Are Penny Stocks Worth a Look?

Penny stocks--those that sell for under $5 over-the-counter--are the slot machines of the equity market. Care to risk a couple of quarters? It's tempting, with the established exchanges now brimming with household names like Corning in the penny-stock range. The fiber-optic-equipment maker was once a $100 stock. Now it trades near a buck fifty. Wireless-phone company Sprint is at $9.25; computer retailer Gateway, $3.58; Sun Microsystems, $3.66. How can you lose? But as anyone who has been cleaned out by a 25[cents] slot can tell you, this is risky territory.

The trick is to separate the fallen angels from the real...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!