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Highlights
- Most people can afford to invest in penny stocks as they are relatively cheaper.
- An energy stock mentioned here rocketed by about 296 per cent in the last 12 months.
- An oil and gas stock listed below spiked by about 28 per cent in the past one week.
Investing in penny stocks can help investors earn short-term gains. Most people can afford to invest in penny stocks as they are relatively cheaper.
Some penny stocks also deliver significant gains over a long period of time, which may be due to an improvement or an expansion in the business or any such key factor. Hence, one should not undermine the capabilities of penny-cap companies.
That said, let us explore five Canadian penny stocks under the price of C$ 1 apiece.
Image source: © 2021 Kalkine Media
1. Gear Energy Ltd (TSX:GXE)
The energy scrip shot up a whopping 296 per cent in a year. It closed at C$ 0.99 apiece on Tuesday, December 7, up by more than six per cent.
Gear Energy Ltd produced 5,859 barrels of oil equivalent per day in the third quarter of fiscal 2021, noting a quarter-over-quarter (QoQ) increase of eight per cent.
Due to increased commodity prices and production, its funds from operations grew by 31 per cent QoQ to C$ 16 million in Q3 FY2021.
Also read: Which Canadian bank stocks to buy as dividends go up?
The Calgary, Alberta-based energy company posted a net income of C$ 6.6 million in the latest quarter, up from a net loss of C$ 1.15 incurred in the same quarter a year ago.
2. GoldSpot Discoveries Corp (TSXV:SPOT)
The Toronto, Ontario-headquartered software company’s consulting revenue expanded 29 per cent year-over-year (YoY) to C$ 2.05 million in the third quarter of fiscal 2021.
GoldSpot Discoveries Corp recorded a net income of C$ 8.85 million in Q3 FY2021, up from C$ 5.86 million in the same quarter a year ago.
The tech stock soared by roughly 20 per cent quarter-to-date (QTD) and zoomed nearly 155 per cent in a year.
SPOT stock closed at C$ 0.98 apiece on December 7, up by more than three per cent.
3. PetroTal Corp (TSXV:TAL)
The oil and gas stock spiked by about 28 per cent in the last one week and rose by nearly 115 per cent in the past 12 months. Its stock closed at C$ 0.365 apiece on December 7, up by more than four per cent.
PetroTal Corp recorded a daily production of 9,508 barrels of oil in Q3 FY2021. Its crude oil revenues were US$ 44.78 million in the latest quarter, up from US$ 6.93 million a year ago.
Its net income also increased notably to US$ 14.97 million in the third quarter of fiscal 2021, up from US$ 3.22 million in Q3 FY2020.
4. Nevada Copper Corp (TSX:NCU)
Nevada Copper Corp reported a net income of US$ 27.30 million in the third quarter of fiscal 2021 against a net loss of US$ 1.66 million incurred in the same quarter a year ago.
Its income attributable to common shares amounted to US$ 0.15 apiece in Q3 FY2021, as compared to a loss of US$ 0.02 piece in Q3 2020.
On December 7, the mining stock closed at C$ 0.64 apiece, up by more than 12 per cent. Its stock climbed by about 28 per cent QTD.
5. Halmont Properties Corporation (TSXV:HMT)
The Toronto-based real estate company Halmont Properties Corporation saw its year-to-date (YTD) revenue surge to C$ 7.07 million in the third quarter of fiscal 2021, up from C$ 6.76 million in the same quarter a year ago.
Its YTD net income was C$ 2.87 million in Q3 FY2021 compared to C$ 3.41 in the third quarter of 2020.
Also read: Which Canadian penny stocks would be a smart buy?
HMT stock swelled by more than 21 per cent in the last one months. It closed at C$ 0.85 apiece on December 7.
Bottom line
Penny stocks can fetch healthy returns, but one crucial point to remember is that these stocks come with high volatility risks. Investors ought to consider their risk capacity along with their return target.
