Are there any good penny stocks or semi-cheap stocks worth investing in?
Penny stocks cost very little for a reason. The efficient market hypothesis states that the stock price generally reflects all available knowledge about that security. In other words, a $2.00 stock is worth $2.00 to most people — no more, no less. If there were solid data or a concrete reason for the stock to be valued at a higher price, it would already be at that price. It is incorrect to think that you are getting a bargain when you purchase a penny stock. If you purchase a penny stock, you are gambling — you are not investing. Penny stocks are not cheap. When investing, it is important to know how to value a stock. This concept is the topic of hundreds and hundreds of investment books. It is entirely possible that a stock trading for $72 is cheaper than a stock selling for $8. The price of a stock does not determine whether or not a stock is expensive. There are many other metrics for that. My favorite (and easiest to understand) metric is the Price Earnings (P/E) ratio. The P/E ra
