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Penny-Stock Rockets: 3 Stocks Under $9 to Make Your 1st Million

Hello there, Fools. I’m back to highlight three stocks under $9. While low-priced stocks carry plenty of risks, they can be a source of ideas when looking for

  • small, obscure, and underfollowed companies;
  • dirt-cheap bargains; or
  • intriguing turnaround situations.

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.

Fueling up

Leading off our list is alternative fuel technologist Westport Fuel Systems (TSX:WPRT)(NASDAQ:WPRT), which currently sports a lowly price tag of $3.25 per share.

Westport has been on fire in 2019 on optimism over its long-term growth trajectory, and last week’s Q2 results only reinforce that bullishness. During the quarter, earnings improved slightly as revenue jumped 12% to $82.4 million. Meanwhile, operating cash flow clocked in at $2.5 million.

More importantly, management raised its full-year top-line guidance to $285 million-$305 million (from $265 million-$295 million).

“Our global team is highly focused on becoming a sustainable, profitable company in the clean transportation space and these results demonstrate our commitment to achieving this objective,” said CEO David Johnson.

Westport shares are up a whopping 137% in 2019.

Golden results

With a lowly price tag of $6.67 per share, gold miner Kinross Gold (TSX:K)(NYSE:KGC) is next on our list.

Kinross continues to benefit nicely from the current rally in gold. In the company’s recent Q2 results, earnings, and revenue both topped expectations. Production during the quarter rose 7% year over year to 648.2 thousand attributable gold equivalent ounces at all-in sustaining costs of $925/ounce.

Thanks to the strong results, management says it’s right on track to meet its full-year production guidance of 2.5 million gold equivalent ounces.

“In the second quarter we delivered excellent operating and financial results, as our portfolio of mines increased production and lowered costs compared with the previous quarter and year,” said President and CEO J. Paul Rollinson.

Kinross shares are up 52% in 2019.

Generational wealth

Rounding out our list is oil and gas explorer Seven Generations Energy (TSX:VII), which currently sports a price tag of $7.15 per share.

Low energy prices have weighed heavily on the stock over the past year, but Fools might want to take advantage — because management sure is. Specifically, the company recently raised its share-buyback program to 18.1 million shares, or about 10% of the public float.

Moreover, management expects free cash flow of $100 million-$150 million for the full year.

“[T]he company’s successful efforts to manage operating costs and capital costs, and complete strategically important infrastructure improves the company’s resilience to commodity price volatility, accelerates free cash flow growth and enhances the long-term sustainability of returns,” wrote Seven Generations.

Seven Generations is down 54% over the past year.

The bottom line

There you have it, Fools: three amazing stocks under $9 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.

Free investor brief: Our 3 top SELL recommendations for 2019

Just one ticking time bomb in your portfolio can set you back months – or years – when it comes to achieving your financial goals. There’s almost nothing worse than watching your hard-earned nest egg dwindle!

That’s why The Motley Fool Canada’s analyst team has put together this FREE investor brief, including the names and tickers of 3 TSX stocks they believe are set to LOSE you money.

Stock #1 is a household name – a one-time TSX blue chip that too many investors have left sitting idly in their accounts, hoping the company’s prospects will improve (especially after one more government bailout).

Still, our analysts rate this company a firm SELL.

Don’t miss out. Click here to see all three names right now.

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

 

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