For example, review the company's earnings. There are usually very few micro-cap companies that are actually making money, and those that are generally do not remain low priced shares for very long. Thus, eliminating any corporations that are losing money will eliminate several potential 'disaster investments' while leaving only proven, viable businesses. As well, if there is a positive trend in those earnings, the future for shares could be bright. A company that is making money also has a far greater number of options for growth and acquisitions, while remaining free of dependence on banks, creditors, or dilutive stock offerings.
Many companies have a minimal or existent debt load.
With little debt the company can commit more capital to research and development, marketing, and acquisitions, rather than using revenues just to pay off interest on loans. It also makes the stock a more attractive take-over target. On the flipside, a company saddled with great amounts of debt may operate as though its hands were tied. Many penny stock companies have new, patented technologies. Be aware that most patented technologies wind up costing a company more than they ever make out of it, but if there is truly a clear and realistic advantage, it will eventually begin to reflect in share valuations.