Penny stocks are technically not really stocks that can be found for just a penny. Nevertheless, they are much more inexpensive than most blue-chip stocks. Of course, in a sense, even a blue-chip stock can become a penny stock: Ford Motors stock sold for less than $5 a share after the economic meltdown in the fall of 2008. Five dollars is generally the price level at which a stock is considered to become a penny stock, although some people prefer the $1 dividing line.
Penny stocks are inexpensive to buy, but can shoot through the roof if the stars are perfectly aligned. Nevertheless, they should not be considered a magical route to becoming rich. It is possible to find an extensive list of penny stocks, but there is in no guarantee that any of the stocks on any list you find will become profitable.
The simple truth is that the number of stocks you can find on these lists is extensive. Almost any viable list of penny stocks will contain dozens, it not hundreds, of stocks that can be bought for less than $1. For this reason, you can quite literally invest in dozens or even hundreds of stocks at a time. When looking for a list of penny stocks, therefore, it is highly recommended that you categorize them into sectors, or at the very least alphabetically, so you can better keep track of what may eventually become a sizable list of the stocks you own.
The most common method of finding penny stock lists is through newsletters. There are a great many newsletters that will send you a monthly list of penny stocks to invest in. The caveat of buyer beware applies here. Even a newsletter that thousands swear by, like DoublingStocks, has its detractors, who claim it is a just a scam to benefit those who are selling the information. The truth is that a list of penny stocks that is completely up-to-date and that has any useful information for analysis is very difficult to come by on your own--so a newsletter is not a bad starting point at all, as long as you take the initiative to do a follow-up analysis.
It is entirely possible to find valuable, if not necessarily complete, lists of penny stocks through a simple search on Google or Yahoo. The problem is that, to get to meat of the actual lists of viable penny stocks, you will have to crawl through the fat of newsletters that make huge promises. This process can be of value as far as finding helpful newsletters, but can just as easily be a waste of your time. Nevertheless, sites like AllPennyStocks.com can present a tremendous number of penny stocks that are worthwhile for investment.
The downside of looking for a complete list of penny stocks is that many of these companies have not been around long enough to provide the kind of history upon which most top-notch investment analysts depend for information. Indeed, penny-stock lists are just lists of companies and nothing more. That means you will get the name of the stock and the three- or four-letter stock-listing abbreviation. The important thing to keep in mind when you find a list of penny stocks is that the real work has only just begun.
Penny Stock Tool Chest
The Penny Stock Tool Chest is a perfect example of a website that offers a long list of penny stocks. The useful thing about this website is that it is not cluttered with ads or sales pitches trying to get you to subscribe to a newsletter. The Penny Stock Tool Chest is just one long web page that must be scrolled down, and which holds a list of the names and abbreviations of the stocks. In other words, it tells you nothing about what the company does. It doesn't even give an amount for which the stock is trading. It is a very useful tool for beginning your own research, however.