In the world of investing, penny stocks often fly under the radar, but in 2018, several of these low-priced shares emerged as shining stars. This article delves into the top US penny stocks of 2018, highlighting the hidden gems that investors should have been watching closely.
Understanding Penny Stocks
Firstly, let's clarify what penny stocks are. These are shares of publicly traded companies that are priced below $5 per share. While they offer the potential for high returns, they also come with increased risk due to their volatility and the fact that many penny stocks are issued by small, often unprofitable companies.
The Top US Penny Stocks of 2018
BQE Water Inc. (BQE) In 2018, BQE Water Inc. (BQE) was one of the top-performing penny stocks. The company specializes in water purification technologies and experienced a significant surge in its share price, reaching over $10 in some periods.
Canaan Inc. (CAN) Canaan Inc. (CAN) is a leading global semiconductor company that saw its share price skyrocket in 2018. The company's innovative technologies and strong market position contributed to its impressive performance.
Agora Inc. (API) Agora Inc. (API) is a cloud-based video conferencing platform that experienced rapid growth in 2018. Its shares surged as the demand for remote communication solutions increased due to various factors, including the global pandemic.
Crown Equity Holdings Inc. (CRWE) Crown Equity Holdings Inc. (CRWE) is a diversified holding company that invests in various industries. In 2018, its shares saw significant growth, driven by its investments in emerging markets and technology.
Maiden Holdings Inc. (MHLD) Maiden Holdings Inc. (MHLD) is a property and casualty insurance company that experienced a surge in its share price in 2018. The company's strong financial performance and growth prospects contributed to its popularity among investors.
Why Invest in Penny Stocks?
Investing in penny stocks can be an attractive option for several reasons:
- Potential for High Returns: Penny stocks can offer significant returns on investment, especially if the company experiences rapid growth.
- Low Entry Barrier: The low price of penny stocks makes them accessible to a wider range of investors.
- Diversification: Investing in a variety of penny stocks can help diversify your portfolio and reduce risk.
Conclusion
While investing in penny stocks can be risky, the top US penny stocks of 2018 demonstrated the potential for high returns. By carefully selecting companies with strong fundamentals and growth prospects, investors can uncover hidden gems in the world of penny stocks.