More Coronavirus Penny Stocks To Watch Now
Guess what, the coronavirus isn’t going anywhere anytime soon. That’s according to a press conference on March 16. U.S. President Donald Trump cited July/August “maybe later” to get things under control, health-wise. Not only did this trigger a sell-off in large-caps, but it also saw rampant buying of certain penny stocks.
Now people are beginning to think outside of the box a bit. It’s no longer just the biotech penny stocks getting attention, it’s everything else associated with being cooped up in a home. With countries like Italy going into full lockdown and now San Fransisco becoming the first city to see a “shelter in place” rule go into effect, investors are looking to other sectors that could support such a situation.
So what kind of penny stocks are we talking about right now? Well, for one, gold penny stocks have become a bigger focus. The Federal Reserve’s rate cuts could signify further financial easing even while government debt continues to rise. This scenario opens opportunities for junior gold stocks in particular to shine. Other sectors are less direct. These include things like technology and even food delivery.
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We’ve also seen ancillary product companies like face mask makers gain in popularity among traders right now. Needless to say, some of the most “bleeding edge” opportunities have been provided by penny stocks in general. So before you start getting skeptical, look at stocks like AHPI or APT, both of which were tiny penny stocks before rallying above $10/share. With this in mind, let’s take a look at a list of penny stocks to watch as coronavirus concerns grow.
Penny Stocks To Watch: Gold
IMC International Mining
One of the companies mentioned earlier today, IMC International Mining (IMCX-Stock Report)(IMIMF) saw another day of action as shares pushed back toward its 52-week high. Just a few days ago, this gold penny stock tested the $0.50CAD level for the second time this year. This may not seem like a big deal considering that it’s trading around $0.47CAD currently. But given the fact that most gold stocks were in a state of sell-off, it’s something of potentially major importance.
Since stocks like Barrick gold, Kinross, B2Gold, Newmont, etc. were in a free-fall, IMC’s stock didn’t appear to waiver but a few pennies. It’s worth noting that interest continues to zero in on the stock especially after the last few updates that were released. In February IMC International reported the potential acquisition of Thane Minerals. This month there was a follow up stating plans to formalize that deal by the middle of this month. Given the fact that it is currently the middle of the month while gold prices appear to be back on the rise, IMC could be one of the top gold stocks to have on the watch list right now.
Thane boasts a claim to 100% ownership in the Cathedral property. The location is in the Quesnel Terrane which is host to a wealth of gold and copper discoveries. Meanwhile, its 51,000-acre claim is relatively untapped but is positioned between two major gold mines as it stands. Will IMC firm up the deal this week as gold attempts to make another move higher?
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.
Alamos Gold, Inc.
Like we reported earlier, gold penny stocks are on fire this week. Sure, most sector stocks slid during the last few weeks. But compared to the broader market, this slide was noticeably less. When the market neared the open on March 16, gold hit levels not seen since last November. But as the $1,450 level held as support and investors digested the Fe information from the weekend, it became clear. Gold could be a safe haven for a reason. In light of the rebound in gold prices, gold stocks bounced. In particular, gold penny stocks saw some of the biggest moves on the day.
Alamos Gold (AGI-Stock Report) was among the list of gold penny stocks. Shares started the day at $3.41 and managed to continue higher to close at $4.71. AGI stock also saw an intra-day high of $4.94 to mark a move of 45% from the opening bell. But like Waitr’s move, Alamos wasn’t jumping just from the sector alone. The company made a big announcement.
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Alamos reported that it has entered into an agreement to acquire and cancel a 3% net smelter return royalty. This was payable on production from the Island Gold mine, for total cash consideration of C$75 million; $54 million USD. “The acquisition of the royalty further reduces costs at what is already a low-cost operation while also increasing our exposure to the tremendous exploration upside. Since we acquired Island Gold in 2017, the Mineral Reserve and Resource base has doubled with the deposit approaching four million ounces across all categories,” said John A. McCluskey, President and Chief Executive Officer.
Penny Stocks To Watch: Food Delivery & eCommerce
Who would have thought that Blue Apron (APRN-Stock Report) would turn things around? Well, at least the stock price has for now. The once-popular penny stock chosen in the stock draft by Mr. Wonderful on CNBC recently hit fresh 52-week lows this month. After doing a reverse split last year to jump back over the minimum price threshold, APRN stock is back in penny stocks territory. But has COVID-19 deemed it one of the coronavirus penny stocks to watch right now?
With countries going on full lock-down and new rules telling people to stay inside unless absolutely necessary, delivery companies could catch some attention right now. Blue Apron stock has already started to on March 16 without any news whatsoever. In fact, the only recent news from the company was discussing its terrible earnings results from its fourth-quarter report.
The company saw a decline in revenue of 33% and a 37% loss in subscribers. But speculation has ruled this segment of the market. Just like IFMK mentioned earlier this week, APRN could be the latest to be hit by the coronavirus in a positive way. As of its March 16th close, this penny stock had already moved from an open of $2.25 to $3.82 by the end of the day bell. Will this momentum spill over into the week?
Similar to Blue Apron, Waitr Holdings (WTRH-Stock Report) may have also been bitten by the coronavirus this week. The company operates as an on-demand food ordering and delivery company. The company also owns Bite Squad, which together the operations are in roughly 640 cities. Bit Squad is similar to an Uber Eats (UBER-Stock Report) or GrubHub (GRRUB-Stock Report) connecting diners to restaurants.
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Adding to the coronavirus play is the company’s earnings results. Back in November, we reported on the company after inking a deal with Rally’s / Checkers. In stark contrast to its earnings at that time, Waitr reporter stronger results this time around. Since Novembers update, shares of WTRH have climbed by as much as 75% as of March 16th highs of roughly $0.63. In addition to earnings, the company made a point to say that it is continuing to support its restaurant partners and make deliveries to its customers.
“We are positioning Waitr for sustainable, long-term growth and improving service quality to our restaurant partners, our diners and drivers. We have made tremendous progress on these fronts so far in 2020, and I expect these initiatives will result in the Company achieving positive cash flow, beginning in the first quarter of 2020,” said Carl Grimstad, Chairman and CEO of Waitr. Waitr reported a 103% increase in revenue to $43.1 million during the quarter along with a slimmer net loss of $0.28 per share compared to $0.52 per share the same period in 2018. All-in-all it was a 1-2 punch for the penny stock. Can the momentum continue this week?
Finally, Pitney Bowes (PBI-Stock Report) focused on commerce solutions that power transactions. This includes offering solutions for analytics, and APIs. The company does billions in revenue with $3.2 reported in 2019. Meanwhile, it’s one of the few penny stocks that also offer a dividend. It also boasts service to 90% of the Fortune 500. So it’s interesting for some to see such a company trading as a penny stock.
Regardless of price, this is the first time we’re looking at the company and it’s during a 2-day uptrend. While there hasn’t been any speculation related to COVID-19 and even the company expects a slower year, it may have found itself among coronavirus penny stocks for now. As with many companies related to a more pick and shovel approach, Pitney Bowes focuses on things like eCommerce, shipping, mailing, in addition to software and data.
While this may be a long-shot, the latest 2-day move comes during a time that the coronavirus is in full view & after the company reported lackluster results. Could the pop be an anomaly or could PBI stock have benefited from a speculative interest in companies that could have some type of positive exposure to the recent interest in the “what if” scenarios starting to create themselves in the minds of investors?
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.