- Australian market scenario is reflecting optimistic signs amid rising bong yields and vaccination rollouts.
- Penny stocks with their huge return potential have emerged as an attractive investment theme for high return-seeking investors.
- While penny stocks have fewer resources compared to large companies and are more prone to market fluctuations, prudent analysis is of paramount importance.
Investors tend to leave no stone unturned when it comes to identifying stocks promising magnanimous return. As the world is moving ahead in the year of hope 2021 after the dismal COVID-19 wave, the quest seems to be further intensified to offset the previous losses. ASX is brimming with optimisim, and the spotlight on penny stocks remains more than ever.
Penny stocks, trading for less than $1 per share, often are associated with tremendous growth potential, given significant return, albeit the high-risk involved in the investment.
With penny stocks gaining interest amid the encouraging Australian market scenario, let us look at few penny stocks that have recently given significant returns.
1. Harvest Technology Group Ltd (ASX: HTG)
Harvest Technology Group portfolio offers subsea technology to the energy sector as well as a remote control, automation, communication, and monitoring solutions, through Harvest Infinity Pty Ltd and Harvest Technology Pty Ltd.
Harvest Technology has been recently engaged in a plethora of R&D activities, further expanding its footprints in the technological space. The company conducted a successful trial of Unmanned Aerial Vehicle (UAV) high-voltage power line survey in December 2020 for using Nodestream as well as Infinity RemTeq™ technology.
8-Channel Remote Inspection System (RIS) Encoder has been designed for Fugro Australia Marine Pty Ltd for integration into Unmanned Surface Vessel, with delivery expected in early 2021. In February 2021, the company entered into non-binding Heads of Agreement for establishing a purpose-designed innovation hub at a Western Australia-based technological park.
2. iCollege Ltd (ASX: ICT)
Vocational training provider iCollege Limited, in its first Half Year of FY21, recorded revenue of $8.8 million, up by 26% on the previous corresponding period. Meanwhile, EBITDA for the Company has edged up by 198% over 1HFY20.
Significantly, the company’s multiple new training programs backed by strong domestic recruitment offered a cutting edge to iCollege’s performance. It comes in addition to enrolling international students who remained in Australia amid travel restrictions that enhanced its performance.
Copyright © 2021 Kalkine Media Pty Ltd (Data Source: ICT ASX Update, 11 February 2021)
The company indicated that it is set to be the key recipient of the 1 billion Job Trainer fund from the State and Federal Government owing to its strong global recognition.
3. Pointerra Limited (ASX: 3DP)
Pointerra has unique 3D geospatial data technology with its suit of Saas services, including Analytics as a Service (AaaS), Data as a Service (DaaS) and Data Processing as a Service (DPaaS). The Company’s Annual Contract Value (ACV) edged up quarterly by 40% for December 2020 quarter, standing at USD 6.88 million as on 29 January 2021.
Along with the growth from existing customers, the Company’s CV run-rate was bolstered by adding new customers in the energy utilities (US) and the mapping sectors (the US and Australia).
4. Selfwealth Ltd (ASX: SWF)
Investment management service provider, Selfwealth Limited is witnessing spectacular client registration growth since the beginning of 2021. The average daily registration recorded to be 240 per day in the December quarter rose to 605 per during January, with the growth trend continuing in February.
Significantly, GameStop trading frenzy backed by the trading restrictions and issues at competing trading platforms allowed the company to achieve over 2200 on 29 January 2021. Selfwealth indicated that in the first 6.5 weeks of 2021, active traders’ number has gone up by 11,270.
The company intends to launch its iOS app, facilitating trade for SelfWealth clients both in the domestic and US markets.
5. K-Tig Ltd (ASX: KTG)
Australian transformative company deploying industry-disruptive high-speed welding technology, K-Tig continues to build strong expansion momentum in the USA market on the back of MOU and further distribution agreement with Key Plant Automation, that provides automatic and robotics welding. It has facilitated the first sale of the company in the USA Nuclear Decommissioning Sector.
Meanwhile, the company also achieved its first revenue in the defence sector through the weldability of High Hardness Armoured (HHA) technology that uses steel.
The company is set to make an entry in the global carbon steel market worth USD 800 billion and has identified carbon pipe and carbon steel vessel market as its natural market entry points.