Penny Stocks To Watch This Week; Coronavirus Still A Concern

Are These Penny Stocks On Your Watch List Right Now As Coronavirus Fuels Headlines?

Over the weekend, global headlines continued to see countless mentions of coronavirus cases. While many compare it to the average flu, its global spread hasn’t been ignored. While the death toll among young, healthy individuals hasn’t become a major concern, the fact that mortality is an issue, has been a focal point. Meanwhile, the broader markets are coming off the worst week since the financial crisis.

However, if you are an active reader of PennyStocks.com, it was actually a huge week for coronavirus penny stocks. Last week saw many of these coronavirus stocks reach highs that were well out of penny stock range. Some even blew clear past $40 per share at times.

While the S&P and Dow posed a comeback at the end of the day, we can’t ignore continued concerns over the weekend. The first U.S. death has been recorded while new states are reporting their first cases. Meanwhile, we’ve got a big week of economic data ahead.

Economic Data Shifts Focus To Coronavirus Penny Stocks Again

Coming up first, we’ve got China PMI data to consider. It showed the fastest contraction in factory activity ever in February. This was even worse than during the financial crisis. Meanwhile, the likelihood of a Fed rate cut just got that much greater. Slower non-farm payroll figures from Friday didn’t help either.

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Consensus forecasts showed payrolls gaining 175,000, which slowed from 225,000 in January. While the U.S. economy appears increasingly vulnerable to the outbreak, the Fed has said it will “act as appropriate” in response to “evolving risks”. On another note, The Bank of Canada will also hold a policy meeting this week.

Some analysts think that the Bank could pre-emptively cut rates. This may be a further indication of what’s to come for other central banks. The BoC has been known to move early in certain instances, so further market risk could be in play and in favor of certain penny stocks like gold if this is the case.

Then we’ve got Super Tuesday to think about. A total of 14 states will cast ballots in favor of their “optimal” Democratic candidate. Bernie Sanders has been said to hold the lead heading into the week. But Super Tuesday will further shed light on what American Democrats want in a candidate, this week. Given everything at work, there are certain sectors that those investing in penny stocks could be focusing on this week.

Penny Stocks To Watch: Gold Stocks

First, though gold stocks have dipped amid coronavirus concerns, it doesn’t mean they will be counted out by any means. Certainly, broader sector stocks felt the brunt of the latest outbreak. However, given the financial uncertainty and economic shifts, gold stocks have historically presented safe-haven options in the market. There are several gold penny stocks that either held a trend or saw a late-Friday bounce last week.

IMC International Mining Inc. (IMIMF)(IMCX)

First, IMC International Mining Inc. (IMIMF – Free Report)(IMCX) was one of the only gold penny stocks that didn’t pull back aggressively last week. In fact, for most of February, shares traded within a range of high $0.30’s to low $0.40’s. While its U.S. listing is only about a month old, its Canadian listing shows that momentum has built since the beginning of the year. Around January 8th, the stock traded around $0.25 CAD and managed to reach highs of $0.50 CAD.

In February, the company reported several big developments that could be in focus this month. Aside from appointing a new CFO, IMC International also entered into the early phases of a potential acquisition. IMC signed a letter of intent to acquire Thane Minerals, owners of the Cathedral property in northern British Columbia. The Cathedral Project is in an area called the “Quesnel Terrane” which is rich in mineralization perfect 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.

The fact that Cathedral is still in a relatively unexplored portion of the northern Quesnel Terrane could signal an opportunity for the company. Considering the proposed acquisition is in its early phases, the market may be watching closely to see if IMC will formally close. It would present immediate access to the Quesnel Terrane via the Catherdral property. The area hosts past and planned production.

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.

Yamana Gold (AUY)

Next, Yamana Gold stock (AUY – Free Report) could be one of the potentially oversold gold penny stocks to watch next week. Shares plummeted last week as coronavirus fears put a stranglehold on the market. After hitting fresh highs of $4.94 on the 24th, Yamana gold stock pulled back to lows it hadn’t seen since mid-January.

Aside from last week’s market fueled sell-off, Yamana has actually performed well. That goes from a price and a fundamental perspective. The company’s created a pipeline of highly viable exploration projects and created significant positions across the globe with producing assets. But the next move has Yamana focusing on the longer-term.

“Yamana has always taken a long-term strategic perspective. We believe that investing in a generative exploration program today will secure our future tomorrow. We have strong prospects in mine-friendly jurisdictions that we know well, and we are confident that they will become a cornerstone of Yamana’s next generation of mines.”

Henry Marsden, Senior Vice President of Exploration at Yamana

Yamana has also further optimized its portfolio by shedding assets. For example, last month the company sold off its portfolio of royalty interests and contingent payments from the Deep Carbonates project for $65 million. This is broken up into a $20 million cash component and $45 million share position of which Yamana can further benefit from the potential success of the project.

Hecla Mining (HL)

Similar to Yamana and unlike IMC International, Hecla Mining (HL – Free Report) saw its stock drop last week. For Hecla, it was a dip to new 2020 lows. However, in a similar fashion to other gold stocks, HL stock rebounded by the end of the day on Friday. Overall, the sentiment surrounding the company hasn’t been bearish.

