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Summary
- Proper research and patience are the only ways of selecting the correct penny stocks.
- As they have very little liquidity and wide price quotes, these stocks are generally considered to be highly speculative.
Penny stocks are historically more popular with retail investors as it is believed they can get one to earn quick money easily. During the bull run, penny stocks generally have significant upside.
It is a difficult task to select the correct penny stocks. Proper research and patience are the only ways of selecting the correct penny stocks. As they have very little liquidity and wide price quotes, these stocks are generally considered to be highly speculative. This means an investor runs the risk of losing either a significant part, or the entire investment in the trade.
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Here are 5 FTSE listed penny stocks that possess to have growth potential in the long-term. These are not a recommendation to buy or sell, but a general analysis talking about different stocks.
Card Factory Plc (LON:CARD)
The shares of the greetings card retailer are priced at GBX 63.10 and have a one-year return of 46.39 per cent and a year-to-date return of 51.78 per cent as of 8.05 AM, 27 July 2021. The shares have a market capitalisation of £215.72 million and a dividend yield of 4.79 per cent.
The company’s revenue from its online segment reported high growth of 135.3 per cent to £11.1 million for the year ended 31 January, and its Getting Personal segment reported a 12.2 per cent growth to £16.5 million. It said that its initial store sales performance was better than earlier reopening performances.
Greencore Group Plc (LON:GNC)
Shares of the Ireland-based food company are priced at GBX 133.20 and have a market capitalisation of £678.72 million as of 8:07, AM 27 July 2021. It has given a one-year return of 20.25 per cent and a year-to-date return of 13.49 per cent.
For the third quarter of 2021, the company said there was strong revenue momentum, and group revenue were up 53.1 per cent from the previous year and just 2.8 per cent lower than 2019 pre-Covid levels. Group revenue for June was up one per cent compared to FY19 levels. Food to go categories reported revenue growth of 91.1 per cent from year-ago levels and was and 9.3 per cent less than FY19 levels in the third quarter.
600 Group Plc (LON:SIXH)
Shares of the diversified engineering group company are priced at GBX 13.75 and have a market capitalisation of £16.15 million as of 8:10 AM on 27 July 2021. They have a one-year return of 80.92 per cent and a year-to-date return of 43.98 per cent. The shares have a PE ratio of 9.43x and a dividend yield of 1.82 per cent.
For FY21, the company said that trading in the first quarter has been strong. The company’s orderbooks improved remarkedly since 31 March 2021, and it reported increased levels of activity throughout the group. It said that the company had a strong pipeline of opportunities throughout all its operating divisions, especially in Industrial Laser Systems.
1Spatial Plc (LON:SPA)
Shares of the software solutions company have a market capitalisation of £41.98 million and are priced at GBX 37.50 as of 8:14 AM on 27 July 2021. It has given a one-year return of 77.73 per cent and a year-to-date return of 29.31 per cent.
The company recently announced that it received a UK Patent for the Modification and Validation of Spatial Data. The CEO of the company Claire Milverton said that its understanding of the complex location data formats and sources, the rules on the same, and issues arising out of it resulted in the company’s technology being chosen to power a few big global locations data implementations.
Tullow Oil Plc (LON:TLW)
Shares of the oil and gas company are priced at GBX 47.93 as of 8:16 AM on 27 July 2021. The shares have a one-year return of 65.61 per cent and a year-to-date return of 62.42 per cent.
Ahead of the group’s half year results for 2021, the company said its working interest production averaged 61,200 bopd, and it was in line with the company’s expectations. It revised its full-year guidance to 55,000 - 61,000 bopd compared to the earlier 60,000 - 66,000 bopd, reflecting the Dussafu Marin permit and sales of the Equatorial Guinea assets as well as first half delivery.
