Penny stocks are cheap and volatile. Perhaps they are great for intra-day or swing trading. However, they are also known to be used for scams.

“According to the government, 47-year-old Michael Saquella and
63-year-old Lawrence Kaplan took the companies public, inflated their
share prices and dumped millions of shares onto the public market. They
agreed to being barred from future penny stock deals and to repay $2.8
million in ill-gotten gains.”

It might be wise to choose a company that has a long history and track records, then to buy one that is new. One site even warned that penny stocks are risky, esp. new ones, because they are setup just to scam people.