Penny stocks are small-cap companies and are usually ideal for risk-taking investors. They can be either a hit or a miss for investors as the issuer companies of penny stocks can either grow into a big firm and result in higher returns or they could tank in initial years and incur big losses.
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The benchmark S&P/NZX 50 Index lifted 0.13% to 12,731 points on Thursday. The stock market was up just 1% for the entire month of April.
It would be useful to look at some penny stocks as they are delivering good growth. Let’s look at these 5 NZX penny stocks that are trading for less than $1.
Geo Limited (NZX:GEO)
Geo declared that its Non-Executive Chairman and major shareholder Roger Sharp wants to retire as the Chairman on or before the Company’s AGM due in November 2021. Mr Sharp aims to look for a re-election as a Non-Executive Director at the AGM.
Geo also agreed to a long-term incentive and retention package with Chief Revenue Officer Scott Player this month. This would create multi-year equity incentives, which will be aligned to minimum revenue growth targets.
On 30 April, GEO ended the trading session at $0.139, down 2.11% from its previous close.
Rakon Limited (NZX:RAK)
RAK continues to witness a rise in demand for its products from the telecom sector, especially after the 5G boom across the country.
Rakon anticipates an underlying EBITDA in the range of NZ$27 million and NZ$32 million in FY22 while underlying EBITDA remains in the range of NZ$20 million to NZ$22 million for FY21.
The guidance for FY22 has come after Rakon’s announcement in February that it had procured significant orders that were likely to increase the company’s revenue for FY22 by at least 20% on the previous year.
On 30 April, RAK ended the trading session at $0.9, down 1.1% from its previous close.
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NZ Windfarms Limited (NZX:NWF)
The company announced this month that it had come to an accord with terms of its third valuable volume fixed-price agreement for 100% of its production from 1 January 2022 to 30 September 2022.
NWF Board expects FY2022 EBITDA to be materially higher in FY2022 than the current year.
On 30 April, NWF ended the trading session flat at $0.21.
SmartPay Holdings Limited (NZX:SPY)
Samrtpay provided a Q4 trading update with the Australian acquiring revenue reflecting a robust growth of 97% YOY for the March quarter. Also, the Australian acquiring margin has also been witnessing a rise.
The Group’s NZ business also provided stable and steady revenue contribution through the quarter.
On 30 April, SmartPay ended the trading session at $0.905, down by 0.55%.
Wellington Drive Technologies Limited (NZX:WDT)
WDT released its 1QFY21 trading statement, reporting that it had returned to profit following a difficult year. It posted an EBIT of NZ$0.5 million, which met expectations and reinforced WDT's return to profitability.
Further, the company revealed its medium-term growth and profitability approach for 2021.
On 30 April, WDT ended the trading session at $0.093, up by 3.33%.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)