- Penny stocks, as we all know, belong to companies where supply of shares is more than the demand, which helps in keeping the price below a dollar.
- Penny stocks face liquidity issues and therefore give way to easy manipulations.
Let us have a look at some ASX-listed stocks in the penny space that are packing a punch today. One piece of advice here- one needs to do thorough research before taking any exposure, as sinusoidal market trends are evident.
Let us start with the first penny stock that investors can keep on their watchlist – TerraCom Limited (ASX: TER). TerraCom is an emerging player originating as a resource explorer with a massive portfolio of operating assets in South Africa plus Australia. The coal miner's shares rose as much as 6.3 per cent to 17 cents during the early morning trading session.
TerraCom has recently reached a final agreement with the current bondholders to restructure the existing Euroclear Bond. The Company informed that the Euroclear Bond maturity date has been further extended until 8th October 2021, to allow the incoming debt funder appropriate time to finalise their position in relation to a new refinance program. TerraCom is confident in the agreed repayment program, which will likely witness the Euroclear Bond fully repaid within the coming 15 months.
Now, let us move on to the next stock grabbing attention in the penny space – Ariadne Australia Limited (ASX: ARA). ARA is a renowned investment firm with operations in New Zealand and Australia. The firm is indulged in areas of investment management and financial services; car park infrastructure operations and management; and property development and maritime infrastructure ownership plus operation. The shares of the Company surged as much as 4 per cent to 67 cents during the morning trading session, reaching their highest level since February 2019.
One of Ariadne’s investee companies, FinClear Holdings Limited, has lately undertaken a material capital raising at a higher valuation than the Company’s book value at balance date. Consequently, Ariadne will revalue its holding in FinClear in line with the price set by the capital raising, giving rise to a gain of AU$7.7 million. The Company informed that its investment portfolio has also appreciated overall in market value since balance date, with its two largest listed holdings – ClearView Wealth Limited and Ardent Leisure Group.
Also Read: What makes penny stocks so risky?
The next penny stock worth paying attention is BNK Banking Corporation Limited (ASX:BBC). BNK Banking Corporation is an Australia-based diversified financial services firm with two major banking operating divisions and mortgage broking aggregation. The shares of the firm rallied as much as 12 per cent to 89 cents during the early morning trading session, recording their biggest intraday percentage point rise since November 2020.
After receiving many unsolicited approaches from interested parties, BNK has recently announced that it is conducting a strategic review of the entity to maximise its shareholder value further. The review will comprise an evaluation of all strategic options available to BNK to uncover and bolster further value for its shareholders.
Next on the list is Aldoro Resources Ltd (ASX:ARN). Aldoro is a mineral exploration and development firm listed on the ASX. The Company holds a collection of nickel, hold, and lithium-rubidium-caesium-focused developed exploration projects in Western Australia. The company's shares surged by over 2 per cent to 48 cents during the morning trading session.
Aldoro has recently declared that it has undertaken a site visit to the Niobe project area to define the extent of the Rubidium footprint over Breakaway, Pegmatite Southeast Pit and Pegmatite 2 prospects. Rock chip samples were gathered to ascertain the lateral extend of the rubidium carrying pegmatites. The preliminary portable XRF (X-ray fluorescence) readings have confirmed encouraging rubidium results. For the uninitiated, XRF is an analytical technique that utilises the interaction of x-rays with a material to discern its elemental composition.
The last penny stock under discussion is Bass Oil Limited (ASX:BAS). Bass is an exploration and production company that features low-cost onshore oil production in the Cooper Basin and Indonesia. The shares of the Company marked an uptick of about 100 per cent to 0.2 cents during the morning trading session following an acquisition update.
Bass has recently been notified that it has received South Australian Government approval to satisfy a key outstanding conditions precedent to its acquisition transaction with Cooper Energy Limited. In July this year, Bass executed a sale and purchase agreement to acquire a stake in a portfolio of Cooper Basin tenements from the oil and gas player Cooper. It includes a 30 per cent interest in the onshore, producing Worrior gas and oil field in South Australia. Bass is pursuing final approvals and anticipates transaction completion by the middle of October 2021.