WRTC - Don't Waste Your Money on Penny Stocks; These 3 Stocks Are Better Buys
The best penny stocks tend to be speculative, and the worst ones are often scams. But investors are nonetheless enticed by them because of their explosive potential gain. And I totally get it. As a new investor, I once bought shares of an up-and-coming ethanol powerhouse. The company went bankrupt before producing a drop. Trust me, you want to avoid penny stock scams like that one.
Advertising-technology company Magnite (NASDAQ: MGNI), law enforcement device company Wrap Technologies (NASDAQ: WRTC), and space-tourism company Virgin Galactic (NYSE: SPCE) all have incredible growth potential and could be excellent alternatives to penny stocks.
But a word of caution at the outset -- these businesses are very early in their journey and may not ever reach their full potential. A well-rounded portfolio can include some riskier bets like these, but the foundation should be built upon companies with more proven businesses.