CZL, IFM & GAL - Three ASX penny stocks that are up over 30% today

May 16, 2022 01:52 PM AEST

Be the First to Comment

Aayush

Author

Aayush - Research Analyst
996 Posts
Aayush is a Research Analyst at Kalkine, with rich experience of over 3 years catering to capital markets. He has been a sell side equity advisor for two years and is currently dwelling deep into the equity research. He holds MBA in finance degree an...
Follow Aayush Follow
Supriya Kumari

Editor

Supriya Kumari - Research Editor
3 Posts
Supriya is a Research Editor at Kalkine. She comes with a rich experience of 11 years in online journalism. She has worked for leading media brands like Zee News & MSN Australia, specialising in world affairs. She is a Bachelor of Science (Honours) g...
Follow Supriya Kumari

More on: IFM GAL CZL

CZL, IFM & GAL - Three ASX penny stocks that are up over 30% today — Image source: © 2022 Kalkine Media®

Highlights

The ASX Small Ordinaries index continued its gains from Friday, rallying 1.5% to 3,051.1 by 12:30 PM AEST.

CZL, IFM and GAL are three ASX penny stocks that are catching investors’ attention today.

Investors must understand all risks and do proper due diligence before investing in penny stocks.

The Australian market started the week on a positive note, taking cues from a strong closing on Wall Street on Friday. Thanks to positive investor sentiment, the benchmark ASX 200 index is enjoying a 0.63% rally.

Small cap stocks have also continued their rally from Friday’s session, with the ASX Small Ordinaries index (ASX:XJO) rebounding from the lower levels, gaining 1.5% to 3,051.1 by 12:30 PM AEST. In this backdrop, let us have a look at three ASX penny stocks that are cheering investors with their massive intraday gains.

Consolidated Zinc Limited (ASX:CZL)

Founded in 2022, Consolidated Zinc is a Western Australia-based mineral exploration and production company, having a market capitalisation of a mere AU$7 million with a total of 351.35 million issued shares. The company clocked a net loss of AU$1.89 million in FY21, compared to a loss of AU$2.41 million in FY20.

Today, CZL shares rallied 40% to the last traded price of AU$0.028 by 12:30 PM AEST after the company entered into a share purchase agreement to acquire all of the shares held in Westoz Lithium. This acquisition is an exciting opportunity for the company to diversify further into the battery minerals sector.

Infomedia Limited (ASX:IFM)

Infomedia is one of the leading Software-as-a-Service (SaaS) providers helping businesses in the automotive industry with data analytics. The company has a market capitalisation of AU$480.9 million with 375.76 million issued shares. On Friday after the market, the company announced it had received a 100% acquisition proposal from TA Associates Management L.P for AU$1.7 per share.

Looking at a lucrative offer price, IFM investors flocked to buy shares, leading to a price surge of 30.08% to the last traded price of AU$1.665 by 12:30 PM AEST. The volume for the day also surged to over 2.69 million shares so far.

Galileo Mining Limited (ASX:GAL)

The last stock on our list is a Perth-based resource exploration company, Galilio Mining. The company has a market capitalisation of AU$90.4 million with 164.4 million shares on issue. According to the recent exchange filings, a substantial shareholder Yandal Investments Pty Ltd has increased its stake in Galilio by 3 million shares, now totalling to 44.37 million shares.

Triggered by the announcement, GAL shares skyrocketed 37.96% to the last traded price of AU$0.745 by 12:30 PM AEST today. In the last one month, the stock volume has ballooned more than three times to 112.9 million shares so far, recording its highest monthly volume since listing.

Bottom Line

Penny stocks are highly volatile in nature. Hence, they require different skillsets to fetch returns from this space over a long haul. Therefore, before investing in this space, investors must understand all risks and do proper due diligence.