{"id":22070,"date":"2012-03-03T15:49:00","date_gmt":"2012-03-03T15:49:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/from-rags-to-riches-penny-stocks-under-the-microscope\/22064\/"},"modified":"2012-03-03T15:49:00","modified_gmt":"2012-03-03T15:49:00","slug":"from-rags-to-riches-penny-stocks-under-the-microscope","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/from-rags-to-riches-penny-stocks-under-the-microscope\/22070\/","title":{"rendered":"From Rags to Riches \u2013 Penny Stocks under the Microscope"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><!--Ad Injection mfunc mode ad include code--><!--mfunc include_once('\/mnt\/Target01\/327806\/www.thestockmarketwatch.com\/web\/content\/stock-market-news\/wp-content\/plugins\/ad-injection\/adshow.php') --><!--\/mfunc--><\/p>\n<p>Penny stocks are well known to traders for lightning fast percentage gains, but is there any evidence for a penny stock to potentially become a high dollar stock? There have been quite a few penny stocks to become big company stocks over the past 10-20 years, but considering the amount of penny stocks trading on the market; it is uncommon. Penny stocks are high risk and high reward so prudent investors do not usually allocate a large portfolio percentage to penny stocks, if any at all. There are questions that investors should ask when deciding to invest in penny stocks with potential: is the company poised for a reverse merger with a larger company, does the company offer a valuable product, is the company actually legitimate, and can this company actually make a profit?\u00a0<a href=\"http:\/\/www.beaconequity.com\/join-now\/\" target=\"_blank\" rel=\"noopener\"><strong>Get my next ALERT 100% FREE<\/strong><\/a><\/p>\n<p>Penny stocks are hard to define in that there are many definitions of what a penny stock actually is \u2013 some traders and investors accept that any stocks trading under $5 are considered penny stocks while others only consider those stocks trading on the pink sheets and over-the-counter markets with a small market capitalization. There are some very well-known companies that have in the past traded below $5 that should probably not be considered penny stocks, such as Ford Motor Company (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=F\">NYSE:F<\/a>), Citigroup Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=C\">NYSE:C<\/a>), and Sprint Nextel Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=S\">NYSE:S<\/a>).<\/p>\n<p><a href=\"http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/F-Chart.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" title=\"F Chart\" src=\"https:\/\/web.archive.org\/web\/20120305154627im_\/http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/F-Chart.jpg\" alt=\"\" width=\"768\" height=\"315\"><\/a><\/p>\n<p><!--mfunc adshow_display_ad_file_v2(array('ad_random_1.txt'), array(100), array('align' => 'float right', 'clear' => '', 'margin_top' => '', 'margin_bottom' => '', 'padding_top' => '', 'padding_bottom' => ''), array(), array()) --><\/p>\n<div style=\"float:right;margin-left:5px;\"><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - in News 300 *\/\ngoogle_ad_slot = \"5684630733\";\ngoogle_ad_width = 300;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/div>\n<p><!--\/mfunc--><\/p>\n<p><a href=\"http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/C-Chart.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" title=\"C Chart\" src=\"https:\/\/web.archive.org\/web\/20120305154627im_\/http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/C-Chart.jpg\" alt=\"\" width=\"776\" height=\"309\"><\/a><\/p>\n<p><a href=\"http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/S-Chart.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" title=\"S Chart\" src=\"https:\/\/web.archive.org\/web\/20120305154627im_\/http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/S-Chart.jpg\" alt=\"\" width=\"792\" height=\"320\"><\/a><\/p>\n<p>Market capitalization is definitely the defining factor that distinguishes the above stocks as big company stocks from penny stocks\u2026 Ford\u2019s current market cap is $48.6B; Citi\u2019s current market cap is $98.07B; and Sprint\u2019s current market cap is $6.95B. Market capitalization is simply the amount of tradable shares times the current share price, i.e. Ford currently has 3.8 billion outstanding shares and is currently trading at a share price of $12.79.\u00a0<a href=\"http:\/\/www.beaconequity.com\/join-now\/\" target=\"_blank\" rel=\"noopener\"><strong>Get my next ALERT 100% FREE<\/strong><\/a><\/p>\n<p>Have there been any penny stocks to actually hit it big? The answer is absolutely! Green Mountain Coffee Roasters Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=GMCR\">NASDAQ:GMCR<\/a>), Panera Bread Co (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=PNRA\">NASDAQ:PNRA<\/a>), and Dendreon Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=DNDN\">NASDAQ:DNDN<\/a>) were a few that actually shook the market when their companies were called to the \u201cbig leagues!\u201d<\/p>\n<p><a href=\"http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/GMCR-Chart.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" title=\"GMCR Chart\" src=\"https:\/\/web.archive.org\/web\/20120305154627im_\/http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/GMCR-Chart.jpg\" alt=\"\" width=\"783\" height=\"320\"><\/a><\/p>\n<p><a href=\"http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/PNRA-Chart.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" title=\"PNRA Chart\" src=\"https:\/\/web.archive.org\/web\/20120305154627im_\/http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/PNRA-Chart.jpg\" alt=\"\" width=\"786\" height=\"320\"><\/a><\/p>\n<p><a href=\"http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/DNDN-Chart.