5 Penny Stocks You Can Choose to Invest in March

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Summary

• Penny stocks have the potential to deliver massive returns and become potential multi-baggers in the near term.
• Investing in Penny stocks is considered highly speculative and risky as they are prone to huge market fluctuations.

Since last week, the global markets have been bleeding and have witnessed a lot of volatility. Bluchips, midcaps or smallcaps all have suffered some amount of pressure. Even in this scenario, some penny stocks have seen strong momentum. Penny stocks are often referred to businesses with less market capitalisation and less liquidity, implying that investors might face difficulties in selling the stock due to a lack of buyers. Additionally, penny stocks are prone to huge market fluctuations as their prices can be easily influenced or manipulated by institutional investors.

However, investing in these stocks can lead to gigantic results in the near term. These stocks are generally considered highly speculative in nature with wide bid-ask spreads or price quotes. A change of government policy or a geopolitical could make or ruin company’s plans in the near term. It is better to seek professional advice before putting your money in the penny stocks.

In this article, we shall put our lens through 5 Penny Stocks, which might do well this month.

Also read: 10 FTSE Penny Stocks to Watch in 2021

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1. ThinkSmart Ltd (LON: TSL)

Specialist digital payments platform business ThinkSmart has returned a total of 13.02 pence per share by way of capital return and special dividends to shareholders during the calendar year 2020. Notably, TSL shares have delivered a staggering return of 314 per cent in the last 52-week period.

In 2018, ThinkSmart sold 90 per cent stake in its Clearpay business to a highly capitalised, well-funded global financial technology business Afterpay Ltd. The Clearpay business allows consumers to buy things on the spot and pay for them later. In recent times, the Buy Now Pay Later trend has picked up steam as the consumers do not have to worry about upfront fee or interest payment. The shift towards e-commerce transactions has acted as a catalyst for the sector.

The management has underpinned high hopes on the trading momentum of Afterpay as the Australia based fintech company has achieved staggering sales in the UK delivered by Clearpay. Notably, ThinkSmart has 10 per cent shareholding in Clearpay UK.

Afterpay achieved a staggering increase of 288 per cent in underlying sales during the first half of 2021 to $0.8 billion. During the first half of 2020, Afterpay active customers increased by 161 per cent to 1.6 million.

Last year, company’s Independent Non-Executive Director Peter Joshua Gammell bought £480 thousand worth of shares at a price of £0.24 per share. There has been a fair amount of insider buying in the company.

TSL shares traded at GBX 72.50 at GMT 12:52 PM+1 on 2 March 2021.

2. Wey Education Plc (LON:WEY)

The turnover of Wey Education increased by 38 per cent to £8.4 million in 2020 (2019: £6 million). The company’s adjusted PBT from continuing operations rose by more than 100 per cent to £652,000 (2019: £322,000). Notably, WEY shares have delivered a staggering return of 121 per cent in the last 52-week period.

Cash balances of UK-based online independent secondary school Wey Education at the year-end increased to £6.5 million in 2020 (2019: £5 million). The group saw a significant amount of growth in student enrolment all year across. For the year ended 31 August, the company expects to exceed market forecasts in both turnover and profitability. The company launched new technology leadership and programs to improve learner’s experience and operational efficiency.

WEY shares traded at GBX 34.80 at GMT 9:49 AM+1 on 2 March 2021.

3. Alba Mineral Resources Plc (LON:ALBA)

FTSE-AIM listed mining Company is engaged in the business of exploration of natural resources with a focus on base metals, uranium, graphite and oil & gas. The miner reported a decline in loss during the first half of the financial year 2020, driven by lower administrative expenses incurred during the period. Notably, ALBA shares have delivered a staggering return of 225 per cent in the last 52-week period.

The company has shown a slight improvement in financial performance during the first half of the financial year 2020. The company is in the development stage and hence rely on grants and cash balances to carry on all the business activities. The operations are financed by the sale of equity securities by private placements. The bottom-line performance has improved, while profitability remained in the negative zone. Alba Mineral Resources faced significant challenges due to pandemic while continuing to make progress across the portfolio of project.

ALBA shares traded at GBX 0.33 at GMT 10:13 AM+1 on 2 March 2021.

4. Conroy Gold and Natural Resources (LON:CGNR)

The Irish-based resource company reported excellent results from its exploration program on its prospecting licenses in the Longford-Down Massif in Ireland during the first half of 2020. Notably, CGNR shares have delivered a staggering return of 183 per cent in the last 52-week period.

Also, the gold miner made new gold discoveries in the Glenish Licence area. Gold exploration and mining, Conroy Gold and Natural Resources managed to raise £1,255,333 during the period. The miner’s net assets amounted to €18,696,306 as of 30 November 2020 (30 November 2019: €17,595,318).

CGNR shares traded at GBX 33 at GMT 10:45 AM+1 on 2 March 2021.

5. Redx Pharma Plc (LON:REDX)

Despite clinical development challenges in the wake of the global COVID-19 pandemic, Redx is on track to deliver on key milestones in 2021 and has managed to progress its pipeline, further developing its lead programs in oncology and fibrosis. Under its Lead program, oncology asset RXC004, is on track to report Phase 1 clinical study results during the first half of 2021. Notably, REDX shares have delivered a staggering return of 700 per cent in the last 52-week period.

Redx Pharma is involved in the development of targeted medicines for the treatment of cancer and fibrotic diseases. In July 2020, the pharmaceutical group managed to secure a $30 million financing package with Redmile Group LLC and Sofinnova Partners. The company has enough working capital to see through Q4 2022. In addition, the company’s total revenue increased to £5.7 million in 2020 (2019: £3.1 million).

REDX shares traded at GBX 66 at GMT 11:02 AM+1 on 2 March 2021.