Canadian Penny Stocks: 2022’s Most Lucrative Picks

If you’re looking to invest in some of the hottest penny stocks on the Canadian stock market today, look no further. Penny stocks are an excellent way of making money because they are inexpensive and have the potential to rise in value.

In this article, we’ll look into 10 of the best Canadian penny stocks and provide further information on everything new penny stock traders should know before getting started. 

Canadian Stocks Under $1

1. 5N Plus (VNP)

2. Drone Delivery Canada (FLT)

3. High Tide Inc. (HITI)

4. HIVE Blockchain Technologies (HIVE)

5. Fobi AI (TSXV: MTRX)

6. PROSHRED® Parent Company Redishred Capital Corp (TSXV: KUT)

7. Namesilo Technologies (CSE: URL)

8. Kodiak Copper Corp. (TSXV:KDK)

9. Exro Technologies (EXRO)

10. Numinus (NUMI)

Cheap Canadian Stocks To Buy Now

Did you know that around 80% of the Toronto Stock Exchange (TSX) stocks are trading under $5 today? Also, before deciding to invest in the Canadian stock market, you should have in mind that TSX is one of the world’s highest-performing stock markets.

While there are many cheap penny stocks out there, only a few of them are on the top of the list. So, let’s take a look at some of the best Canadian penny stocks at the moment.

1. 5N Plus

  • Symbol: (VNP)
  • Founded: 2000
  • Value: $2.26
  • Market Capitalization: $199.25 million

 Founded in Saint-Laurent, Quebec, Canada, 5N Plus is a company that produces high-purity metals and chemicals for making pharmaceuticals, thin-film solar panels, LEDs, etc. 5N Plus has sales offices and manufacturing plants in Europe, America, and Asia.

Like many other companies, 5N plus’s global revenue and the average stock value plummeted during the COVID-19 pandemic. In April 2019, the average stock value peaked at $3.66, then dropped to $1.12 in March 2020 before finally reaching $2.26 in February 2022.

Since its value stability over the last couple of months, 5N Plus defintely has become one of the best Canadian cheap stocks to invest in. Plus, wouldn’t you like to take action now when the VNP price is reasonably low and strike while the iron is hot?

2. Drone Delivery Canada

  • Symbol: (FLT)
  • Founded: 2014
  • Value: $0.68
  • Market Capitalization: $152.46 million

Headquartered in Vaughan, Ontario, Canada, Drone Delivery Canada is an innovative technology company that specializes in designing, developing, and implementing commercially viable drone delivery systems. Its customers are consumers in retail, courier services, oil and gas, mining, and construction.

It is common knowledge that the drone industry is rapidly growing and finding applications in various industries. The current FLT value is $0.68, contrary to its lowest value, $0.58, in May 2020. With that, FLT reserves its place among the cheapest stocks on the Canadian stock market.

Financial experts say that there will be no significant changes in the FLT value in the following months, possibly increasing around 36% by January 2023. Reasoning from this fact, Drone Delivery Canada undoubtedly lands on the watchlist as one of the best Canadian cheap stocks to buy.

3. High Tide Inc.

  • Symbol: (HITI)
  • Founded: 2009
  • Value: $5.74
  • Market Capitalization: $347.89 million

High Tide Inc. is an Alberta-based, retail-focused company. Its specialty is developing and distributing recreational cannabis and smoking accessories to retail customers, with more than 110 locations across Canada. 

There is significant growth in the value of HITI stocks, moving from $1.05 in March 2020 to $4.44 in March 2022. These stats make HITI one of the top-performing Canadian stock market stocks

Considering the increasing popularity of recreational cannabis smoking and the fact that in 2021 High Tide was ranked among Canada’s top growing companies, it is evident that HITI is among the Canadian top stock gainers.

4. HIVE Blockchain Technologies

  • Symbol: (HIVE)
  • Founded: 1987
  • Value: $2.72
  • Market Capitalization: $1.11 billion

HIVE Blockchain Technologies is a blockchain corporation based in Canada, specializing in the mining and selling of digital currencies. Over the years, they succeeded in always being up to date and keeping up with the competition. 

