Each week the Easy Research team release their stock picks of the week and this week they have chosen to focus on Penny Stocks… otherwise known as “smaller caps”.

Penny Stocks are companies with smaller market capitalisations than small companies (Small Caps). As Barry Dumas shares, “they’re not for the faint-hearted but for those who can outlast the volatility and spread risk, exceptional returns might be on the horizon”.

Here are the three Smaller Caps the team took a closer look at:

Jasco Electronics Holdings Limited (JSC)

The company delivers smart tech across telecommunications, Information Technology, Energy, and Industry. These sections have all experienced different levels of interest over the last year as the world has dealt with the challenges of COVID.

Labat Africa Limited (LAB)

The cannabis industry is estimated to be as large as R27bn. The global market for cannabidiol (CBD), one of the chemicals found in cannabis plants, is expected to reach $25bn (R422.6bn) and is growing at a rate of 23.2% per year.” – Business Day.

We published a blog in 2018 about investing in the cannabis industry. EasyEquities’ new Cannabis Basket, you can watch your investment portfolio going up, literally… in smoke. It’s one of our most read blogs and with the attention the industry is receiving we can see why.

Brikor Limited (BIK)

The company is a brick manufacturer and supplier across low-cost housing, residential to commercial, industrial, civil engineering and infrastructure projects as well as coal to local markets and coal traders.

Read the full detailed research piece here.

Speaking of small caps, we recently share a blog about the #6MonthsRiskChallenge.

This challenge involves investing just R100 per month in low-priced stocks (what some call “penny stocks”) on the JSE. They will choose five lucky INVSTRS at random at the end of the challenge, who will each receive R1 000 in their EasyEquities accounts.

The #6MonthsRiskChallenge doesn’t just challenge you financially, but mentally as well.  The challenge involves developing your mindset to make a monthly investment of at least R100 for the next six months. You can choose to invest all your money in one company or spread it out among many different shares.

You can read the full story here.

Our partners at EasyEquities really do make investing EASY, from their mobile app which one the MTN App awards in 2020, to their Research Portal and Easy ETFs site.

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