18. November 2019 | 11:43 CET
BIGG DIGITAL ASSETS, NEL ASA, NOXXON PHARMA AND RYU APPAREL - THE PRICE POTENTIAL OF PENNY STOCKS
The value of a company is usually calculated by multiplying the number of shares by the share price. So-called market capitalization says more about the value of the company than just the share price. There are different customs and rules in different countries. In Germany, for example, the value of a share must always be at least EUR 1.00 when it is founded or in connection with a capital increase. This is different for companies in the Netherlands, Norway or Canada, for example, and against this background so-called penny stocks from these countries, i.e. shares with a price of 0 before the decimal point, can be quite interesting.
time to read: 2 minutes by Mario Hose
WHEN BLOCKCHAIN WAS STILL SEXY
BIGG Digital Assets from Canada is focused on the blockchain sector. The company has positioned itself in this area in recent years and was able to collect around CAD 20 million from investors in connection with the blockchain hype around two years ago to build up the product universe. The highest capital increase was successfully carried out at CAD 0.75 in December 2017. Subsequently, the shares changed hands under the former name BIG Blockchain Intelligence Group to CAD 2.77.
On Friday, the share was trading at CAD 0.04 and at an historically low level. The company had recently published success reports and still had CAD 8.28 million cash in its account as per June 30, 2019. The market value on Friday was CAD 6.44 million. Should the interest in blockchain technologies rise again sometime, then this share can probably become a high performer.
IN THE CENTER OF THE HYPES
NEL ASA is a penny stock company from Norway and is one of the most discussed shares this year. The reason is easy to understand. The company develops and manufactures plants for the production of hydrogen and in connection with the change in mobility, the investment community is currently lacking competition for financial commitments. The company's share was traded around 12 months ago at less than EUR 0.42 and most recently at EUR 0.85. The market value of NEL ASA is currently EUR 1.02 billion.
As of September 30, 2019, the company generated a loss of around EUR 17 million in the first nine months of the current financial year. The cash position still contained around EUR 65 million cash. Due to the hypes surrounding hydrogen, it can be assumed that the company can currently tap the capital market again at any time in order to secure its continued existence - but this was also thought at BIG two years ago.
SUCCESS WITHOUT RECOGNITION
NOXXON Pharma from Berlin operates as a Dutch company form NV on the stock exchange and therefore has the possibility to issue shares below the price of EUR 1.00 within the scope of equity financing. The company is active as a biotech company in cancer research and has already made progress with developed preparations in various forms of therapy.
NOXXON is a classic takeover candidate as soon as one of the large pharmaceutical companies recognizes an opportunity to turn the research results of the Berlin-based company into money. The value of the share is currently traded at around EUR 0.35 and thus has a market capitalization of around EUR 5 million.
FASHION LABLE WITH SPORTY PRICE POTENTIAL
The Canadian fashion label RYU Apparel has invested a lot of money in the development of the brand in recent years and has been able to show interesting growth rates. The company has financing needs and for this reason the price per share can be an attractive entry opportunity for experienced fashion experts with deep pockets.
The company's sporty line is available in stores in various metropolises in Canada and the USA - and online shops. Once a financing round has been completed, the share may have turnaround potential. Most recently, the shares changed hands at CAD 0.03 and the company has a market capitalization of CAD 17.5 million.