Which Of These Coronavirus Penny Stocks Will Be On Your Watch List Next?
When the S&P drops 3,000 points, that’s nothing to take lightly. But for those of us watching penny stocks, we’ve come accustomed to volatility. However, in light of the recent focus on the broader market, it’s important to see what’s making it move so erratic. The novel coronavirus or COVID-19 as it’s being labeled has struck fear across global markets. But in doing so, it has also created a huge opportunity to take advantage of this fear.
For those looking to make money in the market, penny stocks have become particularly important right now. The reason why has everything to do with the coronavirus itself. Traditionally, penny stocks are shares of emerging stage companies. Many of these have novel ideas to drive revenue. To find the best penny stocks to buy, however, it’s good to know where to look. Paying attention to specific sectors can help. Coronavirus, market fear, etc. point at a few sectors right now. Biotech, mining, and even real estate can find stocks rallying.
But, if you’re looking for the best stocks to buy for the coronavirus, you need to know something. During times of emotional trading like we’ve seen, price action can be extreme. We’ve obviously seen that in the market. For specific stocks, it’s also important to be ready for volatility. Luckily, you’re here because you’re interested in penny stocks and are already used to high volatility/high-risk stocks.
Penny Stocks To Watch: Gold Sector
Based on the fact that coronavirus is linked to an economic slowdown, gold is likely something investors are looking at. Aside from people dying from the virus, it has disrupted supply chains across the world. Meanwhile, we already have low-interest rates and trade tensions. During times like this, gold has a tendency to outperform. When you consider that the price of gold has soared to 7 yeara highs this month, it supports the idea even further.
IMC International Mining
When you talk about gold stocks, you can’t ignore the explosive nature of junior mining stocks. These tended to see higher levels of volatility. As a result, investors see those big swings that have produced big gains. IMC International Mining (IMIMF – Free Report)(IMCX) has followed suit this year as the junior gold stock has climbed from $0.35CAD to highs of $0.50.
This month the company reported several key updates that could be potential catalysts for the company’s growth. First, IMC International announced that it signed a letter of intent to acquire Than Minerals. It’s not the fact of who Thane is but rather what it owns. The company’s 100% interest in the Cathedral property in northern British Columbia could be one of the biggest opportunities for IMC to date. While the company already has a claim, Bullard Pass, in Arizona, the mineralization of Cathedral suggests strong potential for gold discovery.
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.
“We share in their belief that the Cathedral Project has very good potential centered in this highly productive area. We will work diligently with the integrated Thane team to develop the Cathedral project and will continue our growth model through acquisitions of both domestic and international assets.”Brian Thurston, CEO & President of IMC
Furthermore, the company brought on a new CFO and via the acquisition plans on adding Greg Hawkins to its board. Hawkins is currently a director of New Pacific Metals Corp (NUAG – Free Download). He was also previously the founding project consultant and/or founding director of seven public and private Exploration/Development ventures. Several of which were part of multi-million and billion-dollar acquisitions.
Penny Stocks To Watch: Biotech Sector
Of course, you can’t mention coronavirus without talking about biotech penny stocks. These companies are focused on meeting the needs of those impacted by the virus. This can range widely from drug manufacturers to facemask makers. In fact, one of the biggest moving coronavirus stocks we mentioned – which is no longer a penny stock – was Alpha Pro Tech (APT – Free Download).
It was covered in detail in one of our first coronavirus penny stocks articles back in January. At the time, shares traded around $5.30. Since then the stock has climbed to highs of over $21. But again, we focus on penny stocks so as great as that breakout was for our readers, there are other coronavirus penny stocks to watch.
Another one of the penny stocks we have discussed in the past, iBio Inc. (IBIO – Free Download) has been a big mover this year. In fact, we discussed yesterday that IBIO could be one of the coronavirus penny stocks to watch after a few recent events. The company and CC-Pharming initiated a joint development of a coronavirus vaccine earlier this month. While this in itself is positive news for the company, there are other things at play to take note of.
The main event is that the U.S. government is trying to get funds approved to the tune of billions for R&D on a rapid solution. While “rapid” may seem like a very near term thing, the CDC still expects at least a 5-6 month runway before trials start. This has given a window to companies like iBio to create a potential treatment in the meantime.
Shares of Vaxart Inc. (VXRT – Free Download) have also gotten infected by the coronavirus “bug”. At the beginning of the year, VXRT stock traded around $0.34 and has since jumped to highs of $3.40 this week. The company previously announced the initiation of a coronavirus vaccine program. It aims to use its proprietary oral-delivery platform.
“Vaxart’s proprietary technology has been clinically proven in humans, and the ability to make an oral vaccine to meet this current public health threat is very important. The results of our recently published influenza challenge study demonstrated that our oral tablet vaccine primarily protects through mucosal immunity, a potential key factor when targeting mucosal pathogens such as this new coronavirus.”Chief Scientific Officer Sean Tucker
Aside from this January 31st announcement, there haven’t been any new updates from the company. The company plans to generate vaccine candidates based on the published genome of the coronavirus. It will then evaluate preclinical models. Vaxart will focus specifically on the mucosal immune response. While there are still months before the likelihood of a vaccine is produced, VXRT could be one of the coronavirus stocks to watch.
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). Full disclaimer here.