These 2 Penny Stocks Have Tantalizing Growth Prospects

Penny stocks, or equities trading at under $5 a share, are typically a no-go area for most investors. These low-priced stocks are generally too risky to consider owning because they frequently have low liquidity, are prone to wild price swings, sport outsize short-seller positions, and, more often than not, have poor underlying fundamentals. Still, the fact remains that penny stocks have comprised a disproportionate number of the best-performing stocks over the last decade.

Capital-intensive commercial operations in the areas of biotechnology, healthcare, and technology can force fledgling companies to rely heavily on public offerings to get off the ground. These repeated bouts of shareholder dilution, in turn, often push a company's share price into penny stock territory.

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Source Fool.com