Undervalued Penny Stocks: Top 10 Picks!

Undervalued Penny Stocks

Seasoned penny stock traders who made millions on the volatile market of small cap companies are ultimately seeking for undervalued penny stocks that can take off in the near future. Though it can be rather hard to identify them, the best penny stocks to buy share several common characteristics: they are priced very low, sometimes even below $1; they supply the market with a great product, service or technology; they have a great management team driven by passion.

One of the most famous companies on the market that rose from the status of a penny stock company and became a household name is Monster Beverage Corp. MNST that is currently trading on NASDAQ at about $127 per share. Did you know that back in the 1990’s the company was a struggling start up with shares worth mere pennies? Until today MNST remains one of the shining examples of penny stock success stories.

Though beginner investors are advised not to follow any alerts or tips on which undervalued penny stocks to buy into and do their own research, it doesn’t hurt to start by evaluating several penny stock companies for prospective investing. Initially, it may seem overwhelming to pick from hundreds if not thousands of penny stocks on the market but narrowing by a promising market sector may help you get started. For example, energy sector, medical marijuana market and alternative energy are all great areas that will contain undervalued penny stocks.

1. Gagitronics Inc. (GIGA)
This California based company is engaged in engineering, design and manufacturing of electronics and test equipment to be used in various fields, including flight navigation, wireless technology and electronic defense systems. Their stocks are currently priced just slightly above $2 making them great undervalued penny stocks to consider.

2. One Horizon Group (OHGI)
This Company develops and distributes software solutions and bandwidth Internet platform to telecommunication providers across Europe, Asia, Russia and the US.

3. Ekso Bionics Holdings (EKSO)
This biotechnological company develops and produces unique wearable robot-costumes to be used by the individuals affected by various muscle-skeleton diseases, strokes, trauma with inability to walk on their own. The innovative EKSO GT bionic suit is worn with additional assistance from cane or crutches. At this point, these undervalued penny stocks are priced for less than $2 and should be considered for potential investment.

4. Synergy Pharmaceuticals, Inc. (SGYP)
This pharmaceutical company that develops and tests drugs for the treatment for gastrointestinal illnesses offers these successful penny stocks for your consideration. Their primary products target complex disease induced constipation as a result of IBS, gastritis, colitis and other conditions.

5. Chanticleer Holdings Inc. (HOTR)
This Company owns and runs a number of casual dining establishments, including Hooters across the United States. It also holds franchise ownership and the right to establish Hooters restaurants in other parts of the world, such as South Africa, Poland, Hungary, Brazil and Australia.

6. Great Basin Scientific Inc. (GBSN)
Since hospital acquired bacterial infections present significant danger, especially to those with compromised immune systems, the Company specializes in medical technologies to test these infections on a molecular level. This allows doctors to prescribe the most effective antibacterial treatments in each situation. Rapid tests allow medical specialists to carry out vital diagnostics before administering surgical or other treatments.

7. Vaalco Energy (EGY)
These NYSE energy penny stocks priced just a bit over $2 could become a great addition to any portfolio. The company is engaged in exploration, development and production of crude oil and natural gas across the US. Additionally the company conducts explorations for site owners located in Angola and Gabon and Equatorial Guinea in West Africa.

8. Alumina Ltd. (AWC.AX)
This Australian based Company is involved in the business of mining, refining and smelting aluminum. In addition to its mining business, Alumina works as a dry and liquid commodity transporter and provides shipping services for fuel oils, coke, limestone and alumina.

9. Lake Shore Gold Corp (LSG)
The Canadian based company that engages in exploration, development and mining for gold and silver ore offers some of the best undervalued penny stocks that are currently priced under $1. While prices for gold went considerably down since all time highs in 2012, the price for the stock should remain low presenting great opportunities for investors to buy into.

10. Digirad Corporation (DRAD)
These penny stocks that pay dividends are more an exception than the rule. Very seldom will you find a penny stock that will provide its investors with regular dividend payouts. The company is involved in medical technology sector and provides diagnostic and imaging services to physicians and hospitals.