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Mega Stock Pics is a website that provides free e-newsletters and stock alerts that are mainly focused on penny stock advice. The company is not registered as an investment adviser, however. The site seeks to identify penny stocks that are about to make big moves in advance, and notify traders with real time alerts.

For example, Mega Stock Picks highlighted 3D Icon Corporation (OTC BB: TDCP.OB) at .0031 and it closed the day up at .05 cents. The site allows users to sign up for stock alerts and their famous "bottom bouncer" picks. The site is currently recommending AppTech Corp. (Other OTC: APCX.PK) which was up over 7% on high volume, China MediaExpress Holdings Inc (NasdaqGS: CCME), which had over 300% gains in the last couple of months, and El Maniel International (Other OTC: EMLL.PK) which was up over 14% on large volume.

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Many proponents of penny stocks claim that they are a great way to turn a small amount of capital into huge returns. When you purchase penny stocks you are purchasing inexpensive shares of small companies. These stocks are far less liquid than other kinds of stocks, as they have few stockholders. It is true that they have the potential to produce large returns, but they are also regarded as a high-risk investment.

Due to the low liquidity, they trade occasionally and this means that it could be tough to sell the stock when desired. There is the possibility of losing your entire investment in penny stocks if the small company goes belly-up. For some this is exciting, but for those who like less risky investments this is probably not the right category to pursue. Penny stocks are different from other stocks in how they trade, as they are not listed on the giant exchanges such as the NYSE or NASDAQ. They are traded over the counter, on what is known as the Pink Sheets.

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Still, many investors enjoy dabbling at the low end of the penny stocks – price spectrum, a "penny stock" is any stock trading under $10, and you'll find some of the best CAPS All-Stars regularly seeking out winning investments there.
These penny stocks are low-priced, but that isn't necessarily enough to suggest they'll have an easier time recording big gains. Low-priced stocks are often low-priced for a reason. We have to check and see what their catalysts for growth might be before diving in to the shallow end of the stock pool.
Penny stocks like Chinese fertilizer maker Yongye International (Nasdaq: YONG ) , for example, got a big boost when Morgan Stanley agreed to invest a truckload of money in the company despite claims of fraud. China MediaExpress was another that had the savvy investors at Starr International buying in. But that's no guarantee of righteousness. China MediaExpress was subsequently delisted and now trades on the Pink Sheets.