Three ASX penny stocks that have plunged over 69% YTD

Penny stocks are infamous for their high volatility. Investors often get attracted towards these stocks when they start to rake up massive gains. However, one must not forget that the same stocks can also make investors lose their sleep by plunging massively.

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Here we will talk about ASX penny stocks that have eroded more than half of investors capital this year so far (as of 7 April 2022). These stocks will give you a quick understanding of inherent risk in these small caps.

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  1. White Energy Company Limited (ASX:WEC)

The biggest loser for 2022 (under the category of AU$1) is White Energy Company, which has a market capitalisation of AU$13.16 million. It is a mining company and has a special focus on the development and exploitation of Binderless Coal Briquetting (BCB) technology.

The company’s shares have eroded almost all of their value this year, having plunged a massive 88.3% to the last closing price of AU$0.017 on 7 April 2022.  A major blow for WEC was when the Singapore International Commercial Court dismissed WEC subsidiary BCBCS’ claim for damages for wasted expenditure in connection with the KSC joint venture.

  1. Zebit Inc. (ASX:ZBT)

The next stock on our list is the US-based online shopping platform, Zebit. The company allows its customers to purchase electronics, beauty products, home décor, etc. without any interest or credit checks. The company has a market capitalisation of a mere AU$3.97 million.

ZBT shares are down 81.3% in 2022 so far, last closing at AU$0.042, as of 7 April 2022. The company also took a hit of AU$21 million in FY21, much higher than the current market cap of the company. Investors went on a selling spree after the company announced a voluntary delisting from the ASX in February and the decision was passed in a special meeting of shareholders in March 2022.

  1. Advanced Human Imaging Limited (ASX:AHI)

The last stock on our list is Advanced Human Imaging, which was formerly known as MyFiziq Limited. The company is engaged in developing smartphone-based human scanning technology offers multi-scan solution such as dermascan, facescan, bodyscan etc. It has a market capitalisation of AU$46.6 million.

AHI shares have plunged over 69.1% this year to the last closing price of AU$0.28 and have been consistently in a downtrend since the peak made in March 2021. The company is also a loss-making one, with the FY21 loss of AU$14.06 million, the largest in last few years.

Bottom Line

It is important for investors to understand the risks involved in investing in penny stocks. As the saying goes “there are no free lunches in the market”, if investors aim for exorbitant returns, then they must prepare themselves for equally high risks.

Read More: MAM, KSL, CCV: 3 ASX financial penny stocks paying highest dividends

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