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The best ASX penny stocks (updated weekly)

Big gainers included Kuniko, Li-s Energy and Talga Gold.

Key takeaways

  • Penny stocks trade for under $1 per share on the ASX.
  • They can provide an affordable investment but their performance is volatile.
  • We highlight the 10 fastest-growing penny stocks from the ASX over the past week.

What are penny stocks?

Penny stocks are shares in small companies that trade for less than $1. These stocks can offer high growth potential but come with considerable risk, as they often lack the financial stability and predictability of larger established companies. They're sometimes referred to as micro-cap stacks.

Which penny stocks have performed well in Australia this week?

To help you identify potentially interesting penny stocks, each week we look at the performance of penny stocks and identify the 10 which had the largest growth. We exclude any stocks priced at under $0.10, as even small price movements can look like large percentage gains.

Our list of highlighted stocks aren't necessarily the best penny stocks for you or your personal situation. Investing in penny stocks is typically highly speculative and can be very risky. We do not guarantee the performance or returns of any investment. You should do your own research and consult an industry professional when in doubt.


1. Kuniko (ASX:KNI)

  • Market cap: AUD$19.1 million
  • Closed week at: $0.23 (up 64.29%)
  • 1-year performance: -14.81%
  • 5-year performance: n/a


2. Li-s Energy (ASX:LIS)

  • Market cap: AUD$134.44 million
  • Closed week at: $0.20 (up 53.85%)
  • 1-year performance: -16.67%
  • 5-year performance: n/a


3. Talga Gold (ASX:TLG)

  • Market cap: AUD$229.51 million
  • Closed week at: $0.61 (up 48.78%)
  • 1-year performance: -33.7%
  • 5-year performance: 27.08%


4. Plaspak Group (ASX:PPK)

  • Market cap: AUD$44.03 million
  • Closed week at: $0.54 (up 38.46%)
  • 1-year performance: -45.45%
  • 5-year performance: -90.09%


5. Strategic Pooled Development (ASX:SPD)

  • Market cap: AUD$65.1 million
  • Closed week at: $0.77 (up 35.09%)
  • 1-year performance: n/a
  • 5-year performance: n/a


6. Polaris Metals NL (ASX:POL)

  • Market cap: AUD$149.97 million
  • Closed week at: $0.74 (up 34.55%)
  • 1-year performance: n/a
  • 5-year performance: n/a


7. Dotz Nano (ASX:DTZ)

  • Market cap: AUD$50.43 million
  • Closed week at: $0.10 (up 25%)
  • 1-year performance: -41.18%
  • 5-year performance: 150%


8. Mc Mining (ASX:MCM)

  • Market cap: AUD$71.63 million
  • Closed week at: $0.16 (up 23.08%)
  • 1-year performance: n/a
  • 5-year performance: n/a


9. Bluebet Holdings (ASX:BBT)

  • Market cap: AUD$149.96 million
  • Closed week at: $0.27 (up 22.73%)
  • 1-year performance: 35%
  • 5-year performance: n/a


10. Archer Exploration (ASX:AXE)

  • Market cap: AUD$73.91 million
  • Closed week at: $0.28 (up 21.74%)
  • 1-year performance: -30%
  • 5-year performance: 100%


Buy penny stocks through an online broker

Name Product AUFST Price per trade Inactivity fee Asset class International
eToro
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ASX shares, Global shares, US shares, ETFs
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CMC Invest
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$0
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
$0 brokerage on US, UK, Canadian and Japanese markets (FX spreads apply).
Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).
Tiger Brokers
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US$1.99
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Finder exclusive: Get 10 no-brokerage US or ASX trades in the first 180 days, plus US$30 NVDA shares (+US$30 TSLA shares ) when you deposit AU$2000 or more. Get 7% p.a. on uninvested cash for 30 days. T&Cs apply.
Trade US, Asian and CHESS-sponsored ASX stocks and US options.
Moomoo Share Trading
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ASX shares, Global shares, Options trading, US shares, ETFs
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Enjoy US$2 brokerage (other fees may apply) on US stocks and buying ETFs as well as $2 fee to trade Australian shares up to $20,000.
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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

What are investment strategies for penny stocks in 2024?

Penny stocks are smaller, less established businesses which are often impacted by volatility. However, even when the overall market is volatile, it doesn't necessarily make it a bad time to invest, especially for those who are buying for the long term. After all, the share price and business performance don't always align over the short term.

So over the long term owning shares that are cheaper, in businesses that are growing can be beneficial to your long-term wealth.

In Australia, the commodity boom off the back of the GFC helped power many of our penny stocks, especially in the mining and resources sector.

Also it's worth pointing out that not all shares follow the market. In fact many businesses can have differing performance to how the market is going. Again though, this will rely on buying the right business.

Finally some businesses perform stronger in a recessionary period. Service providers, repair services, small luxury items, consumer staples and commodities can be recession resistant.

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Our expert says

"I'll trade in things I believe have a lot of hype… I'll have a very firm stop loss and a price I take a profit at. And once I take the profit, I take it and move on. I'm done. I'm not re-entering… Or if it hits my stop loss, I sell and take the loss. I've taken lots of losses and I've taken lots of profits."

Founder

How do penny stocks stack up to blue chips?

On the opposite side of the scale to penny stocks are blue chip stocks. In comparison to penny stocks, blue chip stocks are large listed companies that have been around for a long time and have an extensive, stable financial track record.

Some of Australia's biggest and most well-known companies are considered blue chip stocks, such as the Big Four banks, Telstra, BHP.

While penny stocks in most cases pay no dividends, blue chips stocks almost always do.

The downside of buying blue chip stocks is they traditionally have a slower growth rate compared to smaller stocks.

If investors are chasing larger capital growth, they traditionally do not look at blue chip stocks.

Type of investor suited to penny stocks

Penny stocks are highly speculative investments. The odds of you losing all your money are greater than gaining multi-bagger returns.

As such, these investments usually are tailored towards the following:

  1. Experienced investors
  2. Investors with high risk tolerance
  3. Hedge funds and other professional investors
  4. Those with a long-term horizon who are willing to ride out short-term volatility
  5. Investors who are happy to take a bit of a gamble for potential extra reward

Pros

  • Lower share price
  • Today's penny stock could be tomorrow's winner
  • Potential for multi-year returns as the company grows
  • Not necessarily riskier businesses, just smaller companies

Cons

  • Higher risk especially compared to blue chips
  • Liquidity issues
  • Increasing volatility
  • Prone to scams
  • On average have more losers than winners
  • The business might have a short history

Are penny stocks good for beginners?

Australian penny stocks can be a good way for investors to ease into the market.

Like with everything else in life, you get what you pay for. So investors who choose to put their money in mature blue chip stocks can do so, but it will cost them more for the privilege.

On the other side is penny stocks, which, as the name suggests are significantly cheaper per share.

However, there is a downside – these companies are far riskier compared to the more established players.

FAQs

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
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To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.
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Writer

Cameron Micallef was an investment and utilities writer for Finder. He previously worked on titles including Smart Property Investment, nestegg and Investor Daily, reporting across superannuation, property and investments. Cameron has a Bachelor of Communication and Media Studies/ Commerce from the University of Wollongong. Outside of work Cameron is passionate about all things sports and travel. See full bio

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