- Penny stocks belong to micro-cap companies, quoting at less than a dollar.
- Although quite risky, these stocks are also known to fetch quick returns.
- UUL, MML, AME are some of the ASX penny stocks that are on investors’ radar for November 2021.
Penny stocks are referred to as those stocks that trade less than a dollar value. These stocks are the smallest lot of the small-cap companies and therefore only a very few market participants take interest in these shares.
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Although quite risky, these stocks are known to fetch quick returns, which essentially explains why they are so alluring, especially for retail traders. On that note, let us take a look at three ASX penny stocks that can be considered for November 2021, on the back of a positive development this week. However, before taking the plunge, it is a must to do through research.
- Ultima United Limited (ASX:UUL)
With a market capitalisation of AU$46.9 million, this real estate development firm also generates income through management or subsequent sale of properties. In a market update released on 25 October 2021, the company announced it has officially put a formal offer to purchase a piece of land situated at 8 Parker Street, Northbridge.
3 ASX penny stocks to watch out for in November
The company will soon be disclosing more details as the deal progresses. UUL shares have delivered a decent return of 24% this year, last trading at AU$0.62, as of 25 October 2021, 3:10 PM AEDT.
- Medusa Mining Limited (ASX:MML)
Medusa Mining is an ASX-listed Australian small-cap gold miner, having a market capitalisation of AU$156.79 million. In the September quarterly report, the company recorded a total cash balance of US$75.5 million, while gold production from its Co-O Mine stood at 23,223 ounces, compared to 22,396 ounces in the previous quarter.
Similar to the June 2021 quarter, the company has not experienced any material loss due to COVID-19. MML shares are 4.81% down this year, while it is up 7.43% compared to October 2021 closing, last trading at AU$0.75.
- Alto Metals Limited (ASX:AME)
Another miner on the list, Alto Metals’ shares are up 5% today after the company announced its quarterly result for the September quarter. It reported a strong cash position of AU$3.1 million.
The company has also discovered new Juno lode south of Lord Nelson, which highlights the potential to discover additional repeat lodes. The stock is up by a massive 31.25% in the last one month, to AU$0.1.
A positive development in the company is one of the best ways to screen out stocks for a potential upswing in the near-term. All the above-mentioned penny stocks are on investors’ radar for the month of November 2021, as these companies have come out with a positive development today, be it strong quarterly results or a potential acquisition of an asset.
Despite positive sentiments, investors should not neglect the risk factor and should do their own due diligence before investing in penny stocks.