11 Penny Stocks Under $3
Big Things in Little Packages
The market has taken quite a beating since its April 29 high, and this has dragged the good down with the bad. Volatile penny stocks are especially susceptible to this kind of sell-off. However, they also have the potential to rebound fast and furiously when the market turns back around.
Now, when we say "penny stocks," we're not talking about micro-cap pink sheet or OTC stocks that cost only a few cents per share. Yes, those are true penny stocks, but they are much too risky to make good investments. Rather, the penny stocks we recommend are a little bigger (read: safer), yet all the names on this list still trade for less than $3 per share. However, they still have the ability to deliver spectacular gains when the market turns around.
Here are 11 penny stocks to buy:
Penny Stock to Buy #1 - Nevada Gold & Casinos (UWN)
Gaming company Nevada Gold & Casinos (AMEX: UWN ) finances, develops, owns and operates gaming projects. The penny stock is probably most well known for owning Colorado Grande Casino in Cripple Creek, Colo.
In the last year, UWN stock is up 47%, compared to a gain of 23% for the Dow Jones Industrial Average. More recently, UWN stock has jumped 24% in the past 90 days. Looking at UWN's last income statement, this penny stock posted a quarterly revenue growth of 153%, year-over-year.
Penny Stock to Buy #2 - Premier Exhibitions Inc. (PRXI)
Premier Exhibitions Inc. (NASDAQ: PRXI ) is engaged with the creation, design, marketing and presenting of educational and entertaining exhibitions around the world. The company's exhibition products are displayed primarily in exhibition centers, museums, retail locations and other venues with high traffic, including the Luxor Hotel and Casino.
In the last 12 months, this penny stock has climbed 20%. With a 52-week range of $1.01 to $2.50, this penny stock could be a good choice for those looking for high reward potential.
Penny Stock to Buy #3 - Century Casinos Inc. (CNTY)
International casino entertainment company Century Casinos Inc. (NASDAQ: CNTY ) has gained 19% since last June. Century Casinos develops and operates gaming establishments and related lodging and restaurant facilities in parts of Canada and Colorado.
Last quarter, the gaming company posted quarterly revenue growth of 21%, year-over-year. Concerning earnings, analysts are expecting CNTY to post an EPS of three cents this quarter, compared to last year when the company just broke even. Add in last quarter's quarterly of earnings growth of 180%, year-over-year, and CNTY is a penny stock worth buying.
Penny Stock to Buy #4 - MTR Gaming Group Inc. (MNTG)
MTR Gaming Group Inc. (NASDAQ: MNTG ) owns and operates gaming properties in West Virginia, Pennsylvania and Ohio. MNTG is also the owner of Racelinebet.com, which offers online and telephone wagering on horse races.
Year-to-date, this gaming company has watched its stock value rise 29%, compared to smaller gains by the broader markets. Looking at earnings, analysts are projecting a jump in EPS to 3 cents this quarter, after the company posted an EPS of 2-cent loss this time last year. Currently, MNTG is trading at more than double its 52-week low of $1.30.
Penny Stock to Buy #5 - Mad Catz Interactive Inc. (MCZ)
Designer, manufacturer, marketer, seller and distributer of videogame accessories, Mad Catz Interactive Inc. (AMEX: MCZ ) is another penny stock worth keeping an eye on. The penny stock is up 41% year-to-date, and the past 52 weeks, MCZ is up an incredible 333%.
Mad Catz's last income statement was littered with positive numbers, including a quarterly revenue growth of 91% and a quarterly earnings growth of 73%, year-over-year.
Penny Stock to Buy #6 - Emerson Radio Corp. (MSN)
Emerson Radio Corp. (AMEX: MSN ) has made its name designing, sourcing, importing, marketing, selling and licensing various houseware and consumer electronic products. Based in New Jersey, the company works primarily with microwaves, video products, alarm clocks, stereos and telephones, among other products.
The company posted a net profit margin of 8% last quarter. Looking at its last income statement, MSN posted a quarterly earnings growth of 23%, year-over-year. In the last 12 months, the penny stock has gained 29%. With a 52-week range of $1.57 to $2.96, add MSN to your list of stocks to buy.
Penny Stock to Buy #7 - Sirius XM Radio Inc. (SIRI)
Sirius XM Radio Inc. (NASDAQ: SIRI ) is a stock that is usually very popular among penny stock fanatics. The radio stock offers music, sports, news, talk, entertainment, traffic and weather channels in the United States for a subscription fee.
SIRI stock has jumped an impressive 126% since last June, and 24% since January. Earnings wise, experts are projecting a jump of 2 cents in EPS this quarter, compared to the EPS posted last year. Last quarter's quarterly revenue growth of 9% and quarterly earnings growth of 88%, year-over-year, are also strong indicators that this is a penny stock worth buying.
Penny Stock to Buy #8 - SPAR Group Inc. (SGRP)
Diversified international merchandising and marketing services company SPAR Group Inc. (NASDAQ: SGRP ) provides merchandising and other marketing services to manufacturers, distributors and retailers worldwide. Based in New York, the company works with companies in 11 countries.
Since the start of 2011, SGRP stock is up an impressive 43%, compared to smaller gains by the broader markets. In its last income statement, SPAR Group posted an astounding quarterly earnings growth of 603%, year-over-year, easily the best on this list. The penny stock also reported quarterly revenue growth of 25%, year-over-year.
Penny Stock to Buy #9 - Envoy Capital Group Inc. (ECGI)
Envoy Capital Group Inc. (NASDAQ: ECGI ), is an international consumer and retail branding company, and a merchant banking and financial services company.
This penny stock is one of the biggest gainers on our list, rising 110% in the past six months. Looking in the shorter term, this penny stock has gained 19% in the last 30 days. Buy this penny stock now as it trades below its 52-week high of $2.18.
Penny Stock to Buy #10 - Dreams Inc. (DRJ)
Manufacturer, distributer, retailer and seller of sports licensed products, Dreams Inc. (AMEX: DRJ ) also deals with sports memorabilia and acrylic display cases. The company is known for operating retail stores and a websites for selling its memorabilia as well.
In the last year, DRJ stock has gained 45%, compared to smaller gains by the broader markets. Earnings wise, DRJ stock has outperformed earnings estimates for four consecutive quarters. The penny stock also posted a quarterly revenue growth of 42% in its last income statement. Buy this penny stock with a 52-week range of $1.17 to $3.18.
Penny Stock to Buy #11 - Pizza Inn Inc. (PZZI)
Pizza Inn Inc. (NASDAQ: PZZI ) operates a chain of buffet style pizza restaurant and delivery/carry out style restaurants and express restaurants. As of June 2010, Pizza Inn owned 312 restaurants both domestically and internationally.
In the last 12 months, PZZI stock has climbed 22%, and the chain is up 19% since the start of 2011. Looking at its last income statement, the company posted quarterly earnings growth of 22% and quarterly revenue growth of 5%. PZZI is trading just below its 52-week high of $2.41, and should be considered by penny stock investors and pizza enthusiasts alike.