5 Canadian Penny Stocks Set to Get a Boost From the Falling Oil Price

These Canadian penny stocks may witness upward trending prices following repeated downward pressure from oil, and thus a depreciating Canadian dollar

SmallCapPower | May 6, 2016: After April’s record gains, global oil prices have started to revert back to lows near US$40 a barrel. Despite the recent relief, analyst sentiment on the commodity is still bearish and well below current price levels. This decline will negatively affect the Loonie’s strength, and thus have an impact on the nation’s exporting and importing sectors. Canadian penny stocks involved in manufacturing and in other non-energy exporting sectors will reap the benefits from the fall in oil, as domestic prices become relatively cheaper following the depreciation of the Canadian dollar. Investors should carefully examine the penny stocks on our list today, which have high exposure to international markets.

Bombardier Inc. (TSE:BBD.B) – $2.01
Aerospace & Defense

Bombardier Inc. is a manufacturer of transportation equipment, such as business and commercial aircraft, aircraft structural components and rail transportation equipment and systems, and is a provider of related services. The Company operates through four segments: Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services, and Transportation.

• Market Cap $3,565,832,925
• International Revenue Segment: 84%
• ROE (LTM): 3.5%
• Gross Margin (Q1): 10.86%

Exco Technologies Ltd. (TSE:XTC) – $13.02
Industrial Machinery & Equipment

Exco Technologies Limited is a designer, developer and manufacturer of dies, molds, components and assemblies, and consumable equipment for the die-cast, extrusion and automotive industries. The Company operates in two segments: Casting and Extrusion Segment, and Automotive Solutions Segment.

• Market Cap: $439,151,528
• International Revenue Segment: 93%
• ROE (LTM): 17.0%
• Gross Margin (Q1): 23.84%

Hardwoods Distribution Inc. (TSE:HWD) – $16.13
Forest & Wood Products

Hardwoods Distribution Inc. is a Canada-based company engaged in the wholesale distribution of hardwood lumber and related sheet good and specialty products. The Company operates through its Canada and United States segments, and through its subsidiaries is engaged in operating a network of over 30 distribution centers in Canada and the United States. The Company supplies its products to various sectors, including new home construction, renovation, non-residential construction and institutional markets.

• Market Cap: $209,882,971
• International Revenue Segment: 80%
• ROE (LTM): 16.0%
• Gross Margin (Q1): 17.43%

Martinrea International Inc. (TSE:MRE) – $8.96
Auto, Truck & Motorcycle Parts

Martinrea International Inc. is a Canada-based company engaged in the production and development of metal parts, assemblies and modules, fluid management systems and complex aluminum products. The Company is focused primarily on the automotive sector. Its product offerings include suspension and chassis metal components, body and structure metal components, aluminum components, chassis modules, fluid & air handling systems and fabricated assemblies.

• Market Cap: $631,635,666
• International Revenue Segment: 79%
• ROE (LTM): 15.8%
• Gross Margin (Q1): 10.40%

Savaria Corp. (TSE:SIS) – $7.52
Heavy Electrical Equipment

Savaria Corporation is a Canada-based company, which offers a range of stairlifts, platform lifts, and residential and commercial elevators. The Company operates through two segments: Accessibility and Adapted Vehicles. The subsidiaries offer models with rear entry, side entry or dual entry for people with mobility challenges. It makes vans accessible to wheelchairs through a ramp and a lowered floor. Adapted Vehicles can be used for personal use or commercial use (taxis).

• Market Cap: $184,922,730
• International Revenue Segment: 91%
• ROE (LTM): 20.9%
• Gross Margin (Q1): 31.05%

If you think there are other Canadian penny stocks that need to be on the list, do let us know in comments below.

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