Having gambled in under-the-radar penny stocks myself, I can tell you firsthand, the outcome hasn’t always been great. There are a lot of risks involved, so tread lightly.

Many experts will advise you to steer clear of penny stocks – and for good reason. Oftentimes, they’ll tempt speculative traders with the idea of easy growth, and the opportunity to double, triple, or even quintuple returns in no time.

Many of you don’t need me to lecture you on penny stocks. I’m sure some of you have learned the hard way, too. Still, I want to share some of the penny stocks I just came across that are piquing my interest. Should you decide to buy, know what you’re getting into. Know to only invest as much as you can afford to lose. Anything more than that can be devastating. If you’re aware of the boundaries with penny stocks, here are five to take a look at.

Valeo Pharma (VPHIF)

Valeo Pharma (OTCMKTS:VPHIF) is a $32 million Canadian pharmaceutical stock, with solid growth. Based in Quebec, it sells pharmaceutical products with a primary focus on respiratory, specialty and hospital generic products in Canada.

There’s a lot to like here. For one, the company just raised its fiscal 2022 revenue guidance to $27.5 to $28 million, a potential 100% increase from 2021 revenues of $13.6 million. Valeo also just entered into a license agreement for Canadian rights for portable epinephrine injection, ALLERJECT, which could expose it to an $80 million market.

Similarly, it entered into an agreement with Novartis (NYSE:NVS) which will expose it to a significant eye treatment market in Canada. In fact, right now, there are about six million Canadians suffering from dry eye disease and 400,000 Canadians suffering from open-angle glaucoma or ocular hypertension, as noted by Valeo Pharma.

Ardelyx (ARDX)

Ardelyx (NASDAQ:ARDX) is another hot penny stock to consider. The biotech stock, which has a market cap of $550 million and is trading at $2.94, could see higher highs.

The stock is already seeing upside following an FDA panel’s recommendation of the approval of its drug that treats kidney disease. That’s great news, and it could lead the FDA to approve the drug.

Also, according to the company, the treatment could have “Significant market potential across 550K patients on dialysis in the U.S.”

If approved, the kidney treatment could help address an unmet medical need. Analysts at Citi just raised their price target on ARDX to $7 from $6, with a buy rating. The firm is bullish on ARDX, believing it has approval odds about “nearly 100%.”

Lion Electric (LEV)

With a market cap of $466 4 million, $2.16 Lion Electric (NYSE:LEV) could have an “electrifying” year ahead. Its biggest catalysts came when the White House announced a $1 billion award to U.S. school districts to replace older buses with electric models.

Even better for Lion Electric, only about 1% of all school buses are all-electric as of 2021. As that ramps higher, Lion Electric could see a “lion’s share” of those investments. The company also just completed the production of its first lithium-ion battery pack.

“Final certification of the first battery pack is expected in the first quarter of 2023, followed by a gradual ramp-up of production in 2023. The first batteries produced in Mirabel will power the Lion5 truck and the Lion Ambulance, expected to reach commercial production in the first half of 2023,” says the company.

Bit Digital (BTBT)

Bitcoin (BTC-USD) may not be the safest trade on the market, but it is starting to show signs of life again, which could great news for miners such as Bit Digital (NASDAQ:BTBT).

This $92.1 million beaten-down stock is ready to come back on news of cooling inflation, and the potential for the Federal Reserve to back off of interest rate hikes. At the end of Dec., the company earned another 130 BTC. It also now holds 946.6 BTC and 8,799.99 ETH as of December 31, with a value of $15.7 million and $10.5 million, respectively.

American Lithium Corp. (AMLI)

I mentioned American Lithium Corp. (NASDAQ:AMLI) a few times here and still like it. That’s because the lithium story remains red-hot.

Remember, with global leaders phasing out combustion engine cars for electric vehicles, we’re running short on key metals, like lithium. Prices are only set to soar with supply-demand issues. Automakers are scrambling for supply.

The company also just moved over to the NASDAQ under the ticker, AMLI, too. Simon Clarke, CEO of American Lithium stated, “We are confident this listing will elevate American Lithium’s profile in the United States capital markets by providing greater visibility and exposure to a broader institutional and retail investor base.”

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.