Statistically, the value of HIVE was generally stable over the last couple of years, despite its greatest downfall during the lockdown. However, since January 2022, HIVE managed to sustain its value above $42, reaching $2.72 in March 2022.

Given the price stability, HIVE Blockchain should, beyond any doubt, be on your penny stocks watchlist. 

5. Fobi AI

  • Symbol: (TSXV: MTRX)
  • Founded: 2018
  • Value: $0.86
  • Market Capitalization: 125.61 million CAD

Founded in Vancouver in 2018, Fobi AI is a data intelligence company. Artificial intelligence, automated marketing, contactless solutions, and contact tracking are some of the services Fobi AI provides to customers.

During the COVID-19 pandemic, Fobi AI’s stock price was at its lowest, crashing to $0.10 in 2020. In the following months, its value increased moderately, reaching its peak in September 2021 and finally dropping to $0.86 in March 2022. 

Seeing no significant fluctuation in the first few months of 2022, the company inarguably became one of the best Canadian penny stocks to buy now.

Canadian Penny Stocks

6. PROSHRED® Parent Company Redishred Capital Corp

  • Symbol: (TSXV: KUT)
  • Founded: 2006
  • Value: $0.83 
  • Market Capitalization: $74.99 million 

Redishred Capital Corp. is based in Mississauga, Ontario, Canada, and operates the Proshred brand and license business in the United States and worldwide. With 13 corporate locations, Redishred specializes in developing synergetic businesses, document imaging, and Electronic waste recycling.

With the stock value ranging from $0.38 to $1.08, we can inarguably say that TSXV: KUT is among the most stable stocks. Its current price, at $0.83, is around the average.

Analysts see a bright future for Redishred Capital’s stock price, expecting it to reach $1.37, which places TSXV: KUT among the top penny stocks in Canada.

7. Namesilo Technologies

  • Symbol: (CSE: URL)
  • Founded: 1993
  • Value: $0.15 CAD
  • Market Capitalization: $13.90 million

Namesillo Technologies is an ICANN-accredited domain registrar that offers affordable, secure, easy-to-use domain registration and management. What distinguishes Namesillo from the other domain registrars is their discount for the more domain names you buy.

Although the stock price was higher, reaching $0.51 in 2019, analysts’ forecasts are promising, predicting that the price could double in the next 12 months.

We can undeniably say that technology impacts our everyday lives. Businesses depend mainly on digital marketing, so the demand for domain names is enormously high.All these facts indicate that buying Namesilo stocks now is worth considering.

8. Kodiak Copper Corp.

  • Symbol: (TSXV: KDK)
  • Founded: 1987
  • Value: $1.71 
  • Market Capitalization: $86.94 million 

Kodiak Copper Corp.’s focal point is its wholly-owned porphyry projects in Canada and the US. The company’s most significant project is the MPD copper-gold porphyry project in Quesnel Trough in southern British Columbia, Canada, extending 950m in length, 350m in width, and 850m in height.

While TSXV: KDK had its ups and downs during the pandemic, analysts’ forecasts are encouraging, with the future price predicted at $3.41, which is around 147% higher than today’s price.

All in all, TSXV: KDK is unquestionably one of the TSX top gainers

9. Exro Technologies

  • Symbol: (EXRO)
  • Founded: 2014
  • Value: $1.43
  • Market Capitalization: $191.36 million

Founded in 2014, Exro Technologies is an environmentally friendly company that develops intelligent control solutions in power electronics to tackle some of the biggest electrification problems.

One of the few companies whose stock’s highest price was immediately after the lockdown, reaching $5.15 in February 2021. Even though the current stock price is $1.43, the analysts have a good feeling about EXRO, predicting that the price will go up to $6.25 in the following year. 

This analysis alone ranks EXRO higher on the Canadian penny stock list.

