About to Buy Penny Stocks? Look at These 3 Companies First
Investors seeking explosive gains will sometimes turn to penny stocks in hopes of quickly notching big returns. The idea that it's easier to double $1 than it is to double $100 seems pretty intuitive on the surface, but this reasoning typically isn't something you can apply to stock performance and expect good results.
The vast majority of penny stocks trade at low valuations because the underlying company's performance is relatively weak or its outlook highly speculative, and this category of investments has a reputation for burning investors more often than not. But risk-tolerant investors still have plenty of better options. Read on for a look at three stocks that have plenty of boom potential and much less risk of going bust.
Image source: Getty Images.
Source Fool.com