6 Tech Penny Stocks to Watch Now

Tech Penny StocksTechnology stocks are thriving this year, and so is a group of tech penny stocks. That's why we've picked out six tech penny stocks to watch this month.

Investing in penny stocks isn't for everyone. Because they are low-cost (usually under $5 per share), they can also be very volatile. Penny stocks are only suitable investments for people with a high risk tolerance.

While Money Morning isn't a penny stock trading site, we do keep a close eye on the market and can spot some standout companies in our research. That being said, here are six tech penny stocks to watch now...

Tech Penny Stocks to Watch No. 6: ParkerVision Inc. (Nasdaq: PRKR)

ParkerVision Inc. (Nasdaq: PRKR) is a Florida-based designer, developer, and marketer of radio frequency (RF) technologies and products. The company's products are mainly focused on mobile and wireless applications, and it also offers consulting services to clients that can help it integrate its solutions into existing products and services.

ParkerVision had an ongoing patent suit with Samsung Electronics, which was settled this past summer. It also has an ongoing patent infringement complaint against LG Electronics in Germany. The first suit was settled in its favor, which boosted its stock price.

PRKR stock is trading at $2.50, with gains of 84.1% in July and a net loss of 47.6% over the past three months.

Tech Penny Stocks to Watch No. 5: MeetMe Inc. (Nasdaq: MEET)

People love social networks, and there always seems to be room for more. MeetMe Inc. (Nasdaq: MEET) is an emerging social network that has grown to more than 1 million daily active users. Roughly 90% of the site's traffic is mobile, and the website makes money through advertising and some subscription plans.

The company has positive earnings, growth in revenue, and is a recommended "Buy" stock from several analysts. MEET is currently trading at $4.77, with shares up 37.9% year to date (YTD). The average price target for MEET stock is $9.06, according to Thomson First Call.

Tech Penny Stocks to Watch No. 4: Technical Communications Corp. (Nasdaq: TCCO)

Security is a hot-button issue this year, and there are a few penny stocks to watch in this sector. One is this high-tech security company that works in the cybersecurity area.

Technical Communications Corp. (Nasdaq: TCCO) develops communications security devices, such as encryption systems, for the military, other government agencies, and telecommunications companies. The company specializes in military-grade secure communication systems and serves clients in 115 countries.

TCCO stock is trading at $2.73 and is down 13.6% YTD, but has produced gains of 8.4% in the past 30 days.

Tech Penny Stocks to Watch No. 3: Payment Data Systems Inc. (Nasdaq: PYDS)

Payment Data Systems Inc. (Nasdaq: PYDS) is a Texas-based electronic payment processing company that began in 1998 as Billserv. The company has become an industry leader, processing more than $1.5 billion in electronic payments annually.

Today, Payment Data Systems provides secure payment processing solutions to businesses and retailers. Most of its services are online, and it just announced a partnership with a major banking network this summer that promises continued growth.

PYDS stock is trading at $1.78, and shares are down 11.8% YTD, with an October rally up to $2.79.

Tech Penny Stocks to Watch No. 2: SemiLEDs Corp. (Nasdaq: LEDS)

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When you're struggling with finding the right penny stocks, simply take a close look at consumer trends. One trend that is gaining (fast) popularity in both homes and vehicles is the use of LED lighting. Light-emitting diodes are slick, versatile, highly efficient, and very durable.

SemiLEDs Corp. (Nasdaq: LEDS) is a U.S.-based company with operations in Taiwan that makes LED chips and components. It's one of the world's leading providers of high-performance LEDs and the only manufacturer of a certain type of vertical LED.

This past summer, LEDS stock received a boost when an investor, Peter Chiou, purchased more than half a million shares of the company, earning him a 20% stake. LEDS stock is currently trading at $4.52, and shares are up 11.5% YTD.

Tech Penny Stocks to Watch No. 1: Neonode Inc. (Nasdaq: NEON)

Neonode Inc. (Nasdaq: NEON) is a Swedish company that got its start making mobile phones. Remember the name "Eriksson"? He is one of the company's founders.

Today Neonode focuses on developing and licensing its patented optical touch technology that is used on the touchscreens of tablets, e-readers, and smartphones. It's entered into a partnership with Lexmark to use its technology in a series of color printers. The company also developed an "AirBar" that can bring touchscreen capability to non-touch PCs and devices through a USB connection.

NEON stock is currently trading at $1.67, with losses of 49.1% YTD. It remains one of the penny stocks to watch for future growth.

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