2 Top Stocks Under $5
Stocks that trade for less than $5 are often derided as "penny stocks," and typically they are the worst investments in the stock market. Usually these small-cap or micro-cap stocks are priced so low for a reason. And it's a fallacy to think that a stock that has fallen a lot can't punish investors any more. You'd be amazed at how many times a stock can lose 50% of its value, over and over again.
Nonetheless, for investors who are willing to stomach the risk, there are always a few companies that have been mispriced by the market. For instance, I was bullish on Novavax (NASDAQ: NVAX) when it was super-cheap. And I added to my position when the biotech dropped to $4. It's now trading hands at $56 a share.
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Source Fool.com
