- Penny stocks are popular among investors due to their potential to deliver high returns in quick time.
- However, these stocks are known be highly volatile.
- Shares of companies such as Design Milk and Actinogen have delivered attractive returns to investors so far this year.
It is easy to see why penny stocks have a strong allure: they come at a paltry cost and promise high returns in quick time. However, these stocks are known be highly volatile. Hence, only the investors with a relatively high risk appetite trade in them.
Several ASX penny stocks operating in different sectors have delivered huge returns this year despite the ongoing coronavirus pandemic. Shares of companies such as Design Milk and Actinogen have been lapped up by investors as they delivered attractive returns.
Here are five ASX penny stocks that have turned multibaggers this year.
(Since penny stocks carry high risk, one needs to do thorough research before taking any exposure.)
Source: ©Miflippo | Megapixl.com
Design Milk Co Ltd (ASX:DMC)
Design Milk is involved in design, ecommerce, and consumer business. The company’s shares surged 4,400% so far this year. The share price has risen from AU$0.010 to AU$0.45 (as of 28 July 2021).
In the fourth quarter of FY21, Design Milk’s total sales rose 111% compared to last year. Total full-year sales surged 90% compared to FY20.
During the quarter, the e-commerce sales grew 97% over the last year. The firm’s vendor base increased to over 500 brands and audience grew to over 9.4 million aggregate followers.
The company said that its earnings before interest, tax, depreciation and amortisation (EBITDA) and solid cash position support its long-term growth strategy.
Oneview Healthcare PLC (ASX:ONE)
Shares of Oneview Healthcare, which provides a software platform to healthcare organisations and patients for improved clinical outcomes, have given a return of 760% year to date to its shareholders. The share price has surged from AU$0.050 to AU$0.44.
In the second quarter ending 30 June 2021, the company registered AU$2 million in net operating cash outflows, a 42% increase on the previous corresponding period. It included AU$3.18 million in receipts from customers, a 56% increase on the corresponding period of last year.
within the last month, Oneview Healthcare inked an agreement with Northern Health in Melbourne’s strong-growing northern growth corridor as its initial Cloud Start client in Australia.
Venturex Resources Ltd (ASX:VXR)
Venturex Resources belongs to the mining sector and operates two main projects, namely - Sulphur Springs Project and Whim Creek Project. The company’s stock has delivered a return of over 600% so far this year, with its share price surging from AU$0.11 to AU$0.76.
On 28 July, the company released an update on its Whim Creek Joint Venture Project. Ventura Resources owns a 20% stake in the Whim Creek Project, with the remaining 80% interest held by Anax Metals.
Source: ©Ymgerman | Megapixl.com
In the recently released Anax presentation, the company advised that it has defined multiple cohesive platinum, nickel-copper, and gold anomalies at Whim Creek.
The ongoing soil programme has been highly successful. The results have generated new nickel-cobalt and platinum anomalies.
88 Energy Ltd (ASX:88E)
88 Energy Limited is into exploration and production of oil and gas. The company aims to explore oil on the globally recognised North Slope of Alaska through its operations across Project Peregrine and Project Icewine.
The company’s stock has delivered a year-to-date return of 270%, with share price surging from AU$0.010 to AU$0.039.
As of now, the company holds 100% working interest in Project Peregrine, located in Alaska.
On 24 June, the company said that it had received encouraging results from preliminary tests at the Merlin-1 Well, located in Project Peregrine.
Actinogen Medical Ltd (ASX:ACW)
Actinogen Medical is into the development of an innovative treatment for cognitive impairment linked with neurological diseases open to changes of raised cortisol levels within brain cells.
The stock has given a return of 475% so far this year. The share price has risen from AU$0.020 to AU$0.11.
The first patient was enrolled by the company recently in Part A of a two-part trial targeting Alzheimer patients.
The study would determine the safety and efficacy of a 5 milligram and 10 milligram Xanamem dose on cognition over six weeks.
READ MORE: Top five renewable energy stocks on ASX
Note - 88 Energy Ltd (ASX:88E) is Kalkine's B2B client.