5 Penny Stocks To Explore Before Fall Ends

Summary

• While penny stocks can turn out to be hugely rewarding, investors should tread cautiously before investing in them.
• Kodiak Copper (TSXV:KDK) stock gained 213.6 per cent YTD while VIQ Solutions (TSXV:VQS) stock gained 129.35 per cent in the same time.
• Rubicon Organics (TSXV:ROMJ) stock is up 117.39 per cent this year and Vitalhub (TSXV:VHI) gained over 90 per cent this year
• Standard Lithium Ltd. (TSXV:SLL) also advanced by 154 per cent YTD.

 

High trading volumes, lower stock price and higher risks are associated with penny stocks. With higher risks comes higher returns, and penny stocks can be rewarding, only if investors tread a cautious approach towards investment. Here are five penny stocks trending on the Toronto Stock Exchange Venture (TSXV): Kodiak Copper Corp. (TSXV:KDK), VIQ Solutions Inc. (TSXV:VQS), Rubicon Organics Inc. (TSXV:ROMJ), Vitalhub Corp. (TSXV:VHI) and Standard Lithium Ltd. (TSXV:SLL).

Since penny stocks are volatile in nature, they can sometimes make explosive moves and bag multi-profits for investors. However, the vice-versa could come true and investors may end up losing all their capital. Let’s explore the five trending penny stocks:

Kodiak Copper Corp. (TSXV:KDK)

Current Stock Price: C$1.49

Canada-based Kodiak Copper Corp focuses on exploration and development of base and precious metal assets. Current market capitalization for the firm stands at C$54.63 million. The stock gained 213.6 per cent this year.

Swinging between the highs and lows with Covid-19 led disruption, the company raised C$12.7 million from Teck Resources Ltd (TSX:TECK) by way of a private placement to fund its exploration programs.

The company’s net loss reduced to C$ 0.38 million in the second quarter of 2020 (ended 30 June) from C$0.57 million same quarter a year ago. It also reported strong liquidity in the second quarter of 2020 (ended 30 June) of C$1.97 million, an increase of 37 per cent from Q2 2019.

VIQ Solutions Inc. (TSXV:VQS)

Current Stock Price: C$5.00

VIQ Solutions Inc is a technology platform offering content management, digital evidence captures and retrieval services to the markets of Australia, Canada, the United Kingdom, and the United States. Earlier this month, the company migrated 400 clients to its AI-powered NetScribe™ Transcription platform for improved speed and efficiency gains of 30 to 50 per cent. It also launched CapturePro On-the-Go, a value-added solution for high-quality capture with sophisticated security protocols.

The world’s shift towards homebody economy has thrust tech stocks into focus. Riding on this wave, VIQ stock gained 129.35 per cent YTD.

Current market capitalisation of the firm is C$92.46 million. As per the second quarter results of the company (period ended June 30, 2020), revenue increase of 33.5 per cent year-over-year to US$8.25 million. Gross profits increased by 106 per cent YoY to US$5.05 million.

Rubicon Organics Inc. (TSXV:ROMJ)

Current Stock Price: C$4.00

Rubicon Organics^TM is engaged in the cultivation, production, and sale of Cannabis for domestic and international markets. The company recently entered into a Cannabis 2.0 distribution agreement with Canada House Wellness Group, whose subsidiary Abba Medix Corp. will distribute Rubicon’s line of products.

The pot stock has gained 117.39 per cent year-to-date.

Rubicon Organics™ YTD Price Chart (Source: Refinitiv, Thomson Reuters)

Current market capitalization of the company is C$185.6 million. The company’s total revenue increase was nearly C$1.2 million in the second quarter (ended June 30, 2020). Net loss narrowed to C$1.8 million in Q2 2020, down from C$3.5 million in the prior year quarter.

Vitalhub Corp. (TSXV:VHI)

Current Stock Price: C$2.93

Vitalhub Corp is a Canada-based firm engaged into developing technology solutions for the healthcare industry. The stock gained 90.85 per cent this year. Current market capitalization of the company is C$77.94 million. The stock holds profit-to-book (P/B) ratio of 2.79 and profit-to-cash flow (P/CF) ratio of 182.40. As per data on TMX, 10-day average trading volume of shares is 134.09 million.

According to second quarter financials of the company (period ended June 30, 2020), the total revenue stood at C$2.74 million, a marginal decline from Q1 2020. Net loss reduced by 185 per cent to C$ 0.18 million in the latest quarter, from C$ 0.21 million in Q2 2019. The cash position towards the end of Q2 2020 stood at C$15.94 million, up 228 per cent YoY.

Standard Lithium Ltd. (TSXV:SLL)

Current Stock Price: C$2.16

Standard Lithium Corp is a lithium project development company engaged in the exploration of lithium brine in the United States. In September, the company commenced lithium extraction operations at its Arkansas facility. Lithium, an integral component for batteries used in Electric Vehicles, has been witnessing an increasing demand.

The stock gained 154 per cent YTD. Current market capitalization of the company is C$241.3 million. The stock holds profit-to-book (P/B) ratio of 3.893 and profit-to-cash flow (P/CF) of 1,215.90. Shares are trading at a 10-day average volume of 447.25 million.

The company’s net loss increased to C$9.5 million for the year ending 30 June 2020, up from C$ 8.5 million a year ago. Total cash at the end of June 2020 was C$4.14 million.