Penny stocks are stocks that trade for under $5, and while they present a huge opportunity for investors looking to turn a small investment into a significant return, they are also incredibly risky bets.
Penny stocks are generally made up of companies that were former big hitters that have lost their way or smaller firms that have yet to, and may never, live up to their full potential. Here, we’ve picked out two penny stocks that are on our radar this week. Let’s take a look.
Denison Mines (TSX:DML) (NYSEAMERICAN:DNN)
Denison Mines is a Canadian uranium mining firm with sizeable interests in the Athabasca Basin in Alberta and Saskatchewan. Naturally, mining firms come with a huge amount of risk, but at just $0.54, Denison looks like an intriguing penny stock prospect. The company’s flagship asset is the Wheeler River Uranium Project, which is the largest undeveloped uranium project in the infrastructure-rich eastern portion of the Athabasca Basin.
Denison also recently closed a $4.1 million CAD bought deal, which will ensure it’s well-capitalized to continue its expansion in Northern Canada to the high-grade Phoenix deposit. If mining stocks are your thing, you can read more about silver stocks to watch in 2020 here.
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Dover Motorsports (NYSE:DVD)
Dover Motorsports is a Delaware-based company that operates the Dover International Speedway, a 95,000 capacity speedway that plays host to two NASCAR races every year. Dover looks like an excellent penny stock pick due to the strength of its balance sheet. The company closed the most recent quarter with $9 million USD in cash and no debt on its books.
In addition to this, Dover owns the now-closed Nashville Superspeedway, which is valued at about $20 million USD, and, coupled with the cash on hand, accounts for almost half of Dover’s $70 million USD market cap alone. NASCAR’s TV deal also doesn’t expire until 2025, a portion of which trickles down to track owners such as Dover. Currently trading for $1.88, this penny stock is definitely one to keep an eye on.
So that’s our pick of penny stocks this Thursday—are there any others on your radar?
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