Why could 5 NZX small-cap stocks matter in 2022?

Highlights

  • Small-cap stocks are usually home-grown organisations and any economic struggle confronting the nation has a larger influence on their balance sheets.
  • Goodwood is poised to acknowledge an apt business opportunity to make an investment or purchase it via RTO.
  • Marsden Maritime is looking forward to the Annual Meeting of shareholders, scheduled to be held by 4 November.

As New Zealand continues to battle COVID-19’s Delta variant, it is constantly trying to make an economic recovery beginning this year and through 2022.

As per the RBNZ’s latest update, a stable financial system and a quicker economic recovery was possible because of solid balance sheets for both industries and houses, financial institutions and the government getting into the pandemic provided for sustaining a stable economic system.

                 

NZX small cap stocks for 2022

 

Small-cap stocks are usually home-grown organisations and any economic struggle confronting the nation has a larger influence on balance sheets of such entities versus their bigger counterparts.   

With less than NZ$2-billion market capitalisation, they might have lesser solid returns but have the potential to outperform large caps in the long-term period and could help diversify an investor’s portfolio.

On the given backdrop, let’s skim through NZX-listed 5 small caps that could matter in 2022.

NZX food stocks- BGI, AFC, GWC, SNC, MMH

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

Blackwell Global Holdings Limited (NZX:BGI)

An incorporated financial service entity, Blackwell Global Holdings Limited is domiciled in New Zealand.

The Company conducted its Annual Meeting of Shareholders wherein its Chairman discussed the financial year closed March this year. Directors of the Company had agreed to ease off the operations if Blackwell was not able to raise enough funds for growth and build a significant finance entity operation. 

On 15 October, at the time of writing, Blackwell Global was trading flat at NZ$0.004 and its market cap stood at NZ$2,009K.

Related article; What's Going On With These 5 NZX Financial Stocks - HGH, GEN, MLN, BGI, GFL?

AFC Group Holdings Limited (NZX:AFC)

The Auckland-based diversified company is involved with food R&D, marketing, manufacturing, etc.

The Company held its virtual AGM in September and various resolutions were passed by the stakeholders:

  • To obtain and consider the Annual Report comprising the audit report and financial statements for the year closed March.
  • To fix the compensation of the auditors of AFC Group for the following year.

Further, they discussed COVID-19 and its impact on the businesses and how difficult this year has been for AFC Group.

AFC Group on 15 October was trading flat, at the time of writing, at NZ$0.001 and its market cap stood at NZ$3,664K.

Do read; Are these 5 NZX Penny Stocks Gaining Investors' Attention- RAK, AFC, APL, BLT, BFG?

Goodwood Capital Limited (NZX:GWC)

Always on the lookout to purchase business operations through RTO and other prospects, Goodwood Capital Limited is listed on the NZX.

The last month-held Annual Meeting of Shareholders witnessed the Company discussing annual results for the period closed March 2021, which noted a loss after a taxation standing of NZ$307,206.

In the future, Goodwood is poised to acknowledge an apt business opportunity to make an investment or purchase it via RTO. However, COVID-19 has been making RTO transactions more challenging for various reasons.

On 15 October, Goodwood Capital, at the time of writing was trading on the NZX unchanged at NZ$0.042, with a market capitalisation of NZ$1,403K.

Did you miss reading; Are These 3 Companies—BLT, PYS, GWC Up For A Banner Year Ahead?

Southern Charter Financial Group Limited (NZX:SNC)

Provider of mobile and web development services, Southern Charter Financial Group Limited was established in 2013.

In the Annual Meeting conducted last month, the Company reviewed the year closed March this year. On the outlook front, the Company is looking ahead for business prospects via a reverse takeover transaction. Apart from these, the Board also passed few resolutions.

At the time of writing, Southern Charter was trading flat at NZ$0.008 on 15 October and has a market capitalisation of NZ$4,119K.

Also read; 5 Stocks Under Investors’ Radar- SNC, BGI, MHJ, VGL, GXH

Marsden Maritime Holdings Limited (NZX:MMH)

A provider of commercial and industrial land for lease to growing businesses, Marsden Maritime Holdings Limited is a holdings entity.

On 24 September, the Company notified the market about its upcoming Annual Meeting of shareholders to be held by 4 November. The meeting has agendas like receiving Chairman and CEO’s reports, the election of Directors and increase Directors’ fees.

On 15 October, at the time of writing, Marsden Maritime was trading flat at NZ$6.4. The Company is valued at NZ$264,324K.

Did you read; MMH Reports Double-Digit Decline in Profit

Bottom Line

The world along with New Zealand has started making an economic recovery, which is expected to continue to 2022 as well. The country-bred small-cap stocks may thrive in a stable economic condition and could hold the potential to add value to a portfolio.

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