Single-digit stocks that trade on traditional securities exchanges and are transparent in their business practices can make perfectly sound investments. Sometimes, penny stock companies are viable operations that simply had a run of bad luck--perhaps they're carrying a heavy debt load, recently lost a major client, or are simply dealing with the repercussions of a negative industry trend. And since institutional investors don't usually trouble with these microscopic stocks, there's that much more opportunity for individuals to find good values.
Focus Metals is one of the most compelling exploration projects I have come across in quite some time. The potential of this company is huge at the least, considering they own a world class graphite deposit. http://onemansfinancial.blogspot.com/2011/07/focus-metals-continues-to-attempt.html