Why are these 5 NZX penny stocks catching investors’ attention in 2021?

Highlights 

• Penny stocks are the low-priced stocks that have a great potential for growth but can be risky.
• ArborGen Holdings declared the sale of its ANZ business for $22.25 million on 1 November.
• Geneva Finance announced an interim dividend of 1.25cps on 8 November.

 

Penny stocks trade at a low price and are mostly offered by the companies that have a low market capitalisation. These stocks are low cost and illiquid in nature as the companies issuing them are relatively unpopular.

These stocks possess a great potential for growth but are also risky as they are quite vulnerable to market fluctuations.

Let’s glance through the performance of these 5 NZX penny stocks that may catch your attention.

Image source: © 2021 Kalkine Media, Data source- EODHD/Others

Geo Limited (NZX:GEO)

Smart software solutions provider, Geo, announced that its annual meeting would occur online on 29 November. Geo notified that its shareholders would be asked to consider authorising the issue of 5,971,719 options to obtain shares in Geo to Scott Payer, Chief Revenue Officer of Geo, pursuant to the Employee Share Option scheme of the Company.

Scott will be granted 8,245,249 options in 4 tranches with the first tranche already granted.

GEO ended the day 1.16% in green to close at $0.174.

Bremworth Limited (NZX:BRW)

Engaged in the broadloom carpet and rug business, Bremworth notified the market that it would conduct its annual meeting online on 25 November.

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The Group also informed last month that Rachel Walsh had stepped down from his position of Director. Bremworth is in a strong financial position and seeks to restore wool’s share of market as consumers seek more natural choices.

BRW ended the day flat to close at $0.75.

ArborGen Holdings Limited (NZX:ARB)

Commercial international seedling provider ArborGen Holdings announced that it had made a deal to sell ArborGen ANZ for $22.25 million to Geyser. This comes after ARB undertook a strategic review.

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The Company wants to increase sales of its higher-margin proprietary advanced genetic products in the US. The sale will give ARB the flexibility to invest in developing its high-growth US and Brazilian businesses while exploring prospects in carbon-related segments.

ARB ended the day flat to close at $0.275.

The New Zealand Refining Company Limited (NZX:NZR)

Independent fuel infrastructure entity, Refining NZ, remains centered on ending discussions of the Terminal Services Agreement (TSA). This comes after putting signature on term sheets with customers and obtaining consents for converting the refinery to import pre-refined fuels.

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Concluding TSAs is the crucial move that remains. Arrangements for a well-managed transition in H1 2022 remain on track.

NZR ended the day flat to close at $0.87.

Geneva Finance Limited (NZX:GFL)

Finance and financial services provider to consumer credit and SME markets, Geneva Finance, declared an interim dividend of 1.25cps, due to be paid on 30 November 2021.

GFL expects a positive impact on full-year results, though contingent on the term and occurrence of any further COVID-19 curbs. It anticipates its unaudited results to be 21% above previous year at $3.96 million.

GFL ended the day 2.37% in red to close at $0.74.

Bottom Line

Investing in penny stocks can give considerable gains while proving equally risky of losing substantial investment.

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