- Calgary-based Exro Technologies is an innovative clean technology company that develops intelligent control solutions.
- The BTB Real Estate Investment Trust (REIT) generates its maximum revenue from the retail and office segment.
- The Calgary-based company provides tubing, fluid pumping, and nitrogen pumping solutions to oil and gas companies.
If you are a stock market enthusiast and have little money to invest, then penny stocks could be an option worth exploring. The reason to invest in penny stocks is generally due to the prospect of earning higher returns on cheaper investments.
By definition, penny stocks cost $5 or less and have a market capitalization in the range of $60 million to $300 million.
Before you start investing in penny stocks, it is essential to note that penny stocks generally have poor fundamentals. Hence there is also a chance of losing the investments.
Let's look at three smart penny stocks listed on the Toronto Stock Exchange.
Exro Technologies Inc. (TSX:EXRO)
Calgary-based Exro Technologies is an innovative clean technology company that develops intelligent control solutions to address the issues in electrification.
As the market for electric vehicles is expected to boom in future, companies like Exro Technologies could benefit from the trend.
In the fourth quarter of the previous year, Exro launched a services division to provide electrification solutions to automakers and named the division Exro Vehicle Systems.
In Q4 2021, Exro's comprehensive loss was C$ 6.5 million compared to C$ 4.2 million in Q4 2020.
BTB Real Estate Investment Trust (TSX:BTB.UN)
The BTB Real Estate Investment Trust (REIT) generates its maximum revenue from the retail and office segment. As economic activities are picking up and public health restrictions have been lifted, it is expected that people will start returning to offices.
On April 5, the REIT announced the acquisition of industrial property in Ontario, which houses 46,400 square feet of leasable area.
In Q4 2021, BTB REIT reached C$ 1 billion in total assets and reported its best financial performance since inception. The REIT's net income and comprehensive income surged 503.1 per cent year-over-year (YoY) to C$ 23.2 million.
STEP Energy Services Ltd. (TSX:STEP)
The Calgary-based company provides tubing, fluid pumping, and nitrogen pumping solutions to oil and gas companies. Step Energy's business operations are in Canada and the United States.
In Q4 2021, STEP Energy's consolidated revenue increased to C$ 158.7 million from C$ 71.6 million in Q4 2020. Meanwhile, the net loss narrowed down to C$ 6.2 million from C$ 17.04 million in the same comparable period.
The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) jumped to C$ 17.3 million in Q4 2021 from C$ 2.4 million in Q4 2020.
Please note, the above content constitutes a very preliminary observation or view based on digital trends 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.