Newbie retail investors have a thing for penny stocks and it is quite understandable. Penny stocks have a very low price per share and fall within a price range of N1 and below. They are also popular because of their potential to rise in astronomical proportions; a penny stock could be priced at 50 kobo per share for weeks, and then it could double to N1 per share in a matter of days.
However, as penny stocks go, it’s usually more bears than bulls, and this year so far, more than a dozen of them were on the list of worst performing stocks. Let’s take it look at some of the worst of them for the year ended, April 2018.
Mutual Benefits Assurance Plc
The insurance company is yet to release its 2017 annual report as well as its 2018 first quarter results. It did issue a press release informing investors of the delay. Most insurance companies have to get their accounts approved by their regulators before they are published. Nevertheless, this is one penny stock we have no interest in.
Opened – 50 kobo
Closed – 25 kobo
Loss – 52%
Sovereign Trust Insurance Plc
The stock got pummelled by investors this year but it appears that there are traces of light at the end of the tunnel. The company reported a decent profit of N158 million, representing a 569% increase year on year. Despite this, the share price is down 56% year to date.
Opened – 50 kobo
Closed – 23 kobo
Loss – 56%
African Alliance Insurance Plc
Not much is known about them, though they recently announced a delay in the release of their results. It is not a stock on our radar and not one we are likely to consider anytime soon. Investors felt the same way and left the stock down 55%.
Opened – 50 kobo
Closed – 22 kobo
Loss – 55%
Courtville Plc
This one of the most disappointing stocks on the exchange, well so we think. If you consider the potential that Courville has, then you realise it has no business being a penny stock. It is also having a terrible 2018 and is one of the worst performing tech related stocks on the exchange.
Opened – 50 kobo
Closed – 21 kobo
Loss – 58%
UNIC Insurance Plc
This company is as good as dead, well at least on paper – no revenues and no profits. Last year, they got some foreign investors in and sold nearly all controlling shares. We have a lot of bad memories about this stock.
Opened – 50 kobo
Closed – 20 kobo
Loss – 60%
Multiverse Mining and Exploration Plc
This company has been struggling with debts for some time now and recently got embroiled in a tussle with AMCON over unpaid debts. The company reported a N433 million loss in 2017. Revenues were just N6.2 million, revealing how bad business has been lately.
Opened – 50 kobo
Closed – 20 kobo
Loss – 60%
FTN Cocoa Processors Plc
This company received investments from Americans some years back but since then, nothing much has been heard from them. As far as this year goes, they have not released any results. This is the worst stock this year.
Opened – 50 kobo
Closed – 20 kobo
Loss – 60%