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Highlights
- Penny stocks attract a lot of investors who seeks to make multi-fold return.
- Investors should select penny stocks with a superior business model, operating in a cash-generating market segment with excellent management.
The UK stock market consists of various companies of different market caps, and those with the lowest market cap are termed penny stocks. This category of stocks attracts a lot of investors who seeks to make multi-fold return. However, all penny stocks don’t give high returns as some of the companies’ underlying business model is not cash generating. Hence, investors should select penny stocks with a superior business model, operates in a cash-generating market segment with excellent management, and actively trade with good volume.
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Let us explore the top 5 FTSE listed penny stocks that can be a good buy for the coming month:
Harvest Minerals Ltd (LON:HMI)
The company operates as a remineralise producer engaged in the natural fertiliser business in Brazil. The company has surpassed the sales target for the KP Fértil®, which is an organic multi-nutrient containing minerals and nutrients required by the plants. It produces the fertiliser at its 100% owned Arapuá Project.
The company has received sales orders of 80,701 tonnes for its KP Fértil® product from 1 January to 16 October 2021, exceeding the sales target of 80,000 tonnes which was set for the FY21. The company has already delivered 85% of the total sales order received to its clients and expects strong momentum for the rest of this year.
Harvest Minerals Ltd’s current market cap stands at £5.85 million. In the last one year, the stock has given an 18.42% return to its shareholders.
Hurricane Energy Plc (LON: HUR)
The company is into the exploration and development of hydrocarbon resources from fractured basement reservoirs. It has different project sites located in the United Kingdom.
The company reported revenue of USD 124.5 million in the first half of 2021, with a total production of 2,004Mbbl, while its profit after tax stands at USD 42.8 million.
The company expects production in the range of 8,500 to 10,000 bopd in the next six months. In addition, it plans to reduce its debt and improve its balance sheet position.
Hurricane Energy Plc’s current market cap stands at £88.18 million. In the last one year, the stock has given an 87.01% return to its shareholders.
Marechale Capital Plc (LON: MAC)
The company provide various financial services like debt and equity financing, advisory services, and merger and acquisition services in the United Kingdom.
The company reported revenue of £399,929 in the financial year ended 30 April 2021. The company provides advisory to a diverse set of clients from hospitality, telecom, renewable energy, and other businesses.
It has recently raised the sum of £160,000 by placing new ordinary shares at a price of 2p per share. The company plans to use the net proceeds for investment opportunities and additional working capital requirements.
Marechale Capital Plc’s current market cap stands at £3.36 million. In the last one year, the stock has given a 339.48% return to its shareholders.
Gaming Realms Plc (LON: GMR)
The company offers mobile gaming content in the UK and other countries. It operates through two divisions: game licensing and publishing. It also offers marketing services to its clients.
The company reported a 50% rise in the revenue at £7.7 million in the first half of 2021, mainly due to high margins from its game licensing segment. It has a portfolio of 48 games that are licensed to its partners generating revenue for the company.
The company anticipate a strong momentum in the second half of the financial year with high revenue expectations from the European and the US market.
Gaming Realms Plc’s current market cap stands at £104.22 million. In the last one year, the stock has given a 62.32% return to its shareholders.
Ethernity Networks Ltd (LON: ENET)
The company operates in the telecom equipment segment offering technology solutions to its clients. It has diversified operations across different countries.
The company successfully raised gross proceeds of £4.2 million by placing 12,000,001 new ordinary shares at 35p per share. The company plans to use net proceeds from the placing to invest in 5G network business which offers high growth opportunities and for general working capital purposes.
In addition, the company has signed a USD 3 million contract with Chinese broadband network OEM to supply various devices to support OEM’s 5G network.
Ethernity Networks Ltd’s current market cap stands at £33.03 million. In the last one year, the stock has given a 168.46% return to its shareholders.
