Top 8 List of Penny Stocks to Watch Out! | Buying Tips

Stock trading basically involves some risks. But there are some ways that can help lessen the risks involved in the stock trading significantly. One of these is by being a smart investor. Being smart does not only mean that you are aware of the potential risks involved, but also by being able to come up with a good plan of action as well as a thorough research.

If you are into stock trading, you’ve likely heard the phrase penny stocks at one point or another. If you don’t know what exactly these penny stocks are, then penny stocks are actually a type of stock that is usually traded at a price of below $ 5 per share. However, in some business-related websites, there are some which referred to penny stocks as stocks being sold at below $ 10 per share. No matter how would you like to describe it, only one thing is common and that is this penny stock is more of a low-priced stock which requires only a little money outlay from its potential investors.

If you are looking for which penny stocks to buy now, you may consider the following companies listed below. These companies listed below are some of the penny stocks to watch out for that have all performed well in 2010 and could make profitable additions to your investment portfolio.

  1. Tower Semiconductor– is involved in the manufacturing of semiconductors which are most often used in consumer electronics, personal computers, automobiles as well as medical devices. They have managed to climb around 42.3 % year-to-date and its stock has jumped 53.3% over the past 12 months.
  2. Wave Systems– is involved in the manufacturing of products for hardware-based digital security and has a total of market cap of around $ 183 million. It has managed to climb around 173.5 % since October of last year.
  3. Zix (ZIXI) – is involved in an e-mail encryption services. Its stock has increased for around 60.8% as of year-to-date. It has also managed to make around 16.4 % net profit margin last quarter.
  4. Microtune – is involved in providing solutions for cable, automotive entertainment electronics and digital television markets. It has passed through some ups and down within the year, but has managed to come back strongly in September when its stocks have climbed 27.2%.
  5. Westell Technologies is a holding company that deals with customer solutions equipment, outside plants system equipment as well as conference plus services. Year-to-date record shows around 90.8% increase in stocks and also reported a net profit margin of around 11.2% in its last income statement.
  6. ChipMOS Technologies is involved in providing back-end testing services such as engineering testing, wafer probing and the like. It stocks has managed to climb by 94.4% since January.
  7. RAE Systems – is involved in the developing and manufacturing of multi-sensor chemical and radiation monitors and wireless networks. Its stock is up by 43.6% year-to-date. It has also reached a quarterly revenue growth year-to year of 17%.
  8. Magic Software Enterprises – is involved in the development and marketing of application platform for its clients worldwide. Its stocks have managed to climb around 46.9% over the past twelve months.

These eight companies mentioned above basically offers some of the penny stocks to watch out for that shows great potential for growth and an ideal choice to put your money in. Their record has just proven that they are great investments right now and could bring you enormous profits in the future.

At this point you may have already chosen which penny stocks to buy now, but always remember that you should always invest for the right reason. Always trust your own decision and do not let others influenced you. Always be smart.


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