Look good!! Eight Penny Stocks with Expected Return of Over 40% in 2014: Investment Idea of the Day
16 Jan, 2014 
Ubika Research has picked eight Canadian penny stocks trading below $1 across sectors which are expected to register strong growth and are likely to outperform their peers and broader markets by providing a price return of more than 40% in 2014, based on average price targets of analysts polled by Bloomberg. Moreover, these stocks are estimated to report strong growth in sales and EPS during 2014 and are rated a Buy by majority of the analysts covering these stocks. Additionally, we note that the one month average trading volumes of these stocks are significantly higher than their three months daily average trading volumes reflecting a strong market interest. During the past three months, majority of the shortlisted stocks have accumulated gains with 3-month average daily traded volume in excess of 100,000.
Four out of nine shortlisted stocks from our earlier investment idea “Canadian Penny Stocks Expected to Double in 2014” dated November 12th 2013 have delivered returns of over 40% till date. List of shortlisted stocks can be accessed HERE.
| Company Name | Exchange | Ticker | Market Cap
(C$MN) | Last Price | Price Change
(1-Months) | Average Volume
(1-Months) | Average Volume
(3-Months) | Sales Growth
(2014E) | EPS Growth
(2014E) | Total Analyst Coverage | Consensus Target Price (C$) | Implied Upside |
| Enterprise Group Inc | TSX | E | 73.8 | 0.85 | 6.2% | 1,040,738 | 993,344 | 98.9% | 120.0% | 1 | 2.25 | 164.7% |
| Veris Gold Corp | TSX | VG | 47.9 | 0.31 | 1.6% | 229,041 | 225,926 | 21.4% | NA | 2 | 0.80 | 158.1% |
| Valeura Energy Inc | TSX | VLE | 33.0 | 0.57 | 90.0% | 215,991 | 154,023 | 5.5% | 41.9% | 4 | 1.14 | 99.6% |
| Alterra Power Corp | TSX | AXY | 137.7 | 0.30 | 5.4% | 252,418 | 247,883 | 22.5% | 117.5% | 7 | 0.59 | 98.9% |
| TransGaming Inc | TSXV | TNG | 27.3 | 0.32 | 77.8% | 2,105,752 | 1,251,002 | 3.9% | 60.0% | 1 | 0.60 | 87.5% |
| Marquee Energy Ltd | TSXV | MQL | 43.7 | 0.80 | 6.7% | 110,594 | 107,842 | 25.5% | 57.5% | 6 | 1.21 | 51.0% |
| Sterling Resources Ltd | TSXV | SLG | 228.7 | 0.74 | 34.5% | 248,039 | 220,888 | 8157.6% | 45.0% | 4 | 1.05 | 41.9% |
| Petroamerica Oil Corp | TSXV | PTA | 194.7 | 0.33 | -1.5% | 2,961,219 | 2,482,194 | 420.4% | NA | 8 | 0.46 | 40.7% |
Source: Bloomberg
Company Description:
Enterprise Group Inc (TSX: E)
Enterprise Group, Inc. is a pipeline construction and oilfield maintenance company. The company seeks business in Central and Northern Alberta's oilfields.
Veris Gold Corp (TSX: VG)
Veris Gold Corp. is a growing mid-tier North American gold producer in the business of developing and operating gold mines in geo-politically stable jurisdictions. The company's primary asset is the permitted and operating Jerritt Canyon gold mine located north of Elko, Nevada, USA.
Valeura Energy Inc (TSX: VLE)
Valeura Energy, Inc. is a Canada-based public company. The company is engaged in the exploration, development, and production of petroleum and natural gas in Turkey and Western Canada. Valeura is focused on continuing to grow internationally, in Turkey and other selected countries in the Mediterranean Basin, Central Europe, and Middle East and North Africa ("MENA") region.
Alterra Power Corp (TSX: AXY)
Alterra Power Corporation generates electricity from alternative fuel sources. The company owns and operates geothermal, hydroelectric and wind generating facilities. Alterra operates in North and South America.
TransGaming Inc (TSXV: TNG)
TransGaming Inc. develops software tools for video game developers and publishers. The company offers its customers the technology which allows video games developed for one system to be migrated to another system.
Marquee Energy Ltd (TSXV: MQL)
Marquee Energy Ltd. is an oil and gas exploration and production company. The company operates in Alberta, Canada.
Sterling Resources Ltd (TSXV: SLG)
Sterling Resources Ltd. is an international crude oil and natural gas company that conducts exploration, development, and production activities. The company has interests in both onshore and offshore properties located in the United Kingdom and Romania, and in a license located in France.
Petroamerica Oil Corp (TSXV: PTA)
Petroamerica Oil Corp. is an oil and gas exploration and production company. The company owns interests in oil and gas assets in Colombia.