Penny stocks to watch amid the ongoing economic upheaval: BOR, HMI, EDR

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Penny stocks to watch amid the ongoing economic upheaval: BOR, HMI, EDR

 Penny stocks to watch amid the ongoing economic upheaval: BOR, HMI, EDR
Image source: Vitalii Vodolazskyi, Shutterstock

Highlights 

  • UK’s GDP has contracted by 0.1% in the second quarter of 2022, as per official figures.
  • This shrinkage comes after the country’s GDP grew by 0.8% in the first quarter.
  • UK inflation levels are expected to hit record high levels in October, potentially surpassing the 13% mark.

With the aggravating inflationary situation and the escalating cost-of-living crisis, the UK’s economic growth has shrunk in the second quarter of the year. According to the official figures released on Friday, the UK’s gross domestic product (GDP) has shown a contraction of 0.1% quarter on quarter in the second quarter of 2022. However, this contraction is less than the contraction of 0.3% anticipated by the economists.

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This shrinkage comes after the country’s GDP grew by 0.8% in the first quarter of 2022. The Bank of England (BoE) had given a warning last week, expecting that in the fourth quarter of 2022, the UK economy to move into its longest recession phase ever since the 2008 financial crisis struck the world. In the meantime, the inflation levels in the country are expected to hit record high levels in October, potentially surpassing the 13% mark.

During this economic mayhem, UK investors have been attempting to safeguard and expand their hard-earned savings. Penny stocks, which are usually traded at a price less than £1 and hold a market capitalisation of below £100 million, are under investors’ lens as they offer enormous growth opportunities. Nevertheless, penny stocks come with a bigger risk factor due to being more volatile.

Therefore, investors must fully examine the firms offering penny stocks prior to investing. Here are 3 penny stocks suggested by Kalkine Media® which investors may add to their portfolio for decent returns.

Borders and Southern Petroleum plc (LON: BOR)

The shares of the British oil and gas explorer, Borders & Southern Petroleum plc, plunged by 4.87% at 11:22 AM (GMT+1) on Friday and were trading at GBX 3.71. The AIM-listed firm holds a market cap of 22.93 at present and has provided its investors with significant returns as of 12 August on YTD (year-to-date) and annual basis, which stand at 504.45% and 400.28%. Currently, the company’s EPS (earning per share) is neither positive, nor negative, standing at 0.00. Meanwhile, it’s RSI (Relative Strength Index) value stands at 70.87, which shows an increased level of interest among market participants in the stock.

Harvest Minerals Ltd (LON: HMI)

The shares of the South America-based manufacturer of natural fertilizer, Harvest Minerals Ltd, plummeted by 0.92% at 11:27 AM (GMT+1) on Friday and were trading at GBX 10.80. The AIM-listed firm holds a market cap of 20.62 at present and has provided its investors with significant returns as of 12 August on YTD and annual basis, which stand at 148.18% and 270.17%. Currently, the company’s EPS is in the negative zone, standing at -0.02. Meanwhile, it’s RSI value stands at 42.86, which shows a relatively lower level of interest among market participants in the stock.

Egdon Resources plc (LON: EDR)

The shares of the independently operating oil and gas exploration business, Egdon Resources plc, rallied by 12.09% at 11:29 AM (GMT+1) on Friday and were trading at GBX 5.10. The AIM-listed firm holds a market cap of 23.90 at present and has provided its investors with significant returns as of 12 August on YTD and annual basis, which stand at 237.42% and 283.63%. Currently, the company’s EPS is in the negative zone, standing at -0.01. Meanwhile, it’s RSI value stands at 75.09, which shows an increased level of interest among market participants in the stock.

With the aggravating inflationary situation and the escalating cost-of-living crisis, the UK’s economic growth has shrunk in the second quarter of the year. According to the official figures released on Friday, the UK’s gross domestic product (GDP) has shown a contraction of 0.1% quarter on quarter in the second quarter of 2022. However, this contraction is less than the contraction of 0.3% anticipated by the economists.

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