The information technology sector is the S&P 500′s most
profitable sector, according to Bloomberg, and the profit margins
for most infotech companies have been steadily increasing. Yet
investors seem to be relatively uninterested in the large-cap,
established tech giants at the moment. But small-cap tech stocks
are a different story. Some people believe that irrational
exuberance has returned to the tech sector, but I think there are
still gains to be made, so I've selected a group of eight penny
stocks that could deliver big gains.
A quick note: The names on our penny stocks list might not be
what you would consider "true penny stocks." But micro-cap pink
sheet or OTC stocks that cost only a few cents per share are too
risky. Our stocks are a little bigger and, therefore, a little
safer, but still have the ability to deliver spectacular gains.
Here are our top infotech penny stocks to buy now:
Westell Technologies (WSTL)
), through its subsidiaries, designs, distributes, markets, and
services a range of broadband, digital transmission, remote
monitoring, power distribution, and demarcation products used by
telephone companies and other telecommunications service providers.
The penny stock is relatively flat for the year, but is up a huge
133% in the last 12 months. And with strong earnings growth of
1,875%, investors may want to consider buying here.
Global commercial wireless messaging system operator ORBCOMM
) is up 46% in the last 52 weeks and 17% since the start of 2011.
In its last income statement, this penny stock posted
year-over-year quarterly revenue growth of 6%.
Powerwave Technologies (PWAV)
) indoor/outdoor wireless coverage systems offer better signal
quality and reduced network congestion, giving users faster access
and longer battery life, and support mission critical
communications for government, law enforcement and public safety
agencies worldwide. The penny stock has gained 42% since the start
of the year, and 122% in the last 12 months.
Dot Hill Systems (HILL)
Since the beginning of January, storage system and enterprise
server software provider
Dot Hill Systems
) is up 59%, compared to a gain of 6% by the Dow Jones Industrial
Average. Since last May, the penny stock has jumped an impressive
RAE Systems (RAE)
) develops and manufactures multi-sensor chemical and radiation
detection monitors and networks. Investors have watched this penny
stock climb 197% in the last year and 40% year-to-date. Private
equity firm Venture Capital just boosted its acquisition offer for
the company to $2.25 per share.
Zix Corp. (ZIXI)
), which provides Internet security applications, has gained 53%
since this time last year. In its last income statement, this penny
stock posted quarterly earnings growth of 237%, year-over-year, and
a net profit margin of 123%.
Majesco Entertainment (COOL)
Video game software and digital entertainment products company
) is up a remarkable 273% since the beginning of 2011. In its last
income statement, COOL reported quarterly earnings growth of 78%
and quarterly revenue growth of 66%, year-over-year.
Glu Mobile (GLUU)
Glu Mobile (NASDAQ:
) designs, markets and sells mobile games worldwide. The penny
stock is up 151% year-to-date and 275% in the last 12 months. The
stock made a new 52-week high of $5.26 yesterday.