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

analyze data
Energy Stocks

Buy 8,850 Shares of This Top Dividend Stock for $2,000/Month in Passive Income

Let's do the math on what it would take to generate $2,000 a month in passive income from Enbridge (TSX:ENB)…

Read more »

oil and gas pipeline
Energy Stocks

Is TC Energy Stock a Good Buy?

TC Energy stock has a lot going for it, but there are also a few red flags to consider before…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Is Canadian Natural Resources Stock a Good Buy?

CNRL is an energy giant with a market capitalization near $100 billion.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Is Baytex Energy Stock a Good Buy?

Baytex Energy is a TSX stock that has massively underperformed the broader markets in the past decade, but it trades…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Is Suncor a Buy for its 4.2% Dividend?

Suncor Energy (TSX:SU) has a 4.2% yield. Is it a buy?

Read more »

engineer at wind farm
Energy Stocks

Energy Stocks to Buy Now: Top Picks for Canadian Investors

These companies have a solid business model and growing cash flows to support higher dividend payments and share prices.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Is Enbridge Stock a Good Buy?

Enbridge provides a 6.5% dividend yield right now.

Read more »

Oil industry worker works in oilfield
Energy Stocks

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

Suncor stock looks undervalued as the company continues to increases cash flows, earnings, and shareholder returns.

Read more »