10 Most Successful Penny Stocks in History

If you want to protect yourself when investing, diversification is one of the best strategies. An important aspect is risk tolerance. You aim for low returns by moving to the safest and risk-free investments.

This is a turning point where penny stocks come to you based on higher risks and the potential for more rewards. This guide will tell you about penny stocks and the ten most successful penny stocks in history. Let's dive into the discussion below.

What are penny stocks?

When investors talk about penny stocks, they usually trade without $ per share but with a dollar! Due to their low price, these shares never sell the highest sold shares due to their high prices.

These penny stocks are often associated with small businesses that rarely trade. This is because they have willing buyers and a lack of business liquidity in the market. Investors can therefore sell the shares because the best buyers are not available to buy them.

Which companies can qualify for penny shares?

• These are probably very small businesses.

• Stock prices are so low that you can buy more stocks (and yes, it can be pennies per share, but it can be a few dollars per share)

• It is not accessible at traditional large trade fairs

• Companies are usually not well known to the general public

• It may be more difficult to find reliable financial information about pennies

• Penny stocks may have low liquidity and large spreads between supply and demand

What are the major benefits of investing in penny stocks?

1. These stocks are usually sold at a lower price. For example, you can sell it for a 5 percent stake. Thus, it is an attractive investment opportunity for new investors. You don't have to open your pocket to see how this stock market will work in your favor.

2. They are much easier to buy. Several companies that offer penny shares for investment are available to the general public. It helps to be careful when choosing a reputable company and guarantee favorable results.

Thanks to low prices, penny stocks further increase the chances of their further purchase. If you are convinced that you will achieve better results from penny stocks, you can buy double in the next round. To invest in penny stocks is a real blessing for anyone starting without understanding the stock market basics.

Short selling also reduces the chance of a big loss. This can be beneficial for an investor investing in penny stocks for the first time. However, the investor must understand some warning signs to know when to choose or invest in the stock market, even when the risk comes.

10 most successful penny stocks in history

Las Vegas Sands Corp. (NYSE: LVS)

In 2007, Las Vegas Sands Corp. (NYSE: LVS) was booming as companies thrived in Macau, the world's largest gambling market. As a result, the company's stock traded at almost $ 150 a share, making Sheldon's founder and CEO Adeld the third richest American in 2007. 

However, the financial crisis sent shares to the basement, and in March 2009 sold below $ 2.0 per share. As a result, Mr. Adelson will have to invest $ 1.0 billion of his money in the company.

Since the crisis, the company has lowered its outlook, and stocks have rebounded and may still have room to grow as they have been affected by the recent decline in gambling revenues in Macau.

Ford Motor Company (NYSE: F)

Second on our list of great and most successful cent stocks in history was the Ford Motor Company (NYSE: F), another "fallen angel" during the financial crisis, although it fared much better than its colleague, Detroit's automaker General Motors Company. 

However, in the second half of 2008 and the first half of 2009, the shares sold for less than $3 per share. After that, shares rebounded quickly and are now over $ 10 per share.

Monster Beverage Corporation (NASDAQ: MNST)

In 2003, energy beverage manufacturer Monster Beverage Corporation (NASDAQ: MNST) became known as Hansen's Natural Soda, and the investor was able to acquire Hansen's stake for just $0.25 per share.

Since then, however, the company's sales have improved, as has the share price, which now sells for nearly $56 per share. 

Pharmacyclics, Inc. 09.30 NASDAQ: PCYC

The biotechnology space is full of stories about companies that have brought huge returns to their investors. One of such stocks is Pharmacyclics, Inc. (NASDAQ: PCYC), which acquired AbbVie Inc (NYSE: ABBV) in 2015 for $ 21 billion. 

The shares were sold for less than $ 5 between 2006 and 2009. However, it turned out to be a huge investment, given the price of $ 261.25 per share that AbbVie offered in cash and stock.

