Penny stocks are often considered high-risk speculative trading. This is true but these stocks also have the potentials to go bigger than expected sometimes. There have been cases of those penny stocks that never really made it and there have been stories of those penny stocks that went big, way bigger than you’d normally expect. In this article, we’ll briefly discuss 5 of those stocks that ended up rewarding stockholders with massive gains.
Monster Beverage (MNST: NASDAQ)
Many of us know Monster Energy Drinks today but do not know where the company started from. It was founded in 1935, then going by the name Hansen Natural. The business has evolved over the years and today, the company produces various energy drinks, fruit drinks, and natural soft drinks with Hansen’s Natural Soda and Monster Energy Drink being the most popular. As of today, the company is worth $32 billion and the shares trades for about $56. The company used to operate as a penny stock company and traded 69 cents in December 1995. However, the energy drink explosion of the last decade has helped it greatly and as of today, it is a Wall Street top-performing company.
True Religion Apparel (TRLG: NASDAQ)
True Religion is one of those penny stocks that went big. It is, in fact, the only penny stock pump company that transformed into a real company because their designer jeans got popular among youths later on. In 2004, precisely 30th July, TRLG shares traded at $0.67 and was entirely bought by Towerbook, a private equity firm. The share prices rose about 4,676% but the acquisition ended up in a quagmire as the company filed for bankruptcy in July 2017. The major failure was in falling out of the competition with industry leaders like Amazon and the company’s inability to adapt to new fashion trends.
BJ’S Restaurants (NASDAQ: BJRI)
Investors often prefer to invest technological or medical investments but BJ Restaurants has managed to create a company with a market capitalization of over $1 billion from the restaurant business with the help of proper management. Today, a total of 117 outlets operate under the BJ’s Grill, BJ’s Restaurant & Brewery, BJ’s Pizza & Grill, and BJ’s Restaurant and Brewhouse brands. The firm had seen consistent growth and today, the company that traded under $2 in 1997 is trading around $28.20. That’s around 2720% returns for those who bought the stock while it was still in the penny stocks category.
There are more and more penny stocks that went big with big gains accrued for initial investors. This is a testament that despite the risks that seem to come with penny stocks, they could still help investors make astounding gains especially if investors can spot the good picks and potentially viable companies.
Spotting these companies has a lot to do with personal discovery and analysis as well as information and tips from industry experts. APS is the best trading site for beginners and can help traders with their guides, tips, and hot picks on a weekly basis. Websites like this could be your source of information and can help with success at penny stock trading.