7 Hot Penny Stocks to Watch Out For in September

Summary

• High trading volume plays an important role for investors seeking good penny stocks.
• We look into seven hot trending penny stocks on the TSX Venture.
• Companies like CloudMD and Vizsla Resources have been garnering high trade volume in the last three months.
• Teuton Resources, meanwhile, saw a spike in share value after entrepreneur Eric Sprott’s investment in summer.

Penny stocks, which can be broadly described as shares of emerging companies with shares prices C$ 5, are always in demand among Canadian investors looking for cheap stocks with the potential for good returns. Despite the high trading volume and low share prices, penny stocks are associated with volatility and risks, which the investors need to bear in mind. To assess the health of penny stocks, investors are advised to look into the organizations’ long-term growth and business plans. Here are a few penny stocks that investors can look out for in September.

1. Vizsla Resource Corp (TSXV:VSLA)
   Current Share Price – C$ 1.8

Vizsla Resources is currently one of the most highly ranked stocks on the Toronto Stock Exchange Venture, with a market cap of C$ 136 million. This mineral exploration company, which is currently working on its Panuco silver-gold project in Mexico, saw an increase of 138.96 per cent in its year-to-date performance. Its share trade volume stands at 711,205, showing a 308 per cent increase in its stock price value in the last three months.

Stock prices of Vizsla Resources saw a sharp spike around the time it announced the expansion of its Panuco exploration project. The company recently announced its fourth new discovery in this project, where drill results showed findings of 1,200.6 grams per ton silver and 7.29 grams per ton gold over 4.5 meters.

2. Therma Bright (TSXV:THRM)
   Current Share Price – C$ 0.16

Therma Bright, a medical device technology company, has seen a 433 per cent rise in its stock price in the last three months. It has a market cap of C$ 31 million and it has traded 1.6 million shares, becoming one of the most actively traded stock in the past 10 days.

Therma Bright’s quarterly report released in April 2020 showed a total income of C$ 1.15 billion, which was down 27 per cent from C$ 1.5 billion in April 2019. Meanwhile, its year-to-date performance on the TSXV showed a rise of 966.67 per cent.

The Toronto-based company recently signed a deal with Orpheus Medica Inc to develop a rapid saliva test to detect the novel coronavirus, making it a stock to look out for as the pandemic rages on.

3. 
   DealNet Capital Corp (TSXV:DLS)
   Current Share Price – C$ 0.15

The stock price of DealNet Capital Corp spiked 15 per cent in August when the company announced that it is being acquired by home energy and improvement firm Simply Green Home Services. Although concerned shareholders responded sourly to Simply Green’s offer of C$ 0.16 per share, the shares have been performing well since. The stock price has seen a 50 per cent increase in the last on month.

Toronto-based consumer finance company has a market cap C$ 42,600,195 and it has traded 161,000 shares. The company also reported a 45 per cent increase in its net income in the second quarter of 2020, over its Q1 profit.

4. Teuton Resources Corp (TSXV:TUO)
   Current share price: C$ 3.49

Teuton Resource’s stock price popped up after big-time Canadian businessman Eric Sprott put in a huge investment in the junior gold mining company. Sprott, through a private placement, acquired 3,000,000 shares of the company at a price of C$ 3.00 per share, leading to him holding nearly 20 per cent of the company’s total outstanding stocks.

Teuton Resources continues to remain highly ranked at the TSXV trending list, with a share trade volume of 29,023 and a market cap C$ 185 million. In the last three months, it has seen a 283 per cent increase in its stock price, from C$ 0.91 to C$ 3.49. The stocks advanced by 598 per cent YTD.

5. CloudMD Software & Services Inc (TSXV:DOC)
   Current Share Price – C$ 1.64

CloudMD Software & Services, a tech company focusing on health care, has been riding high on the increasing demand of online health consultation. Its stock price has seen a nearly 122 per cent hike in the last three months, since its debut on the TSXV in June. The company recently announced its latest quarterly report, which showed a 163 per cent increase its total revenue in the last one year, from C$ 1.6 million in August 2019 to C$ 2,789,987 in August 2020.

The company has a market cap of C$ 188 million.

6. Goldsource Mines Inc (TSXV: GSX)
   Current Share Price – C$ 0.15

Goldsource Mines stock price rose by nearly 15 per cent in the last three months, while trending at the TSXV for trading 1,098,599 shares. The Vancouver company’s market cap is C$ 58 million, while its share trade volume stands at 648,707.

The miner has operations in Vision at Eagle Mountain, Guyana and aims to be a low-cost gold producer.

7. Callinex Mines Inc (TSXV: CNX)
   Current share price – C$ 2.62

Callinex witnessed a 227 per cent increase in its share value, climbing from C$ 0.80 to C$ 2.62 in the last three months. Stocks of the Vancouver-based mineral exploration company, which has a market cap of C$ 28.5 million, rose 208 per cent YTD.