Don't Waste Your Money on Penny Stocks: These 3 Stocks Are Better Buys

Penny stocks can be exciting, but they're also incredibly risky. A handful of small companies with stocks priced below $5 per share will hit the jackpot and skyrocket, but most of these lottery tickets are busts. Even when you do find a winning ticket, the gains are often short-lived, and the big wins on paper disappear in a hurry when you don't sell near the absolute peak. Market timing is a nearly impossible game, so penny-stock speculation is closer to gambling than to investing.

Yet there's no need to worry. It's actually easy to find well-respected companies with substantial market caps that are great buys right now. Forget about those tempting, yet dangerous penny stocks and consider three high-quality stocks instead: Roku (NASDAQ: ROKU), Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC), and Coupa Software (NASDAQ: COUP).

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Source Fool.com