Ambitious TFSA Investors: Make Your 1st Million With These 3 Stocks Under $7

Looking for big upside? This group of explosive penny stocks, including Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG), might provide the pop you’re looking for.

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Hello again, Fools. I’m back to highlight three stocks under $7 hitting new 52-week lows. While low-priced stocks carry plenty of risks, they can be a source of ideas when looking for

If you have big dreams of turning an average $27K TFSA into a million bucks in 20 years, you’ll need an annual return of at least 20% to do it. Although low-priced stocks are on the volatile side, the upside return potential might be worth the risk.

Let’s get to it.

Mining your business

Leading off our list is diversified metals miner Lundin Mining (TSX:LUN), which currently sports a stock price of around $6.40 per share at the time of writing.

The stock has declined in recent weeks on overall market concerns, but it might be too cheap to pass up. Lundin now trades at a cheapish forward P/E of 11 and offers a decent yield of 1.8%.

Looking ahead, production remains largely on target to achieve its annual guidance.

“The company, and in particular Candelaria, is set for a particularly strong second half of the year with increased copper grades and production and our guidance now includes production and costs for our newest mine, Chapada in Brazil,” said CEO Marie Inkster.

Lundin shares are down 11% over the past year.

Point of return

With a lowly stock price of $4.40 per share, oil and gas company Crescent Point Energy (TSX:CPG)(NYSE:CPG) is next on our list.

Low energy prices and concerns over the company’s debt load have walloped the stock, providing aggressive value hounds with a prime opportunity. In its recent Q2 report, adjusted funds flow totaled $504 million. Moreover, management has reduced net debt by more than $450 million year to date.

Crescent Point remains on track to generate roughly $400 million in positive cash flow for 2019.

“We expect to generate significant excess cash flow in 2019, allowing for net debt reduction and accretive share repurchases,” said CEO Craig Bryksa.

Crescent Point remains down 51% over the past year.

Fire in the hole

Rounding out our list is embattled marijuana company CannTrust Holdings (TSX:TRST)(NYSE:CTST), which currently has a price tag of just $3.09 per share.

The stock has been walloped in recent weeks after receiving a negative audit by Health Canada, but the risk/reward tradeoff might now be too good to pass up. Late last week, CannTrust fired its CEO Peter Aceto after finding “new information” regarding the compliance issues.

The stock also trades at healthy book-value and price-to-sales discount to industry peers.

“Our first priority is to complete the remaining items of our investigation and bring the company’s operations into full regulatory compliance,” said Interim CEO Robert Marcovitch. “CannTrust has a number of strengths it can draw upon to reset and rebuild, including industry-leading research, innovation and intellectual property.”

CannTrust is off 55% over the past year.

The bottom line

There you have it, Fools: three amazing stocks under $7 worth checking out.

As always, don’t see them as formal recommendations. Instead, view them as a starting point for more research. Low-priced stocks are particularly fickle beasts, so plenty of homework is still required.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned.     

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