Top 10 Most Popular Penny Stocks for Beginners List

Popular Penny Stocks

A lot of excellent companies offer stocks priced under $5 dollars. In the world of finance these stocks are referred to as penny stocks. Buying into a company before its price takes off could be incredibly lucrative, however for the last few years popular penny stocks have been receiving lots of bad names. Though it is true that penny stocks due to their low prices are easy to manipulate, which makes them prone to all sorts of schemes scam artists use. One of the well-known scenario is a “pump and dump” scheme when a price for a penny stock gets hyped through the media, Internet publications or blast e-mail alerts. Once the price is up, scam artists quickly sell off their shares and exit the market leaving unsuspecting investors with virtually worthless stocks in their hands. This happens because some investors are rather naïve to believe hot penny stocks picks originating from untrustworthy sources without doing the analysis for themselves.

In order to protect yourself from a list of popular penny stocks that may land you in trouble, it is important to evaluate each and every out of top penny stocks to watch according to certain parameters. The first and the easiest factor to watch out for is where these popular penny stocks are traded. The general rule of thumb is to avoid penny stocks pink sheets and to invest in shares that are traded on major stock exchanges like NYSE, NASDAQ, AMEX or OTC boards. Avoid investing in picks out of the penny stocks lists from free newsletters because as you may already know “free cheese comes only in a mouse trap” and so do free popular penny stocks alerts. Get involved only with stocks with solid products, services, financial reputation and assets, which could be seen from the financial statements and company’s reports.

Below we present popular penny stocks that could be great for beginners to invest into.

1. Capnia, Inc. (CAPN)
These NASDAQ traded popular penny stocks could become a great addition to a beginner’s portfolio. The company developed a proprietary diagnostics equipment to test for excessive hemolysis in babies, which could have dangerous health consequences. It is also currently testing a product that could potentially reduce the symptoms of allergenic rhinitis.

2. One Horizon Group, Inc. (OHGI)
This company sells bandwidth Internet software to telecommunication providers in Europe, Russia, Asia and the US.

3. Sprint Corporation (S)
One of the well-known wireless communications providers in the United States, the company offers popular penny stocks with solid reputation. It provides its retail and commercial customers in the US, Puerto Rico and Virgin Islands with wireless services, including Internet Access, text messaging, data and video sharing and much more.

4. Wi-Lan Inc. (WILN)
This company is involved in intellectual property licensing and patenting mostly in consumer electronics and communications. It further licensing their inventions to various manufacturers and sells the final products to wholesale and retail consumers. Among their products, customers will find an array of Wi-Fi enables laptops, 4G handsets, digital receivers and others.

5. Oncothyreon Inc. (ONTY)
This biopharmaceutical company is involved in the research and testing of small molecule inhibitor medications to treat various forms of cancers. Among its other projects the company is hard at work are nanoparticle based delivery systems allowing doctors to target cancer cells even in hard to reach areas of a human body.

6. Vaalco Energy (EGY)
These NYSE traded oil penny stocks may become a solid addition to a well-diversified beginner’s portfolio. It is involved in developing oil rich properties and extracting crude oil across the US. It also serves as an operator for oil drilling consortium mainly in West Africa.

7. Kinross Gold Corp (KGC)
The company and its subsidiaries are involved in developing and managing gold and silver ore mining projects in the US, Canada, Russia and Brazil.

8. ITT Educational Services (ESI)
These popular penny stocks allow beginner investors to diversify their investment across various market sectors, including education. The company is engaged in providing its students with post-secondary degrees in the US, including Accounting, IT, interior design, Architecture, Multimedia Communications and more.

9. Bio Lifesolutions (BLFS)
This company develops, produces and distributes equipment and technology for cryopreservation of blood and tissue cells in the United States. This is one of the cutting edge technologies that is getting high demand from customers across the country. Their technology is intended to reduce the likelihood of tissue damage and death that can sometimes result form long time preservation.

10. Dex Media Inc. (DXM)
This Texas based firm provides marketing and advertising solutions in Yellow and White Pages to clients across the US.

References:
http://thestockmarketwatch.com/markets/topstocks/
http://www.dummies.com/personal-finance/investing/stocks-trading/penny-stocks-for-dummies-cheat-sheet/

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