GGP Inc (NYSE: GGP)

Next on the list of the most successful cent stocks in history is GGP Inc. (NYSE: GGP), which sold well at $ 40 a share before the stock market hit the financial crisis. Between October 2008 and April 2009, it fell below $ 0.40 per share.

Stocks recovered quickly after the crisis, but still traded below pre-crisis levels, so room for growth could be greater, although a decline in brick-and-mortar trading could push. 

Mylan NV 04.30 NASDAQ: MYL

Mylan NV (NASDAQ: MYL) is one of the few companies that started as a cent stock and became large. The stock began trading on the OTC market as early as 1973 and then moved to the NYSE, where it sold for less than $ 5 for several years.

In 2000, the stock began to gain ground, and in 2008 it moved to the NASDAQ NYSE. After adjusting for multiple share distributions over the years, the shares have returned 94,000% since their IPO. 

Concur Technologies, Inc. (NASDAQ: CNQR)

We continue our list of the most successful penny stocks in history with Concur Technologies, Inc. (NASDAQ: CNQR). This American SaaS company recorded its stake in penny shares in the second half of 2000 and remained there for two years.

But in 2003, she started winning, and in 2007, over $ 20 a share. In the following years, it was even higher until SAP SE (ADR) (NYSE: SAP) bought it for $ 129 per share, representing a 20% premium to a share price of $ 107.80.

Sirona Dental Systems, Inc. (NASDAQ: SIRO)

In 2000, Sirona Dental Systems, Inc. (NASDAQ: SIRO) was trading below $ 1.0, and the stock will continue to strengthen over the next decade and a half. 

In 2015, the share price of a dental equipment manufacturer rose above USD 100 per share, and in the same year, it entered into a definitive merger agreement with DENTSPLY International Inc.

American Axle & Manufact. Holdings, Inc. (NYSE: AXL)

American Axle & Manufactures is a manufacturer of drivetrain and powertrain systems and other components. Holdings, Inc. (NYSE: AXL) was also hit by the financial crisis as its clients plunged into the automotive industry, with some still having to go bankrupt.

However, even though the shares traded below $ 1 per share during the crisis. It prevented the fate of the car industry and did not have to declare bankruptcy. The shares have recovered since then but are still trading below pre-crisis levels, and the company has yet to pay dividends.

One part of Canadian Solar Inc. (NASDAQ: CSIQ)

The solar industry has seen ups and downs, and Canadian stocks make Canadian Solar Inc. photovoltaic modules. (NASDAQ: CSIQ) has also seen some major ups and downs in recent decades.

In 2011, shares fell below $ 5 per share and remained low until 2013, when they returned to more than $ 40 per share. It has lost some ground in the past few years, but it still sells for more than $ 15 a share, a gain of more than 200% from its lowest value in 2011. 

Risks or restrictions on investing in the penny stocks

• If you invest in penny scripts, you should be prepared to take the risk of fraud, which is very high. No such compliance requirements or minimum standards can make it easier for fraudsters to use penny stocks. Investors need to understand the important difference between stocks and reliable stock research.

• These are usually present with high volatility. For example, although they are rewarded, penny stocks have high volatility. Therefore, investors should stay alert to know when to invest or withdraw from the market.

• Any investor investing in penny stock should be willing to face a loss when they could lose their entire investment. However, due to its high volatility, you cannot predict the exact pace of the action movement.

• Investors may face certain problems if they decide to sell cent shares because they are rarely sold. Some obstacles can arise in getting the right quotes for these penny stocks.

Penny stocks are probably very small companies.

A penny stock is often considered a security that sells for less than $ 5 per share. But partly, the price itself does not tell the whole story. Therefore, it would help if you also considered how many shares there are, and then you can determine the company's market capitalization (total market value).

Cent stocks typically have less than $ 300 million in the US market capitalizations. Therefore, they can be called micro-caps ("cap" stands for capitalization), and companies with a market capitalization of less than $ 50 million can be considered nano-caps. 

