Three ASX penny stocks looking to close October with triple-digit returns

Highlights

  • Penny stocks are considered to be a high-risk venture; however, numerous investors get lured to these in the hope of quick returns.
  • A quick return from these stocks does not come without a high degree of risk, which investors should be aware of.
  • KOR, STM, ANL are some of the penny stocks looking to close October 2021 with a triple-digit return.

Some of the ASX penny stocks have had had their dream run this year. These micro-cap companies have delivered a spectacular return in the month of October 2021.

ASX penny stocks

Image Source: © Cammeraydave | Megapixl.com

Penny stocks are considered to be a high-risk venture; despite that, numerous investors can’t resist the allure of these stocks that have the potential to deliver quick returns.

Let us have a look at three ASX penny stocks that are up over 100% in October 2021 so far.

Read More: Three ASX penny stocks to watch out for in November

  1. Korab Resources Limited (ASX:KOR)

Korab Resources is an Australian mining and exploration company, having a market capitalisation of AU$8.9 million. The company’s share price surged over 177.7% to AU$0.075 today alone without any major announcement by the company. The stock is up over 275% this month.

This unusual price and volume surge drew attention from the ASX, which sent a price and volume query letter, seeking an explanation. Responding to ASX, Korab Resources informed that is in discussion with magnesium metal users and buyers regarding the metal’s potential supply from Korab Group’s Winchester magnesium project. However, the discussions are incomplete, and no commercial terms have been agreed upon yet.

  1. Amani Gold Limited (ASX:ANL)

Amani Gold is a AU$36.7 million ASX-listed exploration company, currently exploring gold and uranium. The company’s shares were up 50% to AU$0.003 on 26 October 2021, delivering a total month-to-date return of 200%

The AGM of Amani Gold is also scheduled on 16 November 2021, wherein the company would probably decide on the new Director of the company, for which the closing date for the nominations was 18 October 2021.

  1. Sunstone Metals Limited (ASX:STM)

Another miner on the list, Sunstone Metals evaluates, explores and develops mineral properties, having a market capitalisation of AU$134.8 million. In the recent quarterly report, the company made a significant discovery of a gold-copper mineralised porphyry from surface at the El Palmar project.

It has also met all the obligations to fully acquire the El Palmar project. STM shares have surged 172.7% to AU$0.06 this month (as of 26 October 2021). The volume for the month has also been the highest so far, at over a billion shares.

Bottom Line

A few penny stocks have raked in triple-digit returns in October 2021 so far. However, these supernormal returns should not be seen as a sureshot sign of any future spike. Therefore, traders/investors must be cautious and do their own due diligence before dwelling into this high-risk space.         

Read More: Three ASX penny stocks that shot up over 100% in one month

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