10 Hot Canadian Penny Stocks To Buy in April

Potential high returns and a relatively lower price make penny stocks an appealing option for people looking to invest their money in the stock market. However, these stocks come with a set of pros and cons due to high volatility and risk factors associated with the equity markets.

To invest in the penny stocks, thorough background research of the company, its stock, financials and other details matter a lot. In this article, we take a look at the top ten stocks at the TSX and TSXV you might consider exploring this month:

1. Thunderbird Entertainment Group Inc

The multi-platform media production and entertainment company has a market cap of C$ 222 million and holds a price-to-book (P/B) ratio of 3.74. The stock propelled by 557 per cent in a year and 41.5 per cent year-to-date (YTD). It was priced at C$ 4.60 apiece at market close on March 30.

In February, the company released results for the second quarter fiscal year 2021, in which it achieved revenue of C$ 28 million, up by 98 per cent year-over-year (YoY). The adjusted EBITDA was C$ 5.2 million, an increase of 160 per cent YoY.

2. Dominion Lending Centres Inc.

The mortgage company that holds over C$ 44 billion in funded mortgages has a market cap of C$ 181 million and holds a P/B ratio of 2.487. The stocks surged 385 per cent in a year and 22.3 per cent YTD.

The Dominion Lending Centre reported its best financial results in Q3 2020 when it achieved revenue of C$ 14.1 million, an increase of 6.7 per cent YoY. During the same period, its adjusted EBITDA was C$ 8.5 million, up by 5.4 per cent YoY.

3. CubicFarm Systems Corp.

The agro-tech company has a market cap of C$ 179 million and holds a P/B ratio of 14.444. The company was recently in the news after a scientific journal claimed that CubicFarm's subsidiary HydroGreen has a great potential to reduce the greenhouse gases (GHGs) emissions caused by the animal agriculture industry. This could boost the prospects of the company as Canada is already on the path of reducing its carbon footprint.

The company's stock grew 477.7 per cent in a year and 39.8 per cent YTD.

4. Forsys Metals Corp.

The emerging uranium developer has a market cap of C$ 130 million and holds a P/B ratio of 9.75. The company's stock skyrocketed 500 per cent in a year and 160 per cent year-to-date (YTD).

Forsys recently announced that it is upsizing its financial underwriting contract, also known as bought deal private placement due to investor demand. Instead of C$ 8.5 million, it will now be worth C$ 13 million.

In Q3 2020, the company's cash and cash equivalents were C$ 1 million, an increase of 50.4 per cent in nine months. For the same period, the loss for the company was C$ 490 million.

5. Athabasca Oil Corporation

In the last ten days, Athabasca has been among the most actively traded stocks on the TSX. It has a market cap of C$ 262 million and holds a price-to-book (P/B) ratio of 0.463. The scrips were priced at C$ 0.495 at market close on March 30.

The stocks grew 272.1 per cent in a year and about 183 per cent YTD.

In Q4 2020, the company managed to increase its production to 34,233 barrels of oil equivalent per day (boe/d) against 32,483boe/d in 2019. During the same period, the operating income was C$ 30 million, down from C$ 42 million year-over-year (YoY).

6. A2Z Technologies Canada Corp

The Israeli tech company specializes in military technology and has a market cap of C$ 155 million. The P/B ratio stands at 14.364.

In a year, the company's stock skyrocketed by 551.5 per cent. The stocks have been on a growth path in 2021 too, returning 243.4 per cent YTD.

The company's A2Z Military Solutions wing recently bagged a multi-year contract worth US$ 1.5 million from the Israeli government. It will work with the country’s Ministry of Internal Security.

The company released financial results for the period ended September 30, 2020. The company's revenue was US$ 281,000, an increase of 21.1 per cent YoY.

7. Neptune Digital Assets Corp.

The company that is involved in building digital currency assets has a market cap of C$ 85 million and holds a P/B ratio of 7.077.

On March 29, the company announced that it is going to receive 300 ASIC bitcoin mining machines in April and that it will generate a profit margin of US$ 4,000 per day at the bitcoin price of that day. The company plans to add 1200 more bitcoin mining machines.

The stock surged 922.2 per cent in a year and 234.5 per cent YTD.

8. Parkit Enterprise Inc.

According to the TSX data, the real estate investment company is one of the rising stars and is outperforming its market peers.

It has a market cap of C$ 195 million and holds a P/B ratio of 24.286.

Recently, the company completed its bought deal private placement worth C$ 40.3 million and also acquired 5610 Finch Ave East property and industrial property in Ottawa.

The stocks were up by a whopping 1788.9 per cent and 161.5 per cent YTD.

9. CurrencyWorks Inc. (TSXV: CWRK)
   
   The company is known for building blockchain economies and has a market cap of C$ 98 million. It offers a 25.53 per cent return on equity.

On March 30, the company announced that it has signed an agreement with XTM Inc. to allow its Today Mobile Wallet holders to access its non-fungible tokens (NTF) platform and NFT payment platform in the second quarter of 2021. NFTs have gained popularity in the last few months and Twitter boss Jack Dorsey had recently sold the NFT of his first tweet for over US$ 2.9 million.

The company's stock surged 6055.5 per cent and 214.7 per cent YTD.

10. Rock Tech Lithium Inc.

The lithium producing stock is also outperforming its peers. Rock Tech has a market cap of C$ 246 million and holds a P/B ratio of 50.778.

Based on the data platform Statista, the lithium-ion battery market is expected to grow up to US$ 71 billion in the next five years. Its present worth is estimated to be around US$ 40.6 billion.

Rock Tech's stock grew 796.1 per cent in a year and 419.3 per cent YTD.