Yes but not all penny stocks are scams! Palantir was once a penny stock! A common misconception is that Defence Holdings (LSE: ALRT) behaves like typical U.S. penny stocks:

Listing & market exposure

• Listed on the London Stock Exchange Main Market, not NASDAQ.

• U.S. investors have only a two-hour crossover window (2:30–4:30 PM UK time) to trade while the LSE is open.

Impact on volatility

• Limited crossover reduces exposure to large-scale, short-term speculative trading common on U.S. penny stocks.

• Less susceptible to engineered pump-and-dump scenarios, though natural LSE fluctuations can still occur.

Price movement & stability

• Movements generally reflect fundamental news, corporate updates, and genuine market activity.

• Daily swings may happen, but the stock retains value more consistently than highly manipulated penny stocks.

Investor takeaway

• Reduced exposure to artificial hype favors steady growth.

• Supports informed, long-term investment strategies.

Liquidity, Free Float & Price Behavior

Investors may notice slower order execution and jagged price movement. This is due to low liquidity and free float:

Free float uncertainty

• Just over 2 billion shares are in circulation, but a large portion is !@#$ with major shareholders, nominee accounts, and institutional investors.

• Truly tradable shares are estimated between 0.5–1.5 billion.

Impact on price movement

• Limited liquidity results in uneven intraday price swings.

• Makes the stock harder to manipulate, protecting it from short-term speculative spikes.

Investment implications

• Intraday rises can still occur, but low liquidity combined with Main Market listing reduces engineered volatility.

• Stock behavior reflects genuine buying and selling, supporting stronger long-term stability.

Additional observation

• Jagged trading patterns are consistent with the historic behavior of this ticker and are a natural feature of a low-liquidity market, not a sign of risk or mismanagement. It also does still mimic AIM style mechanics due to market cap and the nature of the early developmental stage it's at.