There are numerous penny stocks – small-cap companies with a share price under R1 – on the JSE’s main board and they may seem attractive to retail investors, especially first-timers who want to enter the world of investment.
A few former mid-cap names – in particular construction companies such as Aveng, Basil Read and Group Five – have fallen to the penny-stock category as South Africa’s economy tanks under poor government policy decisions, and a dearth of fixed capital investment by companies.
Nevertheless, there are several penny stocks that shimmer and may prompt a closer look, but investors shouldn’t necessarily be adding them to their portfolios.
Sign up on SA Easy Equities here: https://bit.ly/3Czm107
PENNY STOCKS
A penny stock is usually defined as a stock of a small company that trades for less than $5 per share. I personally go after stocks that are less than R1 a share. 🙋🏾♀️
Why do I love Penny stocks?
1. Educational: With Penny stock’s you have the opportunity to learn about both the ups and downs of investing, as the penny stocks share price can be quite volatile, even worse than crypto at times.
2. Inexperienced investors will learn much more from having a more diversified portfolio with many types of investments, rather than having 1 or 2. With penny stocks, you can spread a small investment among several stocks. For example, you can have a portfolio of 20 companies spread over R100.
3. Volatile: depending on your risk appetite, penny stocks teach you the concept of volatility. You can never really know at times what causes the high highs and the low lows, and because their market cap is so small sometimes you can’t even find the latest updates in the news that justifies the change in the share price. This only adds to the thrill
4. The price moves much more quickly, this can work both in your favour or against you… therefore I make sure that I put in money I am willing to lose. But I never sell at a loss, so I usually wait it out (unless it's Brikor lol
5. Steeper learning curve. Newer investors have the most to learn if they don’t panic at every dip…
6. Occasionally you can flip your investment quickly… but remember the Higher the reward the Higher the risk so thread carefully.
1. 4Sight Holdings (4SI): R0.27
2. Accelerate Property Fund (APF): 1.2
3. Accentuate Limited (ACE): R 0.08
4. Advanced Healthcare (AVL): R 0.4
5. Advanced Healthcare Rights: R 0.01
6. African Dawn Capital Limited: R 0.09
7. African Equity Empowerment: R 0.91
8. African Phoenix Investments: R 0.39
9. African Rainbow Capital: R 3.69
10. Afristrat Investment Holdings(ATI):R0.01
11. AH Vest Limited (AHL): R 0.5
12. Alaris Holdings Limited (ALH): R 3.31
13. Alexander Forbes Group: R 4.11
14. Anchor Group Limited (ACG): R 4.23
15. Anchor Group Limited (UAUG): R 1
16. Anglo American PLC – UNLISTED: R 1
17. ArdenCapital Limited (ACZ): R 4.9
18. Arrowhead Properties Limited B: R 3.9
19. Astoria Investments Limited (ARA):R 4.9
20. Aveng Group Limited (AEG): R 0.06
21. AYO Technology Solutions: R 3.5
22. Balwin Properties Limited (BWN): R 3.79
23. Basil Read Holdings Limited(BSR):R0.04
24. Bauba Resources Limited (BAU): R 0.43
25. Brait SE (BAT): R 3.46
26. Brikor Limited (BIK): R 0.38
27. BuffaloCoalCorporation(BUC):LastPrice:R 0.8
28. Cafca Limited (CAC): R 1
29. Calgro M3 Holdings Limited(CGR):R2.95
30. Capital Appreciation Limited (CTA): R 1.2
31. Choppies Enterprises Ltd (CHP): R 0.7
32. Chrometco Limited (CMO): R 0.07
33. City Lodge Hotels Limited (CLH): R 3.92
34. Cognition Holdings Limited (CGN): R 0.8
35. Comair Limited (COM): R 1
36. COMPAGNIE FIN RICHEMONT: R 0.63
37. Conduit Capital Limited (CND): R 0.85
38. CSG Holdings Limited (CSG): R 0.27
39. Delta Property Fund Limited(DLT):R0.43
40. Deneb Investments Ltd (DNB): R 1.75
41. Dipula Income Fund B (DIB): R 3.61
42. E Media Holdings Limited (EMH): R 3.5
43. E Media Holdings Limited N (EMN):R 2.8
44. Eastern Platinum Limited (EPS): 4.15
45. Eastern Platinum Limited Letters: R 0.01
46. Efora Energy Limited (EEL): R 0.12
47. Ellies Holdings Limited (ELI): R 0.21
48. EPE Capital Partners Limited: R 4.1
49. Etion Limite:d (ETO): R 0.48
