For some investors, reading the daily financial news is like having Christmas Morning throughout the year. The right bit of breaking news, combined with the perfect timing can lead to a huge profit down the road. The daily financial headlines are even more important if you are one of the millions of people who invest in penny stocks, or stocks valued at under $10 per share. Hearing that some obscure company just got a lucrative new contract can send stock prices soaring, so it is vitally important to stay on top of the latest news and information. Here are a few promising companies that have been making penny stock news over the last few weeks.

Himax Technologies (NASDAQ: HIMX) is one of the leading chip manufacturers for flat panel displays in the world and is widely considered a must-buy stock thanks to its current price of under $2 a share. Himax has a great cap rating and although the price of this stock has lost significant value during the recent stock market roller coaster ride, most experts believe that it has bottomed out and is now a great investment opportunity. Technology has become too indispensible for most people to live without, even during a recession, and with the overall price of flat panel monitors continuing to drop across the board, more and more people are switching over from ancient CRT style screens or updating their flat panel displays, which means more orders fro Himax to fill.

Sovereign Bancorp (NYSE: SOV), like many of its banking contemporaries, has fallen on hard times as of late, but unlike some banks, Sovereign isn’t showing any signs of all out collapse. Thanks to stricter-than-average lending policies during the financial hay day of the last decade, this bank has protected itself nicely from the same meltdown that has claimed so many others. This is still considered a somewhat risky investment at around $2.50 a share, but many buyers feel that this is one bank that has nowhere to go but up.

We mentioned earlier that investors are looking towards technologies stocks as a safe refuge from the ups and downs of the market. One such stock that appears to be heading in the right direction, and fast, is Infinera (NASDAQ: INFN), a leading maker of optical networks. Infinera has been on the cutting edge of development for networks that have a wide range of use, and they have been doing it for far less than what their competitors have, so while Infinera is a bit expensive for a penny stock ($7.50 a share), it has tremendous upside potential.

Finally, the fate of the internal combustion engine, and those that manufacture them, has been the subject of much debate in recent years. With the climbing, and then falling, price of gas, many investors have been staying away from car companies like the plague. The question many are asking is how low do these companies have to drop before bargain hunters begin snatching them up.

With General Motors (NYSE: GM) under $7 a share, is it finally time to begin investing in American made automobiles again? The answer clearly lies with the companies’ commitment to making hybrid, electrical or hydrogen cars along side the conventional gas guzzlers. If GM shows the world they have a green side, their stock has nowhere to go but up. If not, you may be left with worthless share for a dinosaur of a company. Right now, GM qualifies as a penny stock listing to watch.

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Tags: gm, himx, infn, penny stock picks, sov