Now let’s check together the most successful penny stocks that made it big. Insider Monkey recently published an article about this topic giving us some very useful tips. Now we are reading about some of the biggest companies today that were selling their shares as penny stocks in the first phases of their business development.
Today, penny stocks are known as one of the most volatile market options you can buy. Fraudulent brokers often intentionally purchase a large batch of penny stocks and create an artificial hype, in order to sell their shares at a higher price. This scheme is called ‘pump and dump,’ and there’s also another (opposite) variant of this scam called ‘short and distort.’ In addition to these common frauds, some penny stocks have purposely entered the market so that they can be extensively sold. The companies that stand behind them don’t have any funds, business operation or plan and they completely rely on the market hype.
Now without a further ado let’s see what Insider Monkey has investigated for us. We have picked two stocks from their list.
The first one is Pier 1 Imports (PIR) Stock price is $4.55. Many of the companies you will find on this list don’t have the dreamy story most people expect from fast rising stocks. Pier 1 Imports was once a solid company with a large set of products that included everything from large furniture pieces to gifts and various decorative accessories. PIR reached its all-time high share price in 2003, and since then the company has been facing a constant decline for more than seven years. This was propelled by the growing competition and the 2008 Economic crisis. At the moment the Pier 1 Imports shares can be purchased for $4.55 a piece. Thes econd stock is Quality Systems (QSII). Stock price is $16.13. Quality Systems’s shares were sold over the counter for more than 20 years. They are one of the companies that used the fast technological advancement and turned it into a market gain. Quality Systems stock reached its all-time high in 2011 when their shares were sold for $48. Today, the price of one share is $16.13, which is still a huge growth comparing to the companies all-time low of only 11 cents in 1988. Currently, the market cap for this stock is well over $1 billion.
For any further interesting information read Insider Monkey’s article about 10 most successful penny stocks that made it big.