Highlights

• Investing in penny stocks is an inexpensive way to diversify your portfolio, which could generate higher returns.
• Penny stocks are usually very volatile and risky investments, so investors should be very careful with their choice.
• In comparison to penny stocks, blue-chip stocks are reputed companies that are fundamentally strong and have been around for some time.

Investing in penny stocks is an inexpensive way to diversify your portfolio and could generate higher returns. But these stocks are very volatile and risky as these companies are usually small, unestablished, often newly listed, and have more speculative valuations.

In comparison to penny stocks, blue-chip stocks are reputed companies that are fundamentally strong and have been around for some time. They have a long, stable financial track record, therefore, are safer investment bets.  Penny stocks usually don’t pay dividends, on the other hand, blue-chips stocks almost always do.

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It is important for all the investors to note that before investing in any penny stocks do your own research and plan how much you’re going to invest in each one. Also, it is important to plan at what price you will sell the stock if its share value starts falling and the same is applied to gains.

Let us look at 4 FTSE-listed penny stocks that you may shortlist for the month of May.

1. Atome Energy Plc (LON:ATOM)

Atome Energy Plc is the first green hydrogen and ammonia manufacturing company that uses sustainable sources and waste material for the production of biomass. The shares of the company were up by 0.33% at GBX 152.50 on 29 April 2022 at 12:40 PM (GMT+1). The current market capitalisation of Atome Energy Plc stands at £49.40 million. As of 29 April 2022, the company has provided its shareholders with a return of 82.17% since the start of this year.  

Also Read: SSE, Shell, AstraZeneca: Growth stocks to look at if recession strikes 

2. Staffline Group Plc (LON: STAF)

Staffline Group Plc is an employment agency company. Its shares of the company were trading at GBX 54.60 on 29 April 2022 at 12:40 PM (GMT+1). The current market capitalisation of Staffline Group Plc stands at £90.51 million. As of 29 April 2022, the company has provided its shareholders with a negative return of -12.35% since the start of this year.   

3. Ecsc Group Plc (LON: ECSC)

Ecsc Group Plc is a full-service cyber security service provider, with an extensive range of in-house developed proprietary technologies, including advanced Artificial Intelligence (AI) systems. The shares of the company were down by 1.56% at GBX 63.00 on 29 April 2022 at 12:40 PM (GMT+1). The current market capitalisation of Ecsc Group Plc stands at £6.40 million. As of 29 April 2022, the company has provided its shareholders with a negative return of -17.65% since the start of this year.  

Also Read: BARC, ULVR, SBRY warn about rising inflation. Should you stay invested?

4. ARC Minerals Limited (LON: ARCM)

A dynamic junior exploration company, ARC Minerals Limited is focused on exploring base metals in Africa and has a large portfolio of highly prospective mineral exploration licenses. The shares of the company were up by 10.59% at GBX 4.70 on 29 April 2022 at 12:40 PM (GMT+1). The current market capitalisation of ARC Minerals Limited stands at £48.90 million. As of 29 April 2022, the company has provided its shareholders with a return of 102.79% since the start of this year.  

Note: The above content constitutes a very preliminary observation or view based on market 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.