The stocks that trade for less than $1 per share and have very low market capitalisation are usually referred to the penny stocks. These stocks are generally associated with small companies and are less liquid. However, penny stocks enable substantial upside in share appreciation due to their lower price. One can invest in the penny stocks in a similar way as investing in other stocks with large market capitalisation.
Although the S&P/ASX 200 Index closed the trading lower by 0.3 per cent today, few of the penny stocks moved in the opposite direction with a rise in their stock prices. Let us have a closer look at these stocks trading on ASX:
An Australian-headquartered biotechnology company, Biotron Limited (ASX: BIT) is engaged in the development of a new class of antiviral therapies. Biotron has a robust preclinical pipeline that includes its lead compound, BIT225, which is currently in Phase 2 development for the treatment of Hepatitis C virus infections and HIV-1.
During the first half of FY19, the company delivered positive human clinical data from the Phase 2 trial of BIT225 in HIV-infected patients when used in combination with current antiretroviral drugs. BIT225 had an intense effect on a source of the virus when used with current antiretroviral drugs. The Phase 2 trial data indicated that the antiviral effect of BIT225 resulted in reduced macrophage-specific immune activation (sCD163) and significantly delayed decline in activated CD4 cell levels.
The revenue of the company during the half-year period ending 31st December 2018 was up by 92.98 per cent to $18,372. The net loss for the period attributable to members widened 63.41 per cent during the period to $261,133 from $159,799 in the prior corresponding period.
The company’s stock closed higher on the ASX today at AUD 0.084, up by 3.7 per cent relative to the last closed price. Around 12.32 million shares of the company were trading on ASX today with a market capitalisation of AUD 48.25 million. The stock has generated a negative return of 29.57 per cent on YTD basis. However, it has delivered a huge return of 305 per cent in the last one year.
Flexiroam Limited (ASX: FRX) provides mobile virtual network globally and leads in offering borderless data connectivity. It was officially launched in Malaysia in March 2019 and achieved more than 390 partners in over 70 countries by July 2018. The company aims to offer data anywhere to all mobile users so that they can have seamless data connectivity at all times through the company’s virtual infrastructure.
Flexiroam released its 2019 Annual Report on 28th June 2019. The company mentioned in its Annual Report that its subscribers grew 98 per cent as at the end of FY2019 to 260,000 in comparison to the subscriber base of 131,000 at the end of FY2018. The company informed that it has developed a pipeline to reach out to ~35m global travellers after securing the collaboration agreement with Malaysia Airlines and other airlines affiliates during FY19.
The 2019 Annual Report highlighted that the revenue of the group increased by 100 per cent to $5.93 million in FY2019 relative to the FY2018 revenue of $2.97 million. This was due to its marketing effort and effective sales to increase its subscriber base. The gross profit of the company improved by 88 per cent to $2.63 million during the period.
2019 Annual Report, Source: Company Presentation (28th June 2019)
FRX closed the trading session higher at AUD 0.014 today with a rise of 16.67 per cent in comparison to the last closed price. The stock reported a 52-week high and low value of AUD 0.071 and AUD 0.012, respectively. The stock has delivered a negative return of 76 per cent, 70 per cent and 63.64 per cent in the last six months, three months and one month, respectively.
Eden Innovations Ltd:
Headquartered in Australia, Eden Innovations Ltd (ASX: EDE) is indulged in the development, manufacturing and marketing of a revolutionary high-performance concrete admixture, EdenCrete®, and an innovative retrofit dual fuel kit, OptiBlend™.
On 11th July 2019, the company made two big announcements on the ASX which are as follows:
- Eden informed that both EdenCrete® and EdenCrete® Pz received certification as complying with ASTM C494’s Table 1 for a Type S, specific performance admixture and the relevant American Association of State Highway Transportation Officials (AASHTO) standards.
- Eden also received and dispatched the first order from Parchem Construction Supplies Pty Ltd for EdenCrete® products. Parchem is the Australian and New Zealand distributor of the company’s products.
During the half year ending 31st December 2018, the revenue of the company from ordinary activities was 71.8 per cent up to $1.47 million from $856k in the prior corresponding period. The loss after tax attributable to shareholders from ordinary activities was 24.9 per cent down to $4.14 million.
EDE rose 8.48 per cent today, closing at AUD 0.064 on the ASX.. The market cap of the stock was noted as AUD 98.26 million at the time of writing the report. The performance of the stock has improved in the last three months as it delivered a negative return of 15.17 per cent in the last six months while a positive return of 47.50 per cent in the last three months.
Osprey Medical Inc:
A US-headquartered company, Osprey Medical Inc (ASX: OSP) is working towards making heart imaging procedures safer for patients with Chronic Kidney Disease. The technology used by the company helps in lowering hospital costs and reducing contrast-induced AKI (Acute Kidney Injury). The chances of AKI increases due to the dye used during angiographic imaging procedures. The company’s technologies are designed to monitor the dose of dye real time and minimize dye usage during the procedure.
In an announcement on ASX today, the company appreciated the recent step taken by the US President to transform kidney care for over 37m Americans suffering from kidney disease. The President’s initiative involves better diagnosis, preventative care and treatment of kidney patients in order to prevent kidney failure. According to the company’s CEO, Mike McCormick, the President’s move is likely to enhance the awareness and education of kidney disease, mainly around preventative strategies.
Osprey experienced strong unit volume and revenue growth during the 2018 financial year. The company reported a net Loss after tax of US$17.5 million. However, the revenue of the company improved by 54 per cent to US$2.5 million in FY2018. The cash balance of the company was at US$25.2 million as on 31st December 2018.
OSP ended the trading session higher on the ASX at AUD 0.073, up by 17.74 per cent relative to the last closed price. The stock opened at AUD 0.070 on ASX, fluctuated between a high and low value of AUD 0.076 and AUD 0.069 during the intraday session.
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