It seems even skeptics are starting to peer a little more closely at the potential of penny stocks in the current economic climate.
Before we go further I always like to urge caution; buying penny stocks is almost always a volatile practice and it is made even more so with the overall volatility of the current market.
Be sure you’re using polished, professional day trading software and thoroughly exercising your due diligence.
Now read on as even the major players at the Motley Fool are starting to peer a penny stocks with curious eyes. Tim Beyers wrote at the Fool couple days ago:
The promise of outrageous returns is why some of the world’s best stock pickers are, at times, penny stock investors. Peter Lynch has and still does enjoy the stock market’s super-cheap seats. The Royce Low-Priced Stock fund crushes the market by betting on stocks trading near or below $10 a share, such as Sigma Designs (Nasdaq: SIGM).
Even the All-Stars in our 120,000-plus Motley Fool CAPS community take to penny stocks. More than a few have been richly rewarded.
So why not invest in penny stocks? I suppose because the SEC has warned us about them. But what if we take the agency’s definition literally, and limit our choices to stocks trading between $1.50 and $5 a share? And what if we further limit our choices to four- and five-star stocks whose market cap falls between $250 million and $2 billion? Surely our new CAPS screener would return some winners, right?
Interested? Read more: The Next Million-Dollar Penny Stock
It’s an exciting time for the courageous yet cautious among you seeking the best penny stocks.