Penny Stocks are known for their big moves. But what you might not know is these moves don’t happen at random. They happen when these companies make public announcements about results, profits or big projects and acquisitions.
We can’t guess when a company will acquire another, or when it will launch a new project. But we know when companies will release results. And, by careful research, and some forecasts, we can get a good idea whether these results will be good or bad – and that’s given us big gains in the past…
So – I always keep an eye on results releases for penny stocks, whether they are in our Red Hot Penny Shares portfolio or not. It is worth it keeping an eye out for when they will release results. And to have some idea of what to expect.
With that said, there’s a string of penny stocks that will release results in February, which means trading statements and profit warnings could already be due in January.
Let’s have a look at what we can expect:
Five Penny Stocks set to release results in February
Bowler Metcalf has been in our portfolio a number of times, we sold it some time ago and I expect this coming results to be more or less flat. They will however paint the picture for the company’s 2024/2025 – which could be improved.
Another results release which is of interest to us is Pan Af, the gold producer is currently in our portfolio. Production is improved in the last six months and the gold price is at all time highs. A portion of its production is hedged, but the company should release an improved set of results.
City Lodge is another stock in our Red Hot Penny Shares portfolio. The company has seen improved vacancy rates at its hotels, with modest increases in rates per room. It also launched dining options at its hotels in the past year. All of this should translate to an improvement in profitability – and that’ll lead to another dividend for shareholders.
Clientele is one of the top dividend payers in our portfolio. It’s coming results are interims, so won’t include a dividend. But they will set the tone for the coming dividend. The company paid 110c in 2021, 120c in 2022 and 125c in 2023. It’s share price at present is R11, so it’s dividend yield is greater than 10%.
Choppies is the most difficult of the bunch for me to gauge what its coming results will show. The company recently concluded an acquisition – which should add profitability to its bottom line. It also concluded a rights offer – the proceeds of which it used to pay down debt and pay for its acquisition. This should lead to improved profitability. But Botswana’s economy is also under strain at present – which could lead to muted sales. I however expect an improved 2024.
What penny stocks should you buy in 2024?
I’ll keep my eyes on these results releases – and the ones for companies not in our portfolio – as that’s what informs our research and buying decisions for Red Hot Penny Shares. To follow me and find out what penny stocks I’m buying in 2024, get on the list here.
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