What penny stocks should we attack

Screening Filters

1. Share Price: $0.50–$5.00 (price)

   • Purpose: Capture “penny stocks” while excluding ultra‑illiquid or distressed sub‑$0.50 names.
   • Rationale: In U.S. markets, “penny stocks” are often defined as stocks trading under $5. Setting the upper bound at $5 directly matches your request. The $0.50 floor helps filter out the most speculative, near‑delisted, or reverse‑split candidates that often have extreme volatility and poor liquidity.

2. Market Cap: $50M–$1.5B (market_cap)

   • Purpose: Focus on smaller companies typical of penny stocks, but avoid micro‑caps that are extremely risky or purely speculative.
   • Rationale:
     • A minimum of $50M avoids the tiniest micro‑caps, where information is scarce and price can be easily manipulated.
     • A maximum of $1.5B keeps the universe to small and lower‑mid cap companies, which are more likely to trade at penny‑stock prices while still being “real businesses” rather than shells.

3. Monthly Average Dollar Volume: ≥ $500,000 (monthly_average_dollar_volume)

   • Purpose: Ensure a basic level of liquidity so you can realistically enter and exit positions without extreme slippage.
   • Rationale: Many penny stocks trade only a few thousand dollars a day. By requiring at least $500k in dollar volume per month, the filter reduces the risk of getting stuck in a position or moving the price against yourself when trading.

4. Listing Exchange: NYSE, NASDAQ, AMEX (list_exchange)

   • Purpose: Restrict results to major U.S. exchanges with higher listing and reporting standards.
   • Rationale: A lot of problematic penny stocks trade on OTC or pink sheets with minimal oversight. Limiting to XNYS (NYSE), XNAS (NASDAQ), and XASE (AMEX) focuses on companies that meet stricter requirements for financial disclosure, governance, and minimum price/size.

5. Region: United States (region)

   • Purpose: Keep the universe in a single regulatory and accounting environment, and align with typical U.S. definition of “penny stocks.”
   • Rationale: This avoids complications from different reporting standards, currencies, and regulatory regimes. It also ensures the “penny stock” definition (sub‑$5) is consistent.

6. Net Margin: ≥ 0% (net_margin)

   • Purpose: Prefer companies that are at least breaking even or profitable instead of purely loss‑making speculative names.
   • Rationale: Many penny stocks are unprofitable or pre‑revenue. Requiring non‑negative net margin filters out companies that are consistently losing money, improving the overall quality and stability of the list while still staying in the penny‑stock price range.

7. Quarterly Revenue YoY Growth: ≥ 10% (quarter_revenue_yoy_growth)

   • Purpose: Focus on penny stocks that are actually growing their business, not just trading on hype.
   • Rationale: A minimum 10% year‑over‑year quarterly revenue growth suggests the company has some underlying business momentum. Among penny stocks—where fundamentals often get ignored—this helps tilt the list toward companies with improving operations and potential for re‑rating.

Why Results Match Your Request

• The price band ($0.50–$5) directly targets the U.S. definition of penny stocks.
• Market cap and exchange filters keep the focus on smaller, legitimate companies rather than opaque OTC micro‑caps.
• Liquidity, profitability, and growth filters (dollar volume, net margin ≥ 0, revenue growth ≥ 10%) refine the universe to penny stocks that are more investable and fundamentally supported, rather than purely speculative trades.

Together, these filters aim to find penny stocks that still fit your request but with a better balance of quality, liquidity, and growth potential.