Which are 5 hot penny stocks on NZX?


  • Penny stocks are stocks that trade at a lower price and are majorly offered by low market-cap companies.
  • However, they are illiquid and risky in nature.
  • Arborgen Holdings, NZ Windfarms, and Wellington Drive are few stocks that have performed well.

Penny stocks are stocks that have low-cost but they can prove to be highly rewarding compared to other stocks. However, they are susceptible to huge risks due to their high sensitivity to market fluctuations.

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Penny stocks are majorly traded over the counter OTC), however, some are traded on major exchanges.

Here is the list of 5 NZX-listed penny stocks that are trading in green.

ArborGen Holdings Limited (NZX:ARB)

Arborgen Holdings operates in forestry genetics and is the largest tree seedling provider across forestry markets. It released its FY21 results on 19 August.

ARB reported a robust annual performance despite challenges faced by COVID-19. The Group reported a record EBITDA of $5.4 million with net cash from operating activities reaching $9.9 million. However, seedlings sales’ volume was down by 10% to 391 million units due to the COVID-19 impact.

Also read: Which are five popular capital goods stocks in New Zealand?

Arborgen plans to be a part of the forest carbon solution with participation in reforestation and carbon project providers.

On 20 August, ARB ended the trading session flat at $0.315.

NZ Windfarms Limited (NZX:NWF)

NZ Windfarms is NZ’s windfarm operator and owner.

In May, NWF announced the Volume Variable Fixed Price Agreement, which will apply to 25% of its output from 1 October 2022 through 30 June 2023. The rates will be based on the fact that power prices have risen significantly.

Also read: Why should investors keep penny stocks on their radar?

On 20 August, NWF ended the trading session at $0.26, down 5.45% from the previous close.

Wellington Drive Technologies Limited (NZX:WDT)

Wellington Drive Technologies is an NZ-based supplier of innovative electronic and digital answers.

WDT announced that Greg Balla is the Company’s new CEO and has started his role on 9 August. The Company announced that with Greg's arrival, Gottfried Pausch's interim tenure as the Interim CEO has come to an end.

The Group also revised its revenue guidance from US$45 million to US$50 million, up from the previous range of US$41 million to US$46 million.

On 20 August, WDT ended the trading session flat at $0.115.

Geo Limited (NZX: GEO

Geo Limited is an NZ-based Software that operates as a Service (SaaS) business.

Geo announced Rod Snodgrass will be the Chairman of Geo effective 1 September 2021. It has also hired Ana Wight as an Independent Director of the firm from 1 January 2022.

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In August, Geo stated that the Group’s business in Australia had stayed resilient with stable customer activity even after lockdowns in the country. New customer sales rose by 40% on H2 FY21, in June and July.

On 20 August, GEO ended the trading session at $0.133, down 1.74% from its previous close.

Geneva Finance Limited (NZX:GFL)

Geneva Finance provides finance and finance-related services to consumer credit as well as SME markets.

On 18 August, The Group announced that it had postponed its Annual Shareholder meeting that was supposed to occur on 24 August. The decision comes as New Zealand moves to Alert Level 4.

On 20 August, GFL ended the trading session at $0.77, up 8.45% from its previous close.

Bottom Line

While penny stock trading can result in substantial returns, it also carries the danger of losing a considerable amount of money in a short period of time.

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



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