Penny Stock Investing – Success Stories
Over the years, there have been several penny stock investing success stories: small companies that have started with low shares that then increased considerably, in a relatively brief period.
Even as we speak there are ‘penny stock companies’ that hold great potential for investors. The challenge is to discover those companies. And that’s not easy, because many of them are obscure.
Big Names That Started Low
If we refer to penny stock investing as investing in low-priced shares, usually below $5, then there are many companies that started as penny stocks, but which today are huge, with high price shares and massive revenues.
Notable examples include Ford, General Motors, and even Playboy. But the ultimate example is Xerox, who is widely recognized in the investing world as the penny stock company. All of these companies started really small, but experienced a fulminant grow.
That’s why investors who bought their shares when the price was low benefited tremendously. Many of these investors managed, with an initial small investment, to amass a fortune from penny stock trading alone. And they became millionaires.
But apart from the big names, there are other examples of companies whose share price has increased considerably.
- Concur Technologies (CNQR) is a Redmond-based software-as-a-service provider of automated employee spending management systems who in early April had stock traded at $0.30 whereas now its stock is traded at an impressive $60.53.
- Mylan Labs (MYL) had a share price of $0.75 in 1976. As of March 2012, the stock was over $22.90.
- Fortescue Metals Group (AU:FMG) had a share price of under $0.30 in 2003, while now they produced 100,000,000 tons of iron ore yearly. Some years ago the price reached $7. Right now, their price share is $5.86.
Penny Stock Investing
As the above examples suggest, penny stock investing has tremendous potential for investors who are willing to take risks and put their trust in emerging companies.
But there are many more examples of much smaller businesses who represent good opportunities for investors wanting to make relatively small investments that can bring them great returns in time.
It’s important though to distinguish between real penny stock investing and scams that involve in one way or another penny stocks. An easy way to distinguish between the two is to use your common sense: scams are always simply too good to be true.
In the end, remember that penny stock investing has great potential, but only when you make an informed decision, and have realistic expectations.