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

Highlights

  • Small-cap stocks possess high-growth potential but are volatile and risky.
  • Enprise Group opened its retail offer on 28 September.
  • EROAD entered into a strategic collaboration with Seeing Machines.

Small-cap stocks are companies that have a relatively small market cap and are traded publicly in a stock exchange. Investors who have are risk lovers and can bear market risks can consider investing in these stocks.

Investors can invest in quality, low-priced stocks amid market inefficiencies and take advantage of the growth potential that these stocks carry with them.

Let’s skim through these high-performing 5 small-cap stocks on NZX.

5 NZX Small-cap stocks and their market cap and returns

Image source: © 2021 Kalkine Media New Zealand Ltd, Data source- Refinitiv

Pacific Edge Limited (NZX:PEB)

Cancer diagnostics business, Pacific Edge, opened its retail offer on 28 September. The offer comes on the back of the Group’s capital raising announced on 23 September.

RELATED READ: Pacific Edge (NZX:PEB)  unveils retail offer for stakeholders

Shareholders in NZ who fulfil the eligibility conditions will be able to raise roughly $20 million and apply for nearly $50K new shares. The retail offer will close by 13 October with the settlement, allotment and trading of retail offer shares to begin on 20 October.

The Group’s Cxbladder range of diagnostic products has proved helpful in critical cancer recognition and has been also praised by the journal of Urology in the US.

On 4 October, PEB ended the trading session at $1.4, down 2.67% from its previous close.

EROAD Limited (NZX:ERD)

Transport tech services firm, EROAD entered into a strategic collaboration with Seeing Machines, an industry leader in vision-based monitoring technology that permits machines to observe, understand and aid people. The partnership will provide operators with 1 tool to handle video telematics where there were 2 separate managing systems previously.

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

The integration of the technology will also help fleet managers in prioritising actionable insights from data.

On 4 October, ERD ended the trading session at $5.8, up 0.35% from its previous close.

Serko Limited (NZX:SKO)

Serko, a supplier of corporate travel and cost solutions, reported a 37% drop in sales to $16.9 million in FY21. During the year, Serko also partnered with Booking.com and the Zeno brand was approved in North America.

The Group has been developing new systems as well as carbon control options for all forms of business travel.

On 4 October, SKO ended the trading session at $2.67, down 1.11% from its previous close.

The Colonial Motor Company Limited (NZX:CMO)

A motor vehicle dealership owner, Colonial Motor reported a 19% increase on pcp in its revenue to $901.2 million for the year ended 30 June 2021 while the profit attributable to shareholders stood at $24.8 million, up from $21.8 million in 2020.

The Group paid an interim dividend of 15cps on 29 March 2021 and a final dividend of 40cps on 4 October 2021. CMO’s business took a hit after the country fell in Level 3 lockdown on 17 August.

unpredictability of Covid, ongoing international supply chain constraints, timing and pricing of new EV products are some of the challenges faced by the Group.

On 4 October, CMO ended the trading session at $10.4, up 1.46% from its previous close.

Vista Group International Limited (NZX:VGL)

Vista Group, a provider of cinema management systems, has announced total revenue of $44.9 million and EBITDA of $6.4 million in the first half of 2021, amid a broad industry rebound and a free flow of films into worldwide theatres.

RELATED READ: Which are 5 NZX technology stocks with healthy 6-month returns?

The company also created Vista Cloud, which aims to broaden cinematic opportunities. VGL expects to make around $95 million and $100 million in sales for the year ending 31 December 2021.

On 4 October, VGL ended the trading session at $2.67, down 1.11% from its previous close.

Bottom Line

Small-cap stocks are volatile and risky in nature especially during market lows. However, investors can wave off this risk by adding investments that are market-friendly.

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

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK