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2 Cheap Stocks Below $5 That Could Double Your Money

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Looking for a couple of investments that can generate significant returns for you? Look no further than the two stocks I have listed below. They’re both trading below $5 a share and both have the potential to rise significantly higher in the weeks and months to come. One of the advantages of investing in stocks that are low in price is that more investors will buy them.

It’s just not appealing for many investors to own one or two shares of a company. That’s why in recent weeks both Tesla and Apple announced stock splits to bring their share prices down.

These two stocks are even lower in price and I wouldn’t be surprised if they were to double in value over the next year:

Corus

Corus Entertainment (TSX:CJR.B) currently trades close to $3 per share. The media and content company operates dozens of popular television networks, including Global, HGTV, and many others that Canadians are familiar with.

It also operates radio stations, but television generates the bulk of its ad revenue. But, unfortunately, amid the pandemic, companies are looking to cut costs rather than spend money on advertising.

When the company released its third-quarter results on June 26 for the period ending May 31, revenue of $349 million was down 23.9% year over year. Corus also incurred a hefty loss of $752.3 million, mainly the result of impairment charges on its goodwill and broadcast license totalling $786.8 million.

Shares of the company are down 46% in 2020 and the stock’s now trading at around 0.65 times its book value. For Corus’ stock to double in value, it would just need to get near the $6 mark — it was around those levels at the beginning of the year.

As the economy starts getting back to normal and advertisers are spending money again, that could set Corus up for some stronger quarters ahead. A good quarter or two could be what the stock needs to start rallying.

StorageVault

StorageVault Canada (TSXV:SVI) is another cheap stock that’s hovering around $3. The company’s in the self-storage business and owns and manages approximately 8.2 million square feet of space. It has over 150 stores and more than 4,600 portable storage units across several provinces.

The Toronto-based company released its quarterly results last week and recorded sales of $37.4 million for the period ending June 30, which were up 9% year over year. StorageVault’s same-store revenue also grew at a rate of 3%. It’s an impressive feat during such a difficult time in the economy.

However, the company may continue to do well especially with a rent crisis looming and as mortgage deferrals expire. One way people can cut down on their rent and mortgage costs is by moving some items into storage and downsizing their homes.

With no end in sight to the COVID-19 pandemic, Canadians are going to be looking for ways to help make ends meet during this crisis, which could create stronger demand for StorageVault’s services in the near future.

Year to date, shares of the storage company are down 16%. At more than five times its book value, StorageVault’s stock a bit pricier than Corus, but given the growth potential ahead, it could very well be worth the premium as this is another investment that could double in value a year from now.

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Fool contributor David Jagielski owns shares of Corus Entertainment Inc. David Gardner owns shares of Apple and Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Apple and Tesla.

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