There Are Certain Penny Stock Sectors To Watch At Different Points Of The Year. The Latest US / China Trade War Fears Have Impacted Certain Penny Stocks To Watch This Month
Investing in penny stocks can often prove to be a thrilling ride. That’s due to the potential gains that one can make from even a small investment. Hence, there are plenty of investors who actively look for the next big thing when it comes to penny stocks to buy.
That being said, it’s also important to note that one needs to choose penny stocks wisely since there is always a chance of loss. Just as quickly as these stocks jump, they can also quickly retreat. It’s this kind of volatility that makes penny stocks so attractive. Here is a look at two penny stocks that some have added to their list of penny stocks to watch for August.
Gold Penny Stock To Watch: Yamana Gold (AUY)
Time of global economic unrest brings about uncertainty across markets. This typically creates an opportunity for safe-haven stocks like gold stocks. Therefore, the first penny stocks on this list is a popular gold penny stock, Yamana Gold Inc. (AUY – Stock Report).
The gold penny stock has made highly ambitious moves over the past months. As we’ve written about in the past, Yamana has focused on growth. One of the most significant moves that Yamana Gold has made in recent times is the company’s decision to focus more on precious metals.
To that end, it sold its copper mine in exchange for a cool $1 billion. This allowed Yamana to significantly reduce its costs and also give dividends to its shareholders. This move also managed to link AUY stock price directly to the prices of gold and silver. This could be an excellent development considering the rising price of both metals at the moment.
Chinese EV Penny Stock To Watch: Nio Inc. (NIO)
Also, with the trade war, you need to be aware of stocks that could be greatly impacted. This includes the next penny stock on this list: Chinese electric vehicle maker Nio Inc (NIO – Stock Report). Earlier on in 2019, shares of NIO stock dropped by as much as 60% as subsidies from the Chinese government and weak orders hit the company hard.
[Read More] Is NIO A Penny Stock To Buy Or Sell This Month?
However, it all changed for the company in July as Tesla’s excellent delivery numbers pushed the stock higher. In addition to that, the company itself reported higher demand for its electric vehicles in its quarterly report. Since then the penny stock has been on the move. In July alone, the stock gained as much as 36%, for instance. This is definitely one of the penny stocks could find itself on more watch lists this month.