Penny stock investing
doesn't have to be a crap shoot on long-shot stocks. Done well,
penny stocks can be a great way to diversify your portfolio and
really amp up your investment profits. While penny stock
investing can be risky, it can also be very rewarding.
I recommend finding bargain penny stocks traded on major
exchanges, for no less than $1 a share and with a proven track
record. These penny stock investments should show significant
earnings growth and strong buying pressure behind shares,
increasing the likelihood that these stocks will be on the way up
in the very near future.
Here are eight low-priced technology stocks that fit this
description. All have fared very well in 2010 and could make
profitable additions to your portfolio going forward.
ower Semiconductor (
) is an independent foundry involved with the manufacture of
semiconductors. Tower's products are commonly used in
consumer electronics, personal computers, automobiles and medical
device products. Year-to-date, TSEM has climbed
42.3%. Even better for shareholders, the tech stock has
jumped 53.3% over the past 12 months. Trading at $1.38,
TSEM is a very affordable tech stock to buy at the moment.
Wave Systems (
) produces products for hardware-based digital security.
These products are normally used in identity protection, data
security, digital signatures, electronic transaction integrity
and network security. Since last October, WAVX has
skyrocketed 173.5%. Wave has a market cap of just $183
million, but is a penny stock worth a closer look based on its
Headquartered in Dallas,
) is an e-mail encryption service. Its service is used in
the health care, financial services, insurance and government
sectors. Year-to-date, ZIXI stock has jumped 60.8%.
The rally is part of a larger trend, in which the stock is up
37.5% over the past five years. Last quarter, Zix reported
a net profit margin of 16.4%. Trading at $2.75, ZIXI is an
inexpensive stock worth buying, based on its short-term and
) is known for its receiver solutions for cable, automotive
entertainment electronics and digital television markets.
TUNE has had an up-and-down 2010, but thanks to a strong
September showing, is up 28.1% year-to-date. In September,
the stock climbed 27.2%, thanks in part to the announcement by
) that it was planning on purchasing Microtune for $166
million. TUNE stock currently trades at $2.89.
Westell Technologies (
Based in Illinois,
) is a holding company divided into the following segments:
customer network solutions equipment, outside plant systems
equipment and conference plus services. Its subsidiary Westell
provides telecommunications products to telephone
companies. Year-to-date, WSTL stock is up 90.8%, and the
penny stock reported a net profit margin of 11.2% in its last
income statement. Finally, WSTL has outperformed earnings
estimates for three consecutive quarters, making it a penny stock
ChipMOS Technologies (IMOS)
) provides its clients back-end testing services, including
engineering testing, wafer probing and final testing of memory
and logic/mixed-signal semiconductors. Since January, the
penny stock has gained 94.4%, compared to small gains by the
broader markets. Earlier in the year, the stock was trading
at just 60 cents a share, and now trades at $1.37. A strong
showing in September shows that this is an affordable stock worth
RAE Systems (RAE)
) develops and manufactures multi-sensor chemical and radiation
monitors as well as wireless networks. RAE saw a huge
increase in mid-September, and the stock is up 43.6%
year-to-date. The stock spike occurred after it was
announced that the penny stock would be acquired by a subsidiary
of Battery Ventures. A quarterly revenue growth year-over-year of
17% is another reason to buy this tech stock.
Magic Software Enterprises (MGIC)
Magic Software Enterprises
) develops, markets, sells and supports an application platform
for its clients across the globe. Over the past 12 months,
MGIC stock has climbed an impressive 46.9%. The biggest
jump for the stock came in March when the company signed two new
partners in Germany. Over the past five years, MGIC stock
is up nearly 58%, proving that this penny stock has been valuable
in the long run.
Top 5 Stocks for the 4th Quarter Surge
. Louis Navellier details five stocks set to deliver
record earnings and jump 30%-50% in the next 90 days as the big
money piles in.
Get their names online here,
including Louis' buy-below and target prices.