Penny stocks may not be everyone’s cup of tea. Some investors find them too risky, while others see them as an opportunity for big gains. It all comes down to individual investment strategies.
Here are two low-cap stocks that show potential:
**Targeting sustainable energy**
Helium One (LSE:HE1) is a penny stock with a market cap of £51.1m and a share price of 1.3p. The company explores and develops sites for helium gas extraction in Tanzania. While it’s not profitable yet and has been burning through cash, recent reports suggest it may be turning things around. Analysts believe Helium One could be on the verge of tapping into valuable helium concentrations, potentially leading to significant profits.
**A niche medical company**
Diaceutics (LSE:DXRX) is a small-cap company with a market value of £87m. It provides diagnostic testing for the precision medicine industry and works with top pharmaceutical companies. Despite facing risks in a niche sector, the company has shown growth potential. Analysts estimate the stock to be undervalued and predict a 60% increase in the share price.
Investing in penny stocks comes with risks, so it’s important to do thorough research before diving in.