Difference Between Multibagger Stocks & Penny Stocks
Multibagger stocks and penny stocks differ in terms of growth rate, market capitalization, liquidity, and risk & return potential. Multibagger stocks are high-growth companies with stronger fundamentals, while penny stocks are riskier investments due to their speculative nature and low liquidity. Understanding these distinctions can help investors make informed decisions when considering their investment strategies.
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Presentation Transcript
Difference Between: MULTIBAGGER STOCKS & PENNY STOCKS www.multibaggers.co.in India s most trusted Research Analyst
Multibagger & Penny Stocks??? Multibagger Stocks and Multibagger Penny Stocks are investment jargons which are used by market participants to describe equity stocks which has potential to give multiple times return. According to layman, 100% return is defined as a single bagger, likewise two baggers give 200% returns. These stocks possess the power of exponential growth rate in their sales, revenue and so the profits, which make them deliver multibagger returns. Though high growth rate but they have low market share.
Then which factors differ these stocks???
Growth Rate: Multibagger Stocks are high growth companies that already crossed the barrier those letdown startups whereas Penny stocks are generally in startup phase or about to enter high growth phase.
Market Capitalization: Multibagger stocks are from Small-Cap and Mid-Cap companies contrarily Penny stocks are from Micro-Cap companies, price of Penny stocks are generally below Rs.50-100.
Liquidity: Multibagger stocks broadly have good liquidity whereas Penny stocks have low liquidity because of low Volumes and Market-Cap, this makes Penny stocks highly momentum stocks since it s easy to manipulate low capital stocks.
Risk & Return: Multibagger stocks are safer than penny stocks. Penny stocks are highest risk and fastest returns. Penny stocks are like multibagger returns in comparatively shorter term. Penny stocks are just like buying options either you earn multiple returns or you may lose your capital even as it may not give chance to exit even, due to seller circuit or delisting.
Bharti Joshi SEBI Registered Research Analyst (Registration No: INH000002558) Talk directly with Research Analyst And not with any sales executive https://www.multibaggers.co.in 9825621336 Disclaimer: Investment in equities is subject to market risk though best attempts are made for predicting markets, but no surety of return or accuracy of any kind is guaranteed, while the performance sheet of various packages is available but should not be considered as a guarantee for future performance of the services. We are not liable for any losses whatsoever client may incur in accepting this opinion. REFER WEBSITE
