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.