Penny stock investing doesn't have to be a crap shoot on long-shot stocks. Done well, penny stocks can be a great way to diversify your portfolio and really amp up your investment profits. While penny stock investing can be risky, it can also be very rewarding.

I recommend finding bargain penny stocks traded on major exchanges, for no less than $1 a share and with a proven track record. These penny stock investments should show significant earnings growth and strong buying pressure behind shares, increasing the likelihood that these stocks will be on the way up in the very near future.

MOST NOTEWORTHY: Allied Capital, ZIX Corp and Staples were today's noteworthy initiations:

• Oppenheimer believes Allied Capital's (NYSE:ALD) dividend is sustainable and that the equity portion of its portfolio will drive outsized returns once market conditions return to normalcy. Shares were initiated with a Perform rating.
  
• ThinkPanmure believes ZIX Corp (NASDAQ:ZIXI) has a large opportunity in e-prescribing encryption market, with a potential catalyst being the E-MEDS bill. The firm started shares with a Buy rating and $4.50 target.
  
• Banc of America reinstated its Buy rating on Staples (NASDAQ:SPLS) following the Corporate Express (NYSE:CXP) deal, which it views as a positive catalyst for the stock. The firm has a $29 target on the stock.

OTHER INITIATIONS:

• Newmont Mining (NYSE:NEM) was initiated at Thomas Weisel with an Overweight rating and $62 target.
  
• Stephens assumed Wabash (NYSE:WNC) with an Equal Weight rating and $10 target.
  
• Compass Diversified Trust (NASDAQ:CODI) was initiated with a Sector Perform rating and $14 target at RBC Capital.