One Penny Stock You Probably Haven’t Seen Yet
There are always risks associated with penny stocks, especially when you’re looking for the very low-priced ones. It has been said that the lower the price, the riskier the stock. Although that statement has a ton of validity, it is not always true. Keeping that in mind, there are still good opportunities to be found in penny stocks and this tech penny stock may be one of them.
Xiaomi (XIACF) is a Chinese smart phone manufacturer with a currently share price around $1.47. Over the past three months, this penny stock has been down around 22%, not reflecting on its performance but rather more likely due to the US/China trade war.
The smartphone manufacturer has become one of China’s leading phone makers and its business is booming due to its competitive pricing. The pricing for its latest model, the Mi 9 is priced at USD $445 and is far less than its largest competitors like Apple (APPL) whose iPhone XR and XS start at $749 and $999 as well as Samsung’s (SSNLF) latest models.
Although Mi 9 is nearly half the price of its competitors, the quality of the device is not lacking technology. This combined with Xiamoi’s clever pricing has consumers beginning to take notice.
Xiaomi has reported that growth of shipments jumped 21% on a year-over-year basis, while Apple for comparison is seeing a decline in sales of the iPhone X. The phone maker also reported a 49% improvement in revenue in its most recent reported quarter, generating profits of $370 million.
As Xiaomi reports substantial growth, it seems transparent that this Chinese penny stock seems to be taking a hit from the trade war rather than its performance. If you are looking for a tech penny stock, Xiaomi may attest to be a good choice.