50. Europa Metals Limited (EUZ): R 1.72
51. Fairvest Property Holdings (FVT): R 1.95
52. Finbond Group Limited (FGL): R 1.06
53. Firestone Energy Limited (FSE): R 0.06
54. Fortress REIT Limited B (FFB): R 2.5
55. Freedom Property Fund Limited: R 0.07
56. Gemfields Group Limited (GML): R 2.55
57. Grand Parade Investments: R 2.93
58. Grindrod Limited (GND): R 4.8
59. Group Five Limited (GRF): R 0.89
60. Hosken Passenger Logistics and: R 4.76
61. Hospitality Property Fund: R 2.75
62. Huge Group Limited (HUG): R 3.6
63. Hulamin Limited (HLM): R 2.43
64. Hulisani Limited (HUL): R 4.5
65. Hwange Colliery Limited (HWA): R 0.51
66. Imbalie Beauty Limited (ILE): R 0.01
67. Indluplace PropertiesLimited(ILU):R3.55
68. Insimbi Industrial Holdings: R 0.87
69. Interwaste Holdings Limited (IWE): R 1.2
70. ISA Holdings Limited (ISA): R 0.79
71. Jasco Electron Holdings Limited: R 0.4
72. Jubilee Metals Group PLC (JBL): R 3.27
73. KAP Industrial Holdings Limited: R 4.44
74. Kibo Energy PLC (KBO): R 0.07
75. Kore Potash Plc (KP2): R 0.21
76. Labat Africa Limited (LAB): R 0.28
77. Liberty Holdings 11c Preference: R 1.22
78. Liberty Two Degrees (L2D): R 4.28
79. Long 4 Life Limited (L4L): R 4.18
80. Luxe Holdings Limited (LUX): R 1.02
81. M Cubed Capital (UMCU): R 0.22
82. MC Mining Limited (MCZ): R 1.21
83. Merafe Resources Limited (MRF): R 0.93
84. Metrofile Holdings Limited (MFL): R 3.18
85. Middle East Diamond Resources: R 0.11
86. Mine Restoration Investments: R 0.03
87. Nampak Limited (NPK): R 2.98
88. New Frontier Properties Limited: R 0.05
89. Newbelco Unlisted Restricted: R 0.01
90. Newpark REIT Limited (NRL): R 4
91. Nictus Limited (NCS): R 0.8
92. Niveus Investments Limited(NIV): R 2.72
93. Novus Holdings Ltd (NVS): R 2.25
94. Nutritional Holdings Limited(NUT):R0.25
95. Nvest Financial HoldingsLtd(NVE):R2.09
96. Oando PLC (OAO): R 0.19
97. Onelogix Group Limited (OLG): R 2.58
98. Orion Minerals (ORN): R 0.3
99. Pan African Resource PLC (PAN): R 3.07
100. PBT Group Limited (PBG): R 4.65
101. PPC Limited (PPC): R 3.62
102. Premier Fishing & Brands: R 0.76
103. Primeserv Group Limited (PMV): R 1
104. PSV Holdings Limited (PSV): R 0.08
105. Purple Group Limited (PPE): R 1.53
106. Putprop Limited (PPR): R 4.89
107. Randgold & Exploration: R 1.1
108. Rebosis Property Fund Limited: R 0.28
109. Rebosis Property Fund Limited A: R 0.74
110. Redefine Properties Limited(RDF):R4.39
111. Resource Generation Limited: R 0.67
112. Revego Africa Energy Ltd (RVG): R 1
113. RMB Holdings Limited (RMH): R 1.49
114. Rockwell Diamonds Inc (RDI): R 0.4
115. SA Corp Real Estate Limited(SAC):R2.15
116. Safari Investments RSA Limited: R 4.96
117. Santova Logistics Limited (SNV): R 3.93
118. Sebata Holdings Limited (SEB): R 2.3
119. Sephaku Holdings Limited (SEP): R 1.56
120. SilverBridge Holdings Limited: R 1.2
121. South Ocean Holdings Limited: R 0.98
122. Spanjaard Limited (SPA): R 3.75
123. Stadio Holdings Limited (SDO): R 3.11
124. Standard Bank 6.5% Pref (SBKP: R 0.81
125. Stefanutti Stocks Holdings: R 0.47
126. Steinhoff International Holdings: R 2.95
127. Stellar Capital Partners Limited: R 0.94
128. Tawana Resources NL (TAW): R 2.34
129. Telemasters Holdings Limited: R 1.4
130. Texton Property Fund Limited: R 3.35
131. Tower Property Fund Limited: R 3.69
132. Transcend Residential Property: R 4.2
133. Trellidor Holdings Limited (TRL): R 3.31
134. Trematon Capital Investments: R 2.85
135. Trencor Limited (TRE): R 4.14
136. Trustco Group Holdings Limited: R 1.64
137. Tsogo Sun Hotels Limited (TGO): R 3
138. Union Atlantic Minerals Limited: R 0.04
139. Visual International Holdings: R 0.07
140. Vunani Limited (VUN): R 2.85
141. Wescoal Holdings Limited (WSL): R 1.63
142. Wesizwe Platinum Limited (WEZ): R0.52
143. WG Wearne Limited (WEA): R 0.03
144. Workforce Holdings Limited (WKF): R1.3
145. York Timber Holdings Limited: R 3.5
146. Zarclear Holdings Limited (ZCL): R 4.6
147. Zeder Inv Limited (ZED): R 3.11
If you haven't already joined the +400 000 South Africans on the EasyEquities investment platform, you can sign up HERE and EasyEquities will credit your new account with a free R50 investment voucher to begin your investment journey.