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Highlights
- Penny stocks being low-cost sometimes tend to generate high returns, thus alluring investors.
- Burger Fuel Group appoints Tyrone Foley as its director.
- Radius Residential Care acquires Clare House, transaction to settle on 1 November.
Attraction towards penny stocks never seems to die down. Beginners and small investors often put their investments into these stocks as these with minimal pricing, often generate healthy and high returns.
With this background, let us quickly take a glance at the popular NZX penny stocks which are trading in red.
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Burger Fuel Group Limited (NZX:BFG)
Functioning for more than 20 years, Burger Fuel Group Limited is a renowned name in NZ’s restaurant sector. Today, the Company revealed the appointment of Tyrone Foley as its Director.
Why are these penny stocks trading in red on NZX?
It is noted that Tyrone was earlier the Chief Operating Officer of BFG and had resigned from the said post in September 2021. He has now rejoined the Board and will work as a director.
At the time of writing, on 28 October, Burger Fuel Group fell by 4% at NZ$0.36.
Related Read: Which 6 NZX stocks made the biggest moves in the market?
Rua Bioscience Limited (NZX:RUA)
Rua Bioscience Limited is a renowned medicinal cannabis provider of New Zealand. Recently, the Company had organised its ASM both in the physical mode in Gisborne as well as the online.
Interesting Read: Look at these 5 eye-catching NZX healthcare stocks
Its shareholders carried out resolutions for the re-election of Martin Smith as its director as well as empowered its Board for determining the fees and expenses of RUA’s auditor.
At the time of writing, on 28 October, Rua Bioscience declined 1.22% at NZ$0.405.
Radius Residential Care Limited (NZX:RAD)
Operating in the healthcare space, Radius Residential Care Limited offers residential aged care facilities. RAD has recently acquired Clare House, an Invercargill-based retirement village and care facility.
The transaction worth NZ$14.5 million is due to be settled on 1 November.
At the time of writing, on 28 October, Radius Residential Care was down 1.85% at NZ$0.530.
Bottom Line
Though marked with volatility, penny stocks are often touted to be multibaggers, hence it is advisable to include a portion of these stocks in one’s investment portfolio.