Pennystocks are very alluring to small investors who can't afford shares in big companies like Google and Apple. For example, it is hard to reject an offer in a newsletter claiming that the pennystocks of their companies will rise from 0.3-1$ per share. Most people make the mistake of waiting for big highs in order to sell. The pennystock sector is awash with scammers and you should sell quickly after short increases of 20-30%. Do not sell short based on pumped up hype created by newsletters and social media. You could end up making losses of up to 50%. Worth noting is the reason a company is launching a subscription. For example, the Facebook IPO only stated that the reason for doing so was exposure. Shares with 52 week highs and of companies which trade trade in large volumes are the best.