- Penny stocks generally trade below a dollar value and have less volume than other large-cap peers due to a higher risk.
- LKE, FTZ, QPM are a few ASX penny stocks under 50 cents that have made investors wealthy with their triple-digit returns in 2021.
- Investors should not fall for these supernormal profits and keep their expectations realistic.
Penny stocks have been one of the favourite spaces among short-term traders and an exciting playing field for new-age investors. The thrill of making a quick buck is what attracts most traders towards this space despite a relatively higher amount of risk.
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Penny stocks generally trade below a dollar value and have less volume than other large-cap peers due to a higher risk. They are also the best candidates for massive gains. Let us have a brief look at five ASX penny stocks under 50 cents that have delivered a triple-digit return this year (as of 9 September 2021).
Related article: Five ASX penny stocks that started September on a bright note
- Oneview Healthcare PLC (ASX:ONE)
Oneview is a AU$160.3-million software solutions company working specifically in the healthcare industry. In the recent 1HFY21 results, the company recorded a recurring revenue of AU$2.6 million, a 1% increase over AU$2.5 million in the previous corresponding period.
Due to a 22% increase in net loss to AU$4.4 million, the company did not declare any dividend for the reported period. The ONE share price closed at AU$0.36 on 9 September 2021, delivering a massive return of 610% this year.
- Lake Resources NL (ASX:LKE)
Lake Resources is a high-purity lithium producer with a market capitalisation of AU$596.5 million. In August 2021, the company progressed significantly towards securing financial support for its flagship Kachi Lithium Project.
The company has received strong interest from the UK Export Finance to cover approximately 70% of the total Kachi project funding requirements, which uplifted investors’ sentiments. The LKE share price last traded at AU$0.5 on Thursday, delivering a return of 525% this year.
- Fertoz Limited (ASX:FTZ)
Australia’s emerging fertilizer production company, Fertoz, has also been on a bull run this year. The FTZ share price has rallied 508.33% this year, and last closed at AU$0.36 on 9 September 2021.
Recently, the company’s partnership with Trimble and Brightspot is verifying the company’s first saleable block of carbon credits. The company also continues to progress in its mining and sales from the Fernie operations. FTZ has a market capitalisation of AU$76.6 million.
- Queensland Pacific Metals Limited (ASX:QPM)
Queensland Pacific Metals is a sustainable chemicals producer for the lithium-ion battery. The company recently signed an MOU with North Queensland Gas Pipeline and Transition Energy Corporation Pty Limited.
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MOU outlines the framework under which a dedicated gas supply chain would be developed from the northern Bowen Basin to QPM’s TECH Project. The QPM share price last closed at AU$0.20, and has delivered a dream return of 412.5% in 2021 so far.
- Aquis Entertainment Limited (ASX:AQS)
Aquis Entertainment is a AU$35.17-million ASX-listed gaming and leisure company. In 1H FY21, the company recorded a massive increase of 147.5% in revenue from operations to AU$14.6 million, leading to a net profit of AU$366,365, over a loss of AU$2.68 million in 1H FY20.
The net cash position strengthened massively to AU$6.49 million, from AU$3.32 million in 1H FY20. A strong budget has been set for this year, with positive EBITDA and cashflows expected for FY21. The AQS share price last closed at AU$0.2, delivering a YTD return of 387.5%.
A few ASX stocks under 50 cents have delivered massive returns for investors this year. However, investors should not fall for these supernormal profits and keep their expectations realistic.
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