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

• Trading at 25.7p per share in early 1999, Diploma shares are now at 6,685p. They have returned 25,991.7% to investors.
• At 93.5p in June 1999, Halma shares now trade for 4,524p. They have returned 4,738.5% to investors in that time.
• In November 2008, Melrose Industries shares were worth 16.94p apiece. They’re now worth 483p each. A 2,751.2% return.

Of course, these are very successful examples, and there are very many penny stocks that go on to fail. But they show how an investor can potentially make life-changing returns through careful and diligent stock picking.

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 current ones to consider buying today.

Helix Exploration

Yesterday (13 May), Helix Exploration (LSE:HEX) shares increased by 12.2%. Looking online though, it seems like no specific company news caused this.

I suspect this is mainly because of the very speculative nature of the company. In fact, the firm currently makes no revenue. Therefore, its operations are completely loss-making.

This is a big risk for investors if they’re thinking about investing in the company’s shares. As a young company, which was founded in September 2023, it’s still in the early stages of its operations. There’s no guarantee the business will execute well and be successful.

Still, a £10,000 investment made yesterday would have still turned into £11,216 by the end of the day. That’s a very nice one-day return!

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

While this rise looks to be for speculative reasons, let’s see what some more tangible reasons might be.

Can it fly like a balloon?

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

Qatar supplies roughly 20% of the world’s liquified natural gas (LNG), and unfortunately, 17% of its capacity has been damaged.

As helium is usually recovered as a natural byproduct of LNG processing, its supply has become restricted. This has caused helium prices to soar. This affects the whole market.

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

This could see Helix Exploration’s projects be of higher value than they were initially. Therefore, its shares could continue rising. Of course, like any commodity, prices could fall if/when circumstances change.

Yet I think investors could consider buying its shares.

The post Here’s how this penny stock turned £10,000 into £11,216 yesterday! appeared first on The Twelfth Magpie.

But the huge growth potential is hard to resist, with some tiny shares becoming 10-baggers in a year.

And that’s why Helix Exploration (LSE:HEX) caught my attention. The helium producer only listed in 2024 but is already up almost 200%.

Did I miss the boat? Maybe not. This past month knocked 17% off the share price, so I could have a second chance to grab the shares at a bargain. But are they really worth the hype?

Why Helix looks interesting

In March, helium prices jumped after disruption to Qatar’s liquified natural gas (LNG) processing linked to the Iran war. That matters because helium is usually recovered as a byproduct of natural gas processing, so any hit to LNG output can tighten supply quickly.

Qatar is a major supplier, so when its output is disrupted, the whole market feels it. Reports from March said spot helium prices had doubled since the Middle East crisis began.

For Helix, that is the key attraction. If higher helium prices hold, a small producer with growth potential could see the value of its projects re-rated by the market.

So what’s the catch? Well, this is still a tiny, early-stage business, so I’d be putting my faith in its strategic execution as much as on the commodity price.

Solid financials though

Like most penny stocks, Helix is still loss-making. But the numbers are moving in the right direction. Its losses improved from £2.17m in 2024 to £1.86m in 2025, suggesting the business is becoming a little more efficient as it develops.

Here are the key figures:

• Market-cap: £69.9m.
• Share price: 3.58p.
• Listed in 2024 (so very limited public-market history).
• Losses reduced by 15.38% year on year.
• Net assets rose to £15.84m in Q3 2025, up from £8.69m a year earlier.

On top of those encouraging figures, the balance sheet looks healthy, with current assets easily covering liabilities.

But income investors, look away now. Unsurprisingly, there’s no dividend here. Companies at this stage usually reinvest every spare pound into drilling, plant work and development rather than paying cash out to shareholders.

The main risk is one that we often see when it comes to penny stocks: any major slip up could lead to a domino effect of funding cuts, operational delays and rising debt. That wouldn’t do the share price any good.

Risk and reward

Helix is not a set-and-forget income stock. This is highly speculative territory, and it should be treated that way.

But the appeal is that the company is debt free, has better balance sheet cover than many peers and could benefit if helium prices stay firm.

For that reason, I think it’s worth considering – but don’t get carried away. This should be a 2%-4% allocation at best, within a diversified portfolio.

In a market where helium prices are being helped by Middle East disruption, the stock has a genuine tailwind. But with penny stocks, the position size matters just as much as the story.

The post 1 beaten-down UK penny stock that looks exciting this May appeared first on The Twelfth Magpie.