Why to explore 5 NZX penny stocks at the end of July 2021?


  • NZ companies saw a bustling June quarter, marked with increased business sales, new market developments, various strategic alliances, etc.
  • Underpinned by increased same-store sales, Michael Hill International witnesses a solid performance in the June quarter.
  • Blis Technologies secures the approval of the commercialisation of its probiotic strains in India.
  • Owing to the recent flooding in Canterbury, Tower provided an update regarding the financial impact of the same.

In this dynamic world, a company encounters many changes and makes significant announcements, which may be related to a revision in its trading guidance, change in its executive leadership, entering a strategic partnership, etc., which affects the functioning of the company.

Many Kiwi companies witnessed a busy and active second quarter of the calendar year 2021, marked with significant press releases, thereby resulting in an upward or downward shift in its stock prices.

With this background, let us now look into 5 NZX penny stocks worth investing towards July end.

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Michael Hill International Limited (NZX:MHJ; ASX:MHJ)

A famous specialty retailer of jewellery Michael Hill International Limited runs 290 stores throughout Australasian and Canada regions. For its quarter ended 30 June 2021, the Company revealed that its same-store sales for New Zealand climbed by 15.7% on pcp.

Further, the Company expects its full-year EBIT to be in sync with its forecasts.

Also, its management stated that MHJ witnessed growth in all its markets, with increased digital sales, thereby delivering impressive Q4 results.

With a net cash position of about $70 million, the Company finished the year, with a strong balance sheet and is well-positioned to continue its path towards future earnings and new opportunities.

Further, the company saw the appointment of the new Chair, Rob Fyfe, in the June quarter. Its CEO, Daniel Bracken, joined the Company's Board as its Director.

On 29 July, at the time of writing, Michael Hill International was trading down by 1.08% at NZ$0.92.

Must Read: 5 Hot NZX Penny Stocks who are Dividend Payers as well

Blis Technologies Limited (NZX:BLT)

Blis Technologies Limited operates in the biotechnology space, engaged in the manufacturing of advanced probiotics. Its June quarter was full of activity, as in April 2021, the Company witnessed the approval of its probiotic strains in India. It had also, appointed an e-Commerce Director, Laura Grant, in May 2021, to enhance its e-commerce sales through various digital platforms.

Further, the June quarter saw the release of BLT’s sound FY21 financial results with revenue of $10.6 million and EBITDA of $1.0 million. With the launch of its first skincare offering, development of new markets as well as increased investments in R&D, the Company is well-placed for future growth.

On 29 July, Blis Technologies was up by 2.78% at NZ$0.074, at the time of writing.

Read: Why these 10 penny stocks can matter in 2021

Tower Limited (NZX:TWR; ASX:TWR)

Operating as an insurance company, Tower Limited had a bustling June quarter. It had announced in April 2021, that A.M. Best, the global company rating specialist had reaffirmed TWR’s rating with A- i.e., ‘Excellent', thereby reflecting this strong balance sheet strength.

The Company had published its H1 2021 results with an income amounting to NZ$0.6 million, owing to a higher frequency of house claims. It pronounced an underlying NPAT of about NZ$27 million in 2021.  Also, it had declared an interim dividend of 2.5 cps in May 2021.

Moreover, following the recent floods in the country’s Canterbury region, Tower provided an update reflecting its financial impact, in June 2021. It had evaluated the cost of the deluge to be somewhat around NZ$3 million. As a result, TWR has now revised its NPAT guidance which is around NZ$24 million, for FY2021.

At the time of writing, on 29 July, Tower was flat at NZ$0.690.

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Sky Network Television Limited (NZX:SKT; ASX:SKT)

Another company that saw an action-packed June quarter was Sky Network Television Limited, wherein the Company had entered into agreements with various renowned companies. It had signed a multi-year deal with NBCUniversal, a global entertainment conglomerate, and with ESPN, the famous global sports programming company.

Moreover, SKT entered a long-term partnership with the NRL and NZRL (New Zealand Rugby League) in order to take the game of Rugby League in NZ to new levels and delivering superior content to its customers.

Also, it is noted that from the June quarter onwards, SKT will witness a change in its leadership members. It will now have a smaller executive structure with a broader framework comprising of the next generation of Sky leaders, who would be responsible for delivering customer-centric outcomes.

Moreover, James Bishop took charge as the Company's Head of Investor Relations in June 2021.

On 29 July, at the time of writing, Sky Network Television was trading down by 0.61% at NZ$0.164.

Also Read: Why are the 5 NZX stock stories trending today?

Vital Limited (NZX:VTL)

Providing nationwide communication services and key infrastructure across New Zealand is Vital Limited. The Company had a busy June quarter as after successfully partnering with Logic Wireless for nearly 18 months, VTL announced the extension of their strategic partnership, which would result in increased sales of both the companies.

Also, Vital appointed a new Chief Technology Officer, Stuart MacIntyre, in June 2021, who is in charge of developing and implementing strategies to deliver the latest products and digital solutions.

Moreover, its Sales & Marketing Head sought an exit from the Company, with the Company CEO taking charge of the sales division.

The shares of Vital were flat at NZ$0.770 on 29 July, at the time of writing.

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