Are these 3 penny stocks a good buy with a return of 60-300%?

3 min read | October 27, 2021 01:20 PM BST | By Suhita Poddar

Highlights

  • Several penny stocks which are AIM index constituents have been performing well for last one year.
  • Sareum’s FY 2021 losses widened due to higher spending in its R&D activities.
  • Xtract Resources found encouraging assay results of 155 meters at 0.44% CuEq from the depth of 343 meters at drill hole BRDD-21-009 at its Bushranger project.

Penny stocks have gained in popularity due to being cheaply priced and due to having the possibility of a bumper return. Several AIM-listed penny stocks have given high returns to shareholders this year as the UK slowly heads towards economic recovery.

However, they also carry a much higher degree of risk than blue-chip or mid-cap stocks due to greater volatility, lower liquidity levels and other factors.

Several penny stocks, which are AIM index constituents have been performing well for last one year, and are up to explore when there is a dip in the market.

Let us take a look at 3 FTSE AIM All-Share index listed stocks with a one-year return of 60-300 per cent in one year:

  1. Advance Energy PLC (LON:ADV)

Advance Energy is an international upstream oil and gas company. It was previously known as Clean Energy Brazil.

The company is scheduled to have an investor presentation on 28 October. It had earlier reported its FY 2021 loss before tax at US$ 2.854 million, compared to US$ 1.231 million in FY 2020.

And its cash and cash equivalents rose to US$ 8.103 million, from US$ 562 thousand in FY 2020. The company also completed an equity placing of £21.8 million.

ADV share price and volume

(Image source: EODHD/Others)

Advance Energy’s shares were trading at GBX 4.18, down by 0.60 per cent on 27 October 21 at 10:31 AM BST. While, the FTSE AIM All-Share index was trading at 1,231.80, down by 0.12 per cent.

The company’s market cap stands at £43.16 million, and it has a one-year return of 67.76 per cent as of 27 October.

  1. Sareum Holdings PLC (LON: SAR)

Sareum is a drug discovery company.

It reported its FY 2021 loss on ordinary activities after tax widened to £1.5 million, as compared to a loss of £0.99 million in FY 2020.

The increase in losses was also due to higher spending towards research and development for preclinical development.

The pharma company raised £2.37 million in gross proceeds in June 2021 via two subscriptions by an HNI investor.

SAR share price and volume

(Image source: EODHD/Others)

Sareum’s shares were trading at GBX 6.05, down by 3.97 per cent on 27 October 21 at 10:55 AM BST, while the medicine and biotech sectoral index was trading at 18,646.8, up by 0.51 per cent.

The company’s market cap stands at £212.04 million, and it has a one-year return of 174.66 per cent as of 27 October.

  1. Xtract Resources (LON: XTR)

Xtract Resources is a UK based metals and mining producer.

The company recently reported its third drill hole BRDD-21-009 from phase 2 in its Bushranger project’s assay results.

The company found a wide intersection of 448 meters @ 0.30% CuEq from 272 meter depth, including 155 meters at 0.44% CuEq from the depth of 343 meters and more.

XTR share price and volume

(Image source: EODHD/Others)

Xtract’s shares were trading at GBX 5.85, down by 2.50 per cent on 27 October 21 at 11:04 AM BST, while the precious metals sectoral index was trading at 21,003.9, down by 0.22 per cent.

The company’s market cap stands at £ 50.71 million, and it has a one-year return of 306.47 per cent as of 27 October.


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