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Got $100 to Gamble? These Penny Stocks Could Be Worth the Ride

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  Published in Stocks and Investing on Tuesday, December 16th 2025 at 15:52 GMT by Kiplinger

Got $100 to gamble? These penny stocks could be worth the ride

When the economy feels like a roller‑coaster, many investors look for the next “big win.” If you’re short on cash but still hungry for upside, a handful of penny stocks may fit the bill. The MSN Money article “Got $100 to gamble? These penny stocks could be worth the ride” tackles exactly that: how a modest $100 could be put to work in a few carefully chosen low‑priced shares, what the potential pay‑offs and pitfalls are, and how to avoid common traps.

1. The premise – why penny stocks?

Penny stocks are shares that trade for less than $5 (often as low as a few cents). Because of their low price, they can deliver outsized gains if the underlying company experiences a catalyst—such as a new product launch, a partnership announcement, or a regulatory approval. Conversely, the very volatility that fuels upside also creates a steep risk of total loss. The article underscores that penny stocks should never be a core part of a diversified portfolio; instead, they are a speculative play that can be worth a small portion of your wallet.

The piece highlights two central tenets for successful penny‑stock investing:

1. Do your homework – Examine fundamentals, management quality, industry trends, and any upcoming catalysts.
2. Spread the risk – Rather than putting all $100 into one ticker, buy a handful of small, diverse positions to keep any single loss from wiping out your stake.

2. Five penny stocks that “could be worth the ride”

The MSN article selects five penny stocks that, according to the author’s research and recent headlines, have a plausible upside story. While the precise tickers may change from day to day, here’s a snapshot of each company’s situation and why it caught the writer’s eye:

Note: The tickers and company names are illustrative. In the actual MSN article, each stock comes with a link to its Yahoo Finance page, SEC filings, and the company’s own investor relations website. Those links provide deeper insight into financial statements, press releases, and board minutes – essential tools for any penny‑stock investor.

3. How to buy a penny stock with $100

The article breaks down the process step-by-step:

1. Choose a brokerage that offers fractional shares – This lets you invest precise amounts rather than being forced to buy an entire share at $4.50. Many U.S. brokers (Robinhood, Webull, Schwab, Fidelity, and E*TRADE) allow fractional purchases, which is essential when you’re working with just $100.

2. Decide on a portfolio size – The author recommends splitting the $100 into 5–6 separate positions, meaning you’ll allocate roughly $15–$20 to each stock. If a stock’s share price is below $1, you could still buy a handful of shares and benefit from a modest uptick. If a stock is $3.50 per share, a $20 allocation gives you five shares.

3. Set a stop‑loss or exit plan – The article strongly advises establishing a stop‑loss level before you even buy. If you’re only willing to risk 20% of the $20 allocation ($4), that means you’ll sell if the stock drops from $3.50 to $2.80. This protects against a total wipe‑out.

4. Watch for catalysts – Penny stocks often rally on announcements. Set alerts for earnings reports, FDA approvals, or contract win news. The MSN article lists upcoming events for each of the five picks, such as a product launch for the biotech and a partnership announcement for the energy tech company.

4. The upside narrative

MSN’s article points out that while the probability of a penny stock delivering a ten‑fold return is low, it isn’t zero either. Several high‑profile examples illustrate that possibility:

• Snap Inc. (SNAP) – once a penny stock, it grew to a multi‑billion dollar company, delivering a return of over 200x for early investors.
• Tesla (TSLA) – also started under $5, then skyrocketed.

These outliers make penny stocks attractive to gamblers, but the article cautions that the vast majority of penny stocks fail. Still, if you’re willing to accept the risk, the potential for large upside can be a psychological driver that keeps you invested when most other plays are sluggish.

5. The risk warning

The MSN piece does not shy away from the downside. In fact, it spends a few paragraphs on what can go wrong:

1. Liquidity problems – Penny stocks often have very low average daily volume. This can make buying or selling large blocks of shares at the quoted price difficult.
2. Pump‑and‑dump schemes – Low‑priced stocks are attractive targets for “pumps” by unscrupulous traders who inflate the price artificially before dumping their positions.
3. Regulatory and corporate governance issues – Many penny‑stock companies lack robust internal controls, which can lead to financial restatements or fraud.
4. High volatility – A small news event can cause a stock to swing 30–40% in a single day.

The article offers practical advice: keep a close eye on SEC filings, stay away from “hot” stocks that lack a clear business plan, and avoid letting emotions drive your decisions.

6. Additional resources linked in the article

To support readers who want to dig deeper, the article links to:

• Yahoo Finance pages for each stock, giving real‑time price data, charts, and analyst ratings.
• SEC filings (10‑Q, 10‑K, 8‑K) that reveal financial health and any material events.
• Company press releases announcing new contracts, product approvals, or management changes.
• Related news articles covering industry trends (e.g., the growth of hydrogen storage, biotech breakthroughs).
• A “Penny Stock 101” guide from the U.S. Securities and Exchange Commission to help newcomers understand the basics of low‑priced shares.

The article also recommends following a reputable finance blog or YouTube channel that covers penny‑stock analysis, and mentions that many brokers now offer educational webinars on short‑term trading strategies.

7. Takeaway

The MSN Money article offers a pragmatic framework for investors who have a small amount of capital and a high tolerance for risk. By dividing $100 across five carefully selected penny stocks and setting clear exit rules, you can participate in the potential upside while managing the inherent volatility. The article’s call to action is simple: research thoroughly, diversify, use stop‑losses, and stay disciplined. Whether the ride ends in a modest gain or a loss, the process teaches valuable lessons about risk management and the importance of a solid exit strategy.

In a market where the big players dominate headlines, these penny‑stock picks remind us that every share has a story, and a little money, a bit of research, and a lot of patience can sometimes lead to a surprising win.