-dividends-forever
- https://ca.finance.yahoo.com/news/4-steps-start-living-off-134500646.html
- https://www.nasdaq.com/articles/are-penny-stocks-worth-it-should-you-invest-in-penny-stocks
- https://www.cnbc.com/2023/08/21/penny-stocks-scam-millions-heres-why-theyre-so-dangerous.html
- https://www.linkedin.com/pulse/what-penny-stocks-markets-com-app-h9knc?trk=article-ssr-frontend-pulse_more-articles_related-content-card
- https://medium.com/@dontworkanotherday/how-to-turn-500-into-10-000-7-easy-methods-7437ca454609
- https://www.fidelity.com/viewpoints/active-investor/trading-penny-stocks
- https://www.fool.com/the-ascent/buying-stocks/articles/heres-what-happens-when-you-only-invest-in-sp-500-etfs/
- https://finance.yahoo.com/news/investing-measly-100-per-week-130000480.html
- https://money.usnews.com/investing/articles/dividend-stocks-to-buy-and-hold-forever
- https://lyonswealth.com/blog-details/how-much-money-do-i-need-to-invest-to-make-3000
- https://www.nerdwallet.com/article/investing/what-are-dividends
- https://www.timothysykes.com/blog/most-successful-penny-stocks-in-history/
- https://www.tipranks.com/screener/penny-stocks
- https://smartasset.com/investing/how-to-invest-in-penny-stocks
- https://www.quora.com/How-much-do-I-have-to-invest-in-a-year-to-receive-2-000-a-month
- https://www.nasdaq.com/articles/do-this-for-$4000-in-dividend-income-every-month
- https://www.fool.com/investing/2023/11/22/the-smartest-stocks-to-buy-with-20-right-now-and-h/
- https://edgeinvestments.org/blog/most-successful-penny-stocks-in-history
- https://www.fidelity.com/learning-center/investment-products/stocks/why-dividends-matter
- https://finance.yahoo.com/news/500-every-month-passive-income-130041730.html
- https://www.investopedia.com/updates/how-to-invest-in-penny-stocks/
- https://www.fool.com/investing/stock-market/types-of-stocks/penny-stocks/
- https://www.titan.com/articles/what-happens-if-a-stock-goes-to-zero
- https://medium.com/@Levente22/7-ideas-to-make-1-000-2-500-per-month-in-passive-income-18da68d470e2
- https://finance.yahoo.com/news/3-penny-stocks-getting-rich-130228018.html
- https://investorplace.com/2023/11/7-penny-stocks-youll-regret-not-buying-soon-november-2023/
- https://www.fool.com/investing/2023/11/10/got-100-per-month-to-invest-heres-how-far-it-could/
- https://www.fool.com/the-ascent/buying-stocks/articles/dont-buy-penny-stocks-do-this-instead/
- https://www.investopedia.com/updates/penny-stocks-risks-rewards/
- https://money.usnews.com/investing/articles/best-monthly-dividend-stocks-to-buy-now
- https://www.quantifiedstrategies.com/penny-stock-trading-strategies/
- https://www.fool.com/the-ascent/buying-stocks/articles/how-much-money-will-you-end-up-with-if-you-invest-1-a-day/
- https://www.livemint.com/market/stock-market-news/general-elections-2024-stock-picks-irctc-sbi-among-top-10-picks-for-this-season-to-offer-10-20-potential-upside-11708013989987.html
- https://www.usatoday.com/money/blueprint/investing/best-monthly-dividend-stocks/
- https://www.fool.com/terms/p/pink-sheet-stocks/
- https://www.koyfin.com/company/ko/dividends/
- https://money.usnews.com/money/retirement/articles/how-can-i-earn-100-200-or-500-per-month-in-guaranteed-income-in-retirement