hey Bai Nation Joseph hog here with a penny stocks video that is going to be hard to beat seven of the penny stocks I highlighted in September just four months ago and in which I invested 137,000 are now up an average 116% in my portfolio with Big Bear up 190% and SoundHound nearly five times your money now I'll admit the market has helped with the NASDAQ up 17% in that time and grow stocks up even more so penny stock profits have been about as easy as teaching a rock to roll downhill but the bull market is just getting started started and I'm adding seven more penny stocks to the list I'll outline why stocks of small companies should have another great year in 2025 and reveal those seven I'm adding to the list stick around though because I'll show you also my strategy for finding penny stocks to buy both that short-term and longterm factors and it is a totally different strategy depending on how long you're going to hold the stock so make sure you watch for that first on our list of penny stocks for 2025 Giga Cloud technology ticker GCT at an 876 million market cap and remember here folks it's not for that share price that we're looking at but that market cap when we talk about penny stocks share price really means nothing it's just the market cap divided by the number of shares the company has issued what's important here is finding those small fast growing companies under a billion dollars Market size that that can jump higher gigac cloud is a businessto business Marketplace Reinventing the supply chain for wholesale Market think of it like an Amazon for the wholesale large partial merchandise Market Marketplace volume grew 80% over the last year to $1. 2 billion with active sellers up 41% and active buyers up 85% to 8500 the company's competitive Advantage here is in its end to-end data that it's collecting and the use of AI to drive system efficiencies I'm going to walk you through this analysis later show you how to find this and what it means but GCT booked 43% sales growth to 2023 and 57% growth over the last 12 months this very high Revenue growth and an increasing Trend beyond that the operating margin that key measure of profitability was 13% over the last year so we got a penny stock growing Revenue by 50% plus and already profitable next here shares of red violet ticker rdvt are up 45% since covering it on the channel last year but still a penny stock company under $500 million market cap red violet provides a cloud platform for identity verification fraud detection and prevention with our lives increasingly digital footprint red violet estimates the Enterprise market for identity verification as large as 19 billion by 2026 that is just its addressable market and for a company that booked just $60 Million last year the company booked 133% Revenue growth last year down from the 38% compound annual growth over the last five but what impressed me here is the company's ever increasing profitability red violet has grown its eBid down margin to 27% from losses just 5 years ago a level of improvement that's hard to come by while growing Revenue so quickly so in that rule of 40 that we'll talk about later that 133% Revenue growth plus the 27 % EA down margin puts the stock just over 40 but in an industry like cyber security and identity management I think Revenue growth picks up from here and surprises investors on its earnings as that profitability continues to improve we're just getting started on our penny stock list but 2025 might not be as easy returns as we saw last year stocks are undeniably expensive and you need to understand not just the fundamentals behind each stock but that overall Market environment as well and above all be picky case in point here I wanted to highlight guard Force AI one of the stocks in our previous videos until shares jumped 98% in the last 2 days and blew out my short-term price Target but that market environment is still supportive of penny stocks using this triangle model by Quinn and Turner that I shared in our 2025 Market Outlook video we see all three sides here factors that contribute to a bull market stock bubble you still got strong speculation so that investor sentiment that stocks will continue to go up marketability that ease at which people can buy and sell an investment is increasing with the move to half penny quotes last September and the potential for deregulation over the next year and most importantly that money and credit is still very supportive with the FED lowering its interest rates and investors flush with cash homeowners have nearly $32 trillion in home equity while another 6. 8 trillion is stashed away in money market accounts a record amount that is primed to flow back into stocks so here while we might get short dips of five or even a 10% correction because stocks have run so far that bigger picture environment is still very supportive of the bull market and penny stocks for the next year or more next on our penny stock list $160 million pay sign Inc ticker pys a prepaid card and payment processing service for customer incentives employee rewards and rebates within the healthcare hospitality and Retail Industries the company provides an in to-end customized solution for Enterprise clients an addressable Market it estimates as large as $728 billion in the us alone Revenue growth has accelerated over the past year to a 30% Pace with some Pharmacy patient affordability programs really taking off but even that at $50 million in sales is a fraction of the potential in that $700 billion market sales are expected just 13% higher after 23% growth this year but this one is another one that's already profitable on that net income basis so less risky than we see in a lot of other penny stocks 177 million quick logic Corporation ticker Quik has been on the uptrend lately with a boost to expected growth this company lives at the heart of the semiconductor World in Silicon Valley offering embedded fpga and IP software quick was awarded a $6.
