It’s New Zealand’s national day, but most Kiwi small caps won’t be celebrating
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While the share market has had a positive year so far, the majority of ASX-listed Kiwi small cap stocks have not shared the spoils.
Only seven out of these 27 stocks are higher than they were on January 1.
The biggest winner in 2019: hand sanitiser producer Zoonoo (ASX:ZNO) on the back of its most recent quarterly sales figures.
While the company only recorded $NZ420,553, which it admitted was “lower than expected”, it was nonetheless an improvement on the last quarter and it gained traction in several of its markets.
Following closely behind was Keytone Dairy (ASX:KTD). The dairy producer has enjoyed solid growth since its listing in July last year. It continues to launch new proprietary brands and new sales channels, including into China.
To meet this demand, the company is constructing a second manufacturing facility.
The biggest loser was PowerHouse Ventures (ASX:PVL). Having been as high as 80c two years ago, it has had much trouble since with the departure of several staff members and the failure of its investments to bear fruit.
Its most recently quarterly showed PowerHouse had only $NZ827,000 in the bank, yet it estimates it will have nearly $NZ3 million in cash outflow, more than two thirds of which will be in the form of debt repayments.
One of these investments was ag-tech CropLogic (ASC:CLI) which is down more than 7 per cent this year.
Despite reaching some strategic milestones, the stock has been significantly sold off since its last capital raising, which occurred in November at 1.5c per share — a significant discount to its share price at the time.
The next biggest loser was Adherium (ASX:ADR). The med-tech company, specialising in asthma solutions, is in the middle of a reorganisation to cut costs.
The only major news so far in 2019 was in the most recent quarterly, which confirmed the company’s predicament — it anticipated four times more cash outflow than revenue receipts in the last quarterly.
Investors have continued dumping the stock, which they have been doing since September 2018.
Another loser was software producer 9 Spokes (ASX:9SP), another company that has significantly fallen in two years, having been as high as 20c back in February 2017.
Investors have lacked patience with the slow momentum of 9 Spokes and lack of revenue growth.
9 Spokes has told investors it will do a capital raising and is only currently surviving off a short-term funding facility.
Here’s a list of ASX-listed companies with New Zealand connections, showing their performance so far in 2019:
|ASX Code||Company||Market Cap||Price Feb 5||One-year Return||Industry|
|ZNO||ZOONO GROUP LTD||$16.3m||0.09||0.282051||Health - Sanitiser|
|KTD||KEYTONE DAIRY CORP LTD||$65.2m||0.45||0.242857||Agriculture|
|NTL||NEW TALISMAN GOLD MINES LTD||$28.1m||0.012||0.083333||Mining - Gold|
|SMP||SMARTPAY HOLDINGS LTD||$31.8m||0.185||0.027778||Technology|
|TWR||TOWER LTD||$236.1m||0.69||0.021898||Financial - insurance|
|IKE||IKEGPS GROUP LTD||$52.5m||0.58||0||Technology - Software|
|OHE||ORION HEALTH GROUP LTD||$99.9m||1.1||0||Health|
|AFP||AFT PHARMACEUTICALS LTD||$192.1m||0.001||0||Health - Suspended since 7 September|
|TRA||TURNERS AUTOMOTIVE GROUP LTD||$256.3m||2.89||-0.003448||Consumers - Automotives|
|VHT||VOLPARA HEALTH TECHNOLOGIES||$195.5m||1.085||-0.009091||Technology - Health|
|GTK||GENTRACK GROUP LTD||$494.6m||4.81||-0.01875||Technology - Software|
|BRL||BATHURST RESOURCES LTD||$192.0m||0.125||-0.04||Mining|
|MPP||METRO PERFORMANCE GLASS LTD||$92.7m||0.5||-0.047619||Consumers - Glass|
|LCT||LIVING CELL TECHNOLOGIES LTD||$23.4m||0.041||-0.068182||Technology|
|CLI||CROPLOGIC LTD||$3.9m||0.013||-0.071429||Technology - Agriculture|
|EVO||EVOLVE EDUCATION GROUP LTD||$35.1m||0.24||-0.074074||Education|
|NZK||NEW ZEALAND KING SALMON INVE||$277.1m||2.02||-0.082569||Agriculture|
|NEU||NEUREN PHARMACEUTICALS LTD||$131.0m||1.26||-0.092857||Health|
|KMD||KATHMANDU HOLDINGS LTD||$524.7m||2.34||-0.104247||Consumers -Retailer|
|BPL||BROKEN HILL PROSPECTING LTD||$3.7m||0.025||-0.193548||Mining|
|9SP||9 SPOKES INTERNATIONAL LTD||$6.4m||0.012||-0.235294||Technology|
|PVL||POWERHOUSE VENTURES LTD||$2.0m||0.07||-0.416667||Technology - Investor|