- Money invested wisely on penny stocks can provide significant returns in a shorter period.
- Stocks of Arena Minerals expanded by 326 per cent in 12 months.
- PQE stock galloped by approximately 290 per cent in a year.
Money invested wisely on penny stocks can provide investors with significant returns in a shorter period. Some Canadian penny stocks, like Arena Minerals (TSXV: AN), Petroteq Energy (TSXV: PQE), Reunion Gold (TSXV: RGD), Western Magnesium (TSXV: WMG) and Kolibri Global (TSXV: KEI) have returned more than 100 per cent in a year.
Notably, they are all priced under 50 cents.
In the current market environment, when many investors are turning to safe investment options, others may find penny stocks an explorable option to earn quick gains. However, investors can easily lose their money as penny stocks involve high risk.
Here are five Canadian penny stocks under 50 cents that you can explore, keeping in mind the risk-reward of penny stocks.
Arena Minerals Inc (TSXV: AN)
Arena Minerals is a junior company exploring lithium and copper properties in South America. Lithium Americas Corp (TSX: LAC) owns a 17.5 per cent stake in this company since December (earlier, it was 12 per cent).
Stocks of Arena Minerals expanded by 326 per cent over 12 months. The mining stock was nearly 28 per cent down from a 52-week high of C$ 0.68 (April 5). The Relative Strength Index (RSI) for Arena Minerals was 55.17 on May 17, representing a balanced position between overbought and oversold.
Petroteq Energy Inc (TSXV: PQE)
Petroteq Energy is a TSXV oil and gas firm with fully integrated operations. The junior energy company developed a proprietary tech for oil extraction in Utah to provide high-quality oil. Petroteq facility has been designed with an operating capacity of 500 barrels per day (b/d) and an oil sands plant with a capacity of 5,000 barrels.
PQE stock galloped by approximately 290 per cent in a year and had an RSI value of 62.70 on May 17.
Reunion Gold Corporation (TSXV: RGD)
Reunion Gold is a junior gold company with a market capitalization of C$ 206 million. The gold firm accelerated its exploration program at Oka west project, Guyana, after receiving ‘strong’ results from the drilling of the Kairuni Zone.
RGD stock catapulted by 257 per cent in a year, and on May 17, its RSI value stood at 47.26.
Western Magnesium Corporation (TSXV: WMG)
Western Magnesium Corporation is engaged in the production of magnesium metal. Recently, the company highlighted that according to new research by Acumen Research and Consulting, the global market for magnesium metal is expected to expand by nearly 50 per cent by 2028, which it believes will give it an advantage as it is building its production capacity.
WMG stock grew by almost 171 per cent year-over-year (YoY). The magnesium stock had an RSI value of 48.16 on May 17.
Kolibri Global Energy (TSXV: KEI)
Kolibri Global expanded its average production by three per cent YoY to 1,054 barrels of oil equivalent per day (boe/d) in Q1 2022. Higher average price and production led to a YoY surge of 70 per cent in its net revenue in the latest quarter.
KEI stock zoomed by roughly 138 per cent in the last one year and, on May 17, held an RSI value of 42.77.
Small investors aiming to benefit from the ongoing market volatility without digging too deep into their pockets can consider some of the Canadian penny stocks mentioned above. However, investors should invest the money they can afford to lose, as penny stocks involve high risk.
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.