- Penny stocks are stocks of small companies with limited resources and are considered highly risky.
- In the past couple of days when S&P/ASX 200 is moving downward, penny stocks like SE1, KYK, CM8 have shown improvement in their share price.
- Sensera signed a strategic deal with Triton Systems under which SE1’s Location-Aware™ IoT would combine with Triton’s AI & sensor innovations for broader asset tracking applications for the DoD.
- KYK has included four jurisdictions to its network of registries while CM8 launched KINN Living EU-based website for selling KINN’s product in Europe (Except the UK).
When we discuss penny stocks, the first thing that comes to mind is the risk associated with them. Penny stocks are risky as these are stocks of small companies that are in the early stages with limited cash and resources. These stocks are preferred by those investors whose risk appetite is high.
In the last couple of days, the benchmark index S&P/ASX 200 index has moved in the downward direction, influenced by the comment from the Federal Reserve Chairman Jerome Powell that the US economy will take a longer time to regain, despite the surprising jobless report for May 2020. The index ended 15 June 2020 2.19% lower than the previous close.
While S&P/ASX 200 index performance has seen low single-digit returns (3.26%) in the last three months, there are a few penny stocks that have done quite well over the same period.
In this article, we would be looking at three such stocks and cover their recent updates.
Sensera Limited (ASX:SE1)
Sensera Limited is an Internet of Things solution provider. The Company offers sensor-based products that convert real-time data into useful information, action, and value.
On 9 June 2020, Sensera Limited signed a strategic agreement with Triton Systems, Inc. under which SE1’s Location-Aware™ IoT would be combined with Triton’s artificial intelligence & sensor innovations for a broad range of asset tracking applications for the Department of Defence (DoD). Triton Systems is a global product development & technology firm based in the US.
Triton’s preliminary DoD project will implement and demonstrate the performance of SE1’s Real-Time Location System combined with the sensor suite & AI tools of Triton within a military supply depot environment. It would be a multi-stage program which includes prototype system demonstration, validation, and refinement and the outcome for the overall Real-Time Location System solution to get ready for incorporation in other DoD depots and related asset-intensive applications.
SE1 shares have delivered remarkable returns of 222.22% and 81.25% in the past three months and last month, respectively. The stock ended the day’s trade at A$0.209 on 15 June 2020, in line with the previous close. SE1 has a market cap of A$9.34 million and ~322.13 million outstanding shares.
Kyckr Limited (ASX:KYK)
Kyckr Limited, via a single platform, offers instantaneous access to legally authoritative global corporation data. The platform connects the user to more than 180 company registries and over 170 million legal entities across 120 nations.
On 9 June 2020, Kyckr announced the addition of Botswana, Ghana, Myanmar, Trinidad and Tobago to its network of registries through which its customers can perform compliant and real-time entity verification.
As per the 4th Anti-Money Laundering Directive, it has been made compulsory by the European Commission to recognise high-risk third nations with strategic shortcomings in their regime on anti-money laundering (AML) & counter-terrorist financing (CTF).
With the addition of these regions, KYK now has 20 nations on the list. Out of these 20 nations, 12 were added during May 2020 because of delegated regulation. The list aims to safeguard the EU financial system by preventing the threat of terrorist financing and money laundering.
By including the registries of the four prominent provinces, the Company now has access to 13 of the EU high-risk third countries’ registries. With this, the regulated businesses would have efficient access to entity verification information in jurisdictions where they are supposed to apply improved due diligence measures.
The Company is focussed on further improving its sales growth and announced a Share Repurchase Plan to raise ~A$10 million for the same.
KYK shares have delivered an impressive return of 75.56% in the past three months. The stock ended the day’s trade at A$0.079 on 15 June 2020, up 3.947% compared to the previous close. KYK has a market cap of A$22.3 million and ~293.38 million outstanding shares.
Crowd Media Holdings Limited (ASX:CM8)
Crowd Media Holdings Limited is a tech-based, vertically integrated social commerce business that sells excellent products & services that are vital to the lives of its clients.
On 18 May 2020, Crowd Media Holdings Limited launched KINN Living EU-based for selling KINN’s eco-friendly, natural, home-cleaning, sanitiser & laundry-care necessities into the European market apart from the UK.
The features of the website include:
- Linked to 5 social media like Facebook, Instagram, YouTube, Twitter, Pinterest
- Currencies like EUR, GBP, USD, AUD accepted.
- Payment accepted via VISA, Mastercard, ApplePay, GooglePay, Paypal, Klarna, Amex, iDeal, Shop-pay, VIP Club and Subscription.
Through this website, the Company would be able to use its core strengths like digital social media, influencer marketing across a database of over 10k influencers / conversational commerce to sell KINN products through web across Europe.
In this website, Crowd will be the exclusive digital distributor for the KINN’s high-quality home-cleaning and laundry-care goods in all EU markets other than the UK.
CM8 shares have delivered impressive returns of 64.71% and 7.69% in the past three months and last month, respectively. On 15 June 2020, CM8 shares were on trading halt pending a material announcement related to the potential marketing service agreement. CM8 has a market cap of A$8.87 million and ~ 316.81 million outstanding shares.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.