Hot penny stocks are the place to be. In recent months, high tech stocks have seemed to get the biggest lift. The technology-focused Nasdaq index has outperformed the “old school” blue chip Dow index by about 8 percentage points in the last 52 weeks — a gain of about 19.5% for the Dow and 27.2% for the Nasdaq since mid-February last year. And low-priced penny stocks have shared in this tech sector surge.
Now when I say penny stocks, I must throw in a disclaimer. I am not speaking about stocks that literally trade for 1 cent a share. Those micro-caps that trade on the pink sheets are a sucker’s bet, and don’t have to deal with the same strict standards of a large stock exchange like the Nasdaq, AMEX or NYSE. I am simply speaking about ultra-low priced stocks in general — anything under a few bucks a share.
So if you’re looking to play the tech surge, here are six penny stocks to buy now in the electronics and tech sector:
Sify Technologies Ltd. (SIFY)
Integrated Internet, network and electronic commerce services company Sify Technologies Ltd. (NASDAQ: SIFY) starts off the list of penny stocks to buy this week. Operating in India this stock has seen tremendous gains since the start of September, up +128%. More recently, this penny stock is up +53% in the last three months as well. SIFY also has the potential for very quick growth, as evidenced by its +36% gain during a single week in January. While buying low-priced penny stocks is always a risky endeavor, SIFY has the potential to add to your portfolio in a hurry.
Identive Group Inc. (INVE)
Formerly known as SCM Microsystems. Inc, Identive Group Inc. (NASDAQ: INVE) is an international technology group focused on secure identification technologies. Since September, INVE has doubled the growth of the NASDAQ index by gaining +65%, in the last six months. Another statistic that should jump out at potential buyers is Identive’s quarterly revenue growth which was reported as +75%, year-over-year, in its last income statement. With a 52-week range of $1.29 to $3.00, consider adding INVE to your buy list.
RAE Systems Inc. (RAE)
RAE Systems Inc. (AMEX: RAE) might not be a household name, but in its industry it is known for manufacturing multi-sensor chemical and radiation detection monitors as well as wireless networks. Since mid August, this penny stock has posted a gain of +131%, compared to much smaller gains by the broader markets. RAE also has the potential to post quick gains, as evidenced by its +42% climb in just three days in September. A quarterly revenue growth of +25%, year-over-year, should make RAE an even more attractive penny stock.
Valence Technology (VLNC)
A manufacturer and seller of electronic energy systems, Valence Technology (NASDAQ: VLNC) is another penny stock worth close attention. Over the past 12 months, VLNC has jumped +82%, and the penny stock is up +75% in the last six months. Potential buyers might double take when they realize that in its last income statement Valence reported a quarterly revenue growth of +278%, year-over-year! Despite cooling off over the past month, Needham & Company has maintained their position of “buy” on VLNC, and you should too.
Active Power Inc. (ACPW)
Active Power Inc. (NASDAQ: ACPW) manufactures uninterruptible power supply (UPS) systems to ensure continuous electricity in the event of power disturbances. Or in other words, back-ups and generators. In the last year, ACPW has gained a staggering +149%, compared to a gain of just +28% for the NASDAQ. Like other stocks on this list, ACPW’s last quarterly revenue growth figures were impressive at +116%, year-over-year. ACPW may be considered a small cap with a market cap of just 188 million, but with its yearly stock performance, Active Power Inc. should be more well known among investors.
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8×8 Inc. (EGHT)
Topping off the list of top penny stocks to buy is 8×8 Inc. (NASDAQ: EGHT), developer and marketer of telecommunications services for Internet protocol (IP), telephony/video applications, and Web-based conferencing services. Since September, EGHT is up and impressive +86%. It is also important to note that analysts are projecting earnings of 4 cents this quarter, when the company posted EPS of just 2 cents this quarter last year. Two cents may not be a huge discrepancy, but when a company is doubling its earnings, it is doing something right. Finally, EGHT posted the highest net profit margin of any company on this list with +8% last quarter.
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As of this writing, Louis Navellier did not own a position in any of the stocks named here.