Penny stocks to watch amid ongoing economic turmoil: BOR, HMI, EDR

With the worsening inflationary situation and worsening cost of living crisis, UK economic growth contracted in the second quarter of the year. According to official figures released on Friday, the UK’s gross domestic product (GDP) posted a quarter-on-quarter contraction of 0.1% in the second quarter of 2022. However, this contraction is lower than the contraction of 0.3% expected by economists. .

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The contraction comes after the country’s GDP grew by 0.8% in the first quarter of 2022. The Bank of England (BoE) had issued a warning last week, expecting that in the fourth quarter of 2022, the he British economy is entering its longest recession. phase since the 2008 financial crisis hit the world. Meanwhile, inflation levels in the country are expected to hit record highs in October, potentially topping the 13% mark.

During this economic chaos, British investors tried to protect and grow their hard-earned savings. Penny shares, which typically trade at a price below £1 and hold a market capitalization of less than £100m, are from an investor’s perspective as they offer huge growth opportunities. Nevertheless, penny stocks present a greater risk factor due to their greater volatility.

Therefore, investors should carefully consider companies offering penny stocks before investing. Here are 3 penny stocks suggested by Kalkine Media® that investors can add to their portfolio for decent returns.

Borders and Southern Petroleum plc (LON: BOR)

Shares of British oil and gas explorer Borders & Southern Petroleum plc plunged 4.87% at 11:22 a.m. (GMT+1) on Friday and traded at 3.71 GBX. The AIM-listed company currently holds a market capitalization of 22.93 and has provided its investors with significant returns as of August 12 on a year-to-date and annual basis, which stand at 504.45. % and 400.28%. Currently, the company’s EPS (earnings per share) is neither positive nor negative, standing at 0.00. Meanwhile, its RSI (Relative Strength Index) value stands at 70.87, which shows an increased level of interest among market participants in the stock.

Harvest Minerals Ltd (LON:HMI)

Shares of South America-based natural fertilizer maker Harvest Minerals Ltd fell 0.92% at 11:27 a.m. (GMT+1) on Friday and were trading at 10.80 GBX. The AIM-listed company currently holds a market capitalization of 20.62 and has provided its investors with significant returns as of August 12 on a year-to-date and annual basis, which amount to 148.18% and 270.17%. Currently, the company’s EPS is in the negative zone at -0.02. Meanwhile, its RSI value stands at 42.86, which shows a relatively low level of interest among market participants in the stock.

Egdon Resources plc (LON:EDR)

Shares of independent oil and gas exploration firm Egdon Resources plc rebounded 12.09% at 11:29 a.m. (GMT+1) on Friday and were trading at GBX 5.10. The AIM-listed company currently holds a market capitalization of 23.90 and has provided its investors with significant returns as of August 12 on a year-to-date and annual basis, which stand at 237.42% and 283.63%. Currently, the company’s EPS is in the negative zone at -0.01. Meanwhile, its RSI value stands at 75.09, which shows an increased level of interest among market participants in the stock.

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