Thor Explorations Stock And Other Penny Stocks With Real Revenue

European government bond yields are climbing and that raises the hurdle for every future dollar of company profits. For many large caps, richer valuations can feel harder to justify. Financially Fit Penny Stocks focus on lower priced companies with balance sheets that aim to hold up better when discount rates bite. This article walks through three stocks from the screener that might deserve a closer look today.

The stocks highlighted below are just a starting sample from this idea, and the full Financially Fit Penny Stocks screen surfaced 331 more companies with equally compelling narratives that are not covered here. To go deeper, head straight into the Financially Fit Penny Stocks screener to identify, filter and analyze the highest conviction opportunities that fit your own criteria.

Thor Explorations (TSXV:THX)

Overview: Thor Explorations is a Vancouver based gold producer whose flagship Segilola Gold Project in Nigeria generates operating revenue from gold sales, with smaller exploration efforts in silver and lithium on the side. For a penny stock, that producing asset gives Thor a clearer business backbone than many early stage peers that rely mostly on drilling results and future plans.

Operations: Thor currently generates its reported revenue almost entirely from the Segilola Mine Project, which delivered about US$330.6 million.

Market Cap: CA$880 million

Thor Explorations offers a combination that is less common among penny stocks: a producing gold mine at Segilola that generates cash, a second project at Douta that could change the scale of the business, and a record of high margins and strong Return on Equity. The company has also been sharing cash with investors via a regular dividend, which is unusual for a stock in this price bracket. On the other hand, there is meaningful risk concentration in a single operating mine today, exposure to movements in gold prices, and the execution challenge of funding and building Douta in West Africa. For investors seeking financially grounded exposure to smaller cap gold, the full story behind Thor’s numbers and drilling progress may warrant closer review.

Thor Explorations combines a producing gold mine with penny stock pricing, which many investors may not have fully priced in yet. To see how that mix of cash generation, project risk and valuation trade off, review the analysis report for Thor Explorations

Cronos Group (TSX:CRON)

Overview: Cronos Group is a cannabinoid company that cultivates and sells cannabis consumer products such as dried flower, pre-rolls, oils, vapes, edibles and tinctures under brands like Spinach, Lord Jones, Lit and Peace Naturals in Canada, Israel and other international markets. This focus on branded cannabis products is the clearest link to the Financially Fit Penny Stocks theme, even though Cronos also pursues other cannabinoid ventures that are not the main revenue driver.

Operations: Cronos Group generates about US$179 million in revenue from the cultivation, manufacture and marketing of cannabis and cannabis derived products, primarily across Canada, Israel and other international markets.

Market Cap: CA$1.8 billion

Cronos Group gives you direct exposure to the cannabis consumer products segment, with established brands like Spinach and Lord Jones and a footprint that already reaches Canada, Israel and other international markets. Recent reports highlight record quarterly revenue, stronger gross profit and improved adjusted EBITDA, all supported by higher margin products and expanding international sales. At the same time, forecasts point to declining earnings over the next few years and the business still relies heavily on a handful of key markets, so growth may not be smooth. For investors using the Financially Fit Penny Stocks screener to find smaller companies with meaningful revenue and cleaner balance sheets, Cronos is a candidate that rewards a closer look at both its cash flows and cannabis exposure.

Record revenue and improving margins at Cronos Group may hint that investors are missing something in this cannabis story. To see how growth, risks and valuation fit together, review the analysis report for Cronos Group.

McChip Resources (TSXV:MCS)

Overview: McChip Resources is a Toronto based natural resources investor that holds petroleum and mineral interests, including an ownership stake in a Saskatchewan potash project, as well as marketable securities in other resource companies. This focus on commodity linked assets and securities aligns McChip with the Financially Fit Penny Stocks theme through its asset backed exposure rather than a large operating revenue base.

Market Cap: CA$4.4 million

McChip Resources gives you a tiny, asset focused way into petroleum, minerals and Saskatchewan potash. It trades on a very low P/E with high reported earnings growth and a strong Return on Equity. At the same time, earnings have recently swung into losses, revenue remains small, the dividend is not well covered by free cash flow and the share price has been highly volatile. Recent board and management changes, including a new CEO, CFO and governance focused directors, suggest the company is actively reshaping how those assets are managed. For investors using the Financially Fit Penny Stocks screen to find under the radar resource plays with improving oversight, McChip is a story that rewards a closer look beyond the headline volatility.

McChip Resources mixes a tiny market cap with an asset heavy story that many investors may be glossing over. To see what those holdings really imply for risk and reward, review the analysis report for McChip Resources

Seeking Fresh Alternatives Before Others?

Markets move fast and the next breakout stocks often gain momentum before most investors even notice. Scan these fresh ideas that are under the radar for now and consider them while they are still emerging.

• Spot companies quietly building momentum in cryptocurrency and blockchain before headlines catch up by running the 20 cryptocurrency and blockchain stocks while it still reflects early stage interest.
• Target resilient companies that aim to hold up when volatility increases by screening for 9 resilient stocks with low risk scores before defensive quality becomes widely recognized.
• Review 37 robotics and automation stocks that focus on automation and efficiency improvements while the story is only just starting to attract attention.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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