Kalkine Media presents under-50-cents penny stocks to explore right now

Highlights

• Penny investors generally search for cheap stocks priced below C$ 5.
• Penny stocks typically possess low market capitalization ranging between C$ 60 million to C$ 300 million
• Small Pharma stock skyrocketed by 285 per cent in one month

Canadian investors with limited capacity to invest can earn returns by aiming for penny stocks like Spectral Medical (TSX: EDT), Snipp (TSXV: SNIP), Reunion Gold (TSXV: RGD) etc.

Penny investors generally search for cheap stocks priced below C$ 5 and possess market capitalization somewhere between C$ 60 million to C$ 300 million. Such a strategy typically focuses on stocks likely to see price momentum in the short or near term. Investors generally book their profits when (and if) the expected price momentum arrives. However, one should mind that penny stocks are a highly risky venture, and any unfavourable market dynamics could result in huge losses.

Keeping these points in mind, let us look at the following Canadian penny stocks under 50 cents, selected by Kalkine Media®, that one can explore right now.

1.     Spectral Medical Inc (TSX: EDT)

Spectral Medical is a healthcare company focused on advancing and commercializing therapeutic solutions for sepsis and septic shock. Spectral revealed in August that the US Food and Drug Administration approved adding up to 10 new Tigris clinical trial sites after reviewing “supplemental information” to its Investigational Device Exemption (IDE).

Spectral Medical stock galloped by roughly 105 per cent year-to-date (YTD). As per Refinitiv, the EDT stock recorded a relative Strength Index (RSI) value of 50.76 on Friday, September 2, which points to a moderate market environment.

2.     Snipp Interactive Inc (TSXV: SPN)

Snipp Interactive is a junior communication service company developing and selling mobile-based promotion software applications and technologies to boost customer engagement and interactions. Snipp saw its revenue jump by 81 per cent year-over-year (YoY) to US$ 5.47 million in the second quarter of fiscal 2022.

Snipp Interactive stock gained by over 69 per cent quarter-to-date (QTD). As per Refinitiv findings, the SPN stock seems to be on a uptrend as its RSI value reached 64.08 on September 2.

3.     Reunion Gold Corporation (TSXV: RGD)

Reunion Gold is a C$ 271.29 million market capitalization firm focused on gold projects in Oko West (Guyana) and Boulanger (French Guinea). Reunion is also working on NW Extension project in Suriname under a strategic alliance with Barrick Gold (TSX: ABX) signed in February 2019. The junior gold exploration firm posted cash and cash equivalents (CCE) of C$ 19.19 million on June 30, 2022, relatively high from C$ 13.63 million on December 31 last year.

Reunion Gold stock swelled by roughly 224 per cent in one year. According to Refinitiv data, the RGD stock had an RSI value of 54.35 on September 2, representing a medium market trend.

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4.     GoldQuest Mining Corp (TSXV: GQC)

GoldQuest saw its stock spike by nearly 15 per cent to close at C$ 0.235 on Friday, September 2. This TSXV-listed stock grew by almost 81 per cent in 2022. According to Refinitiv information, the GQC stock appears to be facing moderate market conditions as its RSI value was 61.17 on September 2.

On the financial front, the junior gold miner reported C$ 13.38 million in CCE at the end of Q2 2022, down from C$ 14.05 recorded on December 31 last year. Apart from the balance sheet, GoldQuest also narrowed down its net loss to C$ 0.59 million in the second quarter this year than that of C$ 0.61 million in Q2 2021.

5.     ROK Resources Inc (TSXV: ROK)

ROK Resources is a junior petroleum and natural gas firm having a market capitalization of C$ 69.28 million. ROK Resources saw a production volume of 277,877 barrels of oil equivalent (boe) in Q2 2022. ROK said its oil and natural gas sales amounted to C$ 28.71 million in the latest quarter, higher than C$ 0.7 million in Q2 2021.

ROK Resources stock spiked by over 73 per cent in nine months. As per information from Refinitiv, the ROK stock possessed an RSI value of 64.07 on September 2, denoting a moderate-to-high momentum.

6.     Small Pharma Inc (TSXV: DMT)

Small Pharms is a C$ 124.16 million market capitalization healthcare firm engaged in developing psychedelic-assisted therapeutic solutions for mental health conditions. Small Pharma said in August that the Canadian Intellectual Property Office granted it patent no. 3104072. This is the ninth patent granted to the neuro pharmaceutical firm’s psychedelic and non-psychedelic portfolio, with over 70 pending applications.

Small Pharma stock skyrocketed by 285 per cent in a month. Based on Refinitiv data, the DMT stock appears to be on an upward trajectory with a high RSI value of 86.58 on September 2, representing a bullish momentum.

7.     dynaCERT Inc (TSX: DYA)

dynaCERT is an industrial products company that designs, manufactures and distributes transportable hydrogen generator systems to improve fuel efficiency and minimize carbon emissions. The C$ 95.37 million market cap firm reported revenue of C$ 0.09 million for the quarter that ended on March 31, 2022, reflecting an increase from C$ 0.04 million posted in the same quarter of 2021.

dynaCERT scrip catapulted by about 138 per cent in one month. The DYA scrip seems to be on a moderate-to-high trend as its RSI value hit 61.96 on September 2.

Bottom line

Investors should accurately assess their risk capacities while considering penny stocks as they are deemed risky due to their volatile nature and low market size. Investors with a high-risk tolerance and looking to fetch quick gains also need to evaluate the financial and fundamental health of such stocks and acquire knowledge about market dynamics that could affect stock performance to avoid losses.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.