WDT, GEO, ALF: Three NZX-listed penny stocks with over 40% YTD gains

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WDT, GEO, ALF: Three NZX-listed penny stocks with over 40% YTD gains

 WDT, GEO, ALF: Three NZX-listed penny stocks with over 40% YTD gains
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Highlights

  • The S&P/NZX SmallCap Index ended the trading session at 90,789, up by 0.64% on Monday.
  • Wellington Drive shares have delivered a YTD return of over 135%.
  • Geo shares have rallied over 54% YTD and expects its growth to accelerate. 

The benchmark S&P/NZX 50 Index ended the day 0.46% higher at 11,977.77 on Monday amid stricter sanctions executed on Russia over the weekend.

The S&P/NZX SmallCap Index ended the trading session at 90,789, up by 0.64% on Monday. If you are looking for a few stocks that were not affected by their peers who did not perform well, here are three NZX-listed stocks delivering over 40% YTD returns.

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Wellington Drive Technologies Limited (NZX:WDT)

Leading provider of IoT solutions, Wellington Drive reported a 72.1% increase in its full-year revenue to $64.2 million on pcp. EBITDA rose from $1.2 million on pcp to $2.6 million in the period. This comes despite facing factory closures and supply-chain hurdles.

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The Group expects to continue growing in FY22 and predicts growth of nearly 25% to around US$60 million. WDT expects EBITDA to be between $4.5 million to $5.5 million for FY22.

The stock has delivered a YTD return of over 135% and has grown 98.9% in the past 1 year. WDT ended the day 1.63% in red to close at $0.181.

Geo Limited (NZX:GEO)

Software as a service firm Geo’s revenue declined by 21% To $1.7 million, EBITDA loss from operations rose 108% to negative $0.7 million and statutory net loss increased by 156% to negative $1.5 million in H1 FY22 to pcp amid COVID lockdowns. However, Group’s ARR from new customers rose 98.4% in the period on pcp.

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Geo is creating a senior executive team in the UK by posting its Head of Sales, Andrew Young. The Group expects growth to accelerate and existing cash reserves to maintain material product and platform upgrades.

Geo price has rallied over 54% this year and above 60% in the past 1 year. Geo ended the day 1.53% in green to close at $0.133.

Allied Famers Group Limited (NZX:ALF)

Rural service and finance company Allied Farmers reported a net profit before tax of $1.43 million for H1 FY22.

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The strong result came on the back of the inclusion of the NZ Rural Land Management GP Ltd (NZRLM) contribution for the first time in H1. Moreover, the NZ Farmers Livestock Limited (NZFL) contribution was much higher than the previous interim period.

The Group continues to focus on growth in EPS and using its balance sheet to build shareholder value.

Allied Framers’ shares have delivered a year-to-date return of over 43% and have grown 65% in the past 1 year. ALF ended the day 2.38% in green to close at $0.86.

Bottom Line

Investing in penny stocks may look lucrative due to high returns offered in a short period of time, but there are many risks involved in the same. Hence, before investing in penny stocks, adequate due diligence and research is required.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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