5 NZX stocks returning over 100% in 2021

Highlights

• The annual return of a stock shows the return generated by it in a year.
• Rakon expects to achieve an underlying EBITDA between $44 million to $49 million in FY2022.
• Move Logistics completed the retail bookbuild of new shares on 17 November while concluding its capital raise of nearly $40 million.

Every investor invests in a stock with the motive of making a return on their investment. The return is subjected to how well the Company performs in terms of earnings, stock prices, dividends, etc.

The annual return of a stock measures the increase in its value in a year.

Let’s glance through the 5 NZX stocks that are returning more than 100% in 2021.

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Rakon Limited (NZX:RAK)

Rakon expects to achieve an underlying EBITDA between $44 million to $49 million in FY2022, up from the previous guidance of $39 million to $44 million. The increase shows the certainty of 2 more months of good performance, a solid order book for the remaining FY2022 and the lessening of supply chain risks.

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Rakon will provide its H1 FY22 results on 25 November 2021. The stock has generated a 1-year return of 354.44%.

RAK ended the day 5.62% in green to close at $1.88.

Wellington Drive Technologies Limited (NZX:WDT) 

Wellington Drive, a manufacturer and supplier of energy-saving motors and fans across the globe, delivered strong trading results for the three months ended 30 September 2021. TWDT attained an EBITDA surplus of $2.65 million and a pre-tax net profit of $0.66 million for the FY21 to date.

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5 NZX stocks returning over 100% in 2021

WDT has maintained its EBITDA to be between $3.5 million and $4.5 million for FY21 despite present challenges related to COVID-19. WDT’s stock has produced a return of 172.06% in 1 year.

WDT ended the day 2.78% in green to close at $0.185.

Geo Limited (NZX: GEO)

Job management platforms provider, Geo, notified on Monday that its $1 million shareholder placement offer that was announced in October has closed with the oversubscription of shares. The placement offer is being undertaken to allow Geo’s shareholders to take part in its growth following the announcement of its placement offer to raise up to $6 million.

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The settlement and allotment of shares will be done on 3 December 2021, subject to shareholder consent at GEO’s AGM on 29 November 2021. Geo has produced a 1-year return of 160%.

GEO ended the day flat to close at $0.185.

Michael Hill International Limited (NZX: MHJ, ASX:MHJ) 

Jewellery retailer Michael Hill witnessed an outstanding year with strong same store sales growth and margin growth in all its markets in Q1 FY22 compared to the same quarter in FY21.

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The Group entered FY22 in a strong financial position and provided few strategic initiatives for the coming year in its AGM. MHJ has generated a 1-year return of 119.64%.

MHJ ended the day 4.07% in green to close at $1.28.

MOVE Logistics Group Limited (NZX:MOV) 

Transport and logistics company MOVE Logistics announced on 17 November that it had completed the retail bookbuild of its 1 for 3.06 pro rata renounceable entitlement offer of new shares at $1.74 per share. The Group has successfully completed the offer of raising $40 million.

The total funds raised from the Retail Entitlement Offer and Retail Bookbuild stood at $13 million. MOV has produced a 1-year return of 106.32%.

MOV ended the day 0.51% in red to close at $1.94.

Bottom Line

Looking at one-year returns can help investors make investment decisions.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)