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Penny Stocks often described as stocks trading for less than a $ are boon for small time investors. Due to it is low prices, many small-time traders and investors manage to put their money to reap benefits from it.
However, being highly volatile and speculative, one should be cautious while investing in these stocks. Wise and experienced investors with high risk bearing tolerance usually invest in such stocks.
Source: Copyright © 2021 Kalkine Media Pty Ltd
On 25 March 2021, at the end of the trading session, NZ’s benchmark index S&P/NZX 50 ended in green with 12,388.06 basis points, up by 0.24%. This index got full support from other indices like S&P/NZX SmallCap, which rose by 0.42% from its last close, while S&P/NZX All Energy increased by 0.79%, and S&P/NZX All Industrials noted a rise of 0.26% from its previous close as well.
Against the given backdrop, let us now look at the 5 NZX penny stocks that are attracting the investors.
Blis Technologies Limited (NZX:BLT)
Source: Copyright © 2021 Kalkine Media Pty Ltd
Blis Technologies Limited recently launched ‘BLIS Q24™’, a patented probiotic strain, which is an important component in its latest cosmetic skincare product line.
This new product ‘Live Probiotic Hydration Serum powered by BLIS Q24™’, will be introduced under “Unconditional Skincare Co.” and is also available online for those customers who prefer shopping digitally. Other products like skincare for face and personal care are under development and will soon see the shelves.
Research says that BLIS Q24™ which goes for all types of skin, stimulates skin health and its constant usage helps in reduction of skin ailments like acne, dryness, blemishes etc.
With probiotic skincare expected to become a vogue in 2021, BLT is optimistic about its new product and wants to cash in the opportunity.
On 25 March 2021, at the end of the trading session, BLT was up by 10.94% at $0.071.
Asset Plus Limited (NZX:APL)
Property entity, Asset Plus Limited announced that The Eastgate Shopping Centre in Christchurch, its non-core asset, will be sold off to a NZ based private investor at a cost of $43.45 million. As of now, the purchaser has released $1.5 million to APL.
The Company’s AFFO is likely to decline by 0.45 cps and gearing to 0% following the sale settlement. Moreover, decline of $90 million from $130 million in banking facility limits is expected from this move. This would strengthen APL’s balance sheet.
The sale proceeds would be diverted towards the repayment of debt. The remaining cash balance would support other developmental activities like completion of the Munroe Lane development.
On 25 March 2021, at the end of the trading session, APL was flat at $0.340.
ArborGen Holdings Limited (NZX:ARB)
ArborGen Holdings Limited notified the market that ArborGen Inc., its wholly owned subsidiary in the US, has been sanctioned 2nd funding of US$1.95 million under the CARES Act Paycheck Protection Program (PPP) from the Small Business Administration (SBA).
Under its terms, SBA will forgo the said loan amount if all the employees are on the payroll of the Company for 8 weeks, plus, the amount received is used in meeting the payroll costs, rent, utilities payments etc. It is pointed that minimum 60% of the money which is utilized towards payroll costs must be inclusive of salaries/wages, medical/sick leaves, or premiums of group health insurance.
Last year, ArborGen availed a PPP loan facility of $2.335 million amid the uncertainties arising out of the pandemic.
On 25 March 2021, at the end of the trading session, ArborGen was down by 2.37% at $0.165.
Cavalier Corporation Limited (NZX:CAV)
In its recently declared half-year results, Cavalier Corporation Limited, which functions across soft flooring sector reported an impressive performance for H1FY21. The Company’s PAT went on a climb at $4.3 million with EBITDA on $4.8 million, up 61% on pcp.
With the gain on the sale of the Auckland based property and increased woollen carpet sales, CAV got a boost of $26.3 million as surplus liquidity.
Cavalier introduced a new range of affordable, plus, distinctively designed carpets under the brand name ‘Bremworth’ in H1FY21.
Moreover, in H2FY21, the Company plans to start a new Bremworth marketing drive as a part of its growth strategy.
On 25 March 2021, at the end of the trading session, CAV was down by 2.86% at $0.340.
Cannasouth Limited (NZX:CBD)
Biopharma entity, Cannasouth Limited recorded $131,000 as operating revenue for the six months ended 31 December 2021.
However, there was a $3.5 million loss before tax owing to foray into NZ’s emerging medicinal cannabis market. CBD maintained a steady balance sheet with $9.2 million as cash in hand towards the end of the reporting period.
Moreover, the Company has two JVs, namely, Cannasouth Cultivation Ltd and Midwest Pharmaceutics NZ Ltd.
CBD believes that with judicious use of cannabis medicines, the present health and well-being product markets will witness a rise in its future demand of the herb.
On 25 March 2021, at the end of the trading session, CBD was up by 5.88% at $0.540.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)