Do 4 NZX penny stocks have potential to be multibaggers?

Highlights

  • Penny stocks are mostly illiquid and might hold the potential to be multibaggers, providing massive gains to investors in a short span.
  • Bremworth would be holding its Annual Meeting virtually on 25 November.
  • Recently, the Court of Appeal had removed all the accusations against The New Zealand Refining Company with regards to climate change proceedings.

Low-priced stocks trading at less than NZ$1 qualify as penny stocks. These cheap stocks might appear attractive to potential investors, however, are not risk free.

They are mostly illiquid and might hold the potential to be multi-baggers, providing massive gains to investors in a short span. 

On the given backdrop, let’s skim through NZX-listed penny stocks which might prove to be multi-baggers.

NZX penny stocks

Image source: © 2021 Kalkine Media New Zealand Ltd, data source- Refinitiv

ArborGen Holdings Limited (NZX:ARB)

NZ’s biggest commercial international seedling provider ArborGen Holdings Limited caters to more than 1K clients annually throughout an array of market divisions.

On 19 August, the Company held its ASM wherein it discussed its vision, March 2021 results, customer conversion to advanced genetics, role in climate change, leading-edge biotech, FY2022 outlook, etc.

With a trading volume of 103,151, ArborGen ended the day’s trading session on 26 October at NZ$0.28, up by 1.82%.

Also read; 5 Interesting NZX Stocks To Watch Today- CBD, MEL, FCT, PEB, ARB

Bremworth Limited (NZX:BRW)

Established in 1984, Bremworth Limited (earlier known as Cavalier Corporation) is engaged with the broadloom carpet and rug business.

Lately, the Company has provided an update regarding its Annual Meeting, which would be conducted virtually on 25 November.

Bremworth closed the trading session of 26 October, lesser by 2.63% at NZ$0.74. Also, the stock noted a trading volume of 323,963.

Did you read; Would These 6 Stocks Shine Or Fade On NZX Today? CAV, EVO, TRU, MWE, PX1, CBD

The New Zealand Refining Company Limited (NZX:NZR)

Functioning as an independent fuel infrastructure entity, The New Zealand Refining Company Limited provided an update a few days ago with regards to a climate change legal procedure.

On 21 October, that the Court of Appeal had removed all the accusations against The New Zealand Refining Company.  A few days ago, the Company’s name was dragged in one of the seven defendants in proceedings to the High Court with regards to carbon emissions from the defendant’s activities.

On 26 October, with a trading volume of 81,225, The New Zealand Refining Company was at NZ$0.88, increasing by 1.15%.

Do read; Why Are These 6 Stocks Turning Heads On NZX-NZR, MCK, KPG, FCG, WDT, SVR?

Wellington Drive Technologies Limited (NZX:WDT)

Leading the IT sector in IoT solutions and devices, Wellington Drive Technologies Limited has an international network spread across various nations.

Earlier by August-end, the Company conveyed to the market its ECR®2 motor, which was unveiled in the latter part of 2016. Following its constant acceptance, ECR 2 had achieved the three millionth milestone.

By the end of the market session, on 26 October, Wellington Drive Technologies noted a trading volume of 245,265, while the stock declined by 1.05% at NZ$0.188.

Did you miss reading; Will The 6 NZX Stocks Help To Diversify Your Portfolio- THL, AMP, WDT, RUA, CBD, PEB?

Bottom Line

Penny stocks mostly have low-market capitalisation and trade is less quantity but could have the potential for giving multi-bagger returns. These multi-bagger stocks usually undervalued. They have solid fundamentals and healthy balance sheets, with prospects of making big in the long term.

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