Highlights

• Investment in penny stocks is risky, investors should abide by their risk capacity.
• One of the tech companies mentioned below noted an increase of more than 1,583 per cent in the past year.
• Among the below-mentioned penny stocks, one posted a return on equity of 4,629.62 per cent.

Penny stocks are a riskier endeavor than smallcap and midcap stocks, however, if invested in carefully, these could result in substantial gains. Generally, high-risk takers with small investments hope to capitalize on higher returns by investing in these stocks.

Also read: Top 5 Canadian penny tech stocks to buy

Let us look at five Toronto Stock Exchange Venture (TSXV) listed tech penny stocks to get an idea of their performances.

1.    Fobi AI Inc. (TSXV: FOBI)

Fobi AI Inc. is a data intelligence firm that provides an artificial intelligence-powered platform that provides meaningful insights to enhance customer engagement and profits. The firm through its proprietary platform serves retail, telecom, sports and entertainment, casino gaming, and hospitality & tourism industries at a global scale.

The software tech firm’s scrip skyrocketed by nearly 650 per cent in the past year. On Friday, October 1, its scrip wrapped trading at C$ 3.04 apiece marking a fall of almost 23 per cent from its 52-week high of C$ 3.93 (September 21). Its stocks moved up by about 113 per cent in the past three months, and increased by more than 48 per cent year-to-date (YTD).

The company holds its return on equity (ROE) at 381.55 per cent, from the valuation point.

2.    Powerband Solutions Inc. (TSXV: PBX)

Powerband Solutions Inc. is a financial technology company that offers cloud-based auction and finance portals and software tools to enhance sales growth and profitability of the automotive sector.

The Burlington-based fintech provider saw its stock soar by approximately 351 per cent in the past one year. Its stock reached the C$ 1.49 mark as its 52-week high on March 12.

On October 1, the PBX stock closed trading at C$ 0.97 apiece, a rise of more than  506 per cent from its 52-week low of C$ 0.16 (December 2, 2020).

At the time of writing, Powerband held its ROE at 4,629.62 per cent.

Also read: 5 Canadian penny stocks to buy if you are under 35

3.    Digihost Technology Inc (TSXV:DGHI)

The Canadian blockchain firm Digihost Technology is primely engaged in mining Bitcoin presently at a hash rate of 200 PH. The firm operates a mining facility in Buffalo, New York.

The firm noted a hike of more than 1,583 per cent in the past year, and a rise of about 104 per cent year-to-date (YTD). Its stock reached C$ 5.87 apiece marking its 52-week high on February 22.

On October 1, the blockchain stock closed trading at C$ 2.02, a rise of more than  2,144 per cent from its 52-week low of C$ 0.09 (October 6). On the valuation front, its price-to-book (P/B) ratio stood at 1.843, and debt-to-equity (D/E) ratio at 0.04.

4.    ProntoForms Corporation (TSXV:PFM)

ProntoForms Corporation offers web-based enterprise software solutions to integrate field data for small and medium-sized businesses across the United States, Canada, Europe and Latin America.

ProntoForms stock moved down by almost 37 per cent from its 52-week high of C$ 1.65 (January 12) and closed trading at C$ 1.04 per share, on Friday, October 1. Its stock experienced an increase of nearly 32 per cent in the last one year.

The company held a P/B ratio of 104 and D/E ratio of 4.58, on this day.

5.    Drone Delivery Canada Corp. (TSXV: FLT)

Drone Delivery Canada Corp. is a Vaughan-based hardware company focused on providing a drone delivery system in the country. The company is engaged in the designation, development and implementation of commercially viable drone deliveries.

The company’s scrip rose by almost 32 per cent in the past year, while on a year-to-date basis, it increased by approximately 11 percent.

Its scrip closed trading C$ 0.91 apiece on October 1, down by more than 64 per cent from its 52-week high of C$ 2.55 (February 10). Its P/B ratio stood at 5.56 and D/E ratio at 0.03.

Also read: 5 TSX midcap stocks to buy

Bottom line

As penny stocks are highly volatile, investors should research and go through the respective companies’ financial reports and stated future plans of the company to get a clearer picture of the company and invest as per their risk appetite.