Do You Know Which Companies Used To Be Penny Stocks & Are Now Large Cap Stocks?
When people speak about buying penny stocks, more often than not, they are referring to investing in companies with small capitalizations that are nowhere near as popular as stocks. What if I told you that some of the world’s most well-known corporations have existed, at one time or another, as penny stocks. Some of these companies, which are now worth billions of dollars, have traded for less than $5 per share, and a few of these companies are still well within reach of the average trader.
Back when General Motors was on the brink of bankruptcy, and the American automotive industry was in dire straits, Ford Motor Company (F) traded under $2 per share. When this happened, investors and traders looking to buy penny stocks were shocked at the fact that such a huge name had dropped to merely a few dollars. Granted, this was in 2008 and the country was facing the worst economic downturn since the Great Depression.
Other Famous Penny Stocks
Believe it or not, companies that have traded as penny stocks, at one time or another, existed in more industries than solely the automotive sector. If you’ve purchased a new vehicle in the last five to ten years, odds are that your car came with a subscription to Sirius XM (SIRI) satellite radio, allowing you to listen to hundreds of commercial-free stations while driving your brand-new car.
However, the rise of streaming has laid waste to much of the radio industry, with companies like Spotify (SPOT) and Apple Music (AAPL) hogging their airwaves via data and internet connections. As recent as years ago, Sirius began trading as a penny stock and, even now remains under $5. The Company recently acquired Pandora Media Inc (P), so, perhaps Sirius will see gains in the coming months but for now, the Company is very much a penny stock.
When analyzing the tech industry, it is rare that high-performing companies in the sector change and start trading as a penny stock, but it does happen. BlackBerry Limited (BB), the former cellphone manufacturer responsible for allowing email-happy executives to annoy others riding in their elevators with their incessant clicking. In the age of the smartphone, BlackBerry has been struggling to keep their heads above water. Only recently did the Company break through the $8 threshold.