Sometimes in the penny stocks market miracles do happen—albeit not often enough. Investors shy away from low-priced stocks because breaking out above the $5 mark is virtually impossible. Put it this way, if your company is trading at $0.25, then asking for shares to climb above $5 is literally asking for gains of 1900%.
That’s asking a lot. But there are those that do the miraculous. Further, coming from a high and falling below the $5 mark often spells a certain doom too.
But on the radar today is a “not-so-anymore” penny stock potential. Maxar Technologies (NYSE:MAXR) was trading at penny stocks prices only in March. Now its look to be resiliently climbing above and staying there, offering a potential opportunity for investors.
Let’s check this out.
Penny Stocks No More – Maxar Technologies (NYSE:MAXR)
At the end of March, MAXR shares were selling for $3.96. That value was the lowest point, where, for two months, shares could not climb above $5. As stated, it can be a hard climb getting back above $5.
But MAXR has done that and now, shares are swapping hands for $7.27 USD. Currently, they are up 5.8% on the day.
The space technology company specializes in manufacturing communication, earth observation, radar and satellite products, and relative services. These penny stocks have been tanking since 2018 because the company has been losing money.
However, things began to turn in April when the company adopted “a tax benefit preservation plan to help preserve the value of its net operating losses and other tax attributes.”
Effectively the company is turning its losses into some semblance of a profit by using its plan to reduce its tax bills on any future profits. Shares have responded well and now Maxar is above $7 and climbing.
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Penny Stocks Turning Around
What is interesting here is where these shares came from. In June of 2018, these “not-so” penny stocks were valued at over $50 per share. Yes, the company has lost a dramatic amount so why should investors bother looking?
Well, if you like risks and the odd speculative investment then MAXR shares could be for you. The current price is holding above $5 and looks to be on an upward trend. For $7 approx, investors could have a lot of potential ahead, especially if the trend gathers momentum.
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