Jordan Belfort, an investor, entrepreneur, and motivational speaker, is recognized for various reasons, including his life being depicted in a popular Hollywood movie and his strong views on the cryptocurrency sector.

In an exclusive interview with Benzinga, Belfort let loose with his opinion on penny stocks.

What Happened: Over time, Belfort has conceded that his initial opinions on the leading cryptocurrency, Bitcoin, which he had previously labeled as a scam, were incorrect.

Additionally, he was questioned on the subject of penny stocks, a topic with which he is all too familiar.

“I think that by and large almost all penny stocks are garbage, that’s my opinion,” Belfort told Benzinga CEO Jason Raznick on an upcoming episode of “The Raz Report.”

Belfort said he had no favorite penny stocks, and shared ways to tell if low-priced stocks are good or bad.

“Penny stocks are not designed to work.”

Belfort said the majority of penny stocks are created to enrich the people who issue them, with the deck stacked against investors in the penny stock world.

Related Link: Wolf Of Wall Street On Why He Was Wrong About Bitcoin Going To Zero 

Offering advice, Belfort emphasized the importance of distinguishing between the stock and the company, recommending that investors look into what the company and its management are doing, and whether the business can make money.

Outside the U.S., Belfort said that some areas have stocks priced in pennies that are legit businesses, like mining stocks in Australia.

Belfort added that it’s more important to look at a company’s market capitalization than its stock price sometimes.

Belfort pointed out that in some cases, legitimate companies can see shares crash down into penny stock territory and come back to life. Although, if a company started as a penny stock, the likelihood of it ultimately succeeding is slim, he added.

Watch the full interview with Belfort on “The Raz Report” Wednesday, Sept. 27 at 11 a.m. ET.

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