- Penny stocks often trade at less than a dollar value.
- Less liquidity and erratic volatility of these small-cap stocks makes them difficult to trade.
- STM, SMI and RDT are some ASX penny stocks that have delivered a triple-digit return in the last one month.
Penny stocks are known for their massive returns, along with their equally bigger (if not more) losses. Less liquidity and erratic volatility of these small-cap stocks make them difficult to trade. However, if one can pick the right stock at the right time, these stocks can skyrocket to new highs in a jiffy.
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In the last one month, a lot of ASX penny stocks have delivered outstanding returns to their investors, with some of them have even surging to triple-digit returns. Let us have a brief look at three ASX penny stocks that are up over 100% in the last one month.
- Sunstone Metals Limited (ASX:STM)
Sunstone Metals is a AU$145 million gold and copper exploration company. The STM share price has tripled to AU$0.07, in the last one month. On 7 October 2021, the company confirmed a 480m intersection of gold and copper in its first drill hole at El Palmar, after which investors flocked to grab STM shares.
Which ASX penny stocks have shot up over 100% in one month?
The stock’s year-to-date return is even more phenomenal at 550%. The trading volume for the month has also been the highest since its listing, at over a billion shares.
- Red Dirt Metals Limited (ASX:RDT)
Red Dirt Metals (formerly known as TNT Mines) is an ASX-listed small miner, having a market capitalisation of AU$106.8 million. This month, the company confirmed the presence of the predominant lithium mineral at the Mt Ida Project, which increased demand for its shares.
RDT shares have surged over 188% to AU$0.74 in the last one month, as of 20 October 2021, 3:30 PM AEDT. The stock’s YTD return stands at 170.37%.
- Santana Minerals Limited (ASX:SMI)
Another miner on the list, Santana Minerals is a nickel and precious metals explorer, having a market capitalisation of around AU$30 million. The company’s net financing expense for FY21 were recorded at AU$16,913, almost double than AU$8,858 in FY20.
SMI shares have rallied quite swiftly in the last one-month, delivering a massive gain of 149%. The company’s shares last traded at AU$0.27, as of 20 October 2021, 3:30 PM AEDT. The YTD return stands at a decent 68.75%.
Due to the erratic volatility, penny stocks generally move swiftly in any of the directions. Therefore, it is not recommended for everyone to take a plunge into penny stocks. Only high-risk investors with adequate capital should take a decision whether to trade these stocks or not.
Read More: Three ASX penny stocks shining this month