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Summary
- As per available data, Penny stocks have the potential to deliver massive returns.
- Penny stocks are though vulnerable to liquidity and market manipulation risks.
Since the beginning of this year, the markets are recovering, and investors are reclaiming lost wealth. With the rollout of vaccination programmes, the overall sentiment seems to be positive. It is an established fact that penny stocks have the potential to deliver staggering returns in a short span of time. This fact attracts investors to these stocks as they can be bought even with very little in your pocket.
The penny stocks are usually priced under 100 pence and often characterised by low market capitalisation. Before investing in penny stocks, one should look at volume to check for liquidity issues. Also, recent developments and catalysts should be looked upon before putting your hard-earned money in these stocks as they are vulnerable to market manipulation.
In this article, we will put our lens through some penny stocks that have delivered humungous return in the past one month.
Also read: Top 5 AIM stocks to look for in 2021
- French Connection Group Plc (LON:FCCN)
Shares of UK-based fashion retailer, French Connection Group have delivered a price return of 143.40 per cent in last one month, which means the stock has more than doubled. FCCN shares traded at GBX 24.80 on 16 February at 10:47 AM GMT+1.
Shares of the fashion retailer have rallied as Frasers Group divested its stake amid separate takeover approaches from US based companies - Spotlight and Go Global Retail. The company has been thriving on online sales and has been doing well since the reopening of stores in England and Wales in early December.
- Zephyr Energy Plc (LON:ZPHR)
Shares of UK-based oil and gas company Zephyr Energy have delivered a price return of 139 per cent in last one month, which means that an investment of £10,000 could have turned to £23,900. ZPHR shares traded at GBX 2.23 on 16 February at 10:53 AM GMT+1.
The energy company found positive indications of stacked, continuous oil and gas plays in their latest results on their analysis of the State 16-2 well. The energy company’s primary objective is to establish positive cash flow via production through new acquisitions or existing portfolio. Zephyr aims to transform itself into a well-capitalised producer of oil and natural gas, with strong positive cash flow.
Also read: Are Energy Stocks Better Alternative to Tech Stocks?
Copyright © 2021 Kalkine Media Pty Ltd.
- Ridgecrest Plc (LON:RDGC)
Shares of Ridgecrest have delivered a price return of 75 per cent in last one month, the stocks traded at GBX 2.20 on 16 February at 10:46 AM GMT+1.
Ridgecrest Plc has reorganised itself into a cash shell company that facilitates acquisitions and reverse takeovers from a recruitment services company. The cash shell companies are the most sought-after choice for businesses that wish to go public in the present times.
The conventional IPO’s are more taxing due to complex underwriting process, fees charged by the banks and other classified information sought by the exchanges. We might see a flurry of technology IPO’s this year as most were held back due to pandemic in 2020. Recently, Ridgecrest managed to raise more than £2 million in January via equity placement that it will deploy in making acquisitions in the forthcoming months.
Copyright © 2021 Kalkine Media (Data Source: LSE)
