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17 reasons to add penny shares to your investment portfolio today

by , 24 June 2016
17 reasons to add penny shares to your investment portfolio today
Penny shares are the black sheep of the investment market. Most investors ignore these shares because they simply don't know how to deal with them.

Penny shares are volatile - They'll be up one day and down the next. Their share prices tend to swing around violently leaving investors that are unprepared for this activity nervous and afraid of what the share price will do next.

But there are hundreds of penny shares on the market across a wide range of industries like commodities, technology, health, agriculture and energy. This means that investors who know what they're doing are spoilt for choice when it comes to penny share investing.

The truth is, if you can harness the power of penny share investing, you can make a lot of money and change the way you live your life. These shares are explosive and profitable and if you play your cards right, you can make millions from the market that most investors ignore.

That's why today I want to show you 17 reasons why you need to add penny shares to your portfolio as soon as possible.

17 reasons why penny shares are a great way to invest


Reason 1: You can buy penny shares on the cheap

Penny shares are really low-priced. These shares cost less than R10 each. That means you can get your hands on a lot of shares with just a few hundred rand. Even if you don’t have a lot to invest, you can still get into the markets with a penny share portfolio.

Reason 2: Because they’re so cheap you can diversify your penny share risks easily

When you invest in penny shares, you can buy a variety of different shares in different industries with very little cash. That means if some of the shares move against you, you won’t lose everything.  Because you are buying a variety of shares, you can diversify your risk and increase your chance of success.  

Reason 3: Penny shares have exceptional growth potential

A blue chips share is a slow moving giant. It’s expensive to buy and once you’re invested, it takes a long time for the share to deliver great returns. With penny shares, you have the opportunity get in a bargain prices. If the share moves up just a fraction, you’ll be banking significant gains in the process. (Keep reading to see what I mean)

Reason 4: It’s much easier for a small cap to grow than large caps

Compare Taste holdings with Famous Brands for instance. Taste holdings only have 242 restaurants. Famous Brands has 2500 restaurants. It’s much easier doubling from 242 to 484 than 2500 to 5000 restaurants.
All a small cap needs is one reasonable acquisition and it doubles its revenue and profits. A large cap would need considerably more effort to do this! And remember, quicker growth means quicker gains and more money in your pocket!

Reason 5: Penny shares have the potential to make you a 428% gain

A great example of how you can buy a cheap penny share and experience phenomenal growth is Adapt IT (JSE: ADI). If you bought this share in 2010 you would’ve paid 46c for it. But this innovative little company embarked on an ambitious and aggressive international acquisition trial. Now look at penny share Adapt IT again, today it’s trading at around R12 a share. It jumped a staggering 482%!

Reason 6: Penny shares are unpopular so you can get in ahead of the crowd

Let’s use the Adapt IT example again. Nobody wanted to buy this share when it was trading at 46 cents. Fund managers ignored it, investors ignored it but the few that did invest, managed to secure exceptional gains from it. If you know what to look for in a penny share, you have the opportunity to get in first. By the time everyone else starts buying the share, you would already have banked massive gains.

Reason 7: You can beat the biggest fund managers at their own game

It’s like Francois Joubert editor of Red Hot Penny Shares says, “Even big investment firms miss out on the opportunity to invest in penny shares. This is because big investment firms can buy up millions of shares at a time… but if the company they buy into is a penny share, then the share price flies through the roof with a big order.”
This immediately cuts into their potential profits, so a penny share just isn’t a sensible way to play the market, when you’re one of the bigger firms. That means that you have the opportunity to beat these big investment firms at their own game.

Reason 8: Penny shares give you amazing bragging rights

Imagine the bragging rights that come with making returns like these:
·         Transport Company Santova Logistics (SNV:JSE) rose 221% in 15 months!
·         Telecommunications equipment Company Poynting increased 215% in just six months!
·         Computer Services Company Adapt IT (ADI:JSE) rose 207% in just 9 months
·         Heavy Construction company, Calgro M3 (CGR:JSE) soared 104.96% in just 18 months!
·         Financial Services Company, Conduit Capital (CND:JSE) rose 164% in less than two years!
These are real returns from real penny shares that Francois Joubert delivered to his Red Hot Penny Shares readers. How many of your friends can say that they’re invested in shares delivering such exceptional gains?
Just look at some of the letters Francois received from his readers:
Bringing in gains!
As a member of Red Hot Penny Shares I followed your advice on purchasing gold and made about 30% in 6 months!" — Red Hot Penny Shares reader S Wright, JHB
30% in 3 Months!
I'm delighted with the advice and information I receive from Red Hot Penny Shares which grew my portfolio by 30% in 3 months. The information you provide on shares is accurate and well researched." — Red Hot Penny Shares reader Adam, Cape Town
Smiling all the way to the bank!
As a Red Hot Penny Share subscriber I would like to share a wonderful story. My first share was Pinnacle which I bought last year, the share soared up and in 9 months I made 67% profit. Your system really works. Viva RHPS team. Keep up the good work!" — Red Hot Penny Shares reader S L Radebe, Jo'burg.

