9 ASX-listed penny stocks on the move

Highlights

• Penny stocks remain in high demand among investors.

• These stocks possess the ability to surprise investors with high returns within a short period.

• But one requires detailed research while trading in penny stocks.

Penny stocks are among the most talked about stocks in the investing world. These are in high demand among risk-taking investors. Penny shares generally trade for less than a dollar and represent companies with low market capitalisation. The other important characteristic of these shares is that they are highly illiquid. Due to their illiquid nature, penny stocks are highly volatile.

Then, why do penny stocks remain in demand?

The foremost reason why penny stocks are in high demand with a section of investors is due to their inherent ability to surprise with sharp returns while the market is in a bull run. It is the time when these stocks tend to post quick gains in a relatively shorter period. As already discussed, as penny stocks are highly liquid, investors should be ready to bear risks while trading in them.

Due to their illiquid nature, penny stocks may not find buyers at the right time. The other major drawback with penny stocks is that not much authentic information is available on their corporate performance. Therefore, investors are required to conduct a high level of research while trading in penny stocks. Experts generally advise new investors to maintain a distance from penny stocks due to their high-risk nature.

In this article, we at Kalkine Media® will discuss the recent updates released by these nine ASX-listed shares. The updates cover exploration results and earnings results of these companies which have helped them grab the limelight in the past few weeks.

Minrex Resources Ltd (ASX:MRR)

Minrex Resources is a battery metals explorer. The company holds over a 50% stake in Pilbara projects.  On 7 September 2022, the company released a confirmation about lithium mineralisation from outcropping pegmatites over the Tambourah North project located in Western Australia.

“These rich lithium-stacked sheeted pegmatites have extensive width, strike and zonation, which have all the hallmarks of potential Pilgangoora, Archer and Wodgina Lithium Deposits,” said George Karageorge, Minrex Resources’ Managing Director.

Meanwhile, the stock of the company fell 15% on a year-to-date (YTD) basis (as of 8 September 2022). In the past 12 months, the share price has risen 155%.

Castle Minerals Ltd (ASX:CDT)

Castle Minerals is focused on the exploration of gold and other economic mineral deposits. Recently, the company closed reverse circulation drilling at its flagship Kambale graphite project.

The stock fell 30% on a YTD basis. In the past 12 months, the share price has risen 180%.

Lithium Power International Ltd (ASX:LPI)

Lithium Power develops high-grade lithium mines. The company recently informed the ASX that it had assumed full control of the Maricunga Lithium Brine Project in Chile. The company also announced that its securities would be placed on a trading halt pending an announcement.

“The securities will remain in a trading halt until the commencement of normal trading on Monday, 12 September 2022, or when the announcement is released to the market,” it said.

The stock rose nearly 42% on a YTD basis. In the past 12 months, the share price has risen over 148%.

Moneyme Ltd (ASX:MME)

Moneyme operates the digital consumer credit business. The company last week raised AU$20 million via an institutional placement. The company plans to use the capital to support continued loan book growth.

The stock fell nearly 80% on a YTD basis. In the past 12 months, the share price has fallen over 79%.

Splitit Ltd (ASX:SPT)

Splitit is a global payment solution provider, which has recently declared its half-year financial results.

Major highlights from FY22 results:

• Merchant sales volume rose 12.92% on-year to US$194.8 million
• Net transaction margin surged 1.3% from 0.3% in FY21
• EBITDA soared 34.99%.
• Net loss after tax fell 35% to US$12.25 million

The stock fell over 53% on a YTD basis. In the past 12 months, the share price has fallen over 68%.

Source: ©Miflippo  | Megapixl.com

BrainChip Holdings Ltd (ASX:BRN)

Brainchip develops software and hardware-accelerated solutions. The company recently reported its half-year financial results for FY22. The company’s revenue rose 529% on-year to US$4.83 million in the given fiscal. The company’s operating loss came down 1% on-year to US$8.56 million. Brainchip didn’t announce any dividend in its results.

The stock rose over 23% on a YTD basis. In the past 12 months, the share price has risen over 103%.

Advanced Human Imaging (ASX:AHI)

Advanced Human Imaging is engaged in mobile application and technology development. Advanced Human Imaging announced recently that it would acquire digital health business, wellteq, via an all-share takeover. The company expects to complete the takeover in late November 2022.

Wellteq shareholders would receive one AHI share for every six wellteq common shares held.

The stock fell over 79% on a YTD basis. In the past 12 months, the share price has risen over 84%.

Superloop Ltd (ASX:SLC)

Superloop provides design, construction, and operational connectivity services. In FY22, Superloop reported a 137% growth in revenue to AU$262.5 million. Underlying EBITDA rose sharply by 37% to AU$25.4 million.

The stock fell nearly 43% on a YTD basis. In the past 12 months, the share price has fallen 32%.

Paladin (ASX:PDN)

Paladin is an Australian producer of uranium metal. The average selling price for Paladin’s uranium in the financial year 2022 surged 57% on-year to US$47 a pound, the company informed the ASX in its financial results for FY22. The company’s cost of sales surged 58% in the financial year 2022 to US$4.7 million. Similarly, Paladin’s net loss after tax improved by 25%.

Paladin’s chief executive, Ian Purdy, said, “Nuclear energy provided approximately half of the USA’s carbon-free electricity in 2021, making it its largest domestic source of low-carbon energy. Nuclear expansion remains a focus in Asia, with 35 reactor builds underway across the region. Europe and North America are focused on preserving existing nuclear assets and looking to the future via new reactor programs that include the deployment of small modular reactors.”

The stock fell over 3% on a YTD basis. In the past 12 months, the share price has risen over 12%.

NOTE

• Since penny stocks carry high risks, one needs to do some research before taking any exposure in them.