Penny stock investing doesn’t have to always involve high risk and unfounded companies. There are a number of the best stock picks trading for just a few dollars a share that have proven fundamentals, a good track record for shares and the backing of a major exchange instead of a pink sheets listing.
If you’re looking to cash in on the tech boom, consider these 5 penny stock electronics companies to buy now. Each one isn’t a true penny stock, since it trades for more than a dollar a share, but all are incredibly affordable and have offered investors breakout growth recently.
Here are my five penny stocks to buy this week:
Advanced Photonix Inc. (API)
Advanced Photonix Inc. (AMEX: API) develops and manufactures optoelectronic devices and systems. That’s a fancy way of saying it makes parts for an array of devices that deal with light and UV waves, from liquid crystal displays to lasers to solar cells. API is a supplier, and mainly works with global manufacturers from various industries instead of creating complete devices on its own. Over the past 12 months, API stock has jumped +119% compared to a gain of +10% for the Dow Jones. Impressively, this penny stock is up +60% over the past three months alone. Another important statistic worth noting is API’s quarterly revenue growth, which is up +29%, year-over-year. API trades near its 52-week high with a range of 41 cents to $2.18 so now may be a time to buy before another leg up.
Based in California, LRAD (NASDAQ: LRAD) designs, develops and sells sound technologies and products. LRAD is known by many as American Technology Company, which is its former name. Since last January, LRAD stock has climbed +74%, compared to smaller gains by the broader markets. After slipping slightly in late September, LRAD stock is up +45% over the past three months. LRAD is also just off from its 52-week high of $3.10. Buy this stock now.
RF Monolithics Inc. (RFMI)
RF Monolithics Inc. (NASDAQ: RFMI) is a designer, developer and manufacturer of wireless connectivity products. RFMI has posted large gains over the past 12 months, and in that time the penny stock is up +76%. More recently, RFMI has gained +69% over the past two weeks. Likewise, RFMI posted a quarterly revenue growth of +14%, year-over-year, in its last income statement. Finally, RFMI is a penny stock worth buying, because it is currently trading very close to its 52-week high.
Pinnacle Data Systems (PNS)
Headquartered in Ohio, Pinnacle Data Systems (AMEX: PNS) provides services and products to original equipment manufacturers in the computer industry. The company deals with clients across the globe. Over the past 52-weeks PNS has posted enormous gains of +175%, compared to much smaller gains by the broader markets. Over the past three months, the penny stock is up +13% as well. Importantly, PNS is trading at more than three times its 52-week low of 42 cents, and looks poised for further growth.
Eltek Ltd. (ELTK)
Based in Isreal, Eltek Ltd. (NASDAQ: ELTK) is a manufacturer and supplier of custom made circuitry used in electronic products. ELTK stock had faltered in the middle of 2010, but has regained nicely and is up +32% over the past three months. Importantly, +11% of those gains have occurred in the last month. ELTK may not have posted the same types of gains as other penny stocks on this list, but with a 52-week range of 84 cents to $1.82, ELTK has the potential to bring big gains to your portfolio. It is not far removed from its 52-week high.
RAE Systems Inc. (RAE)
RAE Systems Inc. (AMEX: RAE) develops and manufactures chemical and radiation detection monitors, and rounds out my list of top electronics penny stocks to buy this week. Its products are used in the following industries: oil and gas, hazardous material management, industrial safety, civil defense and environmental remediation. Since the beginning of August, this penny stock has skyrocketed +121%. It is also important to note that RAE posted a quarterly revenue growth of +25% in its last income statement. Buy RAE stock now is it approaches its 52-week high.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.