3 Telecommunications Penny Stocks To Watch Out For

Be the First to Comment Read

3 Telecommunications Penny Stocks To Watch Out For

 3 Telecommunications Penny Stocks To Watch Out For

Source: Robert Andrei Vagner, Shutterstock

Summary

  • The telecom sector played a crucial role during the pandemic and is expected to continue supporting many businesses hard hit by COVID-19.
  • The Government also took various initiatives, announcing investments in the sector to help businesses and households.
  • Flexiroam signed a deal with Split, under which the latter would be offered as a Flexiroam Wallet payment option to buy Flexiroam products.
  • Hubify Limited completed the acquisition of Net Hoster database assets.
  • Field Solutions received funds worth A$950K to connect the FSG Northern NSW Network with FSG Southern Queensland Network.

Telecom sectors play an essential role in an individual's life as it connects people within the country and worldwide via voice, text, video conferencing, and many more. The Australian telecom industry is considered one of the most competitive and mature telecommunication markets in the world.

Telecommunications, along with the technology sector, helped the economy stay connected during times when face-to-face interaction was out of the question.

Source: © wassup6730| Megapixl.com

According to a Deloitte report, the telecom sector is expected to support multiple industries recover from the pandemic-related losses and thrive in 2021. The industry would provide an opportunity to shape a new future of the businesses and customers on the strength of advanced wireless technologies like 5G.

Moreover, the Government in the federal budget announced a package towards the development of the telecom sector. The Government would invest A$4.5 billion investment in NBN Co to provide broadband to millions of families and businesses. An additional A$29.2 million would be spent to speed-up the 5G network roll-out.

On that note, let us look at three penny stocks from the tech sector.

 

Flexiroam Limited (ASX:FRX)

Flexiroam Limited is a super-connector that offers crucial links between touchpoints and information repositories. It has global connectivity in over 100 nations.

Flexiroam has witnessed a massive growth of over 108% in its share price in the last year. Recently, the Company, on 03 March 2021, announced its partnership with a leading Singapore and Malaysia-based FinTech company, Split. As per the deal between the parties, Split would be offered as a Flexiroam Wallet payment option to buy Flexiroam products. Also, the customers would be able to make payments in and up to three interest-free instalments.

The agreement between the parties is for the initial 18 months unless the parties decide to terminate the deal by giving a prior 30 days' notice before the agreement's expiry.

Further, Split and Flexiroam would endorse the service to their consumer networks to boost FRX's BNPL deals. In turn, Split would charge a transaction fee on the sale that is generated through its payment portal. After the technical integration, the service would be made available for free to all Flexiroam users from Malaysia and Singapore.

ALSO READ: A glance at three ASX Telecom Sector players- FLEXIROAM, Vonex, Uniti Group

Hubify Limited (ASX:HFY)

Hubify Limited is an industry-leading telecommunications company that offers managed service that is intelligent, trustworthy, and customised from a single source to its customers. It is also a global leader in IoT mobility and roaming solutions. In the last year, the Company witnessed a growth of 220%.

On 03 March 2021, the Company announced the completion of Net Hoster database assets' acquisition, with revenues pouring through to the Company from 1 March 2021.

Under the agreement, Net Hoster would provide Data, Voice, Mobility and Managed Services to business clients. On the other hand, Hubify would acquire 203 active accounts with annualised recurring revenues of more than A$1 million, specifically in QLD and Northern NSW. Projected EBITDA post synergies of A$0.4 million represents a 15% growth in annual EBITDA on 1HFY2021 run rate.

Field Solutions Holdings Limited (ASX:FSG)

Australia's top rural, regional and remote telecommunications carrier, Field Solutions Holdings Limited, has seen massive growth in its share price of 305% in the last year. In the previous four years, the Company has built its wholly owned & operated network throughout Narrabri and Moree Shires in Northern NSW.

Recently, the Company, on 25 February 2021, announced that it was granted A$950K funds to connect the FSG Northern NSW Network to the FSG Southern Queensland Network by NSW Cross Border Commissioner.

Source: © wassup6730| Megapixl.com

As per the announcement dated 25 February 2021, the project was expected to start in 90 days and complete in nearly nine months.

INTERESTING READ:

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK