Penny stocks hold an allure for investors, particularly those who are new to the market, because they offer a chance to own a lot of shares for relatively little money. All those stocks need to do is move up literally by pennies, and that would translate to huge profits.
Unfortunately, most penny stocks are that cheap for a reason. Many of them don’t even have a product or service that consumers can buy, and they’re running more on a storyline about how big they could theoretically get. Instead of making a killing, penny stock investors are often slaughtered.
That’s why the stocks below are better investments. They might cost a few dollars more, but you’d be getting a better business with a proven track record of profitability and with products in demand by customers.