Hello friends today we are sharing some top penny stocks for 2022 ideas with you, lets first discuss what is penny stocks, penny stocks having many definitions like stocks trading below 10 rupees are penny stocks, stock or companies valuation lower than 100 crore also consider as penny stocks. Penny stocks are also called micro cap and nano cap, these stocks usually posted loss on yearly on yearly basis. Penny stocks are usually illiquid so there are multi risk associated with trading. Why a stock became penny there several reasons.
- Company posted loss
- Company having fraud
- Corporate Governance Issue
- Promoter insider trading
- High Debt or Default on debt
- Court Case or Company Facing legally Action
Benefits of Buying Penny Stocks
- High Returns : Penny stocks have higher return on both side, whenever companies having some good news, entry of big player, company profit rise, company sold his assets etc., market response is extra positive for theses stocks. penny stocks could be return 1000% in a year.
- Small Investment: Penny Stocks usually trading below 10 rupees so investor could purchase good number of shares with few bucks. for example stock price is 10 rupees if investor want to invest 10000 rupees he will get 1000 shares in his demat.
- Good Options: Penny Stocks have many options like every sector having one or more penny companies. for example you are assuming India power sector will be grow in next five years, you want to invest 1 lakh in power sector, you can invest 90000 in good companies and 10000 invest in penny stocks associated with power sector.
Risk Associated With Penny Stocks
- Fraud Balance Sheets: Few penny stocks have missing information, fake infromation, fraud balance sheets, incorrect assets information. This could lead to penny stock delisted from share market, we could lose whole amount invested in penny stocks.
- Scam: Usually penny stocks have scan issue or corporate governance issue. Same this is also serious issue market also punish if company involves in scams.
- High Debt: Penny stocks usually have high debt from various banks and financial institutions, high debt also caused loss on company balance sheet which lead to stock towards delisted.
Best Penny Stocks of 2022 Year
Lets discuss top penny stocks 2022, we found some gems from stock market. we advice you please consult your personal advisor before invest in theses stocks. penny stocks 2022 associated with many risk factors so please don’t invest more than 5k to 10k. we tried our best to find these stocks. if you are investing in any stocks please stay at least 1 year in investment.
List of penny stocks 2020 year
|Stock Name||Current CMP||Target Price (Time Horizon 1 Year)|
|1 .GTL Infra||2||10|
|2. JP Power||9||150|
|3. Invventure Grow||5||45|
|5. Eros Media||19||450|
|6. Shri Ram EPC||9||48|
|7. HCL Insys||24||98|
|8. Green Power||18||180|
Disclaimer: Stocks with Geeks just sharing personal opinion , we are also not SEBI registered, person investing in these stocks will be personally responsible for loss or profit. Happy investing