Penny pop: here's how to make 30% returns

Penny stocks (stocks trading below Rs 10 per share) are always alluring to investors as they offer an easy way to make money in what is usually a short period of time (if you’re lucky, that is).

Below is a list of penny stocks that generated 10-30 percent since 1 st June i.e., the past seven trading sessions. In comparison, the benchmark Sensex is up 5.6 percent during the same period. But be warned. Penny stocks are usually the easiest to manipulate - and don’t be surprised if you actually lose it all.

Top of our list is Brahmanand Himghar, which has yielded 33 percent returns in the last seven trading sessions. The stock is also up by 6.2 percent in the last trading session ended 12th June. According to Ace Equity, the company caters to the cold storage operations. It has a cold storage of 14,000 metric tonnes licensed capacity and is situated at village Amlasoli in the district of Midnapore (West Bengal). The existing cold storage is meant for storing potatoes. The stock has also yielded 20.5 percent returns in the last one year, outperforming the Sensex (-7.7 percent).

Ashco Niulab Industries, a company that manufacturers electronic capacitors, resistors, chokes, etc, has yielded 32 percent returns in the last seven trading sessions. Incidentally the stock is also up 11 percent as of Tuesday’s close. The company provides services to all major pharmaceuticals and FMCG companies. For international business the company is focusing in US, Europe, Latin America and other overseas markets. For the year ended March 2012, it incurred a loss of Rs 9.3 crore while sales declined by 34 percent.

Disclaimer: Firstpost is looking at penny stocks to tell you what may be going on there, and not to bring you an investment opportunity. Investors are warned that they should NOT take any buy or sell decision based on the information presented in our posts or market price trends. Investors should consult their own financial and share advisors before taking purchase or sale decisions. Firstpost does not take any responsibility for any losses incurred by investors who take their cues from our posts and chat sessions.