Penny Stock Speculation: Separating Reality from Hype – Valuation, Psychology and the “Buy on Rumor” Trap

penny stocks

The penny stock market is often fueled by speculation, especially when it comes to companies involved in resource exploration, emerging technologies, or other “hot” sectors. While these “story stocks” can be enticing, promising rapid growth and revolutionary breakthroughs, they can also lead to inflated valuations that are completely disconnected from a company’s underlying fundamentals. Investors […]