Thinking About Buying Penny Stocks? Buy These Stocks Instead
Stock returns typically reflect the business performance and outlooks of underlying companies. Therein lies the problem with penny stocks. While companies with low market capitalizations or stock prices may seem appealing since they hypothetically offer more room for growth, the truth is that the vast majority of penny stocks have dismal business prospects, and usually wind up burning investors.
Instead, narrowing in on companies that have actual competitive advantages, and are positioned to benefit from powerful trends, will help you find stocks capable of delivering stellar performance. In other words, rather than throwing money away on penny stocks, risk-tolerant investors seeking explosive gains should consider adding the following three companies to their portfolios.
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Source Fool.com
