NZX listed 3 Attractive Small Cap stocks under the lens in 2021- BLT, BFG, BRM

Summary

  • Blis Technologies has two exciting international opportunities set for 2021.
  • Burger Fuel Group expects the opportunities for growth to be the responsibility of its new fast-food brands.
  • Barramundi will add companies it suspects to be undervalued to its investment portfolio at bargain prices.

Often neglected in favour of safer and more publicised medium and large-cap companies, small-cap companies have a great potential for the growth in value. The high-growth potential enjoyed by small-cap companies comes with the risk of share price volatility. Typically, for investor with the right risk profile, the reward of a small cap evolving into a larger-cap company is worth the risk.

Blis Technologies

Blis Technologies (NZX:BLT) expects to launch two international operations in 2021 with the aid of two exciting new partnerships.

Blis technologies has partnered with Purity Life Health Products LP, Canada’s leading distributor of natural health medicine, to launch Blis products in Canada. Blis products are expected to be available in Canadian pharmacies and health stores nationwide before September 2021. This expansion into Canada gives BLT the access to a market worth close to 2.5 billion CAD per year.

While developing brick and mortar opportunities in North America, BLT is seeking to build upon e-commerce opportunities in China. BLT has partnered with RooLife Group Limited (ASX:RLG), an Australian e-commerce specialist, to exact its plan for brand building and online sales in China, including logistics support.

BLT already has a small presence in China, but lacks the distinct online sophistication required for this market. Investing in its online profile gives the company the better access to the 60 billion USD per year, the Chinese natural health market is worth.

At the time of writing, on 19 January, Blis was trading at NZ$0.079, down by 1.25%. The Company’s market capitalisation was noted at NZ$88.21 million.

Burger Fuel Group Limited

After a less-than-ideal 2020, Burger Fuel Group Limited (NZX:BFG) expects its transition to a multi-brand company to be the catalyst for growth moving forward.

BFG recognised its flagship brand Burger Fuel had increasingly limited prospects for growth, with close to 80 stores nationwide by the end of 2016. In order to diversify, Burger Fuel Group launched Winner Winner and Shake Out in 2016 and 2018, respectively.

BFG has reported a promising revenue stream from its new outlets and will seek to build upon this success. Rather than opening new outlets in 2021, BFG plan to optimise existing stores and implement its expansion plan once the economic environment is lesser uncertain.

At the time of writing, on 19 January, Burger Fuel was trading at NZ$0.40, up by 1.25%. The Company’s market capitalisation was noted at NZ$21.64 million.

 

Barramundi Limited

The investment firm Barramundi Limited (NZX:BRM) has expressed an interest to add overlooked, quality companies to their investment portfolio in 2021. BRM has identified several companies with strong fundamentals, future proof products/services, considerable insider shareholder stakes, but are experiencing cyclical downturns.

BRM will take advantage of the current bargain share prices of these companies and enter into ownership positions with the expectation of a long-term payoff.

This is a measure that will be used in conjunction with increasing their stake in all-weather companies that reduce their risk profile.

At the time of writing, on 19 January, Barramundi was trading at NZ$0.94, up by 1.08%. The Company’s market capitalisation was noted at NZ$204.03 million.

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