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Highlights
- The UK stock market witnessed a major correction last week on news of a new coronavirus variant, Omicron.
- Investors should have some level of diversification in their portfolio to manage the risk better and generate a high return in the long run.
The UK stock market witnessed a major correction last week on news of a new coronavirus variant, Omicron, first detected in South Africa. The rapid rise in cases from new variants led to panic and fear in the stock market resulting in a huge sell-off.
Investors with a concentrated investment approach witnessed more losses in such market decline than those holding a diversified portfolio with investment in different stocks and sectors.
This kind of sudden fall teaches that investors should have some level of diversification in their portfolio to manage the risk better and generate a high return in the long run.
Investors can consider a combination of blue-chip stock from the FTSE100 index and stocks new companies with a growth orientation. Let us discuss three stocks, like Genedrive Plc, Hurricane Plc, Powerhouse Energy Plc, which belong to the FTSE AIM index.
© 2021 Kalkine Media
Genedrive Plc (LON:GDR)
The company operates in the diagnostics segment and is engaged in the research and development of diagnostics platforms to detect different infectious diseases using its patented molecular diagnostics platform Genedrive.
As per the European Communities Council Directive, the company had submitted its new rapid SARS-CoV-2 detection kit for CE-IVD self-certification. Rapid molecular technique RT-LAMP (Reverse-Transcription Loop-Mediated Isothermal Amplification) based new test delivers positive results in as little as 7.5 minutes, while negative results take around 17 minutes. Following the certification, the test kit will be registered, which might take around ten working days, after which the product will be made available commercially in the European Union.
Genedrive Plc’s last close was at GBX 41.50 on 29 November 2021, with a market cap of £38.08 million.
Hurricane Energy Plc (LON: HUR)
The company is engaged in the discovery and extraction of oil from fractured basement reservoirs. Most of the company’s oil assets are located in the United Kingdom in the areas like Lancaster, Warwick and is estimated to have over two billion barrels of oil equivalent.
The company’s Lancaster oil asset reported production of 10,150 bopd from the P6 well, while the total oil produced was 323 Mbbls in October 2021. For the six months ended 30 June 2021, the company reported revenue of USD 124.5 million, while its operating cashflow was USD 75.9 million. The profit after tax was at USD 42.8 million during the period.
Hurricane Energy Plc’s last close was at GBX 3.90 on 29 November 2021, with a market cap of £77.68 million.
Powerhouse Energy Group Plc (LON: PHE)
The company operates in the alternative energy segment, which converts waste products like plastics, tyres, and other products into valuable products like hydrogen fuel, electricity and other industrial products using its proprietary technology.
The company is currently developing the first hydrogen facility in the UK, along with its UK partner Peel NRE, which is expected to be fully operational by 2023. The first project is being developed at the Protos site, and Peel NRE has already set up a special purpose vehicle (SPV), Protos Plastics to Hydrogen No. 1 Limited, to develop the plant. Also, both companies have agreed to an extension of the collaboration agreement to 31 August 2022.
For the six months ended 30 June 2021, Powerhouse Plc reported revenue of £373,306.
Powerhouse Energy Group Plc’s last close was at GBX 4.60 on 29 November 2021, with a market cap of £181.72 million.
