What are the most successful penny stocks in history? So many traders want to know the answer to this. They think they’ve found the next Amazon or Apple…
So far, this year has been a historic year for trading.
The pandemic has halted many aspects of our lives — but not everything. The market’s been HOT this year. We’ve seen low-priced and penny stocks go on insane runs.
Week after week we saw stocks gain 50%, 60%, 70% … even 200% in a day. So it makes you wonder, do any of them ever make it big?
How could you spot a penny stock before it explodes? And which of the biggest companies today started as penny stocks?
Before we get into that, note that it’s rare for penny stocks to turn into legit companies. And if it does happen, it takes a long time.
However, there are exceptions. So to answer this question…
Look to the past. If we’re discussing successful penny stocks in history, let’s start with the recent past…
Table of Contents
- 1 Penny Stocks That Went Big in 2019
- 2 Big Companies That Started as Penny Stocks
- 3 Top 3 Penny Stocks to Watch in 2020
- 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
- 9 One Platform. One System. Every Tool
Penny Stocks That Went Big in 2019
Remember 2019? Things seemed so much more ‘normal’ compared to the 2020 chaos. And some stocks had an amazing year. Let’s check them out…
Axsome Therapeutics Inc. (NASDAQ: AXSM)
Axsome Therapeutics Inc. is a U.S.-based therapeutics company that gained 3,812% throughout 2019 and into 2020.
We can link its 2019 success to its trial of a new drug. In this case, it was AXS-05, a treatment for major depressive disorders.
But, that’s not all…
In late 2019, the FDA also awarded a breakthrough Therapy Designation to AXS-05.
AXSM started January 2019 trading for less than $10 per share. By January 2020, AXSM hit highs of over $100 per share. And in October 2020, it traded around $70 per share.
AXSM is definitely a penny stock that went BIG in 2019…
Workhorse Group Inc. (NASDAQ: WHKS)
I’ve been a champion of WKHS for most of 2020. It’s made my monthly list of top stocks to watch before.
This company has been around for a while and makes electric delivery trucks.
Its highly anticipated $6.3 billion contract with the U.S. Postal Service could be signed before the year’s end. That’s a big reason for the company’s gains in 2020.
In May 2020, WKHS saw a 200% increase in one day, thanks to a tweet by President Trump.
Yep, a lot of people laughed about it … But check out where it is today.
WKHS began 2019 under $1 per share. It then reached a high of $5.37 for a run-up of 726% in July 2019. And by September 2020, it traded as high as $30.99 per share.
Provention Bio Inc. (NASDAQ: PRVB)
In the biotech sector, Provention Bio is a ‘penny stock poster child.’
PRVB had big news with its Phase 3 drug trial that could potentially delay or even prevent type 1 diabetes.
This stock has more than tripled from November 2018. And yet there still seem to be market murmurs that it’s underestimated.
We’ve all heard that before…
PRVB started January 2019 trading at $2.55, and by December 2019, it was trading at $14.97.
By July 2020, PVRB hit a new all-time high trading at $17 per share.
One of the best penny stock stories from 2019!
Big Companies That Started as Penny Stocks
It’s every penny stock trader’s dream to find that golden ticket.
But no expert could ever predict when or if it’s going to happen. Every once in a while, a lowly penny stock turns into a billion-dollar company. Check out these successful penny stocks in history.
Pier 1 (NYSE: PIR)
Pier 1 Imports used to be the king of home furnishings. Just look at that rocky chart.
Now this former giant trades as an OTC pink sheet security. Its history on the NYSE is shaky, to say the least.
The company hit an all-time high in 2003, but when the financial crisis hit a few years later, shares dropped.
It hit a low of 11 cents per share by March 2009 … only to somehow rise again.
The stock rose again to $23.50 by mid-2013. In four years, savvy investors could have netted a 21,263% return.
That’s one arguably one of the biggest penny stock returns in history. But think about it … You’d have to hang in there for four years and have the discipline to get out when the stock started to tank…
Because sure enough, its fortune has changed again. Pier 1 shares currently trade for around $6.
Ford Motor Co. (NYSE: F)
Love or hate ‘em, Ford Motors is one of America’s largest car manufacturers.
Despite being one of the biggest and well-known brands around the world, the company’s had its fair share of struggles.
In December 2008, during the most recent economic recession, Ford hit an all-time low of $2 per share.
However, the company managed to recover less than two years later in September 2010, trading at $15.94 per share — a 797% gain.
As of mid-2020, the stock is trading for around $7 per share.
Monster Beverage Corporation (NASDAQ: MNST)
I love Monster Energy. Not the drink, the stock.
Monster Beverage Corporation, famous for its Monster energy drink is what penny stock dreams are made of.
This is one of the most successful penny stocks of all time. A story like this company’s journey only comes around once in a blue moon.
In September 2005, shares were trading as low as $2 a share. Fast-forward 10 years later … and Monster hits an all-time high of $140 per share in 2015.
