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- The S&P/Small Cap Index closed 0.11% lower in the trading session.
- MPG, NZA and NZO are 3 NZX-listed penny stocks under $1 that delivered gains today.
- Proper research and a high-risk attitude are needed for investing in penny stocks.
The NZX 50 slid marginally by 0.01% on Wednesday. The NZ market benefitted from a rebound in dairy prices at the global dairy auction and after a positive session on Wall Street.
The S&P/Small Cap Index closed 0.11% lower in the trading session. However, few penny stocks on the NZX registered gains and defied the trend.
On this note, let’s see 3 penny stocks under $1 that made good gains in today’s trading session.
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Metro Performance Glass Limited (NZX:MPG)
MPG made robust sales in NZ before and after the COVID-19 lockdown with Australian Glass Group delivering an 11% revenue growth in spite of disruptions. The Group registered a 2% growth in revenue for the year to 31 March 2022, but it posted a net loss after a tax of $0.5 million in FY22.
MPG has a strong pipeline of work in Australia and NZ for the rest of the year due to an increase in demand for new residential construction activity despite capacity constraints.
MPG plans to provide a further update in its ASM due to be held on 9 August 2022.
Shares of MPG gained 5.88% in trading on Wednesday to close at $0.27.
NZ Automotive Investments Limited (NZX:NZA)
NZA is an integrated used automotive group based in NZ.
NZA’s revenue and income fell $0.1 million to $66 million in FY22 on pcp as COVID-19 disruptions affected the business. However, the Group’s balance sheet stayed solid with $3.8 million in cash and $8 million in net debt as of 31 March 2022.
NZA plans to pay the FY22 final dividend of 0.88cps on 23 June 2022. The Group’s retail automotive division is seeing improvements in sales and foot traffic in the early days of the new FY though uncertainty remains.
The Group remains well placed for growth as it attained higher efficiencies in the relocated vehicle processing hub, executed a plan to increase the dealership footprint and increased investment in sales and marketing.
Shares of NZA gained 6.33% in trading on Wednesday to close at $0.84.
New Zealand Oil & Gas Limited (NZX:NZO)
NZO has a range of discovery and production interests in Australia, NZ, the US and Indonesia.
NZO production costs fell $2.6 million for the quarter ended 31 March 2022 and the cash balance stood at $39.1 million as at 31 March 2022, up $5.6 million on previous quarter.
It also began equity raising of $25 million in April via the 1 for 2.7625 renounceable rights offer. The Group has undertaken many growth projects like investment in increasing production at the Amadeus basin, a potential new well at producing the Kupe gas field and support for Cue Energy.
Shares of NZO gained 4.17% in trading on Wednesday to close at $0.5.
Investors must be careful while investing in penny stocks as they are highly volatile and less liquid. Moreover, a high-risk appetite and proper research are needed to invest in penny stocks.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
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