Penny stocks are definitely a great way to make money. Due to the consequences of the bearish market, penny stocks are widely available under $3.
However, in order to make profits off penny stocks, it is important to know the top penny stocks to invest in. Here’s some valuable tips to consider when you’re looking to buy penny stocks, along with some top penny stocks that are available for your investment consideration.
Characteristics Of Profitable Penny Stocks
- Opt to buy penny stocks of companies that have less than $500 million worth of market capitalizations.
- Preferably trade stocks in a U.S stock exchange rather than in shell companies.
- Go for stocks that have a solid foundation. Companies that have a strong base are more likely to prosper rather than companies that start off weak.
- Consider the aggregate fundamental value along with technical analyses. The quantity of penny stocks you purchase is important, so you need to constantly buy strong stocks after selling profitable ones.
According to the following criteria, here are some top penny stocks that you can invest in to earn a lucrative income. Of course there are certain risks tied with these stocks, but they have shown an overall promising change in the past year.
Top Penny Stocks to Buy..
Oilsands Quest (BQI)
This stock is a great commodity play. The dollar is considerably weak right now, yet the economy seems to be picking up slowly. This might indicate that oil prices will increase within the coming year.
The more expensive oil gets, the more benefits an investor can receive from purchasing this stock.
Oilsands Quest (BQI) showed a significant increase from August to October before it went down to its prior level. Although there are considerable risks associated with BQI since it has minimal revenue right now, the value of its reserves and potential capability to extract them makes this a positive investment. As stated earlier, the revenues of this company directly correlate to the price of oil. So BQI could start seeing better times within the near future which is why we label it as one of the top penny stocks.
Sirius XM Radio (SIRI)
If you are interested in running a monopoly, you can do so with Sirius EX Radio (SIRI). This company almost went bankrupt by the end of 2008 and was still struggling in early 2009. However at that point, the management of this company made wise financial decisions by obtaining necessary funding that helped it steer clear from the recession.
SIRI no longer has to spend large amounts of money in competition with their rivals thanks to its friendly competitive landscape. Auto sales have shown a great recovery and SIRI has pushed out more products that are available to every new car on the market. So this company only has more room to grow.
Denny’s (DENN)
Denny’s is a great choice for a penny stock investment because it has shown an impressive rise within the past year. The primary way to earn a healthy income is to invest in small companies that can multiply earnings within a short span of time. The stocks of this company are relatively cheaper and offer a great earning potential.
This is considered as one of the top penny stocks because the company grew from $0.25 per share to $0.35 within a few months. According to its current price, investors can look forward to double digit growth. Denny’s is capitalizing on its 2009 Super Bowl ad campaign and has been reported to offer bigger promotions in the years to come. We are expecting this stock to grow to as much as $11 within the months to come. This is certainly one of the top penny stocks to buy.