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" title=\"DNDN Chart\" src=\"https:\/\/web.archive.org\/web\/20120305154627im_\/http:\/\/www.beaconequity.com\/wp-content\/uploads\/2012\/02\/DNDN-Chart.jpg\" alt=\"\" width=\"783\" height=\"320\"><\/a><\/p>\n<p>In 2009, Dendreon rocketed from a low of $2.55 to a high of $27.4 in only a few weeks thanks to favorable trial results for Provenge, its cancer vaccine. Panera bread became a sensational restaurant franchise and with healthy food trends has continued to perform well as it currently trades around $155. Green Mountain Coffee just exploded when the company announced it was offered a deal to sell its product in Wal-Mart stores around the world! These x-factors are often hard to predict, but when a penny stock does become a big company stock &#8211; $10k can expediently transform into $100k or more\u2026\u00a0<a href=\"http:\/\/www.beaconequity.com\/join-now\/\" target=\"_blank\" rel=\"noopener\"><strong>Get my next ALERT 100% FREE<\/strong><\/a><\/p>\n<p>KMA Global Solutions International, Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=kmag\">PINK:KMAG<\/a>) traded as high as $.0021 during Friday\u2019s trading session and last traded at $.0018 for a gain of 100% from the previous close\u2026<\/p>\n<p>KMA Global Solutions International is a leading worldwide manufacturer and supplier of Electronic Article Surveillance (EAS) labels for the multimedia, retail apparel, health\/beauty aids, soft goods, and over-the-counter pharmaceutical industries.<\/p>\n<p>Solos Endoscopy Inc (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=sndy\">PINK:SNDY<\/a>) traded as high as $.0062 during Friday\u2019s trading session and last traded at $.0048 for a gain of 14.29% from the previous close\u2026<\/p>\n<p>Solos Endoscopy is a HealthCare instrument company whose mission is to develop and market high quality and innovative instruments for the screening, diagnosis, treatment and management of medical conditions.<\/p>\n<p>America West Resources, Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=awsr\">OTC:AWSR<\/a>) traded as high as $.77 during Friday\u2019s trading session and last traded at $.715 for a gain of 15.32% from the previous close\u2026<\/p>\n<p>America West Resources is an established domestic coal producer engaged in the mining of clean and compliant low-sulfur coal.\u00a0<a href=\"http:\/\/www.beaconequity.com\/join-now\/\" target=\"_blank\" rel=\"noopener\"><strong>Get my next ALERT 100% FREE<\/strong><\/a><\/p>\n<p>Abtech Holdings Inc (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=abhd\">OTC:ABHD<\/a>) traded as high as $.91 during Friday\u2019s trading session and last traded at the high of the day for a gain of 21.33% from the previous close\u2026<\/p>\n<p>AbTech Industries, a subsidiary of Abtech Holdings, is a full-service environmental technologies and engineering firm dedicated to providing innovative solutions to communities, industry and governments addressing issues of water pollution and contamination.<\/p>\n<p>Wits Basin Precious Minerals, Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=witm\">PINK:WITM<\/a>) traded as high as $.064 during Friday\u2019s trading session and last traded at $.058 for a gain of 19.59% from the previous close\u2026<\/p>\n<p>Wits Basin Precious Minerals is an exploration stage Company, which through its subsidiaries is engaged in the business of exploration and development of minerals.<\/p>\n<p><strong>Article Written by Oliver Crowne<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>More Posts by this author<\/p>\n<ul>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/from-rags-to-riches-penny-stocks-under-the-microscope\/22070\"><br \/>\nFrom Rags to Riches \u2013 Penny Stocks under the Microscope<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/fifteen-penny-stocks-with-heavy-volume-to-watch-for-march-5\/22049\"><br \/>\nFifteen Penny Stocks with Heavy Volume to Watch for March 5<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/eight-nasdaq-stocks-on-the-move-under-four-bucks-march-2\/22014\"><br \/>\nEight NASDAQ Stocks on the Move under Four Bucks, March 2<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/eight-penny-stocks-to-watch-with-heavy-volume-for-march-2\/21958\"><br \/>\nEight Penny Stocks to Watch with Heavy Volume for March 2<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/nine-nasdaq-stocks-on-the-move-under-four-bucks-march-1\/21933\"><br \/>\nNine NASDAQ Stocks on the Move under Four Bucks, March 1<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/seven-penny-stocks-on-the-move-with-heavy-volume-february-29\/21865\"><br \/>\nSeven Penny Stocks on the Move with Heavy Volume, February 29<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/eight-stocks-on-the-move-under-four-bucks-february-29\/21850\"><br \/>\nEight Stocks on the Move under Four Bucks, February 29<\/a><\/li>\n<\/ul>\n<hr>\n<table style=\"border:none;margin:0;\">\n<tr>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n <\/td>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<div style=\"font-size:11pt;\"><b>Post Written By: Oliver Crowne <\/b><\/div>\n<div style=\"font-size:10pt;\">\n<p>Oliver Crowne is the main editor for <a href=\"http:\/\/www.stockpreacher.com\/\" target=\"_blank\" rel=\"noopener\">http:\/\/www.StockPreacher.com<\/a>\n<\/div>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Penny stocks are well known to traders for lightning fast percentage gains, but is there any evidence for a penny [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[6],"tags":[],"class_list":["post-22070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hot-stocks-to-watch"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/22070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=22070"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/22070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50312"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=22070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=22070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=22070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}