For the penny stock lover, there is lots to choose from in the Canadian gold mining sector – to say nothing of other metals explorers. When gold season hits, many of us like to reconsider our gold weightings and rebalance for the future. Here are a few Canadian gold stocks that *were* penny stocks just a short time ago – but since the surge in bullion, have soared well above $1.00.
Check these out again in the future, because by the time you read these, they might be breaking the buck again and present some good value. Please keep in mind that this is for information purposes only. Always do your due diligence before making any investment decisions, even ones that you do not make for “investment” purposes.
Gold Penny Stocks That Surged
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This is what happens when gold prices break $1000/oz.:
Centerra Gold Inc. (TSX: CG) – 52-week low was $0.90, but closed on Friday, September 11 (2009) at $7.50. Market Cap: $1.8 billion.
Centamin Egypt (TSX: CEE) – 52-week low: $0.43, closed on Fri. at $1.74. Mkt Cap: $1.7b.
New Gold Inc. (TSX: NGD) - 52-week low was $0.94, closed Fri. at $4.00. Market Cap: $1.4b.
Nova Gold Inc. (TSX: NG) – 52-week low was $0.47, closed Fri. at $5.62. Mkt Cap: $1.0b.
Andean Resources Ltd. (TSX: AND) – 52-week low: $0.40, closed at $2.41. Mkt Cap: $935m
Golden Star Resources (TSX: GSC) – 52-week low: $0.50, closed at $3.60. Mkt Cap: $851m
San Gold Corporation (TSXV: SGR) – 52-week low: $0.57, closed at $3.12. Mkt Cap: $808m
Northgate Minerals Corp. (TSX: NGX) – 52-wk low: $0.67, close: $3.13. Mkt Cap: $801m
Semafo Inc. (TSX: SMF) – 52-week low: $0.75, closed at $2.92. Mkt Cap: $731.7 m
Note especially Centerra and Nova Gold. Those are really nice climbs in value. Interestingly, both companies have a larger market cap than the others, with at least $1-billion market cap.
So can penny stocks pay off? Yes, especially when they represent the value of companies with tangible assets. Are penny stocks necessarily dangerous? No, not necessarily, and not inherently more than stocks that trade above $1.00. Should penny stocks be treated lightly? No way! You still need to do the same amount of research before you buy. You also need to look at commission costs. Don’t splurge on a stock just because the price tag is cheap. Also, most penny stocks will not be paying dividends, either. So if you’re a dividend investor like I am, they probably aren’t for you.
Top 20 List of Biggest Canadian Gold Stocks
With the Gold Price Nearing $1000, Is It A Good Time To Buy Gold?
Gold Dividends: 11 Mining Stocks that Pay Them
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{ 4 comments }
I love penny stocks, and have had some luck with some of them, although of course not always. I agree with you that they’re not inherently more risky than those priced over $1. Before buying penny stocks, I always research the company very carefully, so as to at least make sure that I’m investing in something with potential. My favourite penny stock lately was SAY, which bottomed in Januray at $0.98 and is currently trading at $6.65. I didn’t get to buy it at the bottom -for me it wasn’t actually a penny stock, because I bought it at more than $1.00-, but I was close.
I’ve never invested into mining stocks, but I’ll be following them carefully from now on. Great post, as always!
well, congrats on making some money with that. Aside from my one mining stock flop, I’ve never invested in penny stocks just for the sake of it. In fact, alot of companies will do share buybacks when their stock closes lower than a buck just because of the public/analyst perception/stigma attached to being a “penny stock.” The company and value remain the same, but the share price just ends up looking higher. So I’d say to others, be sure to check valuations! Maybe your stock is still just “worth pennies…”
What a helpful post really will be coming back to this time and time again. Thanks
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