Penny Stocks That Became Success Stories
In Penny Stocks, there are many ways for companies to attract investment. Some may employ the benefits of heavily networked consultants to bring in institutional investment, others may elect to bring on a professional investor relations firm. Yet all things will depend on the strength and transparency of the penny stock’s underlying company.
As the saying goes, “Knowing is half the battle.” Moving to a higher exchange signifies that an organization is ready to take the next step in demonstrating its operational strengths (and potential weaknesses) to the world and marks the next phase in growing as a public company.
Read the Facts before second guessing Penny Stock Companies because there have been HUGE success stories from some of the biggest companies today that were once considered “penny stocks”:
Did you know that Walt Disney Co. (DIS) traded on the OTC for 10 years before up listing to the NYSE in 1957?
KFC, prior to being acquired by YUM! Brands (YUM), traded on the OTC
The first Dr. Pepper shares (DPS) traded on the St. Louis Stock Exchange and OTC before moving to the NYSE on March 18, 1946
True Religion Jeans (TRLG) went from a micro-cap $2.5M/year $0.62 stock to a near Billion Dollar Blue Chip trading at $32.00 per share by 2013
Pier 1 Imports (PIR) at one time traded at $0.11/share before ramping up operations which lead it to trade at today’s price around $17 per share
Global shopping center phenom, Wal-Mart (WAL), went public in 1970, initially trading over the counter before moving to the NYSE in ‘72
Monster Beverage (MNST)—previously known as Hansen’s Natural—traded as low as $0.69 back in 1995. It now trades over $40 a share.
…and these are just a few examples. The main point here is that just because a company is considered a penny stock today, doesn’t mean it can’t see real growth potential later on. Obviously the risks need to be considered greatly before investing in any stock, including a penny stock, but for those who had a chance to invest when these companies were considered small and micro cap stocks, the payout was impressive to say the least.