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Looking for promising penny stocks? Have a look at what the AltX has to offer

by , 17 February 2015

If you want to invest in smaller companies that have the potential for growth and expansion over the years, you should look at the AltX.

So what is the AltX? And what sort of companies can you expect to find there?

Let's take a closer look…

The role of the AltX

The AltX is the Johannesburg Stock Exchange’s alternative exchange. It runs in parallel to the JSE’s main board.

Listings on the AltX include high-growth small-caps, penny stocks and medium-sized companies.

The JSE launched the AltX back in 2003 as a way to help smaller companies list on the stock market. In comparison to the main board, companies don’t have to adhere to as strict listing requirements and the costs are less.

Just as with a listing to the main board, there are several reasons why companies opt to list on the AltX:

  • To raise funds;
  • To issue shares and increase their investor base; and
  • To trade their shares on a strictly regulated exchange.

As many of the companies listed on the AltX are smaller in comparison to their main board big brothers, there is slightly higher risk with investing in these companies. But there’s also the potential for high rates of growth.

Companies listed on the AltX still have to comply with the same strict rules and regulations of companies on the JSE’s main board.

The type of companies the AltX attracts

You’ll find a wide range of different companies on the AltX in a number of different sectors. According to the JSE, the AltX attracts:

  • Junior miners;
  • Family-owned companies;
  • Young, growing firms; and
  • Black economic empowerment companies.

If you’re looking to invest some of your portfolio in growth shares, you have to explore the opportunities on the AltX. You could invest in one of the JSE’s future blue-chips.

So there you have it. Why you should have a look at what the AltX has to offer if you’re looking for promising penny stocks.

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Looking for promising penny stocks? Have a look at what the AltX has to offer
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