Small Investment, High Risk, Big Potential

Searching around for alternative investments to the usual fare of stocks and mutual funds, some investors may find their way to penny stocks, which are commonly shares of companies in the early stages of development, mostly unprofitable, but enticing for both initial cost and potential upside.

Anybody can purchase penny stocks, but finding winners is a tough act, so it pays to do diligent research and possibly get some advice, and there are plenty of sources on the internet.

Here are three that may turn a few dollars into a gold mine.

Stockreads.com offers updated top penny stock picks sent out by newsletters, and offer tools to browse the stock picks they select. The site is updated frequently and provides straightforward research without a sales pitch.

Timothy Sykes, an acclaimed penny stock investor who has been seen on CNBC, ABC, CNN and in the NY Times has a fabulous site offering free and premium content, highlighting the best penny stocks to his readers and followers.

The Penny Stocks Guide is a comprehensive and impartial resource for investors interested in penny stocks. The website provides basic principles of penny stock investing and advice on how to do it intelligently and safely.

Many online brokers allow investors to engage in the penny stock markets or the "pink sheets" as they are known. A lot of well-known companies began as penny stocks, with few investors and limited capital, until hitting the big time with an IPO. Gains of 500-1000% are not unusual for big winners, though many of these penny stock companies never make it to that stage.

All said, penny stocks are not for everyone, but if you have some money you can use with discretion and not worry about losing, the penny stock market could be a reasonable investment of time and money.