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Highlights
- Penny stocks trade under $5 and are of companies with a market capitalization of $300 million.
- Penny stocks could be an option for investors with a high-risk appetite.
- Exercising extra caution is important while exploring these inexpensive stocks.
Look no further if you want to explore some of the penny stocks available in the Canadian equities markets. Due to their low cost and potential for appreciation, penny stocks could be an option for investors with a high-risk appetite.
Penny stocks trade under $5 and belong to companies having a market capitalization of $300 million or less. Generally, these companies don't have much information to share about their business activities, and fundamentals are not accessible easily.
Hence, the prospect of earning a higher return comes with high risk when investing in penny stocks. The current market conditions are extremely volatile. Therefore, exercising extra caution is important while exploring these inexpensive stocks.
Let's take a look at five TSXV-listed penny stocks and find out if they are worth your time:
Simply Better Brands Corp. (TSXV:SBBC)
The company Simply Better Brands Corp. encourages leading fit and active lifestyles. The Vancouver-based healthcare brand was looking to expand its business operations and announced a strategic partnership with New Frontier Presents in June to include metaverse shopping.
The SBBC stock was up by 37 per cent on July 20 and closed at C$ 0.74 per share. Meanwhile, on July 13, Simply Better Brands raised its 2022 financial outlook as preliminary year-to-date (YTD) results exceeded expectations.
The company's preliminary sales for the quarter ending June 30 amounted to US$ 16.8 million, up by 440 per cent year-over-year (YoY). Also, Simply Better Brands now expects its net sales to be in the range of US$ 50 million to US$ 55 million instead of US$ 40 to US$ 42 million in 2022.
Lithium Ionic Corp. (TSXV:LTH)
The Canadian junior exploration firm is dedicated to producing commercial-grade lithium. In the Itinga lithium project, it has a 100 per cent ownership stake.
The demand for lithium is expected to rise as it is used in batteries, and companies like Lithium Ionic might try to capitalize on the opportunity.
Lithium Ionic is looking to grow as it recently announced the commencement of drilling and exploration at a project in Brazil. Also, it entered into an agreement to acquire lithium licenses in Brazil.
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CanAlaska Uranium Ltd. (TSXV:CVV)
Uranium is an important metal, and according to a 2021 report of the World Nuclear Association, the demand for silvery-grey metal is expected to increase by 27 per cent between 2021-30.
On July 15, CanAlaska discovered a significant uranium zone at West McArthur in Saskatchewan. Also, the company started an airborne survey at a project in the Athabasca basin.
On July 20, the CVV stock jumped 22.5 per cent and closed at C$ 0.49 per share.
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.
