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Highlights
- The ASX Small Ordinaries index is trading at the highest level in over a month, having gained 0.73% to 3,367.8 by 12:30 PM AEDT.
- CPO, TSN and LRS are three ASX penny stocks enjoying a buying frenzy today.
- Investing in penny stocks based solely on one-off gains should be avoided.
The Australian market has been enjoying a rally for last couple of weeks, in sync with the global markets. Primarily powered by gains in IT stocks, the benchmark ASX 200 index today rallied 0.85% to 7,528 by 12:30 PM AEDT, which is the highest level since 7 January 2022.
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Small caps are also on a roll today, with the benchmark ASX Small Ordinaries index (ASX:XSO) trading at the highest level in over a month, gaining 0.73% to 3,367.8 by 12:30 PM AEDT. Let us have a look at three ASX penny stocks that are buzzing today on the back of a significant positive development.
Read More: ASX 200 edges higher at opening tick; IT stocks lead rally
- Culpeo Minerals Limited (ASX:CPO)
Culpeo Minerals is an ASX-listed company, having a market capitalisation of AU$6.89 million. The company is primarily into copper production having interest in deposits in Chile. Today, CPO shares jumped to a high of AU$0.45 in morning, settling around AU$0.325 by 12:30 PM AEDT, gaining an eye-opening 160% return.
The catalyst behind the rally is an upbeat result from its drilling program at the Lana Corina Project in Chile, where the first hole has returned visible sulphide copper mineralisation from 50 to 250m. The volume for the day also surged to over 19 million shares, the highest since the stock’s listing in September 2021.
- The Sustainable Nutrition Group Limited (ASX:TSN)
The Sustainable Nutrition Group is a Victoria-based AU$14.4 million food and beverage company, which is into the production and innovation of hemp-based products to improve customers’ lives. On Wednesday, TSN shares surged 26.67% to AU$0.15 by 12:30 PM AEDT, clocking a high volume of over 422K shares so far.
Investors flocked to buy TSN shares after the company announced positive results in the development phase of its unique hemp isolates and concentrates with Australian Plant Proteins. TSN is planning to distribute commercial samples of the finished product to key customers in early FY23.
- Latin Resources Limited (ASX:LRS)
The last stock on our list is an Australian mining and exploration company named Latin Resources, having a market capitalisation of AU$113.8 million. LRS shares have been on a tear for the last few days. The stock has gained over 52% in the last five days alone, including today’s 26.32% rally to AU$0.096 by 12:30 PM AEDT.
The rally was supported by first assay results from the initial two drill holes completed at the Salinas Lithium Project in Brazil, confirming a potential new high-grade lithium discovery. The volume for the day was also the highest in over a year, at 147.5 million shares.
Bottom Line
One should never invest in penny stocks following other investors’ knee-jerk reaction, based solely on a single positive news or development. A proper due diligence must be done before putting your hard-earned money on the line.
Read More: JHX, SQ2 & DXS: How have these ASX blue-chip stocks fared this year?
