Almost Always, Penny Stocks Are Not The Bargain They May Seem

Almost Always, Penny Stocks Are Not The Bargain They May Seem: "Many folks look for deals no matter what they're shopping for -- even when it comes to stocks.
Bargain hunters figure they can make a big profit if a cheap stock they own goes up just a few cents. Why not load up on a variety of penny shares, they say, instead of focusing on one or two pricier stocks?
Sure, that may sound like a good theory. But overall, such stocks carry higher risk. Stocks selling for less than $5 a share often trade at a low price for a reason. The company may have logged a recent string of sales or earnings disappointments or is being targeted in a probe. Its sector could be hitting a rough patch as well."