4 Penny Stocks Giving Double Digit Return - IOD, SVS, CXU, CGS

Penny Stocks

Penny stocks are those stocks that trade at a low price of less than $1. These stocks also have a small market cap and are speculative in nature. Trading in penny stocks involves a lot of risks. Thus, before making any investment into penny stocks, it is important to conduct a thorough study. A good analysis can result in making huge money, as penny stocks also hold the potential of leading a small investment into a fortune. While on the other side, selection of a wrong stock can result in huge losses, as they are prone to factors like regulatory scrutiny, scams and price manipulations.

In this article, we would discuss four penny stocks that are from diverse sectors and have delivered double digit returns in the last one month, as on 26 September 2019.

IODM Limited

The stock of IODM Limited (ASX: IOD), an IT sector player, has given a double-digit return of 59.42% in the last one month. The stock was trading at a price of $ 0.120 on 26 September 2019 (AEST 11:59 AM), up 9.091% from its previous closing price, trading at its 52-week high price with 578,948 shares. IOD has a market capitalisation of $ 58.29 million and approximately 529.92 million outstanding shares.

Sales Update: IODM Limited is a leading accounts receivable and operational efficiency solution provider. On 25 September 2019, the company provided sales update, reporting to continue to show that its best practice digital technology in automating the process of accounts receivable drives operational competences and boosts cash flow. Moreover, it is easy to implement.

IOD has amended the way it used to introduce its software to the market. In some of the cases, the company, instead of invoicing its clients in advance, is invoicing in arrears, i.e. offering a trial period. This trial period is part of the broader ongoing agreement but will offer a slight delay in between the agreement finalisation and the invoicing. Thus, as a result of the working capital movement with respect to cash receipts, Q1 FY2020 would remain consistent with Q4 FY2019. Meanwhile, it was reported that the impact would be seen in the existing quarter and half of the second quarter with the sales cycle operating as per the new sales structure.

The company, as a result of the new sales structure, has speed up the sales pipeline to confirm that the implementation of new customers was brought forward.

Reciprocal Referral Agreement: IODM has signed a reciprocal referral arrangement with cross-border, cross-currency money transfer provider, Western Union. Under the deal, both the parties would initially focus on Asia-Pacific and the United Kingdom. The deal also has the potential for further expansion into other regions across the globe.

Sunvest Corporation Limited

Sunvest Corporation Limited (ASX: SVS) is an investment company, headquartered in New South Wales and listed on the ASX in 1987. The SVS stock has given a positive one-month return of 12.50%. The stock last traded at a price of $ 0.225 on 25 September 2019. SVS has a market capitalisation of $ 2.74 million and approximately 12.16 million outstanding shares.

Recent Updates: Recently, Sunvest Corporation Limited released below mentioned AGM documents to its shareholders that were dispatched to the shareholders on 19 September 2019. The AGM documents comprise of:

  • Notice of AGM - The company is scheduled to hold its annual general meeting on 23 October 2019.
  • Explanatory Memorandum - Providing an explanation of the business items that would be considered during the AGM as provided to the shareholders in the notice of meeting.
  • Proxy Form
Cauldron Energy Limited

The stock of Cauldron Energy Limited (ASX: CXU) has given a positive one-month return of 23.53% and a three-month return of 50%. The stock last traded at a price of $ 0.021 on 25 September 2019. CXU has a market capitalisation of $ 6.92 million with approximately 329.29 million outstanding shares and PE ratio of 23.33x.

June Quarter Report: On 31 July 2019, mineral exploration and development company, Cauldron Energy Limited released its quarterly results for the period ended 30 June 2019.

  1. Under the corporate segment, the company focused on the development of project acquisition strategy, centred on
    • Uranium and battery metals.
    • Range in stable sub-Saharan Africa, Oceania, United States and Australia.
    • Advanced exploration project with the scope of near-term cash flows through mining.
    • Mid-level exploration project, where it can define the drill target based on the existing dataset.
  2. The company also provided an update on Yanrey Uranium Project, where 4 tenements were surrendered during the period.
  3. The company used $ 0.264 million in its operating activities. Net cash available with the company at the end of Q4 FY2019 was $ 0.527 million.
  4. Estimated cash outflow in Q1 FY2020 is $ 0.266 million.

Cogstate Ltd

The stock of Cogstate Ltd (ASX: CGS) has given a positive one-month return of 19.05% and a three-month return of 21.95%. The stock last traded at a price of $ 0.250 on 25 September 2019. CGS has a market cap of $ 37.19 million and approximately 148.75 million outstanding shares.

Chief Strategy Officer Interview: On 24 September 2019, Cogstate Ltd, a neuroscience company that optimises brain health assessments for advancing the development of new medicines and derive earlier clinical understandings, updated the market with a video interview with Eisai Chief Strategy Officer, Kazumasa Nagayama. In the interview, Mr Nagayama and Cogstate CEO, Brad O’Connor discussed the background as well as structure of the agreement signed between both the parties to introduce the Cogstate technology as a cognitive screening tool in Japan.

The company also highlighted an announcement provided by Eisai and Biogen, related to their decision of discontinuing the Phase III clinical studies on the investigational oral beta amyloid cleaving enzyme (BACE) inhibitor elenbecestat in patients diagnosed with early Alzheimer’s disease. Eisai also clarified that the determination would not have any influence on the program of anti-amyloid beta protofibril monoclonal antibody, BAN2401. Meanwhile, the phase III Clarity AD trial of the antibody would continue.

At the same time, Mr Nagayama also confirmed that Eisai would remain committed to the development of potential therapeutic agents to help treat patients diagnosed with Alzheimer’s disease. Other than this, he also confirmed that Eisai would continue to work towards the development of a wider dementia ecosystem, which includes the partnership of Eisai with Cogstate Ltd in Japan.


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