Penny-stock investing involves risk, but there's no reason to
make your investments gambles that are based on little more than
luck. Though "penny stocks" can mean pink sheet investments with
little capital or market requirements, the moniker also applies to
low-priced stocks trading for just a dollar or two - and many of
these picks trade on major exchanges and a few even have analyst
When you invest in penny stocks, these are the investments you
should seek out. While they are still high-risk, they are more
stable investments that meet a higher level or quality. To show you
what I mean, here are seven telecom penny stocks that you may want
to consider. All trade on a major exchange (the Nasdaq) and all are
fast-moving small-cap stocks trading for just a few dollars a
Westell Technologies (
) is a holding company whose subsidiary, Westell, designs and
distributes telecommunications products. Year-to-date, WSTL
has gained 147.5% compared to gains of 11.4% and 7.7% by the Nasdaq
and Dow Jones. Over the past two weeks, this penny stock has
taken off, rising 33.8% in that time. Westell has also
outperformed earnings estimates for four consecutive
quarters. This stock currently trades at $2.92, which is just
6 cents off of its 52-week high.
) develops, markets and sells equipment for professional video
applications in the broadcast, government, enterprise,
post-production and Internet protocol television markets.
Since January, OBAS stock is up 16.5%. This penny stock has
shown strong performance since Sept. 1, having gained nearly 14%.
At $1.55, OBAS is a very inexpensive stock to add to your
Powerwave Technologies (
) is a global supplier of end-to-end wireless solutions.
Powerwave works primarily with wireless communications
networks. In 2010, PWAV stock has climbed 73.8%, compared to
smaller gains by the broader markets. Powerwave has
outperformed earnings estimates for two straight quarters,
prompting experts to up their earnings estimates a cent higher than
last quarter's EPS. This penny stock is just two cents off its
) supplies products for the biometrics and digital subscriber line
test industries. The company also sells software products to
its various clients. Since the start of September, AWRE stock
has jumped 26.1%, and the penny stock is up 3.6% overall on the
year. Aware's stock currently trades at $2.84, or 90
cents higher than its 52-week low.
Sonus Networks (
) provides voice, video and data infrastructure solutions to
wireless and wireline telephone service providers. SONS has
climbed steadily in 2010, and is up 51.7% year-to-date, compared to
smaller gains by the broader markets. Additionally, Sonus has
met or exceeded earnings estimates for four straight
quarters. At $3.18, SONS is one of the more expensive penny
stocks on this list, but still offers a great buying opportunity at
a low price.
Extreme Networks (EXTR)
Extreme Networks Inc.
) provides network infrastructure equipment and services to data
centers and telecommunications service providers. Some of
Extreme's biggest clients are hospitals, schools, hotels and
government agencies. Since September, this penny stock has
gained +16.5% compared to smaller gains by the broader
markets. EXTR has also met or exceeded earnings estimates the
past three quarters. This penny stock currently trades at
) designs, develops, and distributes products and services that
provide data and voice connectivity among people and machines.
Since September, WRLS stock has gained 15.8%. In its last income
statement, Telular reported an impressive net profit margin of
8.7%. Trading at $3.45, WRLS rounds out the list of penny
stocks to buy.
As of this writing, Louis Navellier did not own a position in
any of the stocks named here.