Like most any other institution, the stock market offers the potential for terrific rewards only if sufficient risk is taken. For the sober, calm investor looking to steadily add to his/her retirement savings, a traditional value investing approach, whereby someone might earn 10-15% annually on one’s investments, would be the sensible thing.

For those looking to make a big splash in the market, however, and who dive into it with a “go big or go home” attitude, then penny stocks offer the most exciting investment opportunities. The best penny stocks, offering the most potential for growth, are in constantly evolving sectors such as Pharmaceuticals, Energy, and Computer Science. Because these industries are always changing, new companies have the ability to flourish.

Advant-E Corporation (ADVC) is a typical penny stock that offers much potential for growth. A company that delivers documents electronically between USA and Canadian companies, it’s the sort of company that exists in a burgeoning field. For a company with a small market capitalization (18 million), it has a solid balance sheet and will most likely sore in price. It’s price to earnings ratio, however, is currently a dream at only 10.6.

Bsquare Corporation (BSQR), with a market cap of 68 million, is another kind of great penny stock in Computer Technology. The company helps integrate Microsoft technology into their clients’ systems. The net income of this company is steadily rising; and, because the business doesn’t require much overhead, the company should not accrue much debt. The price to earnings ratio is a steal, at less than 12, and this corporation is on target to boom.

Of course, foreign markets offer just as much potential for growth, if not more potential, than American markets. China Kangtai Cactus Bio (CKGT) is yet another terrific penny stock. A company that deals in the biological, nutritional benefits of cactus plants, it’s the ideal penny stock that won’t blossom to Microsoft proportions, but will offer terrific growth if its business model can take off. This 9.4 million market cap outfit is growing steadily, shows no signs of slowing, and is currently selling at bargain prices.

There are literally thousands of penny shares from which to choose. When choosing any penny stock, it’s of primary importance to make sure that the net income of the company is steadily increasing. This indicates that the company’s business structure is solid; and, if that sort of trend continues, it stands a chance of becoming a lasting institution. After all, almost every large company in the world was once a penny stock.