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Stock markets witnessed an unprecedented downturn, followed by a strong comeback in the last one year. Some established players were completely washed away in the pandemic while some stocks rallied in the bear markets. Many newcomers also found a strong momentum, yielding excellent returns. Penny stocks became all the rage in North American markets, as social media-influenced newb investors added their weight behind viral Reddit rallies.
Despite the volatility, equity markets remained the critical capital-raising grounds sought by companies while investors netted long-term and short-term gains.
As we enter the second quarter of 2021, here are five red-hot penny stocks that have zoomed to the moon of late and are worth exploring:
CurrencyWorks Inc. (TSXV:CWRK)
Sector: Financial Services
Industry: Capital Markets
With a crypto wave sweeping across the world, this blockchain stock is poised for the long term growth.
CurrencyWorks has returned a whopping 6,988 per cent in the last one year and 490 per cent year-to-date (YTD).
The stock closed at C$ 3.19 apiece on March 26 and has gained over 100 per cent month-to-date (MTD).
The C$ 113-million company develops fintech platforms to manage digital currencies, assets, and security tokens. It helps organizations increase revenue and liquidity with the help of digital currencies and assets. CurrencyWorks also works in the NFT space.
It recently inked a deal with fintech company XTM, Inc. (CSE: PAID) allowing their mobile wallet holders to access CurrencyWorks Collectables NFT and NFT payment platforms.
It also formed an alliance with cannabis retailers to launch a digital community currency card and fintech platform called CaliCard.
For the nine months ending September 30, 2020, the company posted a net loss of US$ 0.136 million, down from a loss of US$ 4.3 million a year ago. Its total liabilities stood at US$ 1.9 million for the quarter ending on September 30, 2020.
Avanti Energy Inc. (TSXV:AVN)
Sector: Energy
Industry: Oil & Gas
Avanti, a helium stock, has witnessed exemplary returns in recent times. The stock has advanced by 115 per cent in a month and yielded 2300 per cent returns in the last one year!
Despite being a penny stock, Avanti has continued to interest investors due to its strong foundation. The company was formed by energy market veterans to explore the helium market in Canada and the US.
Helium, reportedly the second most abundant element in universe but rare on earth, is used for medical applications such as MRI machines and industrial usage like cooling, cryogenics, semiconductor manufacturing, fibre optic cables, data centres, etc.
The helium market is ripe for expansion and that makes Avanti’s stock a value proposition for buyers. It is currently trading at C$ 3.58 apiece.
@Kalkine Media 2021
Rock Tech Lithium Inc. (TSXV:RCK)
Sector: Basic Materials
Industry: Metals & Mining
The demand for lithium-ion battery cell has sky-rocketed. As electric vehicle fever grips the world, lithium stocks are bound for major gains.
Canada-based Rock Tech is a lithium mining firm producing battery-grade Lithium Hydroxide. It is also building Europe's first lithium hydroxide converter. Its market cap is over C$ 237 million and the stock was priced at C$4.41 as on March 26.
The stock has returned over 1,000 per cent in the last 12 months and 160 per cent in the last three months.
The company posted a net loss of C$ 0.41 million for three months ending September 30, 2020, up from C$ 0.32 million a year ago. Its cash and cash equivalents at the end of the period was C$ 1.04 million, up from C$0.89 million for three months ending September 30, 2019.
A2Z Smart Technologies Corp. (TSXV:AZ)
Sector: Industrials
Industry: Aerospace & Defense
This aero stock has climbed 560 per cent in a year. It has grown by 238 per cent in the last three months.
It is currently trading at C$ 3.22, down 35 per cent from its 52-week high of February 23, 2021.
This Israel-based technology company offers unmanned robotic and electronic platforms to both military and civilian markets to tackle terrorism, bomb defusing, and firefighting.
It recently won US$ 1.5-million Israeli government contract and is also eyeing a Nasdaq listing.
Titanium Transportation Group Inc. (TSXV:TTR)
Sector: Industrials
Industry: Transportation
Our last pick is a logistics and warehousing stock, Titanium Transportation, which has returned over 200 per cent in a year. The stock is up 48 per cent YTD.
It is currently trading at C$3.7 per share, down over 14 per cent from its 52-week high of C$ 4.3, attained on February 5, 2021.
Companies working in logistics and supply chain space performed well amid the pandemic and Titanium is no exception.
The company’s top line is surging, and it recorded a 20.2 per cent year-over-year revenue rise in 2020 to C$200.7 million. Its net debt also decreased to C$12.7 million while its net debt-to-equity ratio improved to 1.14, the company said in its financial statement. Titanium completed the acquisition of International Truckload Services Group in February this year, earning it a place among the largest Canadian transportation companies.
It started distributing dividends of C$0.02 from November 2020 and currently yields 2.167 per cent.
The pandemic is nowhere near to being over and that places Titanium in a strong growth space. The stock is likely to continue on a growth path in the post-pandemic world.
