4 COVID Penny Stocks: Hamilton Thorne, Protech, Akumin & Immunoprecise

Summary

• Amid the ongoing COVID crisis, four healthcare penny stocks have gained traction in the last six months.
• Hamilton Thorne scrips posted an increase of 48 per cent since the pandemic-led market crash.
• Protech Home Medical stock has soared 96 per cent in the last six months.
• Immunoprecise stocks skyrocketed over 325 per cent this year.
• Akumin’s stock has surged by 155 per cent since mid-March.

Penny stocks are the smallest stocks on the capital markets. These are priced C$5 or less and are microcap firms with a capitalization of C$ 300 million or below. These stocks are usually volatile and highly unpredictable in nature. Though penny stocks offer potentially attractive returns to the investors, it comes with its own associated risks. Investors must do an in-depth financial research before investing in these shares.

Amid the ongoing COVID crisis, we look at four healthcare penny stocks that has gained traction in the last six months: Hamilton Thorne Ltd. (TSXV:HTL), and Protech Home Medical Corp. (TSXV:PTQ), Akumin Inc. (TSX:AKU), and Immunoprecise Antibodies Ltd. (TSXV:IPA).

Traders must crosscheck the risk levels linked with investing in penny stocks and proceed with precautions.

Hamilton Thorne Ltd. (TSXV:HTL)

Sector: Healthcare

Industry: Medical Devices and Instruments

Hamilton Thorne ranks highly on TMX’s website among junior healthcare companies that are listed on the TSX Venture Exchange (TSXV). This stock has jumped over 20 per cent in the last six months.

The company provides precision instruments, consumables, software and services. It also offers laser systems and instruments for in-vitro cell applications in the regenerative medicine research and reproductive clinic markets.

The company scrips posted an increase of 48 per cent since the pandemic-led market crash (March 19 onwards).

Its current market capitalization is C$ 184 million. Its current price-to-earnings (P/E) ratio is 106.7, and the price-to-book (P/B) ratio is 3.182. The current stock price is C$1.4.

Hamilton’s sales dropped by eight per cent year-over-year (YoY) to US$7.3 million for the second quarter of 2020. The company posted a net loss of nearly US$0.6 million for Q2, 2020. The company’s adjusted EBITDA went down 63 per cent YoY to US$0.57 million. 

Protech Home Medical Corp. (TSXV:PTQ)

Sector: Healthcare

Industry: Medical Devices and Instruments

Protech Home Medical Corp offers in-home nursing equipment, supplies, and services to patients.

Protech Home Medical ranks on TMX’s top healthcare stocklist that lists largest price gaining shares across the TSXV and the Toronto Stock Exchange (TSX) in the last 30 days. The company is also well-positioned among TMX’s junior healthcare company stocklist.

This stock has soared 96 per cent in the last six months. The company scrips rebounded by an astonishing 185+ per cent since the pandemic-led market crash (March 19 onwards). Its current market capitalization is C$ 172 million. The price-to-earnings (P/E) ratio is 50, and the price-to-book (P/B) ratio is 3.659. The stock is currently trading at C$1.57.

Protech reported revenue for the third quarter of 2020 was C$25.9 million compared to C$20.2 million for Q3 2019, a 28 per cent gain YoY. The company’s gross profit stood at C$18.4 million as compared to C$ 14.1 million for Q3 2019.

Akumin Inc. (TSX:AKU)

Sector: Healthcare

Industry: Medical Diagnostic and Research

Diagnostic imaging services firm Akumin Inc offers physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders across the United States’ Florida, Pennsylvania, Delaware, Texas, Illinois, and Kansas. The company recently listed on the NASDAQ. Akumin is listed on TMX’s top healthcare stocklist.

This stock has surged over 60 per cent in the last six months. The company scrips rebounded by nearly 155 per cent since the pandemic-led market crash. Its current market capitalization is C$ 340 million. Its price-to-earnings (P/E) ratio is 62.3, and the price-to-book (P/B) ratio is 1.9. The current stock price is around C$4.85.

During the second quarter ended on June 30, 2020, the company generated revenue of US$ 53.6 million, marginally down from US$53.9 million in Q2 2019. The company reported an adjusted EBITDA of US$13.7 million, an 11.66 per cent increase from US$12.3 million in Q2, 2019.

YTD performance of Akumin Stock

Immunoprecise Antibodies Ltd. (TSXV:IPA)

Sector: Healthcare

Industry: Biotechnology

Immunoprecise ranks on TMX’s Rising Stars stocklist that ranks TSXV stocks with the largest price gains in the last three months. The company is currently a part of TMX’s top junior healthcare stocklist. This stock has skyrocketed over 325 per cent this year.

The company produces and supplies custom antibodies to the research industry and the industrial community across the US, Canada, Europe, and other countries. It generates most of its revenue from Europe.

Its current market capitalization is C$ 195 million. Its price-to-book (P/B) ratio is 8.96. The current stock price is C$ 2.44.

The company reported revenue of C$3.8 million, a 39 per cent increase compared to C$ 2.7 million for Q1 2020. Its gross profit increased by C$1.1 million. The company posted an adjusted EBITDA of C$932,000 compared to C$481, 000 for the Q1, 2020.