On the last day of the week, the Australian market opened the session on a positive note and the benchmark ASX 200 is up over 1.46%, reclaiming the 7,000-mark, as intense selling pressure which persisted throughout the week seems to be abating.
Small caps are also participating in the rally as investors are trying to capitalise on volatile but already beaten-down stocks. The ASX Small Ordinaries index surged 1.59% to 2,987 by 12:30 PM AEST. In that vein, let us have a look at three ASX penny stocks that are rallying high today.
- Ozaurum Resources Limited (ASX:OZM)
Founded in 2020, Ozaurum Resources is a small cap mining and exploration company based in Western Australia and has a market capitalisation of AU$16.6 million with 114.5 million issued shares. In FY21, the company clocked a loss of AU$4.46 million.
Today, OZM shares have rallied to 31.03% to the last traded price of AU$0.19 after the company announced the first diamond drill hole MNODH 002 has been completed at the new virgin gold discovery Demag Zone, intersecting arsenopyrite and pyrite mineralisation. The volume for the day also surged past 933K shares, higher than the 90-day average of 507.3K shares.
- Shekel Brainweight Limited (ASX:SBW)
Shekel Brainweight is Israel-headquartered technology company that provides artificial intelligence-based weighing systems. The company has a market capitalisation of AU$19.8 million with 165.5 million issued shares. In FY21, the stock clocked a loss of AU$6.76 million, compared to a loss of AU$4.45 million in FY20.
Today, SBW shares opened the trading session 25% up at AU$0.15 and is currently trading at this level without much of a trading activity being happened so far. The 52-week low and high of the stock is AU$0.1 – AU$0.25 and the volume for the day stood at only 30k shares so far.
- Actinogen Medical Limited (ASX:ACW)
The last stock on our list is Actinogen Medical which is a New South Wales-based pharmaceuticals and life sciences company that is primarily into the development and commercialisation of new therapeutic compounds. The company has a market capitalisation of AU$112.1 million with 1.77 billion issued shares.
Today, the company announced that its MD and CEO, Dr Steven Gourlay had acquired 2 million ordinary shares via on-market purchase on 12 May 2022 for a total value of AU$128.24K. Seeing an increased stake by the CEO, investors’ confidence also shot up, leading to a 25.4% rally in ACW shares to the last traded price of AU$0.079 by 12:30 PM AEST.
Investors should not fall for windfall profits from these penny stocks as these stocks are highly volatile in nature and may fall with the same pace (if not more). Therefore, before investing in penny stocks, investors must do proper due diligence.