My dad has stuck with penny stock, relating to oil related start ups, and that has been doing well for him. The last one he bought at $0.60 at a high volume, and it went up to $2.00 in around a week. I find that more appealing than anything else. I'm surprised that more people aren't doing it...I'm sure there are good reasons, perhaps it's too risky and these could easily drop to nothing.
I lost about $1.3k in penny stocks. My friend lost $10k.
Since then I've been able to make it back and more with mid to large cap stocks.