The thought of investing in penny stock doesn’t entice a lot of traders. Whether or not they are experienced, penny stocks do not seem reassuring. This type of stock is released by modest businesses that may have blossomed in the market in the past. Often these are the stocks of businesses that have decreased due to hardship.

Much is being written these days on the US corporate margin squeeze developing from rising commodity prices.
There is no historical evidence that "margins squeeze" leads to declining profits and/or equity prices.

Ocado will not make a single penny of profit until 2014 – according to one of the banks advising the retailer on its audacious £1bn flotation.

Microsoft has reported a 60% jump in profit, thanks largely to "exceptional demand" for Windows 7.

Net profit came in at $6.66bn (£4.13bn) for the three months to 31 December 2009, up from the $4.18bn it made in the same period a year earlier.

It also reported record revenues of $19.2bn, which comfortably beat analysts' forecasts.