The Canadian penny stocks on our list have explosive growth potential
SmallCapPower | July 31, 2017: Investing in penny stocks is a high risk – high reward game. We have selected a list of companies geared towards the courageous investor who is willing to risk more to achieve a higher return. Today we have identified four Canadian penny stocks with triple-digit upside potential. To weed out these companies, we took the median price target for companies covered by at least five analysts, and selected the ones with the largest upside potential.
Related: Top 15 Penny Stock Picks of 2017
Petrowest Corp. (TSX: PRW) – $0.11
Construction & Engineering
Petrowest Corporation (Petrowest) provides industrial and civil infrastructure projects, as well as predrilling and post-completion energy services, gravel crushing and hauling for non-energy sector customers. The Company’s businesses include rock crushing, log and gravel loading and hauling, heavy equipment transportation, safety equipment rentals and supervision, heavy equipment rentals, land clearing, earth moving and site preparation services, and the operation of a landfill to receive and manage contaminated waste. The Company operates in five segments: Construction, Civil, Transportation, Rentals and Environmental.
- Median Price Target: $0.48
- Upside: 332%
- # Analysts Covering: 8
DealNet Capital Corp. (TSXV: DLS) – $0.27
Consumer Lending
DealNet Capital Corp. is a specialty finance company that is focused on the origination and servicing of consumer loans and leases within the Canadian home improvement sector. The Company operates through three segments: Live Engagement, Mobile Engagement services and Consumer Financing. The Live Engagement segment operates in Canada and the United States providing outsourced services, such as inbound customer service programs, outbound customer acquisition services, data entry and transcription services, and back office services. The Mobile Engagement services segment operates in Canada and the United States providing end-to-end mobile marketing solutions allowing businesses to interact directly with mobile subscribers. The Consumer Financing segment operates solely in Canada and provides consumer-financing solutions to a network of consumer heating, ventilation and air conditioning (HVAC) dealers.
- Median Price Target: $0.65
- Upside: 141%
- # Analysts Covering: 9
Prometic Life Sciences Inc. (TSX: PLI) – $1.57
Pharmaceuticals
Prometic Life Sciences Inc (ProMetic) is a Canada-based biopharmaceutical company. The Company has two segments: Small Molecule Therapeutics and Protein Technology. The Company offers its technology platform for large-scale drug purification of biologics, drug development, proteomics and the elimination of pathogens to various industries, and uses its own affinity technology that provides for extraction and purification of therapeutic proteins from human plasma in order to develop therapeutics and orphan drugs. ProMetic is also developing its own small molecule therapeutic products targeting unmet medical needs in the field of fibrosis, autoimmune disease/inflammation and cancer.
- Median Price Target: $4.00
- Upside: 155%
- # Analysts Covering: 11
Aimia Inc. (TSX: AIM) – $1.54
Advertising & Marketing
Aimia Inc. is a data-driven marketing and loyalty analytics company. The Company’s segments include Americas Coalitions, International Coalitions, Global Loyalty Solutions (GLS), and Corporate and Other. Within the Americas Coalitions segment, the Company owns and operates the Aeroplan Program, which is Canada’s coalition loyalty program, and its Canadian non-platform based loyalty services business. Within the International Coalitions segment, the Company owns and operates Nectar, which is the United Kingdom’s coalition loyalty program, and Air Miles Middle East, a coalition loyalty program in the United Arab Emirates, Qatar and Bahrain.
- Median Price Target: $4.00
- Upside: 160%
- # Analysts Covering: 9
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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