Investors are attracted to penny stocks for their potential to provide exponential gains. It is very common to find such companies trading for fractions of their target price. It is also worth noting that penny stocks are highly risky and it goes without saying that losses aren’t uncommon. In other words, don’t treat these stocks the same as their more stable counterparts, and only invest what you can afford to lose.
That said, the penny stocks listed here are interesting and fall, for the most part, outside of the biotech/pharma sector. That means the majority (4 out of 7 shares) don’t depend on scientific breakthroughs or other long shot technologies for their upside. So, they may be less risky overall.
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