Offloading penny stocks can help protect your portfolio from potential downside risk, especially in the current bullish stock market. While it may seem like a good time to consider investing in penny stocks, it’s crucial to be cautious and avoid those lacking solid fundamentals.
Three penny stocks to avoid are Microvision (MVIS) and Skillz (SKLZ). Microvision has a history of high volatility and consistent unprofitability, making its stock price prone to major fluctuations. Skillz, an online gaming platform, has been struggling with rising customer acquisition costs and negative revenue growth for the past eight quarters.
It’s important to note that investing in low-volume stocks, or “penny stocks,” can be risky due to potential market manipulation. It’s essential to conduct thorough research and prioritize quality and stability when considering penny stock investments.