Want to point out Khairey's comment: penny stock are never for long term. I don't agree with that. Penny stocks can make you millionaire if you play correctly. There was an article on CNN about this guy who became a millionaire by investing in penny stocks.
They are risky, but at the same time very rewarding. AAMRQ is an example. After filing for bankruptcy, American Airline's stock was trading for less than a dollar. By the time they merged with US Airways(i think it took about an year), they were trading at $12.
These days I'm looking at $BONE, but haven't invested yet. At one point, it was trading at@ 38 cents. Rite now, it's trading @ 60 cents. This company has a new CEO and he is believed to turnaround the company. More info on $BONE@ http://www.nasdaq.com/symbol/bone/stock-chart?intraday=off&timeframe=5y&splits=off&earnings=off&movingaverage=None&lowerstudy=volume&comparison=off&index=&drilldown=off