HMI, ANGS, CLON, SRB, ALL: 5 penny stocks you may want to buy now

Highlights

• The concern over recession has risen after the UK inflation climbed to 9% in April, its highest rate in 40-years.
• Penny stocks often offer better investment potential than large-cap companies, but it’s important to avoid stocks that have been consistently reporting bad news and results.

Since the start of the pandemic, the UK economy has been experiencing some of the worst downturns over the years. There is a rising concern over recession after the inflation soared to 9% in April, its highest rate in the last 40 years.  The inflation is largely driven by the spike in the energy price cap at the start of April. The Bank of England (BoE) has warned of the worst days and that inflation can hit over 10% in October if the energy and food prices do not cool down.

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Investments in these times can be tricky and full of risks as the stock markets are extremely volatile at present. Penny stocks often offer better investment potential than the large-cap companies, but it is important to avoid stocks that have been consistently reporting bad news and results. It is better to avoid such stocks even if the stocks of these companies are undervalued.

Investing in penny stocks can be risky and during a recession, the risk may go even more. However, if you do your research and are patient and disciplined you can survive down periods more efficiently.

© 2022 Kalkine Media®

1. Angus Energy Plc (LON:ANGS)

Mcap:  £18.82million

YTD return: 105.80%

1-year return: 62.82%

The UK-based independent onshore oil and gas development company, Angus Energy Plc has a portfolio of clean gas development assets, oil production fields, and onshore geothermal projects. The shares of the company trading at GBX 1.40, were up by 1.82% around 2:30 PM (GMT+1) on 20 May 2022.  As of 20 May 2022, the company has provided its shareholders with a return of 62.82% in one-year and its year-to-date return stands at 105.80%.

Related read: BEN, HUR, BOR: 3 AIM stocks to watch amid rising inflation

2. Harvest Minerals Ltd (LON: HMI)

Mcap:  £26.96 million

YTD return: 248.41%

1 year return: 329.41%

Harvest Minerals Ltd is an Australia-based company that is engaged in exploration and production of organic natural fertilizer at its Arapua Fertiliser project. The shares of the company trading at GBX 15.40, were up by 8.07%, on 20 May 2022 at 2:30 PM (GMT+1).  As of 20 May 2022, the company has provided its shareholders with a return of 329.41% in one year and its year-to-date return stands at 248.41%.

© 2022 Kalkine Media®

3. Clontarf Energy Plc (LON: CLON)

 Mcap:  £12.45 million

YTD return: 117.36%

1-year return: 52.00%

Clontarg Energy is an Ireland-based lithium and oil & gas exploration & production company with a focus on Africa and South America. The shares of the company trading at GBX 0.51, were down by 2.86%, on 20 May 2022 at 1:00 PM (GMT+1).  As of 19 May 2022, the company has provided its shareholders with a return of 52.00% in one year and its year-to-date return stands at 117.36%.   

4. Serabi Gold Plc (LON: SRB)

 Mcap:  £29.54 million

YTD return: -25.09%

1-year return: -42.57%

The UK-based gold exploration and production company, Serabi Gold Plc, is engaged in the development of gold and other mining projects in Brazil. The shares of the company trading at GBX 40.50, were up by 3.85%, on 20 May 2022 at 2:30 PM (GMT+1).  As of 20 May 2022, the company has provided its shareholders with a negative return of -42.57% in one year, and its year-to-date return stood at -25.09%.   

Related read: HSBA, NBA, LLOY: Stocks to watch as FCA gets new power to ensure cash

5. Atlantic Lithium Plc (LON:ALL)

Mcap:  £29.54 million

YTD return: 65.62%

1-year return: 147.53%

Atlantic Lithium Plc is engaged in the development and production of its lithium assets in West Africa. It produces premium quality lithium to serve the growing electric vehicle market. The shares of the company trading at GBX 44.40, were up by 3.50%, on 20 May 2022 at 2:30 PM (GMT+1). As of 20 May 2022, the company has provided its shareholders with a return of 147.53% in one year, and its year-to-date return stands at 65.62%.   

 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.