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Penny stock recommendations: why biotech penny stocks can bring great windfalls – Part 2
It is important to keep in mind that biotech penny stock companies tend to go through their cash at an astronomical rate, so there is always the obvious concern that at some point this cash will run out. If the biotech penny stock company is not able to partner up with a pharmaceutical company, or if they cannot find a big company to invest in it, then it will have no choice but to issue more shares, so they can fund future operations. However, this is not sustainable – it can only be done temporarily before the cash ends and these operations have to be scrapped. This is usually the reason why the market loves it when big pharmaceuticals hand cash over to biotech penny stocks.
Biotech penny stocks have many opposite extremes. That’s why a somewhat obvious but absolute key penny stock recommendations is to do your research and use your best judgment (gained through knowledge and experience) to find the right companies with promising products. Remember that you probably shouldn’t put all of your eggs in the same basket, as the old saying goes. If you invest in biotech penny stocks in the right way, then this part of your portfolio could make a nice profit for you. However, despite what you read in the first sentence of this article, remember that penny stocks can drop just as they rise, and although windfalls can happen, prices can plummet too.
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The information supplied in this article is not to be considered as medical advice and is for educational purposes only.