Do these 6 technology Penny Stocks have a huge growth potential?

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Penny stocks have low market capitalisation and low prices of less than $1. Penny stocks are speculative in nature, therefore, investors willing to take risks, should go for penny stocks. However, investment in right penny stocks can help investors make big profits on small amount invested.

To invest in penny stocks, one must have a high-risk tolerance, a long-investment time frame.  

In the technology space, there are some penny stocks that have a huge potential for growth. Even during the coronavirus pandemic, some of these companies did well due to increased dependence on technology. Some of these penny stocks have either listed or thinking of listing on the ASX.

Let’s look at six technology stocks whose share price is less than NZ$1 each.
PaySauce Limited

PaySauce (NZX:PYS) is a technology company that offers HR solutions to small and medium businesses. The Company maintained its strong growth despite the challenging circumstances in 2020 driven by the COVID-19 pandemic. In its third quarter FY21 results announced on January 14, 2021, the Company showed a robust revenue growth.

Key highlights of Q3FY21 included total revenue growth by 44% to $569K over the same period last year. The number of New Zealand employees paid through PaySauce software rose by 34% to 17,944 people. In this quarter itself, PaySauce added more than 300 new clients. These included new businesses and established ones.

CEO and Cofounder of PYS, Asantha Wijeyeratne, said that increased growth of the platform indicated the confidence that small businesses had reposed in PaySauce platforms. Going forth, the Company plans to increase its footprint in New Zealand.
Also Read: PaySauce (NZX:PYS) revenue grows 44%, Company gives credit to small businesses for the rise 

On February 22, 2021, the stock was trading flat at NZ$0.290.

Plexure Group Limited
Plexure Group Limited (NZX: PX1) is a Company that creates mobile engagement software for companies to develop connections with their potential clientele with the help of appropriate tools for boosting their engagement.

In the first half of FY21, the Company focused on its financial footing. Although the Company didn’t grow as much in the first half, the Company ended the half year with more than 200M users on the platform with customers in 60 countries using 40 different languages. 

Going ahead, its strategy will continue to focus on Quick Service Restaurant (QSR) and Grocery verticals and delivery of mobile customer engagement, loyalty management and AI-driven data analytics.
Also Read: Plexure (ASX:PX1) makes its debut on the ASX
Plexure also listed on the ASX and started trading on November 25, 2020.

On February 22, 2021, the stock was trading up by 1.03% at NZ$0.980.

TruScreen Limited
TruScreen Limited (NZX:TRU) provides a real-time screening solution for the people who don’t have access to laboratory Cervix cancer screening. In the healthcare technology segment, the Company beat all COVID-19-related restrictions and did extremely well.  

The half-year results till September 30, 2020, revealed a 80% growth in operational SUS (single-use sensors) sales volume as compared to the previous year.

The Company listed on the ASX last month in a compliance IPO. The IPO helped to raise $2 million from Australian investors. It plans to list on the ASX shortly to promote its technology there. It plans to expand in markets such as China and Vietnam in a big way.

On February 22, 2021, TruScreen stock was down by 3% at 0.097, at the time of writing this article.

Wellington Drive Technologies Limited
Wellington Drive Technologies Ltd (NZX:WDT) is a supplier of technologies used in refrigeration. Its products range from temperature control solutions to cloud-based connections.

In its trading update, the Company reported a revenue of NZ$10.4M for Q4, ending December 31, 2020. 

The year’s revenue was $NZ36.9M, down from $61.7M in 2019 due to the previously disclosed impacts of COVID-19 on customer demand.

Cash as on December 31, 2020, was to the tune of NZ$4.6M, with NZ$1.9M of unused debt facilities.

The Company expects 2021 to be an important year, as it is planning the launch of three products in IoT and motor space. The Company update revealed that the strategy to develop new products and the focus on business development is already paying off and will yield more results in 2021.

The Expansion of the market share in Europe and south American markets is also on.

On February 22, 2021, Wellington Drive was at NZ$ $0.86, down 4.44% at the time of writing this article.

Rakon Limited
Rakon Limited (NZX:RAK) designs and manufactures advanced frequency control and timing solutions. Its three main segments are: Global Positioning, Telecommunications and Space, and Defense.

Its revised EBITDA update for FY21 till March 31, 2021, is in the range of NZ$20M to NZ$22M. This compares to the previous guidance for FY2021 of NZ$16M to NZ$18M.

The revised guidance is based on the financial performance till December 31, 2020, and updated demand forecasts, firm orders, and expected expenditure.
Do Read: Rakon (NZX:RAK) shares light up after obtaining several significant orders

With the global increase in the demand of 5G networks, as most people require high speed internet for working from home, the demand for Rakon products has also witnessed a surge.

On 22 February 2021, the stock was trading up by 2.13% at NZ$0.960, at the time of writing this article.

Geo Limited
Geo Limited (NZX: GEO) provides software for field service and field sales teams with advanced mobile workforce management platforms. The Company caters to around 20,000 customers across 30 countries.

The company performed well in FY2020 and in FY2021, and is focused on developing Australian market, as many professionals are increasingly adopting digital solutions. In line with its plans to focus on the Australian market, the Company has also received a research grant of half-a-million dollar from the Australian government. The Company plans to double its market share in Australia in the next three years.

The Company is seeing these professionals adopt digital solutions at an accelerated rate. This is especially true for the Australian market after the company refocused its efforts to acquire clients in this region and pulled back from the efforts to acquire global clients.

GEO also has planned an ASX listing after it grows a bit in the Australian market.

On February 22, 2021, the stock was trading down by 1.16% at NZ$0.85, at the time of writing this article.



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