There are many small-scale companies listed on the Toronto Stock Exchange (TSX) that trade with a low stock price band and market cap. Some investors prefer to explore such penny stocks and add them to their portfolio, although they come with some risk factors.
That being said, let us look at some cheap penny stocks that investors and check out in August.
- Noront Resources Ltd (TSXV: NOT)
Noront Resources, known to mine base and precious metals, held a market cap of C$ 261 million and a closing stock price of C$ 0.57 apiece on August 17, 2021. It was trading 280 percent above its 52-week low of C$ 0.15 (November 19, 2020).
In the past year, NOT stock increased by a whopping 226 per cent.
Noront’s return on equity (ROE) stood at 29.6 per cent.
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- Royal Helium Ltd (TSXV: RHC)
This C$ 69-million market cap company explores and develops primary helium production in the Canadian province of Saskatchewan.
Its stock settled at C$ 0.49 on August 17, trading nearly 47 per cent below its 52-week high of C$ 0.92 (April 6, 2021).
RHC scrip had surged by 88 per cent in the last nine months and increased by 10 per cent over the past.
Royal Helium’s price-to-book (P/B) ratio was 8.16.
Also Read: 10 hot penny stocks to buy in August
- Kidoz Inc (TSXV: KIDZ)
Kidoz Inc, a mobile advertising network focusing on kids and teens, held outstanding shares of over 131 million and a market cap of nearly C$ 96 million after its stocks closed at C$ 0.73 on August 17.
At this level, KIDZ scrip was trading roughly 204 per cent above its 52-week low of C$ 0.24 (September 25, 2020).
The communication stock had rocketed by nearly 248 per cent over the past year.
On the valuation front, its P/B ratio stood at 9.12 and its return on assets (ROA) was 1.73 per cent.
- Playgon Games Inc (TSXV: DEAL)
The C$ 63-million market cap company develops and licenses digital content for the online gaming industry. Its stock traded at C$ 0.3 on August 17, almost 63 per cent below its 52-week high of C$ 0.81 (March 9, 2021).
The shares dipped nearly 18 per cent over the past year, and sank by close to 40 per cent on a year-to-date basis.
Playgon held a P/B ratio of 5.
- Small Pharma Inc. (TSXV: DMT)
The neuropharmaceutical company focuses on the treatments of mental illnesses. Small Pharma held a market cap of C$ 127 million and about 317 million outstanding shares when its stocks closed at C$ 0.4 on August 17.
DMT scrip was trading roughly 19 per cent above its 52-week low of C$ 0.335 (May 27, 2021) on August 17, although it was down by 42 per cent for the last six months.
Small Pharma’s P/B ratio stood at 13.3.
- Voxtur Analytics Corp (TSXV: VXTR)
This real estate technology company held a market cap of C$ 301 million and outstanding shares of 456 million after its stock closed at C$ 0.66 on August 17.
At this point, it was trading almost 54 per cent below its 52-week high of C$ 1.43 (March 2, 2021) and posting a one-year stock growth of nearly 326 per cent.
VXTR stock, however, was down by nearly 11 per cent on a quarter-to-date basis.
Voxtur Analytics’s D/E ratio stood at 0.21 and P/B ratio was 2.1.
- Playmaker Capital Inc (TSXV: PMKR)
The C$ 127-million market company ranked among the top financial services companies on the TSX on August 17, when its shares closed at C$ 0.72 to trade roughly six per cent below its 52-week high of C$ 0.77 (August 16, 2021).
The financial service stock had surged by 353 per cent over the past year and by more than 89 per cent in the last 30 days.
On the valuation front, Playmaker Capital’s P/B ratio was about 14.
- Sandfire Resources America Inc (TSXV: SFR)
Sandfire Resources America, a Canada-based resource firm, held a market cap of C$ 225 million and more than one billion outstanding shares as its stocks closed at C$ 0.22 on August 17.
At close, SFR scrip was trading over 44 per cent below its 52-week high of C$ 0.39 (August 18, 2020). It was down by 33 per cent on a one-year basis.
On the valuation front, Sandfire Resources America held a P/B ratio of 11 and a D/E ratio of 0.01
Penny stocks generally include those scrips that cost less than five dollars and have low market capitalization. While their low prices attract many investors, it is crucial to research such stocks thoroughly and keep in mind that one must have the ability to withstand fluctuation and volatility when exploring penny stocks.