Top Penny Stocks of The London Stock Exchange to watch For in 2020

  • Jan 16, 2020 GMT
  • Team Kalkine
Top Penny Stocks of The London Stock Exchange to watch For in 2020

Penny Stocks Overview

Penny stocks are those stocks which have exceptionally low market capitalisation. The nature of Penny stock is generally unpredictable, and they are considered a risky bet because of the low liquidity they possess, coupled with relatively low shareholders, limited disclosure of information and large bid-ask spreads. However, penny stocks also provide great return opportunities, which is almost impossible for large-cap or mid-cap stocks.

In the US market, stocks that trade below $1 are usually considered as penny stocks, while in the United Kingdom, there is a broader index providing investment access to the lower market capitalisation companies known as the Alternative Investment Market (AIM). This index helps the smaller and new companies to raise money through listing on the London Stock Exchange with comparatively liberal regulatory flexibility as compared to the main market of London Stock Exchange. Companies listed over AIM-segment of the London stock exchange usually have low capitalisation or penny stocks with extremely high uncertainty in nature.  At present, there are a total of 863 companies listed (as of December 2019) on the FTSE AIM Index of London Stock Exchange.

Here we are going to discuss top Penny stocks that could present good potential in the 2020

    1. Tungsten Corp Plc (LON: TUNG)

The company is engaged in purchase order services, analytic, e-invoicing, and financing business.

As per the company’s interim result for six months ended on 31st October 2019, the revenue increased to £18.2 million in H1 2020 as compared to £17.6 million of H1 2019. The Adjusted EBITDA increased to £1.2 million in H1 2020 as compared to a loss of £0.8 million. The transaction volume also grew to £9.6 million in H1 2020 as compared to £9.0 million in H1 2019.

The stock price of the company increased by 46.17 per cent in one year. The beta of the TUNG has been reported to be at a value of 0.2448; it indicates that the movement in the price of the stock of the company has been less volatile, as opposed to the movement of the comparative benchmark index in the previous one year. The market capitalisation of the company is £49.80 million. The free float and share outstanding of the TUNG are reported at £81.86 million and £126.09 million respectively.

The company create outstanding simulation technologies and ultrasound software to boost the quality and speed of ultrasound imaging in the clinical atmosphere.

As per the company’s recent trading update, which was published on 08th January 2020, the group Revenue is expected to grow by 10 per cent to between £5.7 million to £5.9 million in the year 2019, from £5.3 million attained in the year 2018. The company reported that £5.9 million net of costs was collected in August 2019 from the placing and open offer of shares. The cash in the bank as at 31st December 2019 was reported to be £7.3 million as compared to £5.6 million in the year 2018.

The stock price increased by 44.74 per cent in one year. The beta of the MED has been reported to be at a value of 0.31; it indicates that the movement in the price of the stock of the company is less volatile, as opposed to the movement of the comparative benchmark index in the previous one year. The market capitalisation of the company is £24.20 million. The free float and share outstanding of the MED are reported at £197.08 million and £220.0 million respectively.

  • Deltex Medical Group Plc (LONN: DEMG) - Deltex Medical Group Plc is the United Kingdom-based haemodynamic managing company and a global leader in oesophageal Doppler monitoring.

As per the company’s interim result released for six month ended 30th June 2019, due to reduction in Sales and distribution expenses in H1 2019 as compared to H1 2018, the net loss reduced significantly in H1 2019. The adjusted EBITDA increased to £0.2 million in H1 2019 as compared to a loss of £1.0 million in H1 2018. The company reported a 35 per cent reduction in overhead costs (excluding exceptional items) to £1.7 million in H1 2019 as compared to £2.7 million in H1 2018.

The stock price of the company has increased by 47.37 per cent in one year. The beta of the DEMG has been reported to be at a value of 0.82; it indicates that the movement in the price of the stock of the company is less volatile, as opposed to the movement of the comparative benchmark index in the during the last one year. The market capitalisation of the company is £7.34 million. The free float and share outstanding of the DEMG are reported at £159.02 million and £524.46 million respectively.

The company is a yield management medium for the restaurant industry. BigDish supports restaurants through dynamic and smart discounts in the United Kingdom cover their additional capacity and improve their revenues.

As per the company’s interim report for six months ended on 30th September 2019, the company’s income increased to GBP 11,766 in H1 2019 as compared to 2,448 in H1 2018. The company’s cash in bank was reported at GBP 1,296,042.

The stock price of the company increased by 67.74 per cent in one year. The market capitalisation of the company is £8.55 million. The free float and share outstanding of the DISH are reported at £164.67 million and £348.95 million respectively.

The company is a multi-award-winning company based in the United Kingdom, which builds, produce and design a wide range of haircare, skincare and wellbeing products.

As per the company’s interim result for six months ended on 30th September 2019, the Revenue increased by 6.3 per cent to £23.75 million in H1 2019 as compared to £22.34 million in H1 2018. The Gross margin percentage improved by 3.7 per cent to 42.0 per cent in H1 2019. The paid final dividend was of 0.40 pence per ordinary share as compared to 0.23 pence in the year 2018.

The stock price of the company has increased by 41.94 per cent in last one year. The beta of the CRL has been reported to be at a value of 0.77; it indicates that the movement in the price of the stock of the company is less volatile, as opposed to the movement of the comparative benchmark index in the previous one year. The market capitalisation of the company is £27.15 million. The free float and share outstanding of the CRL are reported at £19.55 million and £63.15 million respectively.

  • New Trend Lifestyle Group Plc (LON: NTLG) - The company is involved in delivering services and products based on Emperor Star Astrology and Feng Shui.

    As per the company’s interim result for the six months ended 30th June 2019, the company’s revenue demonstrating steady progress, surged to SGD 3,091k in H1 2019 as compared to SGD 2,543k in H1 2018. The total comprehensive loss in H1 2019 was reported at SGD 298k as compared to SGD1,061k loss in H1 2018, which is a substantial improvement over the prior-year period.

    The stock price of the company increased by 50.0 per cent in last one year. The beta of the NTLG has been reported to be at a value of 2.11; it indicates that the movement in the price of the stock of the company is highly volatile, as opposed to the movement of the comparative benchmark index in the previous one year. The market capitalisation of the company is £1.01 million. The free float and share outstanding of the NTLG are reported at £34.92 million and £225.0 million respectively.

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

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