Reason 9: You can start investing in penny shares with as little as R100

There’s an exciting new investment platform that allows you to invest in the stock market with tiny amounts of cash. Easy Equities allows you to open an investment account and invest in your favourite shares with as little as R100. That means that even if you don’t have thousands of rands available to put into the markets, you can put R100 into your share portfolio every month and buy a variety of these low cost penny shares.

Reason 10: You can learn to manage your own investment portfolio

Investing in penny shares gives you the perfect platform to learn how the investment markets work. Not only will you get a feel for the markets, you’ll also learn how to manage your risks and improve your chances of investment success. You see, you need to keep a close eye on your penny share investment portfolio to manage your losses to improve your chances of buying winning shares.

Reason 11: The small cap index has the best long-term performance

Since 2005, the Top 40 Index has climbed 393% (The Top 40 Index tracks the 40 largest blue chip shares listed on the JSE). Meanwhile the Small Cap Index ballooned 523%! (The Small Cap Index tracks smaller companies, many of which are penny shares).

Reason 12: Small caps can afford to take on more risk

Because small cap shares are smaller businesses, with fewer employees and lower expenses, these companies are more nimble than large cap shares. They can handle far more risk by chasing new growth trends and reacting to new opportunities a lot faster. This helps them to achieve more growth much faster.
Francois Joubert explains, “Capitec Bank is a great example of a small cap share that took on more risk. The bank saw the opportunity to enter the lower income market segment before the big banks could. That’s now proven to be a major success factor for this company.” 

Reason 13: With penny shares, you could make R2.36 million in just five years

Francois believes that by using his penny share investment strategy, you could make R2.36 million in just five years. And he wants to prove it to you.
He says, “Let me show you just how potent penny shares can be when you follow the Secret R10,000 Retirement Blueprint. I’ll show you how R10,000 could have turned into more than R2.36 million. This strategy is risky and requires a lot of luck. This is simply an “accelerated” example of how potent penny shares really can be.

Reason 14: You can cash in your profits whenever you want to

Remember, as soon as you start making money from your penny shares, you can cash it out and play it safe. You don’t have to wait years to realise these profits, they happen quickly. So as soon as your share is up 25% or 50%, you can cash in your gains and look for the next opportunity.

Reason 15: You can test your penny share strategy with paper money

If you want to test your investing strategy, you can paper trade your penny shares. When you open an account with Easy Equities, you’ll automatically get a “demo money” account. This is where you can put fake money into your investments and test your penny share investment strategy before you commit real cash to your portfolio.
It’s like Francois says, “It’s simple. Make a list of the penny shares I’m recommending and write down the price I recommend them at. Then watch the shares for a time period you consider reasonable. I’d suggest a few weeks at least – perhaps a month or so. Give it enough time to make a fair judgment. Then compare the price to what I recommended it at. If you’re not totally satisfied, I’d be really surprised.”

Reason 16: You could have the best penny share picking expert in your corner

I’ve mentioned Francois Joubert a few times in this article. He is arguably the best penny share stock pickers in the country right now. He uses a powerful scientific strategy to select the best penny shares with the most upside potential. He is available to help you with any of your penny share investing challenges. You can ask him your questions on www.investorsclub.co.za and he’ll guarantee an answer.

Reason 17: You can live the life you’ve always wanted

What will you do with all the money you stand to make from shares like these? Remember these are real gains banked by real penny share investors:
·         221% in 15 months from Santova,
·         215% in 6 months from Poynting
·         207% in 9 months from Adapt IT
You could buy your dream car, pay off your child’s education and buy that house you’ve always wanted. Whatever you want to achieve is yours for the taking. But that’s only if you have the stomach to take a chance on penny shares.
Now that you understand the great potential penny shares have to offer you on your investment journey, why not find out more about the penny share investment newsletter headed up by Francois Joubert?

Get started in the exciting world of penny share investing right now!

If you sign up to Red Hot Penny Shares today, you get your hands on the next hot penny share recommendation out on the 1st of July. Francois will tell you about a 36% profit growth deal no-one has gotten wind of yet… 
In this issue you’ll also discover:
  • A single penny share that gives you access to South Africa’s biggest brands at a 20% discount
  • The latest update to the five shares set to rocket in the next twelve months
  • And if you’re not invested in his Red Hot portfolio yet, now’s the time to do it!
Francois just launched a special offer for you to join his service.
If you sign up today, you can get your hands on his entire penny share package to the value of R1,869 for only R69. Best of all, it’s backed by FSPInvest’s 100% satisfaction guarantee for the next 90 days.
I would be telling you about this, if I didn’t think you could make a fortune from Francois recommendations. So act now...
Let’s build your wealth together,
Aiden Sookdin
Contributing editor,

17 reasons to add penny shares to your investment portfolio today
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