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What are Penny Stocks?

This article was posted on May 7, 2009

Penny stocks are shares listed in nse bse that trade from a fraction of a penny to 20-30rs and having a small market cap. They are riskier as compared to large cap stocks, but give handsome profits in the long run. The long term profit given buy a penny stock varies form 10% to more than 200% or even more. Indeed, some penny stocks have gone from 0.50paise to 100rs+, while others have become worthless.

Large number of investors in India and other countries like penny stocks because it does not take a big cash amout to get started, and one can have a share in a good company that is likely to do well in the long run.

In the past penny stocks have had a bad name because of the lack of information of the company.

Nowadays, investors are quickly learning that penny stocks represent all the small companies across NSE and BSE, that are making good profits year on year and growing continuously. Moreover to nowdays investor avail the information about the profit and loss of any small company very easily.

The upside of penny stocks is the ability to turn a small investment into a fortune.

The downside is the risk, volatility of the shares, and the lack of corporate transparency.

Past Golden penny shares that turned into Large / Mid caps:
1. Ansal Housing listed on NSE BSE traded around 5rs in 2004 and it touched 450 in mid 2006. Upside seen is 8000% ++

2. Country club listed on BSE traded around 9.5rs in June 2005 and touched 1000 on 1st Jan 2008 Upsided seen is 11,000% ++

3. Subhash Projects listed on NSE BSE traded around 6.50rs in 2003 and touched 500 in Jan 2008 upside seen is 7590% ++

4. Prajay Engineers listed on NSE BSE traded around 3.4rs in August 2003 and touched 400 in Dec 31 2007 upside seen is 11,600% ++

5. D S Kulkarni listed on NSE BSE traded around 5.50rs in September 2003 and touched 400 in April 2006 upside seen is 7172% ++

6. Subhash Projects listed on NSE BSE traded around 8.20rs in July 2002 and touched 520 in Jan 2008 upside seen is 6241% ++

The profits of the above mentioned companies have almost doubled YoY. It is rightly said by “Warren Buffet – If a company does well the stock eventually follows”.

Here at NSEGUIDE we will present you with Small companies that have been posting good profits YoY, and we hope that they will give you good returns in the Long run.But one should always remember that these stocks involve risks. Hence we recommend you to read our Disclaimer before making any invesmtents in the stocks mentioned by NSEGUIDE.

103 Responses

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  1. Anand Says:
    November 17th, 2014
    Posted at: 6:43 pm

    Hi.Is it wise to intraday trade in penny stocks. Please reply

  2. Ganeshbabu Says:
    March 24th, 2015
    Posted at: 1:00 am

    Holding greenpower 1000qty at 17/- and holding 1000qty JPPOWER AT 11.5/-

    Both are in losses now please suggest on above stocks

  3. kkrao Says:
    April 2nd, 2015
    Posted at: 12:08 pm

    hi sir, is glodyne tech rises atleast for another 3-4 years, as I have 200nos at rs270/-

  4. Ajit Says:
    August 5th, 2015
    Posted at: 6:24 pm

    Sir i want to start invest in penny stock . how to start ?

  5. vinay Says:
    December 25th, 2015
    Posted at: 7:35 pm

    hello CB sir

    i am looking for invest 50000 in penny stock can you suggest me 4-5 script which give me 100% returns

    waiting for your response CB sir

  6. CB Says:
    December 26th, 2015
    Posted at: 8:16 am

    Hi vinay, I am looking for some penny stocks to invest in. shall update shortly.

    Hi Ajit, you would need to open a demat account.

    Hi kkrao, seems like a operator driven stock. best to exit on rise for now.

  7. Vasavi Says:
    March 22nd, 2016
    Posted at: 4:49 pm

    Hi cb
    Kindly suggest me any good penny stocks

  8. CB Says:
    March 22nd, 2016
    Posted at: 5:38 pm

    Hi Vasavi, can add some of lpdc for long term. also add nila infra on dips.

  9. Vasavi Says:
    March 31st, 2016
    Posted at: 4:56 pm

    Hi cb
    How about subex ?

  10. dharmesh Says:
    May 27th, 2016
    Posted at: 2:59 pm

    HI Sir ,

    I am new investor so your help required start with 10000 please suggest

    short team and intraday

  11. CB Says:
    May 27th, 2016
    Posted at: 3:03 pm

    Hi dharmesh, sure, can add some of apollo tyres for short term. looks good.

  12. prasadvsn27 Says:
    June 29th, 2016
    Posted at: 9:20 pm

    Eney hoop suzlan touch to 50mark

  13. Prasadvsn27 Says:
    January 17th, 2018
    Posted at: 10:37 pm

    Hi good night

  14. babu Says:
    February 5th, 2018
    Posted at: 7:33 pm

    i am new investor .can you suggest me the best stocks for long term around 100000.

  15. Ratna prasad Says:
    January 1st, 2019
    Posted at: 4:36 pm

    Pls suggest 3 to 4 penny stocks sir

  16. CB Says:
    January 1st, 2019
    Posted at: 6:44 pm

    Hi prasadvsn27, seems a bit unlikely. huge debt

    Hi Ratna prasad, as of now penny stocks not really seeing any buying interest. no new calls yet

    Hi babu, as of now penny stocks not really seeing any buying interest. no new calls yet. can add some of cupid for med/ long term

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