Trying to Double Your Money With Penny Stocks? Look at These 3 Stocks Instead

Penny stocks can double your money but the probability of losing your money is greater. Baytex Energy Corp. (TSX:BTE)(NYSE:BTE), CRH Medical Corp. (TSX:CRH), or Horizon North Logistics Inc. (TSX:HNL) are sound investments that are priced like penny stocks.

| More on:
Canadian Dollars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The “double your money” scheme always works with overzealous investors. That’s the main pitch of penny stocks. There’s a promise of massive profits, enabling mortgages to be paid off or investors to take early retirement.

If that is also your objective, are you sure you want to take the risk? You can lose money faster in penny stocks.

Take the high road

The goal of every investor is to double their investments. That’s a realistic goal. If your basis for investing is to get rich quick, then you should be prepared to lose your money too.

Penny stocks are for the high-risk takers. However, there are better options.

There are stocks on the TSX that are priced like penny stocks. The companies are governed by the securities law and subject to reportorial requirements, whereas penny stock companies are not listed on major exchanges. You should be aware of that distinction.

Hence, your money is safe when you can invest in Baytex Energy Corp. (TSX:BTE)(NYSE:BTE), CRH Medical Corp. (TSX:CRH), or Horizon North Logistics Inc. (TSX:HNL).

If you’re not satisfied with the returns, you can redeem your investments as there would be takers. You don’t have that luxury in penny stocks, however.

Better investment options

Baytex Energy is cross-listed on the NYSE. For $1.78 at writing, you’ll gain exposure to the energy sector. One of Canada’s greatest resources is oil and gas which the country shares with the rest of the world. The $990.5 million has been operating since 1993.

You have earning opportunities from an oil and gas company that acquires, develops, and produces oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the U.S.

The demand for light oil, natural gas liquids, shale, natural gas and other like products will never diminish.

Baytex has risen to $4.50 once. Based on current analysts’ projections, the price could even hit $6.00 in the next 12 months.

CRH Medical is a solid healthcare stock. The small-cap stock is in the business of providing medical instruments and supplies specifically to gastroenterologists based in Canada and the U.S.

The CRH O’Regan System, the single-use, disposable, and hemorrhoid banding technology for treating various grades of hemorrhoid is widely used today. There are also anesthesia services available to patients undergoing endoscopic procedures.

CHR is building scale. Revenue of this $256.4 million medical equipment provider reached a record $112.8 million last year. With growth estimates of 33.3% and 50% in 2019 and 2020 respectively, the current price of $3.59 has a potential upside of 81.0%

Horizon North is another small-cap stock that is reasonably priced at $1.76 per share at writing. The $290.5 million firm provides essential industrial, commercial, and residential products and services in Canada.

Your exposure will be in a logistics company that serves the construction, forestry, energy, and mining sectors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of CRH Medical. CRH is a recommendation of Stock Advisor Canada.

More on Energy Stocks

Gas pipelines
Energy Stocks

2 Energy Stocks I’d Buy for Passive Income and Turnaround Upside

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) and another top TSX energy stock could bounce back, as oil prices find their footing.

Read more »

oil tank at night
Energy Stocks

Oil Finally Crashed: Is the Party Over?

Recently, oil stocks like Cenovus Energy (TSX:CVE) crashed. Is the energy party over?

Read more »

data analyze research
Energy Stocks

TSX Stock Picks With Huge Potential

If you want a TSX stock that's bound for even more strong growth, these three are top picks by analysts.

Read more »

oil and natural gas
Energy Stocks

Can Cenovus Stock Outperform in H2 2022?

Is now the time for investors in Cenovus (TSX:CVE)(NYSE:CVE) stock to buy more, or wait out this volatility right now?

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Energy Stocks

NexGen Energy: The Top Uranium Stock Set to Double in 2022

NexGen (TSX:NXE)(NYSE:NXE) stock is one of the top uranium stocks to consider right now with the potential to double in…

Read more »

energy industry
Energy Stocks

Why Suncor Energy (TSX:SU) Stock Has Declined 20% in June

Will Suncor Energy stock climb back up to $50 again?

Read more »

Dice engraved with the words buy and sell
Dividend Stocks

Is it Time to Sell Oil Stocks?

The energy sector pullback has rattled Canadian investors because of its impact on the broader economy, but it might be…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

Oil Stocks in Canada: Are They Still Good Buys?

Oil stocks experienced a rout last week, but the underlying supply-demand imbalance makes them strong buys, nonetheless.

Read more »