Is penny stock a good investment?

If you like taking risks.

No, its a gamble, not an investment :)

They are penny stocks for a reason. Now the best of the bunch are not the ones under $1, but the ones between $1 and $5 (the cutoff to what's called penny stocks).

the higher the risk the higher the reward
risk of losing all your money in penny stocks rather high

You have to remember with any investing it's ALWAYS a risk. No risk no reward, RIGHT? Wrong, invest smart and remember no one can beat the market or they would have done it already.

Don't wager what you don't want to loose, this way everything you don't loose is a gain.

Happy Investing!

LOLZ. For penny stocks, you need to put 1000 shares and sell it as soon as you earn the commission back.

The price per share of a single stock has no bearing whatsoever on whether it is a good investment, bad investment, scam or sweatheart deal. The price could be a hundred bucks a share or a hundredth of a buck.

What you need to examine for penny stocks is the same thing you need to examine for all stocks - How has the company performed in the past? What is the debt/earnings ratio? How often does it declare dividends? Is it overvalued or undervalued? Is it in a sector that is growing? Is it a startup or an established operation?

Only after you do your research will you know if you're making a wise investment in any single penny stock.

You have to be so careful when the stock is below $1.00. The volume is usually so small that it becomes difficult to unload the stock when you want to and then you get 'stuck'. Be careful.