Medifast
Medifast (MED) is a great example of a penny stock that matured into a successful company over time, succeeding in an industry where many have tried and failed. The company develops weight and disease-management products. Over the years, the shares have been volatile, but over any significant period of time, they have gone up.
In the early 2000s, investors viewed the company with skepticism, as the weight-loss and supplement market has not always enjoyed the best reputation. In fact, on Dec. 29, 2000, this was a 14-cent stock. Fast-forward to today, and Medifast is a well-known brand with a market cap of more than $405 million. The stock is currently trading at more than $25 a share. Medifast was named the No. 1 small company in America by Forbes Magazine in 2010. Not bad for a former penny stock.
