Most Successful Penny Stocks in History: Key Takeaways
- Smart traders look at these indicators when they read about penny stock successes…
- This penny stock runner rode a hot sector to a big 2021 spike…
- How looking at charts the right way can help you identify the next penny stock supernova…
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If you’re looking for the most successful penny stocks in history, make sure it’s for the right reasons.
There’s value in learning about these stocks. Real catalysts built them into what they’ve become today…
But if you start kicking yourself for missing out, take a break. That’s nothing more than FOMO.
There were signs of these stocks’ potential. Let’s look at these recent best-case scenarios, and talk about how they got where they are now.
Table of Contents
- 1 Penny Stocks That Went Big in 2021
- 2 Big Companies That Started as Penny Stocks
- 3 Top 3 Penny Stocks to Watch in 2022
- 4 Was Microsoft a Penny Stock?
- 5 Can You Tell if a Penny Stock Will One Day Be Worth Millions?
- 6 What Percentage of Penny Stocks Succeed?
- 7 How to Spot Penny Stocks Before They Explode
- 8 Conclusion
Penny Stocks That Went Big in 2021
Several penny stocks went ballistic in 2021…
Some, like GameStop (NYSE: GME), were the biggest stories of the year. Other securities, like dogecoin and SPAC stock CCIV, just acted like penny stocks.
We’re not looking at how much you could have made if you bought at their lows and sold at their highs. That’s not repeatable. It’s a FOMO-inducing pipe dream.
What we’re looking at here are their charts. These charts show the big run-ups and spectacular crashes that are possible in penny stock land…
You can learn about chart patterns here.
Understand the patterns that have played out well in these stocks. Then, the next time a big gainer comes your way, you’ll be better prepared to come up with a plan.
Let’s look at some charts!
GameStop (NYSE: GME)
GameStop was the big story of 2021. This former penny stock was in the $2s and $3s when we were covering it in 2020…
That all changed in 2021.
Retail traders figured out there’s strength in numbers … They applied this strength and squeezed GME into the $400s!
Volume is always a good thing in penny stocks. With retail traders working together, we’ve seen a lot more of it.
Sundial Growers Inc (NASDAQ: SNDL)
February 2021 was good to many stocks…
Penny stocks in a meme-friendly sector like weed stocks had better odds than most.
SNDL established a resistance level of around $1.25 in January.
It broke out on massive volume in February. It almost hit $4 before falling back to earth.
Castor Maritime (NASDAQ: CTRM)
I talk about paying attention to hot sectors. This shipping company stock’s early 2021 breakout is a great example of this.
CTRM was under $2 when the calendar turned to 2021. A month and a half later, it almost hit $20!
Castor made two big deals at a time when the global supply chain was in the news. They didn’t add long-term value…
But they showed how news can help a stock run!
AMC Entertainment Holdings Inc. (NYSE: AMC)
The Reddit crowd gave AMC a jolt in February 2021, but it didn’t quite break out…
Why? AMC kept issuing new shares, adding to their float.
This helped the movie theater company stave off bankruptcy. When May rolled around, AMC began its climb to all-time highs.
AMC kept issuing new shares throughout this rally. The enthusiasm petered out after a June high of $72.
Big Companies That Started as Penny Stocks
It’s every penny stock trader’s dream to find that golden ticket.
But nobody knows when or if it’s going to happen.
Every once in a while, a lowly penny stock turns into a billion-dollar company. But it’s rare. The best thing we can do after the fact is study how it happened.
True Religion (formerly NASDAQ: TRLG)
When TRLG traded under $1 in the mid-2000s, it sure looked like a pump.
Like Pinochio, this sketchy jeans company stock turned into a real stock! Private equity firm TowerBrook Capital Partners acquired it for $32 a share in 2013.
Its exponential growth eventually petered out. The company has declared bankruptcy twice in the years since.
Pier 1 (formerly NYSE: PIR, now OTCPK: PIRRQ)
Few stocks have had tremendous highs like Pier 1 — then managed to reverse their fortunes!
Pier 1 was a retail chain specializing in home furnishings. In February 2020, it declared bankruptcy.
It’s now an OTC stock trading under $1.
