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Multibagger Penny Stocks Of Past May Be Ready For New Bull Run. Keep an eye!

Posted: Thu May 14, 2020 10:50 am
by Saurabh
One place to hunt for promising penny stocks is to look in the past as to which have given multibagger gains.

There is a good chance that even in the new Bull market, these stocks may become favourites of investors and deliver huge gains.

Kesar Petroproducts Ltd saw its shares jump more than 9,100% in 2014. Over a 12-month period until 28 January 2015, the stock gained 12,000%.

Kesar was a sick company but the new management has restored the company by paying off all the bank dues, infusing new capital for business, and starting a new product in the company, which will slowly build up as we utilize the capacity of the plant.

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White Lion Asia Ltd, formerly known as Bombay Talkies Ltd, also has been a huge gainer in the past with a return of more than 7,500%. The company is a non-banking financial services firm.

Shantanu Sheorey Aquakult Ltd gained more than 4,900% in 2014. The company is in the packaged food industry.

Kamalakshi Finance Corp. Ltd saw its shares rising over 4,700% in 2014. Omega Interactive Technologies Ltd’s shares have surged from Rs 0.76 in September 2013 to Rs 112.50 on 28 January 2015.

Omega Interactive underwent a reduction and consolidation of share capital.

There are different reasons for which some penny stocks give huge return in a rally. One of them could be low liquidity leading to high level of appreciation in a market uptrend.

These stocks also have low floating stock and market capitalization. It could also be a genuine case where a company has turned around its business.

Investors prefer penny stocks because there is not much to lose while investing in a 50-paisa stock. However, we must be careful of manipulation by operators, experts say.