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7 Tech Penny Stocks to Buy Now

By: Louis Navellier
Posted: 12/30/2010 6:01:00 AM
Referenced Stocks: GLUU;IMOS;PWAV;RAE;TSEM

It has been the year of technology stocks in 2010,  with the tech-heavy Nasdaq up over +17% compared with about +11% gains for the S&P 500.  On top of those gains, there have also been a host of high tech buyouts, from the Hewlett-Packard (NYSE: HPQ ) buyouts of 3Par (NYSE: PAR ) and Palm Inc. to Intel (NASDAQ: INTC ) acquiring McAfee (NYSE: MFE ).

But there are many reasons to expect that 2011 will be even brighter for tech stocks - particularly well-run penny stocks in the technology sector. That's because these small, agile companies can really take advantage of a strategic niche, a new technology or an overall updraft in the economy in ways big blue chips cannot.

If you're looking to add some low-priced, high-tech stocks to your holdings for the new year, consider these 7 top penny stocks to buy now:

Powerwave Technologies Inc. ( PWAV )

Powerwave Technologies Inc. (NASDAQ: PWAV ) is a global company that provides end-to-end wireless solutions for wireless communications networks. Its products are used in wireless networks globally. Since January, this penny stock has gained an impressive +100%, compared to gains of +17% and +11.1% for the NASDAQ and Dow Jones, respectively. Importantly, PWAV has outpaced earnings estimates for two consecutive quarters.

Tower Semiconductor Ltd. ( TSEM )

Independent specialty foundry Tower Semiconductor Ltd. (NASDAQ: TSEM ) is dedicated to the manufacture of semiconductors. Year-to-date, TSEM has jumped +43%, compared to much smaller gains by the broader markets. In its last income statement, Tower reported a quarterly revenue growth of +69%, year-over-year.  Currently Tower trades at $1.29, with a 52-week range of $0.93 to $1.87. Consider buying this inexpensive stock now while it's still at the low end of its range and approaches new highs.

ChipMOS Technologies ( IMOS )

Holding company ChipMOS Technologies (NASDAQ: IMOS ) engages in a number of testing services, such as engineering testing, wafer probing and final testing of memory and logic/mixed-signal semiconductors. Since January, the penny stock has doubled - and in the short term IMOS stock is up +16.4% over the past three months. It is also important to note that ChipMOS reported a quarterly revenue growth of +41%, year-over-year, in its last income statement.

RAE Systems Inc. ( RAE )

RAE Systems Inc. (AMEX: RAE ) produces rapidly-deployable, multi-sensor chemical and radiation detection monitors and wireless networks. Its products are used in the following industries: oil and gas, hazardous material management, industrial safety, civil defense and environmental remediation. Year-to-date, RAE has gained almost +50%, compared to smaller gains by the broader markets. Most of RAE's gains occurred in mid-September, when the stock skyrocketed more than +44% in one week! Additionally, RAE has outperformed earnings estimates for the past three quarters, making it an attractive buy.

Related Article: Find out the 10 FREE stock picks that make up's 10 Best Stocks for 2011. Glu Mobile Inc. ( GLUU )

Glu Mobile Inc. (NASDAQ: GLUU ) designs, markets and sells games for mobile phones. Some of its games include Call of Duty, Deer Hunter, Diner Dash and Guitar Hero 5 , among others. Since January, this penny stock has nearly doubled. Also impressive is that GLUU has jumped +51% over the past three months. GLUU has also outperformed earnings estimates for three consecutive quarters, which has stockholders thrilled.

WidePoint Corp. (WYY)

WidePoint Corp. (AMEX: WYY ) provides technology based products to the government and commercial sector. The company comprises three segments: Wireless Mobility Management, Cybersecurity Solutions and Consulting Services. Year-to-date, this penny stock has posted impressive gains of +80%. Also, WYY stock has climbed +20% over the past three months. Additionally, WidePoint has met earnings estimates for two straight quarters, and recently posted a net profit margin of +8.1% in its last income statement.

NetSol Technologies Inc. (NTWK)

Netsol Technologies Inc. (NASDAQ: NTWK ) is a designer, developer, marketer and exporter of software products to customers in the automobile finance and leasing, banking, healthcare, and financial services industries. Since January, this penny stock is up +78%, compared to smaller gains by the broader markets. More recently, NTWK is up +15% over the past three months. Earnings wise, NTWK has met or exceeded estimates three of the last four quarters.

As of this writing, Louis Navellier did not own a position in any of the stocks named here.