Kalkine Media selects under $10 TSX stocks to watch in Q3

Highlights

• On a quarter-to-date (QTD) basis, Canada’s main stock index increased by almost five per cent.
• Tamarack Valley announced a definitive agreement to purchase Deltastream Energy Corporation on Monday, September 12.
• Converge Technology stock galloped by about 14 per cent in three months.

Canadians who are unwilling to buy high-priced stocks can consider cheap ones like Tamarack Valley (TSX:TVE), Ceres Global Ag (TSX:CRP), Cineplex (TSX: CGX), etc., which are priced under C$ 10 to fetch notable gains in the future.

On Friday, September 12, Canada’s main equity index gained a significant 360.34 points to settle at 19,773.34, resulting from a broad-based rally indicating positive investment sentiments across different sectors. On a quarter-to-date (QTD) basis, Canada’s main stock index increased by almost five per cent.

Hence, Kalkine Media® presents the following low-priced TSX stocks that one can explore as broader market sentiments seem to be in a recovery mood. Even some like Tamarack (TSX:TVE) and Converge (TSX:CTS) are expanding their operational footprints by acquisition strategy. Let us dive into these five TSX stocks in detail:

1.     Tamarack Valley Energy Ltd (TSX:TVE)

Small-cap oil producer Tamarack Valley announced on early Monday, September 12, that it inked a definitive agreement to purchase Deltastream Energy Corporation for a total of C$ 1.42 billion. By acquiring this pure-play Clearwater oil firm, Tamarack Valley Energy aims to emerge as a leading publicly listed company with Clearwater business.

Besides this, Tamarack’s Board of Directors (BoD) also approved a quarter (25 per cent) increase in its monthly dividend to C$ 0.0125 for November month (due in December) than the previously announced dividend of C$ 0.01.

Tamarack Valley stock rose by over 59 per cent in 52 weeks.  As per EODHD/Others findings, the TVE stock noted a Relative Strength Index (RSI) value of 45.97, symbolizing a medium trend, supported by a trading volume of 4.28 million on September 9.

2.     Converge Technology Solutions Corp (TSX:CTS)

Converge Technology Solutions is a small-cap firm building hybrid information technology (IT) infrastructure to offer multi-cloud, blockchain, and managed services. On September 12, Converge Technology revealed that it acquired fellow Canadian analytical and digital solutions company Newcomp Analytics to widen its advanced analytical portfolio and offerings.

Converge also highlighted that this acquisition marks the 34^th acquisition by the company or its affiliated companies since October 2017 to enhance its tech footprints across North America. Converge also said closing this deal would positively impact its revenue and EBITDA.

In the light of this acquisition, Converge Technology stock was trading higher at C$ 6.12, up by almost five per cent, at 9:41 AM EST on September 12. The CTS stock galloped by about 14 per cent in three months. As per findings from EODHD/Others on September 9, the small-cap stock saw an RSI value of 46.33.

3.     Cineplex Inc (TSX:CGX)

Movie theatre company Cineplex announced that its box office revenue in August reached C$ 36.06 million, reflecting 64 per cent of box office revenue (C$ 56.53 million) posted in August 2019. The C$ 584.2 million market size company said it is off to a ‘great start’ for September 2022 as the small-cap company welcomes more than half a million guests in a day on National cinema Day, dated September 3.

Cineplex stock was trading at C$ 9.59, up by about four per cent, at 10:19 AM EST on Monday, September 12. Based on the data from EODHD/Others, the CGX stock had an RSI value of 42.11 on September 9.

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4.     Ceres Global Ag Corp (TSX:CRP)

Ceres Global Ag is a C$ 114.27 million market capitalization business service firm focused on commodity-based products and raw materials.  The company said its top line was at US$ 278.15 million in the last quarter of fiscal 2022, relatively higher than C$ 196.92 million posted in the fourth quarter of 2021.

Ceres revealed that lower ending inventories across the industry and less merchandized and traded volume led to a reduced gross profit of US$ 3.69 million in Q4 2022, noting a year-over-year (YoY) change from C$ 8.75 million in the last quarter of the previous fiscal year.

Ceres Global Ag stock shot up by 22.04 per cent in three months. As per EODHD/Others figures on September 9, the CRP stock recorded an RSI value of 54.83, which resembles a medium market trend.

5.     Transat A.T. Inc. (TSX:TRZ)

Holiday package planner Transat A.T. reported revenues of C$ 508.3 million in Q3 2022, notably higher than C$ 12.54 million in the third quarter last year. Transat highlighted that ‘gradual’ recovery in demand along with high fuel prices helped average selling prices to increase in the latest quarter relative to 2019. Moreover, surge in average selling prices was about eight per cent for Europe program and 26 per cent for the sun destinations program.

Transat stated that customer deposits for future travel were C$ 585.6 million, a 96 per cent increase from the pre-pandemic levels on July 31, 2019, and a 19 per cent growth from the previous quarter, indicating demand recovery. Transat stock were down by almost 24 per cent year-to-date (YTD). 

Bottom line

Canadians searching for cheap stocks can consider exploring the TSX stocks discussed here. Such stocks could provide significant returns to potential investors with favourable market conditions. Further, Tamarack Valley also pays a dividend; hence, passive income-focused investors can explore this small-cap stock.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.