Is it good to invest in Penny Stocks?

Penny stocks are generally the ones that are famous for providing promising returns and tremendous growth over time and add to the investment diversification strategy. Valued generally at a price less than a dollar, the penny stocks have low market capitalisation which varies between $50 million and $300 million. However, the flipside with these stocks is that the risk is equally high, and an iota of a negative news can bring the stock down significantly. Nonetheless, investors looking for good returns do consider investing in penny stocks listed on ASX to make good money.
Penny stocks are generally seen to witness sinusoidal movements with announcements made by the companies which can quickly impact the growth profile. These are high-risk investments and the prices get diluted with sudden selling in the market. Thus, if one doesn't pay attention and fails to make an appropriate move given the volatile nature of the market, one can go penniless. While one sect of the market says that investing your hard-earned money in penny stocks can be a waste, the other says that invest in penny stocks if you hardly have any money or you want to build a huge pile of money. Nonetheless, one may want to bet depending on the risk appetite, but the real value of penny stocks needs to be estimated after looking into the financial reports, growth catalysts, historical performance, if available, and market scenario.