9 million base contract from the dod in 2022 and its Revenue took off from there with the potential to scale up that contract to 72 million over the four years it's also Inked a collaboration with your chip to develop chiplets and is expanding into related markets that kind of product expansion helped it grow Revenue by 31% last year to $21 million and it's forecasted to continue that growth to upwards of $26 million over the next 2 years next up on our penny stock list mind Tech technology tooker MD is extremely small at just $58 million market cap but with solid momentum in its fundamentals the company is a leader in Marine technology the liquid kind of marine not the uraj Jarhead kind with industry Tailwinds in energy exploration and offshore wind helping to grow its Revenue year-over-year the company has grown its sales at a 26% two-year Pace with growth increasing in the recent quarters and a 14% margin for that admission into the rule of 40 club a record year for Revenue backlog $38 million in backordered business should keep the revenue growing steadily we've still got two more penny stocks to highlight including one that is up more than 600% since recommending it but you know folks I'm not about to just drop a list of stocks in your lap and say go buy these I want to show you how to find these what to look for and Nation nowhere is that more important than in your penny stocks and it's because there is a big difference in what you look for if you're investing just for a short-term profit versus if you're a longer term Buy and Hold investor first in those short-term penny stocks so if you're holding your stocks for for less than a year just looking for that quick bounce then it's all about investor sentiment and the market environment of course news and fundamentals for a stock are going to be important as well but it's really that Rising tide that's lifting all boats here it's only that charging bull market that is going to push penny stocks up 50 and 100% in any given year so here you're looking first at that environment those three sides of the bubble triangle that we looked at earlier beyond that you're focused on past and forecasted growth for these stocks over time profitability and cash flow becomes more more important but in those shorter periods and especially during a bull market investors tend to overlook the other fundamentals and just bid up penny stocks exclusively on the ones with the fastest Revenue growth so here you're going to be looking at the income statement first and finding the revenue growth over the last few years for example we can see here Giga Cloud booked 43% sales growth in 2022 then 57% over the last 12 months so very high Revenue growth and an increasing Trend which is even better then you can go to the analysis tab or wherever you find your forecast on the broker platform and we see revenue is expected up 64% for the full year which is outstanding it's forecast to grow just 13% next year so we'd want to check that out but I tend to give more weight to actual and current year numbers rather than these longer term forecasts so if you're short-term investing in penny stocks it can be as easy as that as long as the overall Market environment is right to push stocks higher and you have a company growing Revenue at 20% plus a year I hate saying this as a professional analyst but it can be really that simple but then looking for the penny stocks that will do more than that quick 50 or 100% return the ones you can buy and hold for years make that five or 10 times your money takes a little bit deeper research this is where you need to look at the company's fundamentals the profitability and that durable competitive advantage that going to help it grow long term and one of the key measures I look for one I'm using in this video and one of my favorite tools when working as a venture capital analyst is that rule of 40 this is more often used in analyzing software companies but can be applied anytime you're looking for that growth grow or penny stocks to buy the idea here is that you want Revenue growth plus profitability so not just Runway sales but also accounting for that profitability that's going to help the company survive even outside the bull market with our gigac Cloud example we're here in the income statement that shows Revenue all the way down to income I like to use multi-year Revenue growth to see a more durable Trend as opposed to just one year so if we take that trailing revenue of $ 1. 1 billion and then divide by 490 million 2 years ago then get an annualized number we see Giga CL has posted 50% annual revenue growth then for this profitability measure I like using the operating margin which is just the operating income divided by that total revenue and there are other ways to measure profitability for the rule of 40 but this one is easy and straightforward so if we divide that $144 million in operating income by the $1.
