- Penny stocks don’t cost much money and have huge potential.
- Cannasouth announces half-year results in line with its business plan.
- MHM Automation has scheduled its Annual Meeting at the end of next month.
Penny stocks because of their low prices allure investors, especially small-time traders and new entrants to the stock market, for one can easily invest in many shares by just investing a small amount.
Though being characterised by their volatile nature and low liquidity, not all penny stocks are destined to fall. Some of them are attractive companies with good financials and growth potential.
Having said that, let us cast a glance at the five NZX penny stocks.
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Cannasouth Limited (NZX:CBD)
Based in Waikato, Cannasouth Limited develops medicinal cannabis products and has established itself as a leader in the medicinal cannabis industry in Aotearoa.
Recently, the Company had disclosed its half-year results ended 30 June 2021, wherein it recorded an operating loss of over NZ$1 million, which was in line with CBD's business plan, reflecting the ramping up of its investment to make the Company a leading medicinal cannabis company across the country.
Its cash position stood at NZ$4.63 billion towards the end of the period.
Moreover, during the said duration, CBD was granted the supply activity under its commercial medicinal cannabis Licence and successfully raised NZ$4.5 million through a share purchase plan and public offer.
The Company looks forward to achieving significant milestones in the coming months.
On 20 September, at the time of writing, Cannasouth fell by 2.44% at NZ$0.400.
MHM Automation Limited (NZX:MHM)
MHM Automation Limited is a famous manufacturer and distributor of automated systems for food processing and logistics companies across the globe. The Company has recently declared that its Annual Meeting was scheduled to be held in Christchurch on 29 October.
Also, the closing date for sending director nominations is 28 September.
Shares of MHM Automation declined by 1.52%, at NZ$0.650, on 20 September, at the time of writing.
Tower Limited (NZX:TWR)
Headquartered in Auckland, Tower Limited functions as an insurance company offering general and fire insurance. The Company has designed its new office space and has moved there.
The new office is specifically designed keeping in mind energy efficiency, which would promote the Company’s collaborative working, thereby help in transforming it into a digital and data-led insurer.
Tower decreased by 1.43% at NZ$0.690, at the time of writing, on 20 September.
TruScreen Group Limited (NZX:TRU)
TruScreen Group Limited had organised its online Annual Meeting earlier this month. Resolutions were passed for authorising the Board to fix RSM Hayes Audit Auckland’s remuneration as the auditor of the Company.
Among others, resolutions for electing and re-electing directors were also passed by the shareholders.
At the time of writing, TruScreen Group fell by 1.64% at NZ$0.060, on 20 September.
New Zealand Oil & Gas Limited (NZX:NZO)
Wellington-based New Zealand Oil & Gas Limited is an exploration company. It has recently been granted consent to takeover Amadeus Basin Assets by the Northern Territory Government.
It is noted that the said transaction was announced in May 2021, while its effective economic date is set at 1 July 2020.
At the time of writing, New Zealand Oil & Gas was trading flat at NZ$0.44, on 20 September.
With a vigilant and cautious approach, investors can explore penny stocks as per their risk appetite and might discover huge potential, thereby watch their investments grow.