Some FTSE Traded Penny Stocks That Investors Need To Look Out For

  • Mar 25, 2020 GMT
  • Team Kalkine
Some FTSE Traded Penny Stocks That Investors Need To Look Out For

Penny stocks of late have been enticing some serious investors as well, due to the fantastic returns that some stocks have delivered in the last some time, despite their inherited high risks. Penny Stocks are basically the shares of the companies with very small market capitalisation and trading at a share price that is less than GBX 100.00 on the London Stock Exchange market or less than US $1.00 on US Stock Markets.

These stocks are considered to be highly risky, primarily because of the relatively unknown business nature of the companies as well as the number of regulatory or management issues running on these stocks.

But it is also true that if traded carefully, these stocks offer the opportunity to generate a large amount of wealth. However, there are few basic rules, like not to invest a large amount, stay tuned if making an investment in penny stocks, the number of stocks should be very limited and not on tips. Also buying in penny stocks should be based on the volume and liquidity they offer. If these basic rules are taken care of penny stocks can also help in creating fortune.  For example, as shown in the chart below, the stocks of Asimilar Group Plc, Synairgen Plc and AFC Energy Plc, which are all penny stocks trading on the London Stock Exchange, have generated returns of humungous proportions in the last 6 months, and continue to trade well even during these difficult times.

Source: Thomson Reuters, as on 25-03-2020, after the close of the London Stock Exchange Market

This can be achieved if an investor is extremely careful at the time of putting their capital into such stocks. Some of the other important principles that can help one achieve such magnificent returns are:

  1. Understanding and Evaluating the Financial Performance of these companies
  2. Quality of Management of such companies
  3. Evaluating the Unique Selling Point (USP) and economic moat, if any

These points lead to the identification of quality penny stocks. But increasing wealth is not just limited to the identification of Penny stocks; it is also important to diversify your holdings. Apart from this, investors should also know when a good time would be to sell these stocks and at what point do these stocks need to top out, or else the portfolio value could eventually go down.

On the basis of the above-mentioned principles, we have selected the following six stocks, that show potential to increase the wealth of investors many folds, especially considering the market’s tough conditions because of the Coronavirus outbreak. These penny stocks have been selected on the basis of their total year to date (25th March 2020) return, as well as the sectors they operate in and the kind of risks and challenges they are likely to face in the future. The following is the recent stock price performance of these stocks.

PHE Stock Price Performance

On 26th March 2020, at around 08:30 A.M (Greenwich Mean Time), at the time of writing this report, the stock of Powerhouse Energy Group Plc has been reported to be trading at a value of GBX 1.05 per stock on the London Stock Exchange market, a decline of 2.33 per cent or GBX 0.025, in comparison with the price of the stock at the time of closing on the previous day, which was reported at GBX 1.075 per share. At the time of writing this report, the market capitalisation (M-Cap) of the company’s stock has been reported to stand at a value of GBP 22.02 million in reference to the current market price of the company’s stock.

The stock had given a positive return of around 102.10 per cent in value on Year to date (YTD), by the time of the closing of the market on 25th March 2020.

SYM Stock Price Performance

On 26th March 2020, at around 08:35 A.M (Greenwich Mean Time), at the time of writing this report, the stock of Symphony Environmental Technologies Plc has been reported to be trading at a value of GBX 12.65 per stock on the London Stock Exchange market, a decline of 4.53 per cent or GBX 0.60, in comparison with the price of the stock at the time of closing on the previous day, which was reported at GBX 13.25 per share. At the time of writing this report, the market capitalisation (M-Cap) of the company’s stock has been reported to stand at a value of GBP 22.53 million in reference to the current market price of the company’s stock.

The stock had given a positive return of around 96.30 per cent in value on Year to date (YTD), by the time of the closing of the market on 25th March 2020.

DEV Stock Price Performance

On 26th March 2020, at the time of writing this report, at around 08:40 A.M (Greenwich Mean Time), the stock of Dev Clever Holdings Plc has been reported to be trading at a value of GBX 2.61 per stock on the London Stock Exchange market, lower by 3.33 per cent or GBX 0.09, versus the price of the stock at the time of closing on the previous day, which was reported at GBX 2.70 per share. At the time of writing this report, the market capitalisation (M-Cap) of the company’s stock has been reported to stand at a value of GBP 11.77 million in reference to the current market price of the company’s stock.

The stock had given a positive return of around 125.00 per cent in value on Year to date (YTD), by the time of the closing of the market on 25th March 2020.

Comparative YTD Stock Price chart of PHE, SYM and DEV

Source: Thomson Reuters, as on 25-03-2020, after the close of the London Stock Exchange Market

HYNS Stock Price Performance

On 26th March 2020, at around 08:45 A.M (Greenwich Mean Time), at the time of writing this report, the stock of Haynes Publishing Group Plc has been reported to be trading at a value of GBX 680.00 per stock on the London Stock Exchange market, no change in the price of the stock, in comparison with the price of the stock at the time of closing on the previous day. At the time of writing this report, the market capitalisation (M-Cap) of the company’s stock has been reported to stand at a value of GBP 41.63 million in reference to the current market price of the company’s stock.

The stock had given a positive return of around 58.50 per cent in value on Year to date (YTD), by the time of the closing of the market on 25th March 2020.

LID Stock Price Performance

On 26th March 2020, at around 08:50 A.M (Greenwich Mean Time), at the time of writing this report, the stock of Lidco Group Plc has been reported to be trading at a value of GBX 8.40 per stock on the London Stock Exchange market, an increase of 8.39 per cent or GBX 0.65, in comparison with the price of the stock at the time of closing on the previous day, which was reported at GBX 7.75 per share. At the time of writing this report, the market capitalisation (M-Cap) of the company’s stock has been reported to stand at a value of GBP 18.92 million in reference to the current market price of the company’s stock.

The stock had given a positive return of around 58.20 per cent in value on Year to date (YTD), by the time of the closing of the market on 25th March 2020.

EQT Stock Price Performance

On 26th March 2020, at the time of writing this report around 08:55 A.M (Greenwich Mean Time), the stock of EQTEC Plc has been reported to be trading at a value of GBX 0.18 per stock on the London Stock Exchange market, lower by 2.70 per cent or GBX 0.01, versus the price of the stock at the time of closing on the previous day, at GBX 0.18 per share. At the time of writing this report, the market capitalisation (M-Cap) of the company’s stock has been reported to stand at a value of GBP 7.29 million in reference to the current market price of the company’s stock.

The stock had given a positive return of around 60.90 per cent in value on Year to date (YTD), by the time of the closing of the market on 25th March 2020.

Comparative YTD Stock Price chart of HYNS, LID and EQT

Source: Thomson Reuters, as on 25-03-2020, after the close of the London Stock Exchange Market

   
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