It’s the company that’s gone gangbusters on the coronation of the “Cannabis King” as it’s official adviser and it’s likely to have made some lucky investors rather rich.
Earlier in March the Stemcell Utd Ltd (ASX: SCU) share price was trading at around 1.3 cents per share, but closed today at 37 cents per share on traders’ excitement over little more than its fast-rising share price.
In fact the Stemcell Utd share price hit a high of $1.08 today on a market value of more than $300 million in a scenario that can only be attributed to some wild trading that would have kept many speculators glued to their screens.
The sum of $5,000 invested in Stemcell shares at 1.3 cents per share in early March would have earned you 384,615 shares worth around $142,307 at the close of trade today, or nearly $400,000 if you had managed to sell at the top of today’s trade.
There’s no doubt that those are some impressive returns, but in truth your chances of striking it rich on a penny stock are only slightly better than your chances of being struck by lightning twice – on the same day.
For that reason I would suggest you ignore the fortune-losing penny stocks to focus on stocks where you can make a real world fortune.
So forget the pot stocks and focus on high-quality profitable businesses with long track records, as it’s not hard to make serious money in the stock market as long as you let time do the heavy lifting.
So why not look to healthcare companies that are the real deal when it comes to creating retirement-making fortunes?
Such as CSL Limited (ASX: CSL) or Cochlear Limited (ASX: RHC). Both have delivered giant capital gains while paying dividends over the past 10 years. And I expect they have plenty of room to run in the decade ahead.
These 3 stocks could be the next big movers in 2020
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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor Tom Richardson owns shares of Cochlear Ltd. and CSL Ltd.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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