what are the best penny and micro penny stocks to invest for creating huge future assests

Sorry if I can’t suggest any names directly, but I’ll tell you how you can filter quality penny stocks.

When you are filtering penny stocks, don’t start with price; start with business quality. Why? Because a Rs. 5 stock is not necessarily an undervalued stock.

Imagine paying Rs. 30,000 to buy a second-hand car that has an engine of a Moped. Is the price of Rs. 30,000 justified?

For Penny stocks, how should you start? Filter for companies for the following parameters:

• If the sales growth for 3+ years is positive or negative.
• Check if its profits have improved or not.
• Check if its Debt-Equity ratio is low or high.
• You must also check whether its net cash flow from operations is positive or not.

Filtering penny stocks is very different from filtering blue chips. Large caps can survive weak years because they have scale, brand strength, and liquidity.

Penny stocks usually cannot.

So add stricter filters like:

• Daily trading volume,
• Promoter holding stability,
• No frequent pledging,
• No repeated equity dilution, and
• A real business model.

These small businesses must have a super strong balance sheet to make it investible for us. One bad balance sheet can destroy them quickly.