Penny stocks are those common stocks whose share price is less than $1. In other words, Penny stocks trade at low market capitalization apart from having a very low stock price. Stocks with market capitalization under $300 million are considered within penny stock category if the stock price is below $1.0.
Penny stocks also fall under the following categories:
- micro-cap stocks
- nano-cap stocks
- small cap stock and
- even OTC stocks
Pros and Cons of Penny stocks:
- With Penny stocks, the investor can buy more “number of shares” of that particular company, for a given amount of investable money.
- Return is high when the fundamentals of a penny stock turns around.
- Penny stocks are good hunting ground for value investors.
- Penny stocks fundaments are poor.
- Highly volatile. Due to low spread, the stock movement is highly volatile.
- Highly risky
- The investor profile in penny stock is usually of speculative nature.
In this piece of article, we would be covering three penny stocks and will see their recent updates along with their price movement.
Bligh Resources Limited
About the company:
Bligh Resources Limited (ASX: BGH) is the owner of the Bundarra Gold Project situated in Archean Yilgarn Craton within the Norseman-Wiluna greenstone belt . This project is located around sixty kilometer north of Leonora in the North-Eastern Goldfields province of WA. The company is into the business of exploring and evaluating gold projects in Australia.
On 14 June 2019, Bligh Resources Limited announced that it had signed a Bid Implementation Agreement with Saracen Mineral Holdings Limited (ASX: SAR) related to the off-market takeover bid by Saracen for all of the shares of Bligh. Post this announcement, the stock price more than doubled in a single day and closed at A$0.145.
As per the agreement, the shareholders of Bligh will be receiving 0.0369 Saracen shares for every 1 Bligh share, valuing at 12.8 cents per share and the company at $38.2 million.
The offer made represents a premium of 97% to the closing price of the share on 13 June 2019 and 97% to the company’s one-month VWAP of 6.5 cents.
The announcement also highlights the offer condition. These are as follows:
- No "prescribed occurrences" in relation to Bligh.
- The offer should be accepted by minimum 90% of the shareholders of Bligh.
- All necessary approvals need to be obtained.
- There should be no breach by the company of the conduct of business restrictions or its warranties in the bid.
- Further, there should be no material adverse change related to Bligh or Saracen.
Meanwhile, Saracen would provide Bligh with a working capital facility of up to $1000,000 during the offer period.
Also, the board of BGH has resolved to withdraw the 1 for 5 non-renounceable entitlement offer which it announced on 15/5/2019. The company advised that those shareholders who have received he withdrawn Entitlement Offer and personalized application under the withdrawn Entitlement Offer should reject them and those shareholders who have earlier applied for the shares and made payment under the withdrawn Entitlement Offer would be refunded with their monies.
The shares of BGH have generated a decent YTD return of 15.25%. By the end of the trading session 14 June 2019, the price of the shares of BGH was A$0.145, up by 123.077% as compared to its previous closing price. BGH holds a market cap of A$18.58 million and approximately 285.91 million outstanding shares.
About the company:
PainChek Ltd (ASX: PCK) is a company from the health care sector that is into the business of developing and commercialization of mobile medical applications which provides pain assessment for individuals who cannot express their pain.
On 27 May 2019, the company announced that it had reached a key milestone by global expansion of its PainChek® tool. The company inked a BDA with Person Centred Software.
Person Centred Software is from the United Kingdom, and it supplies Care Management systems to 1,200+ aged care providers and providing services to more than 40,000 resident beds.
Under the agreement, Person Centred Software would be dispensing the PainChek App to its client base in the UK, using its marketing, sales, as well as service capabilities. The integration of PainChek® into the Mobile Care Monitoring system of Person Centred Software will allow carers in accessing the pain easily as well as monitoring the residents who live within Aged Care.
The shares of PCK have generated an outstanding YTD return of 265.85%. By the end of the trading session 14 June 2019, the price of the shares of PCK was at A$0.170, up by 13.333% as compared to its previous closing price. Holds a market cap of A$131.55 million and approximately 877 million outstanding shares
Anatara Lifesciences Ltd
About the company:
Anatara Lifesciences Ltd (ASX: ANR) is a company from the health care sector and is engaged in developing as well as commercializing innovative, evidence-based products for gastrointestinal diseases in animals and humans.
On 14 June 2019, Anatara Lifesciences Ltd announced that Zoetis Inc had given a notice of termination of the exclusive global license of Detach® for livestock and horses. Zoetis made a portfolio decision that it would not be able to continue with the pursuit of this asset.
Scour (diarrhoea in piglets) is an expensive, weakening and even life-threatening in some cases. In such a scenario, the role of Detach® comes into picture which aims to increase the survivability and to provide health benefits to pre-weaning piglets.
Last year in the month of October, the company declared that APVMA (Australian Pesticides and Veterinary Medicines Authority) had listed Detach® with the accepted label.
Detach® provides support in monitoring scour and provide encouraging health benefits in the weaning piglets from three weeks age. This also helps the scouring pre-weaning piglets in increasing their surviving rate.
In the present scenario, the company would now re-evaluate commercialization opportunities for Detach® and would also look for options for launch of the APVMA approved product in Australia as well as seek regulatory approval in the global market. The company would also work on the development of this product not only in piglets but also in other species and global or regional licensing of Detach®.
Before signing the exclusive license agreement with Zoetis Inc, the company was already engaged with more than ten top multi-national animal health companies.
There are 5 million Inflammatory bowel disease (IBD) sufferers worldwide and 11% of the global population is affected by irritable bowel syndrome (IBS). The company is making progress towards the development of its dietary supplement for sufferers of IBD and IBS.
By the end of the trading session 14 June 2019, the price of the shares of ANR was at A$ 0.200, down by 42.857% as compared to its previous closing price. ANR holds a market cap of A$17.29 million and approximately 49.41 million outstanding shares.
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