For penny stock investors, choosing a company to invest in requires considering more than just the initial low cost. Investors must believe in a company's potential for future earnings growth and assess its performance in the marketplace. Slow and steady growth in a company's value over time indicates it may be a good long-term investment, whereas rapid short-term gains often prove unsustainable and could lead to losses. While unpredictable, penny stocks offer investors a chance to earn returns with minimal capital.