What are Penny Stocks? Looking back at the Vietnamese investment market Top 10 Penny Stocks What are the best stocks to buy now?
What are Penny Stocks?
What is a penny stock? Penny Stocks (Penny Stock/Small Caps) are common stocks issued by small public companies that trade at a fairly low value, only about 10,000 VND.
Some main features of What are Penny Stocks??
- The value of the stock is low, usually just under 5 USD (in the US market) or under 10,000 VND (in Vietnam).
- Low liquidity makes it easy to manipulate prices.
- Issued by small companies or companies with financial problems.
- Most are traded in the over-the-counter (OTC) market.
- Historical stock information is often limited, and issuers often lack evidence to demonstrate operations, products, assets, or revenues.
- Penny stocks do not need to meet the minimum requirements of common stocks to be listed.
- Stock price Penny stocks tend to be very volatile, and can skyrocket in a very short period of time.
What are the pros and cons of Penny stocks?
Although investors can make a lot of money from penny stocks, they do come with their own set of risks that make them unsuitable for all investors. As is the case with any other type of investment, investors would be wise to weigh the pros and cons of each type. What are midcap penny stocks? before deciding to buy stocks.
Advantage
- Low Price: Since Penny stocks are so cheap, investors can buy a larger position at a lower cost than with regular stocks.
- High Return Potential: These stocks are typically small and unestablished companies. While they often come with some relatively high market risk, the overall appeal of these stocks is their potential for tremendous growth in value.
- Quick Profits: The wide, short-term price swings that characterize these stocks make them a potential investment target for high short-term profits for some traders.
Disadvantages
- Difficult to Research: Since these stocks will often represent small and unestablished companies, many investors may have difficulty evaluating the financials of these stocks.
- High Risk and Low Liquidity: Price Penny Stocks can fluctuate widely, especially over short periods of time. Low liquidity contributes to this risk because when there are too few people trading a particular stock, it can be difficult to find buyers. This can put the stock at risk of a significant decline in price.
- Prone to Scams: Because Penny stocks typically have fewer disclosure requirements than other stocks, scams are common.
Top 10 Potential Penny Stocks 2024
HVA
HVA is a Penny stock code officially issued by HVA Investment Joint Stock Company, operating mainly in the field of financial investment. In addition, HVA also trades in rare metals, raw gold; Industrial real estate; Investment support technology products, etc.
TCD
Industrial Development and Transport Investment Joint Stock Company (Tracodi) was officially established in 1990. The company operates mainly in the field of construction of large projects such as transportation, irrigation, civil, import-export, trade, tourism activities, financial investment and labor export activities.
The company's stock code TCD has been listed on the HOSE. Some of the projects that TCD has participated in include Provincial Road 831 (Long An), Phu Bai Airport runway (Hue), Phu Rieng rubber factory (Binh Phuoc province), Tam Quang 2 resettlement area (Quang Nam province), etc.
YEG
Yeah1 Group Joint Stock Company was officially established in 2006, mainly operating in the field of providing advertising services on television or digital platforms, investing, producing/marketing for movies shown in theaters, owning film copyrights, etc. This company also acts as an intermediary specializing in buying and selling advertising or film copyrights for a total of 16 national and local television stations and many other private television media. YEG shares are now officially listed on the HOSE.
SAM
The predecessor of SAM HOLDINGS was Postal Materials Factory 2 and was officially established in 1986 with the main field of manufacturing and distributing some types of cables for the postal and telecommunications industry. Up to now, the company has expanded to import and export raw materials, optical cable products, civil electrical materials, production and trading of copper wire products, plastic pipes; investing and trading in houses, leasing offices, many urban technical infrastructure projects, etc. The company's SAM shares have been listed on the HOSE.
ITA
Tan Tao Investment and Industry Joint Stock Company was established in 1996, and in 2006, its shares were listed on the HOSE with the stock code ITA. Its main activities are in the field of investment, development, construction and commercial exploitation of industrial parks, along with related services such as leasing of construction equipment, offices, factories, etc.
TVN
One of the types Potential Penny Stocks 2024 is TVN. Vietnam Steel Corporation or VNSTEEL was established in 1995, this is one of the leading enterprises in the field of steel production and trading. The company operates in the form of a Joint Stock Company with about 40 affiliated business units. The company's TVN shares have been listed on the UPCOM floor.
DL1
Alpha Seven Group Joint Stock Company was established in 2017 with an initial capital of about 9.5 billion VND. After 14 years of establishment and outstanding development, the company has expanded from a wharf service business to a multi-industry corporation, operating in the field of providing wharf services, investing in renewable energy projects, investing in real estate and manufacturing electronic components. The company's DL1 shares have been listed on the HNX exchange.
HNG
Hoang Anh Gia Lai International Agricultural Joint Stock Company (HAGL Agrico) was established in 2010 with its main products being fruit trees and rubber trees. HAGL Agrico’s agricultural projects are located in the Vietnam – Laos – Cambodia development triangle. The company’s HNG shares have been listed on the HOSE.
HQC
Hoang Quan Real Estate Trading and Service Consulting Joint Stock Company was established in 2000, and officially listed on the stock market with the code HQC on the HOSE in 2010. After more than 15 years of establishment and outstanding development, HQC is currently one of the leading brands in the southern region in the field of investment and development of social housing.
APH
An Phat Holdings is a new entity established in 2014 with the main business activities being the production, trading and commercialization of products, sources of completely biodegradable materials, packaging and plastic pellets. At the same time, it operates in the land leasing market, industrial park infrastructure, and factories. In 2020, An Phat Holdings' APH shares were officially listed on the HOSE.
Overall, investing in Penny stocks is a very attractive option for venture capitalists. Through the above article of HVA Group, we were able to answer What are Penny Stocks?? Hope you have gained a lot of new knowledge about finance. At the same time, you can make your own investment decisions that are correct and wise.
