I used to trade the penny stocks when I first started back in 1999-2003, albeit with very slight success, and definitely not worth the stress.
But, in the past 2-3 years, with the massive decline, and lack of credit, etc., I stopped trading penny stocks.
Penny stocks are stuff you play when in a bull market. These companies depend on borrowing money, as they have very little assets (unlike MSFT, which has billions in cash). And in this environment, they're not going to get cash, so, they issue BILLIONS in stock, which dilutes the stock.
once we get out of this recession/depression, I'll be back into the penny stocks