The stock went through two amazing growth spurts in the past 20 years. Each time, it broke past all-time highs in the $500s…
Even more amazing? It fell back into penny stock range between these peaks!
Monster Beverage Corporation (NASDAQ: MNST)
If every trader had a trading room like this, Monster would be worth more than it already is!
The Dream House 🙏 pic.twitter.com/cChKATbiXY
— StocksToTrade (@StocksToTrade) February 3, 2022
This energy drink stock traded below 10 cents as recently as 2003. Last year, it nearly broke $100!
Now it’s buying into the alcoholic beverage market. It could have even more room to grow.
Medifast Inc. (NYSE: MED)
As recently as 2008, MED traded as a penny stock.
Last year? It hit $336 before losing almost half its value…
It’s a nutrition and weight-loss company. These are always hot sectors, but especially in the stay-at-home age.
Ford Motor Co. (NYSE: F)
Ford has long been considered a blue-chip stock…
But the market hasn’t always been kind to legacy automakers like Ford. Just two years ago, the stock dipped into penny stock territory.
It’s since perked up on electric vehicle news. It hit a 20-year high of $25 in January 2022!
Apple (NASDAQ: AAPL)
Don’t be embarrassed…
We’ve all clicked on the link that tells us what $1,000 invested at Apple’s IPO would be worth now.
But Apple wasn’t a penny stock in 1980. It just looks that way after adjusting for stock splits and dividends.
The real time to buy in was at Steve Jobs’ return in the early 2000s. In 2003, AAPL traded as low as $6.56 — almost a legit penny stock.
Amazon (NASDAQ: AMZN)
Amazon is another all-time regret for many traders.
At its IPO in 1997, it traded under $2 a share. It graduated from its penny stock designation in 1998. It last dipped below $100 in 2009.
Even so, the stay-at-home sector’s recent run presented an opportunity. Amazon has run off 100% gains within the past two years!
Top 3 Penny Stocks to Watch in 2022
Remember — we’re only watching these stocks.
The way we spot stocks with the potential to grow is by understanding what they’ve already done.
Gamblers make bets on the next stock to run. Traders do research and build a plan.
BTCS Inc. (NASDAQ: BTCS)
Predicting a stock’s future is hard…
When we think in hot sectors, it gets easier.
BTCS is in the crypto sector and has historically run alongside bitcoin. Bitcoin is basing around its support level…
If it runs, it might take BTCS along with it.
Fuel Cell Energy (NASDAQ: FCEL)
FCEL had a tremendous run after President Biden’s election, like other EV stocks. In a two-month span, it gained over 1,000%!
It’s since lost most of those gains. But it could be poised for another run…
FCEL is also part of the hydrogen sector. Alternative energy has been hot, and hydrogen might have untapped potential.
Dolphin Entertainment Inc. (NASDAQ: DLPN)
Here’s another potential hot sector play.
DLPN had a quick rise and fall in March 2021…
It went up over 500% on NFT news in a couple of days. That was the first that many traders had heard about the NFT sector.
It has a pretty lackluster chart otherwise. But if NFTs get hot again, this stock could run with them.
Was Microsoft a Penny Stock?
Sort of. With its nine stock splits taken into account, Microsoft (NASDAQ: MSFT) was in penny stock land as recently as 1995.
Now? It’s trading above $300 a share.
Can You Tell if a Penny Stock Will One Day Be Worth Millions?
Nope. No ‘expert’ can predict the next Amazon. If they say they can, don’t believe them. It’s a scam.
Do your research. Study companies, patterns, and everything else about the market.
What Percentage of Penny Stocks Succeed?
Penny stocks rarely succeed. You’re usually better off trading penny stocks than investing in them long-term.
How to Spot Penny Stocks Before They Explode
We don’t try to predict the market, we react to it.
That means keeping on top of the market. You should know its history and current mood. This is important for putting together your watchlists — which are the bedrock of all we do here.
When it comes time to trade, you need a best-in-class stock screener. The one I use is StocksToTrade.
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Conclusion
Any penny stock could turn into a hugely successful billion-dollar company … but most don’t.
What should you do with this knowledge?
Accept it. Learn to trade patterns, do your research before every trade, and always stick to your plan.
What did you learn from the most successful penny stocks in history? Comment below!