- Penny Stocks are risky, but due to their volatile nature can give good rewards to investors.
- They are liked by risk-taking investors.
- Some of the Companies in this space have high-growth potential.
Penny Stocks are favourites of investors who like to have firm faith in a company’s growth plans. Penny stocks are darlings of some investors because of their low prices. These are some stocks through which investors can make a quick profit.
Let’s look at some penny stocks that are performing well on the NZX.
Geo Limited (NZX: GEO)
GEO is a futuristic tech company, whose stock was trading up by 5.56% at NZ$0.133.
The stock has gained since it declared its 1HFY21 results. In its results, it reported an improvement of 91.1% in its EBIDTA to NZ$2.1M. The Company is taking more research and development-related initiatives and has been given a grant by the Australian government. It may also list itself on the ASX in the later part of the year.
NZ Windfarms Limited (NZX: NWF)
NWF is a green energy company. Its stock was trading in green on Thursday, up by 2.38%, and priced at NZ$0.215. NWF has a growth potential as shown in its half-year results and it was on the expected lines. Net profit before tax was NZ$3.2M, over NZ$5M, for the whole of FY20. This is one of the few companies that rewarded its shareholders with dividends even during COVID-19 times.
Also Read: Did You Know These 5 NZX-Listed Stocks Could Bring You Good Growth?
Allied Farmers Limited (NZX:ALF)
AFL is a company that operates in rural space, selling livestock and several other services. Its stock was trading flat at NZ$0.560 at the time of writing this article. Recently, ALF welcomed the announcement made to the NZX by New Zealand Rural Land Company Limited (NZX:NZL) regarding its pact to own the company. It may be recalled that ALF owns a 50% interest in New Zealand Rural Land Management Limited Alliance.
ArborGen Holdings Limited ( NZX:ARB)
ARB is another small company with good growth potential. Its stock was in green, up by 1.18% and priced at NZ$0.171. The Company has shown a lot of resilience during the COVID-19 pandemic and its half-year performance reflects a 200% rise in operating earnings, and its operating cash flows is also in a good position. ARB has plans to diversify into horticulture crops, like tea, hop, and blueberries.
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Burger Fuel Group Limited (NZX:BFG)
After a bad start to 2020, BFG has been growing by opening more stores of its three brands at multiple locations. It has expansion plans for the entire NZ, and its three brands are - flagship Burger Fuel, Winner Winner, and Shake Out. The Company started getting good revenues in the second half of 2020, and is set to grow more after the Trans-Tasman bubble opened between Australia and NZ.
The stock was trading flat at NZ$0.385.
Bliss Technologies Limited (NZX:BLT)
BLT stock was trading 3.08% up on Thursday at NZ$0.067. In its earning report released in February, BLT has grown both in revenues and EBITDA. The trading revenues were up 10%, and EBIDTA gained 12% in the previous year. It’s a high-growth company, which makes probiotic products and invests in markets and products as its main strategy for future growth.
Cooks Global Foods (NZX:CGF)
CGF is a Company that operates across geographies. The stock was trading flat at NZ$ 0.036. In the first half of FY20, the sales were down by 50% due to COVID-19-induced travel restrictions. But its sales picked up in the second part of the year due to the acquisition of new coffee brand. Its trading performances post-lockdown particularly in the UK and Ireland have been very encouraging.