Special Report
1 Year Average Returns
Year Top 10 companies Top 50 companies
2014 1017 417.64
2015 609 318.792016 1498 458
2017 442 178
2018 513 161.38
*Data as on July 1, 2019
In the past one year, almost 87 penny stocks delivered positive
returns with at least 19 stocks in the category gaining more than
100 per cent. 16 stocks generated returns in the range of 50 to
100 per cent, while there were as many as 17 stocks that gained
in the range of 25 to 50 per cent.
Penny stocks performance for 1 year
No of Penny Stocks on 2 July, 2018 4311-Year Positive Returns 87
1-Year Negative Returns 344
100 % 19
50 - 100 16
25 - 50 17
0 - 25 35< 0 % 344
Conclusion : Needless to say, penny stock investing is not for
the lay investors. Experienced investors who are able to performfinancial statement analysis deftly and are able to judge the
outcome of the strategy adopted by the company accuratelyhave a chance to rake in the mullah by investing in penny
stocks. Anyone who gets excited just by looking at the cheaperstock prices should stay away from penny stocks. Penny stock
investing needs sophistication and merely looking at cheaperstock prices and investing in such stocks just because the prices
are too low can be suicidal.The focus should be on the situation analysis of the markets and
a thorough fundamental analysis of the penny stock that isbeing considered for investment is essential. The performance
of select penny stocks is encouraging across time periods and
hence investing in penny stocks is encouraged only for thosewho are experienced investors and have spent considerable
amount of time in the markets to understand the inherent risks
involved in penny stock investing.The first step can be to find a discount broker because the
transaction costs are usually on the higher side when it comes totrading in penny stocks. The second step should be utilising a
proper stock screener, which will help you narrow down theuniverse of stocks that suits your trading or investing style and
diversification needs. DS