Boat Rocker Media and Orezone Gold are 2 Best Canadian Penny stocks to buy in the week of May 27-31, as per analysts. We used the TipRanks Stock Screener tool to find these two penny stocks that have won a Strong Buy consensus rating from analysts, who expect enormous share price appreciation potential in the next twelve months. In Canada, a penny stock is defined as a company whose shares are trading at less than C$5 per piece.
While investing in penny stocks has its share of pros and cons, an investor having a high risk-return appetite can consider these stocks. Penny stocks have the capacity to generate enormous returns with their highly volatile nature. With this background in mind, let’s understand more about the two penny stocks.
Boat Rocker Media Inc. (TSE:BRMI)
Boat Rocker Media is an independent, integrated global entertainment company. BRMI produces, builds, and distributes premium content and brands for all platforms. The company is involved in television production, franchise management, animation studio, and talent management services.
In Q1 FY24, BRMI’s revenues declined 35.7% year-over-year to C$51.3 million while net loss improved by C$7 million to C$2.5 million. The company attributed the declining revenues to the variance in scripted series deliveries between the two periods “where the average revenue per episode is significantly higher than in other genres.”
Boat Rocker Media refrained from giving guidance for Fiscal 2024 since the industry is still recovering from the prolonged strikes of producers and actors in 2023. Even so, the management reiterated that they are witnessing accelerated momentum in business activity across all mediums.
Is BRMI Stock a Buy Today?
Analysts seem to be highly optimistic about Boat Rocker Media’s stock trajectory. With three unanimous Buy recommendations, BRMI stock has a Strong Buy consensus rating on TipRanks. The average Boat Rocker Media price target of C$2.88 implies a staggering 238.8% upside potential from current levels.
Orezone Gold Corporation (TSE:ORE)
Orezone Gold Corp. is a West African gold producer involved in the mining, development, and exploration of its 90%-owned flagship Bomboré Gold Mine in Burkina Faso. The mine is currently in the staged hard rock expansion phase, which is expected to improve the annual and life-of-mine gold production.
In Q1 FY24, Orezone’s gold production fell 27% year-over-year, accompanied by a 27.6% decrease in gold sales to 31,229 ounces. Accordingly, revenues dropped 20.8% and adjusted earnings per share (EPS) fell to $0.02 from $0.07 in the prior-year period.
Orezone attributed the lower gold production to a combination of declining head grades (18%), plant throughput (6%), and plant recoveries (3%). Having said that, the management is confident that the successful commissioning of the powerline connection to the national grid and the completion of construction of the MV3 resettlement site will boost the gold production capabilities in the coming quarters.
What is Orezone Gold Stock Prediction?
On TipRanks, ORE stock commands a Strong Buy consensus rating, backed by five unanimous Buy views. The average Orezone Gold stock price prediction of C$1.48 implies a massive 100% upside potential from current levels. In the past year, ORE shares have lost 42.2%.
Key Takeaways
Investing in penny stocks can be a lucrative bet for investors seeking high-risk, high-reward investments. Investors can consider the above two companies with high growth potential after undertaking thorough research.
