Penny Stock Under £1

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Penny Stock Under £1

 Penny Stock Under £1
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Highlights

  • The UK economy has been contracting for two months straight, with the GDP declining by 0.1% in March and 0.3% in April.
  • Since January last year, this is the first instance of the monthly GDP estimate getting negative contributions from all the major sectors.
  • Amid the economic chaos, investors may go for penny stocks offering tremendous growth opportunities, but at a higher risk. 

The UK economy has been contracting for two months straight, with the GDP declining by 0.1% in March and 0.3% in April, as per the latest ONS figures. In April, there was a contraction in services, production as well as construction by 0.3%, 0.6%, and 0.4%, respectively.

penny stocks to keep an eye on

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As per ONS, supply chain bottlenecks along with the decrease in NHS Test and Trace activity have hampered the UK’s economic growth. Since January last year, this is the first instance of the monthly GDP estimate getting negative contributions from all the major sectors.  

On Monday morning (around 9 AM), the UK’s FTSE 100 index was down by 1.4% at 7213, which is the lowest level hit by the blue-chip index in over three weeks. FTSE 250 and FTSE 350 indices were also trading in the red, with stocks being hit by recession fears.

Amid all this chaos, investors may explore penny stocks, which have exceptional growth potential. Penny stocks are typically cheap stocks that are traded under the price of £1 and have a market capitalisation of under £100 million. These stocks offer tremendous growth opportunities with great returns, but along a higher risk.

Penny stocks are extremely volatile and thus investors must carefully evaluate the companies offering penny stocks before investing in them. Here are 5 penny stocks offering decent annual returns that investors can keep an eye on.

RELATED READ: RIO, DEC, ANTO: FTSE stocks to explore amid recession alarms 

  1. Borders and Southern Petroleum plc (LON: BSTH) 

The shares of the oil and gas exploration firm, Borders and Southern Petroleum plc were down by 9.88% at 11:04 AM (GMT+1) on 13 June 2022 and were trading at GBX 3.51. Over the last one year, the AIM-listed company has provided its shareholders with a return of 385.24% as of 13 June 2022, while its year-to-date return stands at 597.26%. The company’s current market cap stands at £22.90 million. 

  1. Harvest Minerals Ltd (LON: HMI)

The shares of the Australia-based corporation engaged in mineral production, Harvest Minerals Ltd, were trading at GBX 16.90 at 11:06 AM (GMT+1) on 13 June 2022. Over the last one year, the AIM-listed company has provided its shareholders with a return of 296.23% as of 13 June 2022, while its year-to-date return stands at 281.82%. The company’s current market cap stands at £31.97 million. 

  1. Prospex Oil & Gas plc (LON: PXEN)

The shares of the oil & gas investment business, Prospex Oil & Gas plc, was trading at GBX 4.50, down by -6.25%, at 1:08 PM (GMT+1) on 13 June 2022. Over the last one year, the AIM-listed company has provided its shareholders with a return of 118.47% as of 13 June 2022, while its year-to-date return stands at 33.25%. The company’s current market cap stands at £12.15 million.

RELATED READ: BCPT, AEWU, ESP: Stocks to explore as the housing bubble is set to burst 

  1. Tavistock Investments plc (LON: TAVI)

The shares of the UK-based firm offering investment-related services, Tavistock Investments plc, were trading at GBX 7.50 at 11:09 AM (GMT+1) on 13 June 2022. Over the last one year, the AIM-listed company has provided its shareholders with a return of 185.59% as of 13 June 2022, while its year-to-date return stands at 77.24%. The company’s current market cap stands at £41.83 million. 

  1. PipeHawk plc (LON: PIP)

The shares of the firm generating business opportunities in distinct markets, PipeHawk plc, were down by 5.88% at 11:10 AM (GMT+1) on 13 June 2022 and were trading at GBX 16.00. Over the last one year, the AIM-listed company has provided its shareholders with a return of 102.50% as of 13 June 2022, while its year-to-date return stands at -10.46%. The company’s current market cap stands at £6.17 million.

The UK economy has been contracting for two months straight, with the GDP declining by 0.1% in March and 0.3% in April, as per the latest ONS figures. In April, there was a contraction in services, production as well as construction by 0.3%, 0.6%, and 0.4%, respectively.

penny stocks to keep an eye on

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