There is no better place to find explosive growth than with
low-priced penny stocks. I'm not talking about pink sheet stocks
that are potentially nonexistent, or fraudulent names set to
crash. I'm talking about real companies with real earnings -
companies listed for more than one year on a major exchange like
the AMEX, NYSE or Nasdaq, and that have a market cap in the
ballpark of $100 million.
The returns can be even more powerful when you combine the
power of technology stocks and penny stocks. Specifically, the
software space is seeing lots of action thanks to the mass
acceptance of smart phones and personal computing devices.
These devices are quite powerful, but they still need programs
to make them run. The best software companies are those that make
users more productive. In this tough economy, those companies
that help workers do more with less are poised to be the penny
stocks that really move higher.
Because these companies have the wind at their sails from an
earnings perspective, these penny stock prices will not last
long. Now is the time to pounce before the rest of the market
Here are six software penny stocks to buy now:
) is a penny stock with a near $100 million market cap. This is a
real company with real products and real revenues. The company
makes application software for the automobile finance and leasing
industry as well as the banking, financial services and
healthcare industries globally.
Shares have drifted lower since peaking near $2.40 per share
earlier this year. You can buy this penny stock today for just
$1.60 per share. That is a bargain that you should exploit.
NetSol beat estimates in the last quarter by 4 cents per
share. Look for a similar result when it announces quarterly
results. For the full year, the expectation is for a profit of 18
cents per share. If the company does better than expected, this
stock could really take off.
The penny stock
) has a market cap of $63 million and is part of the Russell
micro cap index. In May, the stock was listed on the AMEX
exchange taking shares off bulletin board status. The stock has
gained about 50cents per share since that time.
Cover-All Technologies is in the business of providing
software products and services for the property and casualty
insurance space. That sector has been getting headlines this year
with the uptick in natural disasters and inclement weather. Any
chance to save money with technology will be more likely to be
advanced under more difficult financial times.
Cover-All is profitable and expected to make seventeen cents
per share in the current fiscal year. That number jumps 3 cents
to 20 cents per share in 2012. The company has beaten estimates
in the last two quarters. You can buy that 17% growth for less
than 15 times estimated earnings.
One of the problems owning penny stocks is trading volume is thin
and liquidity makes it tough to sell shares for a profit. In the
Top Image Systems
), we have a stock that sees an average of 300,000 shares trading
hands each day. Clearly this stock will be followed by a fairly
large group of investors.
Top Image system is in the business of making software with
respect to data capture and manipulation. This Israeli-based
company was founded in 1991. Shares of the company blasted higher
in early May after the company reported positive results for its
first quarter of 2011.
In the period, the company saw a 36% increase in revenue and
posted a profit of seven cents per share as opposed to a loss in
the year prior. That was enough to move the stock from $1.34 per
share to $2.20 per share. Those are the types of moves you can
expect from a penny stock when it delivers solid operating
performance. I expect a repeat performance in future
Authentidate Holding Corp.
) is in the business of making the health care industry less
paper-intensive. Offering web-based solutions for health systems
and physician groups, this penny stock has nearly doubled in
value since early April.
I don't think the gains are done there. This sort of momentum
is what I like to see. Historically riding these waves of
momentum has been very lucrative to me and my investors.
Authentidate is growing and continually adding to its
impressive roster of customers. Most recently the company signed
a deal with the Department of Veteran Affairs to provide
telehealth solutions. The company is expected to lose money in
2011, but to be profitable in 2012. If so, the stock will double
again from here.
Cinedigm Digital Cinema
Penny stocks can be quite volatile. Shares of
Cinedigm Digital Cinema
) have been on a roller coaster this year. In mid-March the stock
caught fire and jumped a dollar per share over the course of a
couple of months. Since that time, shares have given up half that
gain to the ballpark of $1.90 per share.
Use the selling to get in on this penny stock ride. Cinedigm
provides technology solutions and digital content to theater
exhibitors. The company just completed a year of operating losses
that it expects to sharply narrow in the 2012 fiscal year. Sales
are growing rapidly and that is what investors should focus on
To the extent they beat expectations, profitability may arrive
sooner than later.
) is an Israeli-based technology company that provides convergent
end-to-end billing and customer-care product-based solutions for
service providers as well as telecom expense management
solutions. After peaking at nearly $3.60 per share, the stock has
slipped to current levels at $2.80 per share.
The move lower comes on the heels of a less-than-stellar
quarterly earnings report for its first quarter ending March 31,
2011. Year over year revenue in the period was lower, but the
company did post a profit of six cents per share. In addition to
reporting a backlog to be recognized this year of $10.2 million
Mind CTI had previously declared a cash dividend of 32 cents per
With telecom and wireless being all the rage around the globe,
I expect Mind CTI to perform quite well for the remainder of the