Earlier last month, the company announced fourth-quarter and full-year 2019 results. Sales for Q4 came in at $225 million with full-year sales hitting $673.3 million marking the highest in company history. Silver production from Hecla came in at 12.6 million ounces along with record gold production of 272,873 ounces. Hecla also reported record reserves for silver, lead, and zinc. Aside from this, the company was able to decrease its net debt by $136 million.

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“In 2020, at current prices, we expect continued strong cash flow generation with the ongoing solid performance at Greens Creek, the ramp-up of Lucky Friday, expected improvements at Casa Berardi and the potential mine life extension at San Sebastian from the Hugh Zone,” said Phillips S. Baker, Jr., President and CEO of Hecla. During after-hours trading on February 28, Hecla gold stock traded higher at $2.79, which may be something to note if it’s one of the names on your penny stocks watch list for this week.

Penny Stocks To Watch: Biotech Stocks

After last week, there’s no question that biotech penny stocks have taken a spotlight. While some stock saw their biggest drops in recent weeks, many biotech penny stocks reached record highs. In fact, many of these coronavirus penny stocks have been covered consistently for some time now. We put an article out getting everyone up to speed last week – Coronavirus Madness: Stocks That Scored Big For Investors. Could these penny stocks to watch join the list this week?

Biocept Inc. (BIOC)

*UPDATED 8:30 AMEST 3/2/2020* Biocept announced a 23 million share offering at $0.40/share. This could pose a downside risk based on the current closing price per share on 2/28 being $0.78. Drastic discounts to market can trigger selling pressure.

First, Biocept Inc. (BIOC – Free Report) was one of the biotech penny stocks discussed in January. At the time the company announced that its Target Selector assays were available to doctors. The focus is for doctors to use the product to evaluate cerebrospinal fluid of patients in checking for tumors. Earlier last month the company reported that it entered into an agreement with a California-based physician association to provide testing services to physicians and patients in that network.

Considering that testing could become a big focus during this outbreak, Biocept appears to have gained attention. On Friday, BIOC stock saw one of its biggest days yet. Shares traded from an open of $0.285 as we focused on the company. By the closing bell, the penny stock was at $0.78. While there hasn’t been much coronavirus-specific news, as we’ve seen speculation played a big role with the latest boom in coronavirus penny stocks.

If Biocept is one of the names on your list of penny stocks, keep this information in mind. Hype may need to be factored into this equation. If BIOC is falling into the coronavirus stock category, take particular consideration in the fact that its pipeline is focused on testing for cancerous tumors. Also, keep in mind that BIOC made a dramatic move on Friday and profit-taking could also be something to keep mindful of in the week ahead.

Heat Biologics Inc. (HTBX)

Another one of the coronavirus penny stocks to watch might be Heat Biologics (HTBX – Free Report). While most coronavirus stocks have been taking off for days, HTBX stock seems to have just caught attention on February 28. This came after a downtrend for most of the year. There’s no recent news and no new filings. But several popular message board sites are paring HTBX stock with coronavirus-related news.

Similar to Biocept, Heat Biologics focuses on cancer and T-cell stimulation. Nothing on its site nor in its previous updates were related to coronavirus or the common flu. Meanwhile, back in December, the company reported that it had dosed its first patient in a Phase 1 trial of its t-cell treatment, HS-130. Something else to note is that on the corporate site, it shows the company held a 2020 Special Meeting of Stockholders on February 27.

So, while the market digests the latest coronavirus data, HTBX could find itself in the conversation apparently. In a company 8-K filing, the results of the special meeting showed shareholders agreed to each of Heat’s proposals. This included an increase to authorized shares from 100m to 250m, effecting a reverse split of common stock, as well as updates to its stock incentive plan. The company also approved authorization to issue undesignated preferred stock. In regard to the reverse split, the company gave a ration within a range of 1 share of Common Stock for every 2-50 shares of Common Stock.

Oragenics Inc. (OGEN)

Finally, Oragenics Inc. (OGEN – Free Report) was one of the top penny stocks to watch in February. Last Friday, that momentum continued to push shares to new 11-month highs after the market close. OGEN stock reached $0.90 after closing the regular session just under $0.75.

The biotech penny stock started moving as it approached an industry presentation date in early February. We also highlighted all of the FORM 4s filed that showed insider movement in the stock. But there could be a few things at work right now to take notice of, mainly the company’s focus on infectious diseases. Oragenics reported the completion of enrollment of its Phase 2 clinical trial for AG013 in Oral Mucositis. More specifically, the company previously reported that it plans to deliver the results of its study early this year.

While coronavirus penny stocks are in focus, timing is of importance. That’s also considering the timeline given in recent CDC press conferences too. Given Friday’s momentum will OGEN continue to be one of the coronavirus stocks to watch this week? On its website, the company even states:

“Oragenics, in collaboration with Precigen, is in the process of developing lantibiotics, a novel class of antibiotics that are known to be active against several life-threatening infectious agents, toward the goal of commercialization for the treatment of infectious diseases in humans.”

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.