| The best penny stocks are the ones that make you money. Penny
stocks are defined as shares in companies that trade under $5.
These stocks are unlike blue chip stocks whose shares transact
at a much higher price. The best penny stocks have a decent
chance of becoming tomorrow’s blue chips. Because these
penny stock companies are still early in establishing their
businesses, their shares tend to be worth a more modest amount.
So what characteristics do these best penny stocks possess. These companies tend to have robust revenue growth of 30% or more, a focused management team and a unique competitive edge. Competitive edge can be acquired by three different methods. 1. Cost leadership: the ability to produce at the lowest cost. 2. Differentiation: through rapid prototyping technology and new product development, companies are able to differentiate the products more quickly than ever. 3. Focus: the ability to target specific niche markets and offer specialization. Furthermore, these highly regarded penny stocks have up to date financial reporting so investors can properly value the worth of its shares. |
