We’re over a week into September and with holidays coming to an end and the return of the rain, investors might look to penny stocks for some excitement.
Penny stocks are defined as stocks with a share value of under $5 and can often be risky bets as they’re usually comprised of fallen angels or companies that are yet to, and may never reach, full potential. However, if you’re an investor with an appetite for risk, you may enjoy our pick of penny stocks to watch this month.
Good Natured Products
Good Natured Products Inc (TSXV:GDNP) (OTC:SLGBF) is a manufacturer of eco-friendly and renewable bioplastic packaging, which makes it a very promising stock as more and more companies implement biodegradable packaging. Despite a market cap of just $15 million USD, GDNP has pretty extensive operations and plans to expand and currently offers over 130 products to more than 100 national and regional retailers, food producers, and packaging distributors.
In late August, GDNP announced 100% year-on-year growth for the three and six months ended June 30. These quarterly results also saw revenue increase by 120% and net losses drop by 6%. Despite the company’s relatively small size, these are very impressive results, and at just $0.15 USD per share, this penny stock looks like an absolute steal.
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HEXO
HEXO Corp (TSX:HEXO) (NYSE:HEXO) is a penny stock in the cannabis industry that has been outperforming the market in recent weeks, despite losing over 50% of its value since April. Those losses may sound worrying to investors, but they can largely be pinned down to HEXO bearing the burden of a market that spent the summer in decline. Scandals at some of the major players in the industry sent investors running from many pot stocks, and HEXO was not immune.
However, HEXO Corp has a lot going for it despite being one of the smaller pot stocks. Firstly, there’s the company’s joint venture with beer heavyweight Molson (NYSE:TAP) to produce cannabis-infused beverages, which is a market that could reach $5 billion USD by 2026. Added to this, HEXO projects some massive growth, with sales potentially rising by 1,100% this year. Currently priced at $4.43 per share, HEXO just falls into the category of penny stock, but don’t expect it to stay there for long.
So that’s our pick of penny stocks to brighten up your September—what do you think?
Featured Image: DepositPhotos © aremafoto
