Penny Stock Success Stories

Where penny stock is concerned there are two types of success stories; that of the company and that of its investors. Microsoft for example, was born in 1975 with annual revenue of $16,000 – a pathetic shadow of the $32 billion it earns each year today. While elaborated success stories of such companies are inspirational and interesting to read, they aren’t too helpful to penny stock investors. (Besides, Microsoft stock never sold below $5, the maximum value of penny stock!)
   Many investors are lured into the penny stock market by stories of hundredfold percentage gains while an even greater number are displeased by the fact that this never seems to happen to them. Admittedly, the scenario is very rare but it does happen! Just to ignite a few sparks of optimism (which will hopefully be accompanied by intelligent decisions) here are some stories of REAL PENNY STOCK SUCCESS.

Titanium Metals (TIMET), today the world's largest supplier of high-quality titanium products was born in the 1950s and rose quickly because of the Cold War. Stock was cheapest in the year 2000, ranging between $0.33 and $1.00. In May 2006 its value climbed to $47.63. Theoretically, the maximum profit someone could have made buying a thousand shares from TIMET would be $47,300. However, taking inflation into account the value would have been half as much; which yields a profit of around 12,000% of the original stock value. That sounds insane (and it is) but it's completely true.

Mylan Labs has is own right to fame as the world's third largest generics and speciality pharmaceutical company. It went public in 1973 and the data speaks for itself. The tiny, jam-packed numbers represent years while the y-axis is the stock price.

A sale in 2004 would have resulted in quite the windfall.

Methanex; world leader in producing and marketing methanol. With humble beginnings in 1968, Methanex found itself crippled by poor oil prices and high debt but look at it now. The company's stock has done marvelously too. In 1999 share prices fluctuated between $2.00 and $3.00 and then they skyrocketed, hitting a maximum of $33.20 in June 2008. Again with the hypothetical thousand-share example (with inflation considered of course), an investor could have made a profit of $8,842 – a percenttage yield of about 400%.

Computer Motion (RBOT) made an initial public offering of $14.00 in 1997 but share values fell to penny stock levels in 2002 ($0.54 minimum). In 2008 Computer Motion Inc. stock prices were over $300. That is an incredible increase if you take the data in its purest form. The company's merger with Intuitive Surgical does change profit significantly although ultimateley there was still quite a lot of money to be made if buying and selling was done at the right times.

Compared to TIMET's penny stock performance, Methanex might not seem like much but bear in mind that what happened with TIMET was as anomalous as it gets. Hundredfold percentage increases are what most websites quote when persuading readers to invest in penny stocks. Hundredfold increases such as seen with Mylan Labs and Methanex do occur. It's just a matter of finding them.