AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- The UK saw a lot of turbulence in 2022 due to many factors, including global and local.
- Investors usually look for blue-chip stocks to invest in during such times, but some have a bigger risk appetite, and they explore penny stocks to generate returns.
Fears about the UK economy slipping into recession have been growing, especially after data from the Office for National Statistics revised the GDP contraction for the third quarter this year to 0.3%. Inflation is at historically high levels, and the Bank of England has been raising interest rates to bring it under control. This will further restrict consumer spending power and raise the risks of a recession.
Due to the current economic headwinds, financial markets are seeing increased volatility. Usually, investors look for blue-chip stocks to invest in during such times. However, some have a bigger risk appetite and look for riskier stocks, like penny stocks, to generate returns.
.jpg)
Image source: Yuriy K, Shutterstock
Penny stocks generally trade under £1, and their market cap is usually less than £100 million. These cheap stocks have high risk but can generate better returns than other stocks.
Let's look at some penny stocks on the London Stock Exchange and see how they fared in 2022 and whether investors can explore them in 2023.
Prospex Energy PLC (LON:PXEN)
The AIM-listed investment firm primarily focuses on European gas and power projects. It has a market cap of £38.34 million, and the stock has provided investors with a return of 328.44% in the last 12 months. The EPS (earnings per share) stands at 0.02. As of 9:16 am GMT on Wednesday, the PXEN shares traded at GBX 14.00, 1.82%.
Tintra PLC (LON:TNT)
Tintra is a fintech company focusing on artificial intelligence to optimise payment processes. Its market cap stands at £28.73 million as of 28 December 2022. The stock's 12-month and YTD returns stood at 240.26% and 269.50%, respectively, at the time of writing. TNT shares were down 5.26% at GBX 180.00 as of 9:20 am GMT.
Angus Energy Plc (LON:ANGS)
Angus Energy is an independent oil and gas development company. It belongs to the FTSE AIM All-Share index and has a market cap of £44.09 million. The EPS lies flat at 0.00 as of 28 December 2022, and the one-year return is 123.51%. Shares of the company traded at GBX 1.53%, up 1.67% as of 9:29 am GMT on Wednesday.
Harvest Minerals Ltd (LON: HMI)
Harvest Minerals explores and produces organic natural fertiliser. The FTSE AIM All-Share constituent presently holds a market cap of £15.61 million. The EPS is negative at -0.02. The stock price has more than doubled in the past 12 months and its one-year return stood at 104.71% at the time of writing. Shares of HMI were trading 6.06% higher at GBX 8..75 as of 9:35 am GMT on Wednesday.
Atlantic Lithium Limited (LON:ALL)
Atlantic Lithium Limited primarily focuses on exploring and developing its West African assets. The company is listed on the FTSE AIM 100 index, and its market cap is £205.95 million as of 28 December 2022. The stock's one year-return is presently at 57.47%. As of 9:39 am GMT on Wednesday, the stock traded at GBX 34.80, up 2.35%.
Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
