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:

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

man touches brain to show a good idea
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

Should you buy a cyclical energy stock at its decade-high? Probably not. But read this before you make a decision.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Top Canadian Renewable Energy Stocks to Buy Now

Here are two top renewable energy stocks long-term investors can put in their portfolios and forget about for a decade…

Read more »

oil and gas pipeline
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

After 29 straight years of increasing its dividend and a current yield of 6%, here's why Enbridge is one of…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Is Enbridge Stock a Buy, Sell, or Hold for 2025?

Enbridge stock just hit a multi-year high.

Read more »

oil pump jack under night sky
Energy Stocks

Where Will CNQ Stock Be in 3 Years?

Here’s why CNQ stock could continue to outperform the broader market by a huge margin over the next three years.

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Is Imperial Oil Stock a Buy, Sell, or Hold for 2025?

Valued at a market cap of $55 billion, Imperial Oil pays shareholders a growing dividend yield of 2.4%. Is the…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Where Will Imperial Oil Stock Be in 1 Year?

Imperial Oil is a TSX energy stock that has delivered market-thumping returns to shareholders over the last two decades.

Read more »