10. Numinus 

  • Symbol: (NUMI)
  • Founded: 1964
  • Value: $0.50 
  • Market Capitalization: $101.62 million 

Numinus is a Vancouver-based mental health and wellness company helping the world heal using holistic methods and psychedelic medicine. 

In February 2021, NUMI’s price reached the highest increase, peaking at $1.92. Additionally, the 12-month forecast looks good, as the analysts predict that the price could go up to $0.84.

Psychotherapy will almost certainly continue to be in high demand in the foreseeable future, which makes Numinus one of the hottest penny stocks to buy now.

Canadian Penny Stocks graph

Penny Stocks Explained

What are penny stocks?

You may have stumbled across the term “penny stocks” and wondered what they were.

The term “penny stocks” would have been valid around a decade ago when people could penny stocks for less than 1 CAD. 

At the moment, penny stocks are generally traded for less than 5 CAD per share, regardless of the name. 

Why are they so cheap?

Penny stocks are generally from small or unproven businesses. Since the probability of long-term success is uncertain, their stocks are riskier and less expensive than those of more stable corporations. 

Many schemers use their low cost to entice naive investors. As a result, it is critical to exercise caution and invest only in stocks listed on established exchanges and have a respectable track record.

Why are penny stocks risky?

Investors frequently rely on publicly available data, which often do not come from reliable sources when considering viable investment opportunities.

Additionally, low trading volumes allow skilled traders to manipulate stock prices. One of the ways to do it is by buying considerable amounts of stock, causing the share price to climb swiftly, and selling them after they catch the attention of other investors. This scam is called “pump-and-dump.” 

Pros and cons of buying penny stocks

Since penny stocks are cheap, investors can acquire many of them for a small sum of money. Another advantage is that companies may have proven management teams, strong balance sheets, increasing market share, and innovative products or services poised to disrupt an industry.

Moreover, some of the penny stocks do not see rapid price movement, but those that do tend to produce significant price changes in a matter of weeks.

The most significant downside of penny stocks is that their value can escalate quickly and decrease just as fast.

How to Buy Penny Stocks?

Buying penny stocks is simple; first, you need to open an account – a spread betting account, a CFD trading account, or a stock trading account (or all three). Next, it is best to analyze details and do your research; IG Academy is the best place to start. Select a penny stock, and finally, place your trade.

You Might be Interested: How to Buy Stocks in Canada?

Finishing Thoughts

Penny stocks are usually risky and volatile, but on the other hand, they are exciting, and there is an excellent possibility for high returns if you know which penny stocks to buy. 

Still, before investing in penny stocks, you should do thorough research since there are many scam penny stocks. 

FAQ

What is the TSX doing today?

On Monday, the S&P/TSX Composite Index decreased 0.13% to 21.977, as oil prices dropped on concerns about demand from China.

Similarly, the healthcare sector fell 4.1% as cannabis manufacturers relinquished recent gains, while the materials sector, specifically mining and fertilizer businesses, fell 1.5%.

Meanwhile, technology (+1.8%) and consumer goods (+1.1%) were the only two sectors to finish in the green.

How to invest in stocks in Canada?

Investing in stocks in Canada has never been easier.

To begin trading stocks, you don’t need a lot of money. You can open a brokerage account online, and although you can start buying stocks in Canada for $100, it is better to save a little more first to avoid the trading charges that accumulate over time. 

Choosing an investment account is the following step you need to take; you can invest using registered or non-registered accounts. 

The final step is analyzing stocks and investing. However, it is essential to do detailed market research and analyze your financial situation before investing.

ABOUT AUTHOR

Despite her formal background in linguistics, Maja has always been fascinated by the world of finance. She has spent years and years analyzing the market, including trades, investments, pitfalls to avoid as well as the stock exchange. As of recent, she has been studying some non-mainstream stocks in Canada. When I’m not immersed in numbers, I like to spend time with my dog and plan my next trip.

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