That’s a 7,000% increase! Talk about monster energy.
Since then, the stock has never dropped below $40 per share.
From just 50 cents in 2004 to $78 per share today, Monster Energy is a penny stock trader’s dream come true…
One of the most successful penny stocks in history!
Medifast Inc. (NYSE: MED)
You’ve probably never heard of Medifast, Inc.
It’s one of the largest manufacturers and distributors of weight loss, weight management, and healthy living products in the U.S.
MED traded for under $10 a share from when it debuted on the market in January 1994 up until 2009.
Less than 10 years later in August 2018, the stock hit an all-time high of $229.75 per share.
That’s almost a 3,000% increase.
Since then, the stock has never dipped below $61 a share and is currently trading around $164 per share in 2020.
Talk about shedding some weight! No shorts here…
True Religion (NASDAQ: TRLG)
Known for its designer jeans, True Religion exploded onto the scene in the early to mid-2000s.
In July 2004, True Religion traded for as low as 64 cents per share before leaving the market in 2013. At the point of being acquired by a private equity firm, TRLG was trading at $32.
For those lucky enough to get in early and hang on till the buyout, that’s almost a full 5,000% increase. Not too bad…
Apple (NASDAQ: AAPL)
What is there to say that hasn’t been said? Apple is one of my favorite companies. And maybe one of yours too…
AAPL wasn’t always one of the largest and most beloved tech giants in the world. In fact, for a while, hardly anyone knew about the company.
It wasn’t until Steve Jobs’ return in the early 2000s that Apple began to make waves again. In 2003 AAPL was trading for under $1 a share — a legit penny stock.
As of 2020, Apple is one of the most successful and recognizable brands in the world, and its stock trades for over $350 a share.
That’s a crazy gain in 20 years. And from well before Siri entered our lives.
Amazon (NASDAQ: AMZN)
Maybe back in the day you heard about this little-known tech startup called Amazon…
Way back, it was once a penny stock.
That’s right. When this tech goliath debuted on the market in 1997, it traded for under $2 per share. Earlier this year, it hit a high of over $3,500 per share.
Wow, right? That’s an insane increase since its IPO. Nothing more to be said. Boom.
Top 3 Penny Stocks to Watch in 2020
While 2020 may be coming to a close, there are still many great penny stock plays to take notice of in the market…
Which penny stocks should you add to your watchlist?
Let’s find out…
American Battery Metals Corp (OTCQB: ABML)
American Battery Metals is a lithium-ion battery manufacturer based in Nevada. It supplies the EV market with lithium and other battery-grade metals.
With a whopping 1,300 lithium mining claims on an area of 30,000 acres in Nevada, it’s no wonder this penny stock is worth watching in 2020.
Especially with Tesla so close by…
The company also announced a closed-loop recycling facility for end-of-life batteries.
ADMA Biologics Inc. (NASDAQ: ADMA)
ADMA Biologics Inc. is another potentially big plasma biotech penny stock.
Last month, ADMA announced a new COVID-19 assay, which caught the eye of many traders.
It’s fully validated for the detection of COVID-19 neutralizing antibodies with plasma.
With more news sure to be on the way and volume picking up over the last few weeks, ADMA is a stock to watch as 2020 winds down.
American Lithium (OTCQB: LIACF)
This is yet another EV play in this wonderful sector.
LIACF is a lithium company based in Canada. This company currently working on a lithium separation technology for use in electric vehicles.
News came out earlier this year about its developments and the stock spiked big when LIACF recently purchased property within hours of Tesla’s Gigafactory.
Anytime Tesla is mentioned, you know the volume follows. This is a big EV penny stock to watch for the remainder of this year.
Exciting stuff! Quick, someone call Elon!
Was Microsoft a Penny Stock?
Sort of. With its nine stock splits taken into account, Microsoft was considered a penny stock back in the late 1990s. That was in the early days of the tech boom. As MSFT grew into the company it is today, the stock also grew and now trades for over $200 per share in 2020.
Can You Tell If a Penny Stock Will One Day Be Worth Millions?
Nope. No “expert” can predict a penny stock will one day be worth millions. And if they claim too, don’t believe them. It’s a scam. Do your research. Study companies, study patterns.
What Percentage of Penny Stocks Succeed?
Penny stocks rarely succeed. The successful penny stocks in history discussed in this post are rare. Don’t expect much expect from any penny stock.
How to Spot Penny Stocks Before They Explode
You can do your research and look for patterns to find hot penny stocks … But there are no guarantees. You have to start with a proper education. Learning how to trade penny stocks takes time and discipline.
Here’s a smart go-to checklist:
1.) Focus on big percent gainers.
2.) Look for high volume.
3.) Search for a news catalyst.
4.) Look for a history of spikeability on the long-term chart.
5.) Use a scanner like StocksToTrade.
Any penny stock could potentially turn into a hugely successful billion-dollar company … but most don’t. Accept it. Learn to trade the pattern, do your research before every trade, and always stick to your plan.
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