What are the best penny stocks for July?

Summary

  • Penny stocks are widely believed to be highly volatile and risky.
  • Penny stocks also offer potentially high returns to investors.
  • Oilex LD and Kodal Minerals are two such stocks that can be kept an eye on in July.

It is widely believed that penny stocks are extremely volatile and risky. True, there are many stocks that come under £1 that are prone to price volatility. However, there’s little value in completely dismissing penny stocks as several offer potentially high returns to investors.

Shares trading below £1 on UK stock exchanges is termed penny stocks. If the price of the share is low, it is considered to be a speculative investment.  The definition has, however, been widened to include stocks priced above the guideline prices. Their high volatility gives an opportunity to tap growth potential.

                                                       Copyright © 2021 Kalkine Media

 

These stocks generally function on the success or failure of a business. As they do not belong to broader exchanges, they have limited oversight, and investors end up with limited government protection.

If listed companies collapse, they have more chance to getting bailouts from the government than any of these companies.

But such companies do have enough growth potential simply because of risk-reward function. Here are two such stocks that are priced under £1 but have over 200 per cent year-to-date return and can be kept an eye for the month of July.

Oilex LD (LON: OEX)

The stock of this oil and gas company has a year-to-date return of 223.08 per cent and a one-year return of 116.29 per cent. The stock has a market capitalisation of £7.91 million. It was trading up 21.05 per cent at GBX 0.23 on 24 June 13:05 GMT+1.

The company recently acquired 55 per cent participating interest (PI) in Cambay Production Sharing Contract. The acquisition would give Oilex complete PI in Cambay PSC. Oilex has done an exhaustive technical study of Cambay’s assets and drilling plans. It will run a pilot project soon, and its results would provide sufficient data on whether horizontal wells can lead to a 3-to-5-fold estimated increase in well productivity.

Kodal Minerals (LON: KOD)

The stock of this mineral company has a year-to-date return of 315.74 per cent and a one-year return of 716.36 per cent. It has a market capitalisation of £69.73 million. The shares were trading up 0.34 per cent at GBX 0.44 on 24 June at 13:20 GMT+1.

The company recently announced that geochemical sampling that was conducted at the new gold exploration zone in Côte d'Ivoire had found high-quality surface samples. Infill sampling has found continuity of superior quality gold, and an aircore drilling rig has been retained to conduct testing of this area. Drilling was announced to begin 21 June onwards.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is not authorised or regulated by the Financial Conduct Authority to provide regulated advice. The purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. The Content is guidance about the different types of investments that are available and sets out general principles to continue before making investment decisions. Kalkine Media is neither authorised nor qualified to provide regulated investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from an appropriately authorised and/or qualified financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

   

Kalkine

Rated 4.3/5 based on 904 Reviews at Google My Business