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Summary
- There are a bunch of penny stocks that have gained more than 100 per cent in the last 6 months
- While bitcoin has managed to fly past $50,000 from a level of sub-$10,000 in six months
- Shares of the London-headquartered petroleum explorer and producer EnQuest have advanced 103 per cent
Investors always keep a sharp eye on the investment opportunities that are likely to deliver better returns in shorter intervals of time, but with high returns, a certain chance increases for high risk. Most of the large-cap shares are low-to-moderate risk securities, given the timely disclosures, a regular watch of the capital market regulator and the exchange itself.
Penny stocks vs crypto-assets
On the contrary, penny stocks generally witness wild swings in a shorter period of time, mostly due to the limited number of free-floated shares in the market, thereby carrying a relatively high possibility of speculation as compared to the mid-cap or large-cap shares of the same industry.
The trading in cryptocurrencies and several crypto-assets is outrightly different as compared to stocks and fixed-income securities floated by conventional companies on the stock exchange. The prime variation arises due to the unregulated market of crypto-assets. All the cryptocurrencies that are being traded actively are neither regulated nor controlled by a government-backed entity or a sovereign unit.
On the other hand, the stocks, bonds, commercial papers, non-convertible debentures (NCDs) are traded under the comprehensive regulation of the Financial Conduct Authority (FCA), the Bank of England, and certain surveillance run by the London Stock Exchange (LSE) itself.
This is the reason due to which the investors are not fully-equipped to take whatever position they want to in a particular share, while the case is totally different when it comes to dealing in crypto-assets. Most of the cryptocurrency owners had irregularly accumulated the crypto units, at a time when the crypto-asset market was just at a nascent stage.
Copyright © 2021 Kalkine Media Pty Ltd.
Rising run of crypto
With the persistently unregulated environment of cryptocurrencies, bitcoin has managed to fly past $50,000 from a level of sub-$10,000 during September, six months earlier. With the massive price rise, driven by multiple factors, bitcoin stands short of a couple of thousand dollars to breach the $60,000-mark. The market pundits and veterans have been mooting for price stabilisation in the crypto-asset market, while some investors are anticipating the rally to continue.
Copyright © 2021 Kalkine Media Pty Ltd.
Penny winners
There are some low market capitalisation shares, popularly called as the penny stocks, that have registered an astonishing performance as compared to the respective benchmark indices. However, the returns of penny stocks are way to short than that of bitcoin and several other crypto-assets.
We take a look at 3 FTSE listed stocks that have risen 75 to 100 per cent, effectively doubling the investors’ wealth, while bitcoin rallied 500 per cent, in the last six months.
Pharos Energy Plc (LON:PHAR)
Shares of Pharos Energy, the London-based oil and gas explorer, have posted a gain of more than 80 per cent over the last six months. According to the historical data available with the LSE, the stock has surged to GBX 23 (11 March 2021) from a market price of GBX 12.60 as on 14 September 2020. The company is slated to announce its financial results for FY20 on 7 April 2021.
EnQuest Plc (LON: ENQ)
Shares of EnQuest, the London-headquartered petroleum explorer and producer, have advanced more than 100 per cent in the last six months. The stock went up to GBX 23.40, rising by 103.50 per cent from the share price level of GBX 11.50 apiece. The company enjoys a dual listing, one on LSE and another on NASDAQ OMX Stockholm.
Premier Oil Plc (LON:PMO)
Shares of Premier Oil, another London-based oil explorer, have jumped 75 per cent in the corresponding six months. As per the figures available with the exchange, the stock amassed a gain of 75.74 per cent to GBX 30.93 from the market price of GBX 17.60. The company has oil interests in Asia, Mexico and Africa, outside the United Kingdom.
