Which are 5 NZX penny stocks worth exploring in October 2021?


  • Penny stocks are low-priced stocks and are usually linked to small companies that trade infrequently.
  • Investors must carefully invest in these stocks as they are volatile and have low liquidity.
  • These stocks majorly help small businesses in raising money through the public.

Penny stocks are stocks that trade at a very low price and have quite a low market capitalisation. They are also highly volatile as they are not traded in high volumes.

However, these stocks can be great investment options for new entrants as their low prices make them affordable options and can provide sizable gains sometimes.

Let’s look at the performance of these 5 NZX-listed penny stocks.


Image source: © 2021 Kalkine Media New Zealand Ltd

Bremworth Limited (NZX:BRW)

New Zealand’s wool carpet and rug business, Bremworth, was on a high as its synthetic carpet market fully pursued higher-quality wool carpet sales in FY21. The Group’s revenue was $111.6 million in FY21, down 5% on pcp with an EBITDA of $4.9 million and sales increasing by 17% YOY in the second half.

Bremworth rolled out new colour options, expanded retailer distribution networks majorly in Australia and introduced a distinguished brand approach in H2 of 2021. The Group plans to grow the demand for wool carpet and continue to invest in its transformation around sustainability, technology, and marketing.

DO READ: Which are 5 NZX stocks with a high dividend yield in October?

BMW ended the day 1.33% in red to close at $0.74.

Wellington Drive Technologies Limited (NZX:WDT)

Wellington Drive provides IoT solutions and cloud-based fleet management solutions. WDT recorded a 49.2% rise in sales on pcp to $30.6 million in the first half of this year. WDT also recently revealed that 3 million ECR2 motors had been produced since their introduction in late 2016.

RELATED READ: Are these 5 high-growth technology shares on NZX?

Before non-recurring costs, the Company forecasts EBITDA in the range of $3.5 million to $4.5 million in FY21.

WDT ended the day 0.78% in green to close at $0.13.

ArborGen Holdings Limited (NZX:ARB)

Leading forestry genetics provider, Arborgen, generated an EBITDA of $5.4 million in FY21 despite COVID-19-related delays. However, the Group reported a 10% drop in seedling sales to 391 million units over the period.

DO READ: Are these 5 NZX small cap stocks on a growth trajectory?

ARB's EBITDA goal for FY22 is between US$13 million and US$14 million.

ARB ended the day flat at $0.285.

Geneva Finance Limited (NZX:GFL)

Consumer credit and financial services provider, Geneva Finance, recently published its annual meeting results, where shareholders were asked to vote on 2 resolutions.

One was to re-elect Alan Leighton Maiai Hutchison as a Director of GFL, the other was that the GFL board will now be authorised to determine the auditor’s fees and expenses for FY22.

GFL ended the day 1.32% in green to close at $0.77.

NZ Windfarms Limited (NZX:NWF

A windfarm owner and operator, NZ Windfarms, notified the market on 28 September that it would hold its annual meeting for 2021 at 50 Mayoral Drive, Auckland, on 27 October allowing a gathering of up to 100 people.

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It will also hold the meeting online where investors can join in case meeting is prevented from happening in person amid COVID-19 restrictions.

NWF ended the day 2.13% in red to close at $0.23.

Bottom Line

Investing in penny stocks can provide good gains to investors, but they also hold an equal risk of losing substantial investment within a small time frame.

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



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