Our opinion on the current state of INSIMBI(ISB)Insimbi (ISB) is a group that manufactures and supplies specialist products to the industrial sector. The company is involved in sourcing, buying, packaging, and processing ferrous and non-ferrous alloys, refractory and foundry materials, as well as plastic blow-moulding and injection moulding. Insimbi also recycles metal alloys and provides technical support to users of its products.
In its results for the six months ending 31st August 2024, the company reported an 11% decrease in revenue and a headline loss of 1.22c per share, compared to a profit of 15.46c in the previous period. The company cited challenging operating conditions, partly due to volatile prices for key commodities such as copper, aluminium, nickel, and steel.
Technically, the share was in an upward trend until June 2018 but fell to a low of 50c on 18th December 2020. It subsequently rose to a high of 139c in June 2023 before entering a new downward trend.
Insimbi could benefit from a recovery in the South African economy, but it remains a risky commodity share. The stock is thinly traded, with an average of about R36,000 worth of shares changing hands daily, making it illiquid and potentially dangerous for private investors. As a result, Insimbi remains a high-risk penny stock, especially given its exposure to volatile commodity prices.
