If you’re a microcap investor, you understand the edge and first-mover advantage you can get from exploiting negative stereotypes. One of my favorite Geoinvesting model portfolios is the Run to One Model Portfolio (R21). The common narrative is that penny stocks are too risky and complete trash. However, Xpel, Inc. (NASDAQ:XPEL) used to trade around $0.20 in 2012 and reached $100 by 2021. Koru Medical Systems, Inc. (NASDAQ:KRMD) began its multi-bagger journey as a penny stock, climbing from $0.40 in 2016 to $12 in 2020. Both of these stocks were added to our R21 portfolio in January 2013 and October 2016, respectively. Both companies also generate substantial revenue.

That’s why I was excited that we hosted a skull session event on Thursday with Luminar Media Group, Inc. (OOTC:LRGR). The company trades around $0.40 and has put together six consecutive quarters of revenue growth and profitability. LRGR operates in revenue-based financing and reported Q3 sales of $2.2 million.

Sure, penny stocks can be a little risky, but the potential upside can be significant if you can find a few before some of the issues that put the company in pennyland are about to abate or improve.