Will These Penny Stocks Continue To Outperform The Market?
Penny stocks are somewhat of an anomaly. Take today for example. While the broader markets are getting hit from new COVID-19 cases in Korea, there are numerous penny stocks heading higher. Where some of these stocks are sporadically moving based on news or one-time filings, there are others that have continued a longer-term move.
What sets these different stocks apart? For one, market sentiment is a big factor when it comes to penny stocks. But you’ve also got to take into account other things like corporate structure and even balance sheet items like debt. This will give you more insight into things like the potential dilution and financial strength of a company. Basically, research is important and treating penny stocks like lottery tickets shouldn’t be part of your strategy.
No matter how excited someone seems online about a stock you should research it first. And guess what, if you miss the breakout, so be it because there are plenty of other penny stocks to buy. With this in mind, let’s take a look at a few penny stocks to watch before the end of the month.
Penny Stocks To Trade [or fade]: IMC International Mining
First, on this list of penny stocks, IMC International Mining (IMCX)(IMIMF Stock Report) has continued to trend higher this month. The junior gold discovery stock has now firmed up markets in both Canada and the U.S. In fact, over the last few days, the market in IMIMF has seen some of its highest share volume days ever, this week.
So what’s driving momentum? There are a few things to take note of. First, the rising price of gold is undeniable at this point. The price of gold hasn’t been this high since February of 2013 and new coronavirus cases have continued to spark concern of a global economic slowdown. Next, IMC International has just announced entry into a letter of intent to acquire a company with 100% ownership of a property called Cathedral in BC, Canada. The interest here is that it’s in the Quesnel Terrane.
The Quesnel Terrane hosts past and planned production. Furthermore, this area is just South East of an area called “The Golden Triangle,” which hosts some of the richest gold ore bodies in the world.
Rider: It is noted that the results of nearby or adjacent properties are not necessarily indicative of the potential of the Cathedral property and should not be understood or interpreted to mean that similar results will be obtained from the Cathedral property.
Penny Stocks To Trade [or fade]: New Gold Inc
Joining IMC International on this list of penny stocks, New Gold Inc (NGD Stock Report) has also taken off recently. Before the market open on Friday, shares of NGD stock broke above $0.85. Though it hasn’t had the same move as IMIMF so far, it has managed to climb back from its 2020 lows of $0.74 so far.
Much of the attention has been placed on the company’s recent earnings. Rather, the lack of performance even amid gold’s latest boom. However, the company reported earlier this month that an updated technical report will be filed soon. The company will also give an update to its mineral reserves and resources as of the end of last year.
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Seeing as how New Gold has been working to optimize its mines and carry on with an actual optimization study, it will be interesting to see how things end up. Renaud Adams, CEO explained, “Over the past number of months we have evaluated numerous scenarios for the Rainy River Mine and are pleased to release an updated life of mine plan that delivers a solid open pit and underground mine plan that positions the operation for profitability and free cash flow generation beginning in Q4 2020 that continues over the balance of the mine life.”
Penny Stocks To Trade [or fade]: Zomedica Pharmaceuticals
Zomedica Pharmaceuticals (ZOM Stock Report) was one of the penny stocks we’ve focused on this week. Shares began to perk up at the end of the week last week. This followed Zomedica’s latest capital raise at $0.12. After the stock toppled to new 52-week lows, ZOM stock reversed course dramatically.
When it comes to raising capital, the retail public never likes getting diluted. That’s especially true when there’s a hefty discount in price. However, for the company, it’s the lifeblood for progress. In this case, Zomedica conducted the offering to continue the development of its diagnostic platform. Since the company creates products for animals and more specifically, traditional pets like dogs, cats, and horses.
Aside from this, there haven’t been any other updates or filings made by the company. As we discussed, with such a huge price spike in a short amount of time and a lack of new updates, it’s important to understand the highly volatile nature of this penny stock. However, with this being said, shares continued higher this week and marked a 283% run thus far. Can it trend higher still?
Penny Stocks To Trade [or fade]: Workhorse Group
One of the penny stocks we followed closely last year was Workhorse Group (WKHS Stock Report). This came after the U.S. President actually tweeted about the company. In light of that, WKHS stock managed to go on an epic run to highs of $5.37 before coming back to earth. However, it seems to have settled above $3 and if you look at the chart, the current trend seems to be in line with its 200-day moving average as potential support.
What might have this company on watch right now is an upcoming industry show in March. Since we’re approaching the end of the month, “next month” should be something to take a look at as far as potential catalysts. Workhorse will be unveiling its new C650 electric step van at the NTEA Work Truck Show from March 4-6.
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“A combination of lightweight design, modular battery pack, and a 4-wheel independent suspension system with rear air shocks makes our new C650 unlike any electric vehicle on the market,” said Duane Hughes, Workhorse CEO. With Tesla capturing attention in the EV space, other companies including Workhorse could be showing a “sympathy relationship”. No matter the case, WKHS could be one of the penny stocks to watch as volume and price have both started picking up this month.
Penny Stocks To Trade [or fade]: Harmony Gold
Finally, Harmony Gold (HMY Stock Report) is in the spotlight this week. Just like New Gold and IMC International, Harmony is a gold stock. It has managed to break above the $3.86 mark during premarket trading on Friday. The significance of this is that level is the current 52-week high for the penny stock. Regardless of this fact, there was no other news to go along with this move.
However, considering the explosiveness of gold right now, it doesn’t surprise me to see sector stocks rallying. Furthermore, keep in mind that events like this can also trigger short interest to have a reason to cover. Nevertheless, Harmony is coming off of an update earlier this month.
The company was selected by AngloGold to buy its remaining South African Assets. In light of the fact that this region is starting to decline in number of gold miners, Harmony views it as a potential opportunity. “We don’t think it’s a bad thing to be the last man standing,” Harmony Chief Executive Officer Peter Steenkamp said on a conference call.
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. (CSE: IMCX) (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to July 9, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE: IMCX) (IMIMF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about IMC International Mining Corp. (CSE: IMCX) (IMIMF). Click for full disclaimer.