What are penny stocks?
Penny stocks are defined differently depending on who you ask. Typically, a penny stock is public companies which trade their shares at the low prices. The per share prices are less compared to the other companies. In some of the definition of penny stocks, it is described as the trading of shares for less than $5.
There are a lot of gains to be made in penny stocks but the risks are also high. Many investors are investing in these as they are getting potential profits. But the thing is, do all companies provide you a handsome amount of profit? Your answer to this is a big no. There are certain companies which are comparatively better for investors to invest. Now what are the best penny stocks to buy? Some examples of penny stocks that have recently performed well are:
- GreenGro Technologies Inc. (GRNH) – this company has rewarded their investors the most. They have posted a gain of 877% in the year 2014. This company is involved in the marijuana dispensaries. Its stock opened at $0.04 in the opening of the year 2014 and rose at a quick rate and reached $0.80 per share. It then again came back to $0.43 and got settled there.
- Hemp inc. (HEMP) – it is a holding company which has marijuana stock and had its share prices up at 513% on1st Jan 2014. It is that company which invests in only profitable, diversified ventures and the ventures which are legal. Its current shares are at $0.12. They opened the year at $0.02. This company has a lot of market capital and thus it has a real penny stock.
- SMTP Inc. (SMTP) – it is a company which helps in providing email services and a support to the companies having different sizes. In the beginning of the year 2014 it has reached to 324%. Then in the first week of June it had an increment and climbed to 500%. The current value of the share is $6.06 a share that is a good hike from 1st Jan when it was $1.43. In the month of February the company has declared its shareholders that they will pay a dividend to them of $0.12.
- Verso paper corp. – it is a company which manufactures products made from paper like magazines, catalogues, commercial print items etc. There stock at the end of the month of January was trading at $3.00. They have gained up to 380% after the end of one month. This company has a market capital of $158 million.
There are many other companies which provide a good amount of return to their share holders. Just make sure when you invest in the penny stocks of any company. Though it is a very good way to invest and has a very genuine investors investing in these.