Penny stock investing can be a great way to diversify one’s portfolio during tough economic times. By adding a few aggressive, low priced stocks you can supercharge your profits. However, penny stock investing can be very risky so I recommend finding bargain stocks with a proven track record. Namely, penny stock investments with earnings growth or strong buying pressure behind shares.
Here are seven low-priced tech stocks that have fared very well in 2010 thus far and get my seal of approval. These aren’t “penny stocks” per se, but at less than $2 a share all are very affordable and could make profitable additions to your portfolio.
Sirius XM Radio Inc. (SIRI)
Market Cap: $3.89 billion
Industry: Radio Broadcasting
Sirius XM Radio Inc (NASDAQ: SIRI) is the owner of two subsidiaries: XM Satellite Radio Holdings Inc. and Satellite CD Radio Inc. The company broadcasts music, sports, news talk, entertainment, traffic and weather channels across the United States for a subscription fee. Combined, the two companies have eight in-orbit satellites and nearly 800 terrestrial repeaters. This penny stock has fared very well in 2010, and is up +67.5% year-to-date, against marginal losses by the broader markets. In its last income statement, SIRI reported revenue of 2.66 billion along with a quarterly revenue growth of +18.4% year-over-year.
Great Basin Gold Ltd. (GBG)
Market Cap: $639 million
Industry: Gold
Headquartered in Vancouver, Great Basin Gold Ltd. (AMEX: GBG) is engaged in the acquisition, exploration, development and trial mining of precious metals. This penny stock has recently begun exploring precious metal deposits in Tanzania and Mozambique. Since January, GBG has seen a stock increase of +10.5%, and boasts a current share price of $1.89. Analysts are estimating earnings of $0.02 this quarter, which is up from an EPS of -$0.03 a year ago.
Globalstar Inc. (GSAT)
Market Cap: $509 million
Industry: Wireless Communications
Provider of mobile voice and data communications, Globalstar Inc. (NASDAQ: GSAT) uses 44 in-orbit satellites and 27 ground stations to serve its customers. This wireless communications company also sells its communication services on a wholesale basis to independent companies. Since the start of 2010, GSAT stock has risen +95.4%. With a quarterly revenue growth of +2.7%, GSAT is a strong stock to buy at its current share price of $1.70.
ICO Global Communications Holdings (ICOG)
Market Cap: $375 million
Industry: Wireless Communications
Wireless telecommunication service provider ICO Global Communications Holdings Ltd. (NASDAQ: ICOG) is a development stage mobile satellite service operator. Despite the fact that ICO has not been able to complete any additional satellites since December 2004, the penny stock has one satellite in orbit, and 10 satellites currently in the production stage. ICO has also had a very productive 2010, and is up +37% on the year, compared to small losses by the broader markets. Looking at its last 52 weeks, this penny stock has seen a major increase of +131%.
Tower Semiconductor Ltd. (TSEM)
Market Cap: $308 million
Industry: Semiconductors
Tower Semiconductor (NASDAQ: TSEM) is an independent specialty foundry that manufactures semiconductors. This penny stock’s products are used in a wide range of consumer electronics including personal computers, medical device products and automotive products. A +53.6% year-to-date climb in stock price has Tower shareholders very satisfied. Additionally, this penny stock outperformed earnings estimates by 367% last quarter, and is hoping to maintain its positive momentum this quarter.
Quest Capital Corp. (QCC)
Market Cap: $213 million
Industry: Investment Brokerage
Quest Capital Corp. (AMEX: QCC) provides real estate mortgage financing in Canada. Based in Vancouver, the majority of Quest’s clients are owners of multi-unit residential buildings, land and commercial properties. Since January, this penny stock has climbed +36.6%, and is up an even +50% from last August. Quest’s stock price currently sits at $1.53, and its recent performance has far outpaced the Dow Jones Industrial Average and NASDAQ, which are down -0.9% and -3.4% year-to-date, respectively.
Powerwave Technologies Inc. (PWAV)
Market Cap: $211 million
Industry: Communication Equipment
Based in Santa Ana, Calif., Powerwave Technologies Inc. (NASDAQ: PWAV) is a global supplier of end-to-end wireless solutions for wireless communications networks. Powerwave designs, manufactures, markets and sells products that improve coverage, capacity and data speed in wireless communication networks. Since January, this penny stock has gained nearly +30%, and has a current stock price of $1.59. Additionally, the fact that Powerwave outperformed earnings estimates by +100% last quarter makes this stock a strong buying opportunity.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.
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