Penny stocks are small-cap stocks that trade for less than A$5 a share, and some purists consider the shares for less than A$1. Penny stocks are usually considered high-risk investments due to their low price, lack of liquidity and small market capitalization.
Penny stocks appeal to many investors, especially the novice ones as they can buy the stock very cheaply. However, one should not confuse the absolute stock price with being cheap in terms of valuations, these cheap looking stocks are likely to trade at very high valuations, and therefore very expensive.
In this article we will look at three penny healthcare stocks in the Australian stock market for 2022.
Healthia Limited ASX: HLA
HEALTHIA is an allied, integrated healthcare organization. Networks include optometry, podiatry, and physical therapy clinics.
In December 2021, Healthia announced acquisitions that are estimated to generate A$9.52 million in annual core revenue and A$1.90 million in annual EBITDA. The total acquisitions include the following companies: LensPro Ophthalmologists- 8 stores, Hervey Bay Physio & Allied Health-1, and Mornington Peninsula Family Physiotherapy- 1 clinic.
HLA expects to deploy at least A$20.0 million of capital annually in new acquisitions.
On January 7, 2022, HLA closed at a market price of A$2.33. It has a market capitalization of A$295 million and has gained nearly 58% in the past year.
Read: Healthia ASX: HLA to boost A$9.2 million revenue from recent acquisitions
Emyria Limited ASX: EMD
Emyria Limited is a clinical drug development and care delivery company that operates a network of specialized medical clinics. Emyria Limited was established in 2018, and is headquartered in Leederville, Australia.
On December 15, 2021, Emyria announced that it had received positive preliminary results from a preclinical study that included comparing Emyria’s ultra-pure CBD formulation (EMD-003 capsule) to Epidyolex oil. Epidyolex Oil is the only CBD product registered in Australia and the United States. EMD aims to register a Schedule 3 with the Therapeutic Goods Administration for EMD-003 this year.
As of January 7, 2022, EMD has a market capitalization of A$107 million and over the past year has generated returns of over 260%. The shares were last traded at $0.380.
Also read: Emyria wins TGA approval for remote health monitoring tool, public
Universal Biosensors, Inc. (ASX: UBI)
UBI is a professional medical diagnostics company focused on in vitro diagnostic tests for point-of-care use.
In December 2021, UBI announced that it had signed an exclusive global licensing agreement with IQ Science Limited to market the N-Protein SARS-CoV-2 (COVID-19 Test) detection test. The COVID-19 test will be based on UBI’s unique electrochemical tape technology, which is designed to produce a positive or negative response about a patient’s virus status in 30 seconds (based on internal validation work performed to date) from a saliva sample. The license to test for COVID-19 will be permanent.
As of January 7, 2022, UBI has a market capitalization of A$174 million and the share price has risen steadily over the past year from A$0.53 (January 8, 2021) to a current trading price of A$0.99, providing a return of around 86%.
Some healthcare stocks are skyrocketing due to opportunities arising due to the pandemic and investors who get them right tend to make good profits. However, cash stocks are by nature very volatile and great care must be taken. Therefore, it is important that when trading or investing in small stocks, one should do their own research.
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