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As so many people are talking about scams, gambling, etc. I would like to point few things.
Penny stocks are more prone to price manipulations due to the low nominal price and often also low trading volumes. But, it is good to separate the stock itself and "people playing" with it.
Unless the company behind the company is some sort of scam, penny stock itself is not a scam. You can just buy the penny stock, keep it, and let the others play the games they play. The effects of these "games" are not very long lasting. You don't have to, and it is advisable not to react to every tick the stock makes, unless you are day trading with very low margins.
Even if many people consider investing as some sort of a game, you don't have to. Although it is good to understand what the others do, but you don't have to duplicate every thing they do.
I almost forgot to say that use common sense. It might not be the best idea to buy the penny stock when it is again peaking due to some sort of price manipulation. I assume that you follow what happens in the company itself (and in its business environment), so you can reflect the price changes to what actually happens in the company.
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