Penny stocks can buy you thousands of stocks at once

Because stock prices can be very low, one of the temptations of value stocks is the ability to buy more stocks. For example, if you buy $ 1,000 from a company with a stock price of only $ 0.10, you may have 10,000 shares. Depending on the day, $ 1,000 doesn't get a share of Tesla.

Penny stocks are not normally sold on the larger stock market

Penny stocks are often not seen in the better-known stock market. They can often be found on the OTCBB (bulletin board), Pink Sheets, and other over-the-counter markets. Your brokerage account can access these markets, and executing a trade can be almost like trading any stock. But keep in mind that penny shares can also be listed on big stock exchanges.

This often happens when a company is in trouble, and a large company is rather degraded in terms of value to the value of a micro capital area.

Penny stocks are often speculative companies as well as trading ideas

Many penny joint-stock companies may start as small operations in emerging or trending sectors that are not well established. They may be based on speculative ideas, such as the prospect of finding new reserves in gold, oil, or other commodities.

They may also try to develop new solutions to existing problems, such as finding a new neck or heart disease treatment. The common thread of all these possibilities is that these are assumptions. 

There is not much chance they will achieve what they plan to do, but storage can be huge in business costs if they succeed.

This is probably the strongest attraction of penny stocks, the ability to make a huge profit. However, this opportunity would not come without a fair share of risks.

It can be harder to find reliable information about penny stocks

Because a cent share can be sold without mention on a regulated exchange, it does not have to provide the same level of information about the company's operations or other material information.

Online forums and communities can also promote and analyze penny stocks, but not all the information you find online is good. Some of this can only be speculation and optimistic thinking. And sometimes, this environment can improve stock price manipulation in the worst cases.

How do you manage the emerging risks of investing in pennies?

It is important to keep in mind some of the basic principles of portfolio management, especially if you have exposure to certain stocks that are highly speculative. Many investors never invest in pennies, and you don't have to be a successful investor.

Start investing in penny stocks at a low cost and reduce the chances of facing any risk during trading.

But if you are investing in penny stocks, here are some considerations:

• You can diversify between different penny stocks to reduce the concentration of your security risks. Many penny stocks lose a lot in value. Laying eggs in different baskets will reduce this risk.

• The overall share of your investment portfolio consisting of highly speculative investments may be limited. For example, some experts recommend spending no more than a fixed percentage (5% or 10%) on cryptocurrencies or gold; you can consider the same guide if you decide to invest in pennies.

• To be more conservative, you may want to consider that the total allocation of all asset classes should remain in the range of 5% to 10% of your total portfolio.

• Of course, some investors usually hold very speculative investments. However, bear in mind that the probability of serious losses is high, and you could lose most of the money you have invested.

• Even random gains, calculated with multiple potential losses, can be as bad in the long run like a globally diversified portfolio of traditional stocks and bonds. So be sure to do some research and enter with your eyes open.

Related questions: FAQ

Is it a good idea to sell penny shares?

Penny stocks are risky, and there is not much information about most stocks sold over the counter. With so many alternative securities that allow investors to start investing $ 5 or less and still enjoy strong historical returns, there is no reason to look at the securities as a reasonable investment.

How do you know when the penny stock rises?

Look for an unexpected increase in the number of shares sold as a possible sign that the good news is near. Strong volumes and rising prices may indicate that stocks are ready to leave higher trading margins.

Is it hard to sell penny shares? 

Penny stocks are relatively high-risk values with a small market capitalization sold at a short price off large market exchanges. Lack of history and information, such as low liquidity, makes penny stocks risky! Look for scams with penny stocks that you want to separate from your money.

How long can you keep a penny stock?

Professionals can hold stocks for 6 minutes or up to 6 months: if you are a day trader, you can buy and sell stocks every five or 10 minutes. However, investors looking for long-term games and do not want to sell stronger ones can hold penny shares for up to six months.

Final thoughts

Although penny stocks are still considered a harmful investment. But on the other hand, you can get many good benefits from it. Several outstanding stocks are available for new investors to start their successful investment journey.

Be careful, research, and start investing with wise decisions.