5 Penny Stocks You Should Not Miss In March 2021- ARB, NWF, SVR, GEN, MPG

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Penny stocks are marked with volatility and have high risk appetite. Yet, if invested wisely and carefully, investors can reap benefits arising out of these. Since they are priced at a lower side, one does not need huge amount of money to invest in them.  Small-term buyers can also whip up quick gains when the stock price goes up and vice-versa.

On 19 March 2021, by the end of the market session, S&P/NZX 50 Index was at 8,067.240 basis points, up by 0.46%.

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With this backdrop, let us take a peek at the 5 NZX listed penny stocks.

ArborGen Holdings Limited (NZX:ARB)

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NZ’s forestry company, ArborGen Holdings Limited recently revealed on 2 March 2021 that its wholly owned subsidiary in the US, ArborGen Inc. has availed loan for the 2nd time, under the CARES Act Paycheck Protection Program (PPP) from the Small Business Administration (SBA).

According to the guidelines, the loan comprising of US$1.95 million, are be used towards meeting the expenses related to payroll costs as well as other business exigencies arising because of COVID 19. Further, for 8 weeks ARB’s employees should be kept on payrolls and funds should be utilized towards payroll expenses, rent, mortgage, and other necessary payments; a condition put up by SBA to waive off the loan.

It is noted that ARB received $2.335 million in May 2020 when it had applied for a PPP loan in the previous year, thus, allowing the Company to retain its employees amid the tough pandemic period.

MUST READ: Why Are These Stocks Gaining on NZX- BRM, FWL, AIR, AMP, ARB?

On 19 March 2021, by the end of the market session, ARB stock was up 2.41% at 0.170.

NZ Windfarms Limited (NZX:NWF)

New Zealand’s long term specialist wind farm owner and operator, NZ Windfarms Limited recently revealed its half-year results ended 31 December 2020. Its total revenues stood at $6.9 million in HY21. EBITDAF and NPAT were reported at $3.2 million and 0.32 million, respectively during the half-year period. The Company announced an unimputed interim dividend of 0.15 cps, which will be paid on 9 April 2021. Moreover, it expects EBITDAF for FY21 to be between $5.7 million- 6.3 million.

Also, NWF witnessed a change in its management. Christine Spring has joined the Board from 1 March 2021, following the retirement of NWF’s Director, Phil Lennon.

On 19 March 2021, by the time market closes, NWF stock was flat at $0.198.

Savor Limited (NZX:SVR)

NZ’s premier hospitality group, Savor Limited had announced on 10 March 2021, about its agreement to acquire the 3 renowned Auckland based Hipgroup venues- Amano, Ortolana and The Store, in order to strengthen its hospitality business.

The deal, which is expected to be settled on 8 April 2021, comprises of cash payment of $7.15 million, plus, ordinary shares worth $1 million in Savor Limited to be issued on the completion of the settlement. Also, $2.85 million as deferred cash payment will be paid over 12 months from the completion of the transaction.

The transaction is expected to enhance the Company’s EBITDA with $3 million, as well as, maintaining about $7 million as cash on hand. Thus, strengthening SVR’s balance sheet and future growth prospects.

On 19 March 2021, by the close of the market session, SVR decreased by 2.17% at $0.225.

General Capital Limited (NZX:GEN)

NZ’s financial services group, General Capital Limited had reaffirmed its credit rating of BB-. Equifax Australasia Credit Ratings Pty Ltd (Equifax) after examining the Company’s financial statements ended 30 September 2020, re-endorsed the rating, BB- indicating a stable outlook.

Equifax reported this rating as ‘near prime with low to moderate risk’ based on the submitted financial statements.

The Company is satisfied with the above-mentioned grade amid the challenges posed by the pandemic and the impact it had on its business operations.

On 19 March 2021, by the close of market session, GEN stock was up 1.67% at 0.059.

Metro Performance Glass Limited (NZX:MPG)

NZ’s leading glass supplier and manufacturer, Metro Performance Glass Limited, had recently revealed its trading update and guidance for FY22.

Simon Mander, CEO, MPG expressed that despite facing uncertainties amid COVID-19, the Company has remained resilient and was accustomed to this changed scenario across the globe. While commercial construction activity did witness a slight bump, NZ’s residential sector posed an impressive growth, supported by government aided relief packages and cheap interest rates.

Metro anticipates Group EBIT between $16.5 million -$18 million for the year ended 31 March 2021, subject to economic conditions.

MUST READ: Are These NZX Stocks Movers Of The Day- CRP, APL, PFI, MPG, WBC?

On 19 March 2021, by the end of the market session, MPG stock was up by 4.23% at $0.370.


 

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