- Penny stocks are low-priced stocks.
- However, investors need to consider many factors before investing in these stocks.
- Let’s see what makes these low-priced stocks have high potential.
Stocks that trade for less than a $1 are known as penny stocks. They are very volatile, and due to their low price, are subject to rapid price fluctuations.
Because penny stocks need less cash to invest, they appeal to rookie traders and investors.
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New Zealand share market index shed 114.8 points Wednesday, closing at 12,581.6 points after gaining 1% the previous day.
Let’s have a look at these 4 penny stocks that have been gaining momentum.
Geo Limited (NZX:GEO)
Geo Limited announced in April that Roger Sharp, the company's non-executive chairman and a major shareholder, wishes to resign. He does, however, desire to be re-elected as a non-executive director of the company.
The Group also reached an agreement with Scott Player, Chief Revenue Officer, on a retention plan, which includes long-term stock incentives tied to minimum revenue growth targets.
On 17 June, at the time of writing, GEO was trading at $0.134, up 2.29%.
Allied Farmers Limited (NZX:ALF)
Allied Framers provided the projected earnings update, after its associate New Zealand Rural Land Company Limited (NZX:NZL) completed the acquisition of previously disclosed dairy properties. As of June 30, 2021, the Group estimated that attributable profits from NZRLM would be between $500,000 and $600,000 pre-tax.
ALF did not issue earnings projection for the entire group but will do so when earnings become certain.
On 17 June, at the time of writing, ALF was trading flat at $0.59.
EROAD Limited (NZX:ERD)
On 3 June, ERD stated that its annual shareholders meeting will be held in July 2021, with the specific day and location to be disclosed later.
The Company also stated that, in accordance with NZX rules, the deadline for director nominations will be June 21, 2021.
The Group also recently collaborated with a telematics solutions company focused on trailer and asset operations, safety, and health, Phillips Connect, to attract new North American medium and enterprise fleets.
On 17 June, at the time of writing, ERD was trading flat at $6.05.
Cavalier Corporation Limited (NZX:CAV)
Cavalier Corporation’s well-known brand Bremworth has joined the New Zealand Farm Assurance Programme (NZFAP), which assures customers about the integrity, biosecurity, environmental sustainability, and welfare of NZ's primary sector goods.
Bremworth has begun acquiring NZFAP-approved wool and plans to obtain all of its wool from approved sources in the near future.
On 17 June, at the time of writing, CAV was trading flat at $0.4.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)