Hello everyone. Welcome to the Penny Picks show here on Kalkine TV. I am Sage
and today we will be looking at three ASX Penny Stocks that are making strides with
gains over 20 percent today. So, let’s get started and look at the stocks in detail.
Continuing last week’s downtrend, the Australian market was off to a choppy
start on Monday as fears of a potential slowdown
amid rate hikes continued to spook investors. What further set the market for a dismal day was a red
closing on Wall Street, which sent negative cues to Aussie investors today.
Coming to small caps, this space is showing no mercy to investors as most of the stocks have
been bleeding for last few sessions. Today, the benchmark ASX Small Ordinaries index fell
2.45 percent to the lowest level since March 2021.
Despite a weak session today,
some ASX penny stocks are grabbing attention with their staggering gains.
Let us have a look at three such stocks.
Seafarms Group is an aquaculture company engaged in producing high-quality seafood.
The company has a market capitalisation of AU$77.3 million with 4.83 billion of issued shares.
In the 2021 financial year, the company clocked a net loss of AU$25.75 million,
compared to a loss of AU$25.54 million in financial year 2020.
Seafarms Group shares rallied 21.43 percent to the day’s high of 1.7 cents today, after
Friday’s loss of 12.5 percent. The volume for the day stands at a mediocre 3.98 million so far.
Moving on. Middle Island Resources is an ASX-listed
small-cap gold exploration company, headquartered in Western Australia.
The company has a market capitalisation of AU$17.1 million with 122.4 million
issued shares. The company has been reeling under losses for the last few
years and recently clocked a net loss of AU$6.82 million in FY21.
Moving on. Middle Island Resources shares are also holding their ground in today’s weak market,
surging 23.08 percent to the day’s high of 16 cents- the highest level since January 2022. The
volume for the day stands at 853.3K shares, which is the highest one-day volume this month so far.
The last stock on our list is EMU NL, which is a resource exploration
company engaged in the exploration of precious and base metals in Australia.
The company’s market cap is worth a mere AU$8.7 million with 549.81 million shares on issue.
In the 2021 financial year, the company reported a loss of AU$5.88 million,
noticeably higher than AU$3.73 million loss in financial year 2020.
EMU shares cracked over 18.75 percent in Friday’s session and today,
the stock surged 23.07 percent to AU$0.016, paring all the losses of the last week.
While all the three stocks are rallying over 20 percent, it’ll be interesting to see how
these stocks fare in the future as Penny stocks are infamous for excessive volatility, which
generally results in kicking out traders on both sides, hence making it difficult to be traded.
Therefore, a robust risk management strategy should be in place before investing in them.
Well, that’s all for now. We will be back with the exclusive Penny Picks show tomorrow. Keep
watching Kalkine TV for the latest market updates and related insights. I am Sage, signing off.