Because penny stocks by nature carry “cheap” per-share prices, the psychological effect tantalizes usually rational investors into making foolhardy decisions. I’ve got to be blunt here: just because a stock is cheap doesn’t mean that it’s a great deal. Often, that security will fall even further due to fundamental defects.
However, every now and then, even the Street’s experts identify high-risk ventures for significant upside potential. If you can handle the likely volatility and only gamble what you can afford to lose, the following growth penny stocks could be interesting.
This post originally appeared at InvestorPlace.