A penny stock can arouse the curiosity of many investors. While their volatility can sometimes be undesirable, some high-quality stocks have the potential for their prices to rise significantly.

Looking at the three examples below, we can see how rewarding it can be for patient and focused long-term investors:

• Trading at 25.7 pence per share in early 1999, diploma Shares are now at 6,685 pence. They returned 25,991.7% to investors.
• At 93.5p in June 1999, Hello Shares are now trading for 4,524p. They returned 4,738.5% to investors at that time.
• In November 2008, Melrose Industries The shares were worth 16.94 pence apiece. They are now worth 483p each. Return of 2,751.2%.

Of course, these are very successful examples, and there are only so many penny stocks that continue to fail. But they show how an investor can achieve life-changing returns by carefully and diligently selecting stocks.

In the case of Diploma, a £10,000 investment in its shares in early 1999 would be worth £2,601,167 today!

Now, these are no longer penny stocks, so investors may want to consider looking at existing stocks to consider buying today.

Snail exploration

Yesterday (May 13), Snail exploration (LSE:HEX) shares rose 12.2%. However, when searching online, there seems to be no specific news about the company that caused this.

I suspect this is mainly due to the speculative nature of the company. In fact, the company is currently generating no revenue. Therefore, its operations are completely loss-making.

This represents a huge risk for investors if they are considering investing in the company’s stock. As a young company, founded in September 2023, it is still in the early stages of its operations. There is no guarantee that the work will be well executed and successful.

However, a £10,000 investment made yesterday would have turned into £11,216 by the end of the day. This is a very nice return for a day!

Investors who bought some of the company’s shares in its April 2024 IPO could have done much better. Rising by 277.3% in that period, an initial investment of £10,000 would be worth £37,727 today.

While this height It seems to be For speculative reasons, let’s see what some concrete reasons might be.

Can he fly like a balloon?

As a helium exploration company, Helix Exploration has benefited from the tragic war in Iran.

Qatar supplies approximately 20% of the world’s liquefied natural gas, and unfortunately, 17% of its capacity has been damaged.

Since helium is typically extracted as a natural byproduct of LNG processing, its supply has become constrained. This has led to higher helium prices. This affects the entire market.

Even though the company is working and looking to extract helium in Montana, USA, it is still able to sell the commodity at higher market prices while keeping the cost base the same.

This could cause Helix Exploration projects to become more valuable than they initially were. Therefore, its shares could continue to rise. Of course, like any commodity, prices can fall if/when conditions change.

However, I think investors could consider buying its shares.