Penny Stocks Take Center Stage With More Expected Volatility
Right now we are in uncharted territory with the impact of the coronavirus. Over the weekend more cities went into shutdown. Florida will shut down hotels, motels and vacation rental by March 23 “until further notice”. Meanwhile, numerous states’ national guards have been deployed to aid in treatment and testing efforts. It’s very likely that we see another week of volatility. But for those trading penny stocks, it’s just another average day.
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Don’t get me wrong, it’s crazy seeing stocks like Apple and GM fluctuated as much as they have. But if you’ve been following our site for the better part of the last year, volatility is what makes penny stocks so attractive.
So, don’t be surprised to see another big week for coronavirus penny stocks, gold penny stocks, and some speculative trades like we saw last week. The key right now is to think “outside the box”. We’re seeing industries that have nothing to do with healthcare, benefit from this pandemic.
Penny Stocks To Watch
But make sure you know what you’re investing in and why you’re trading it before making a move. In times like this, it’s important to remember that hype can cause fear of missing out. Before you make any moves, no matter how big a stock is moving, it’s wise to look at all of the factors in play.
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At the end of the day, there could be similar penny stocks out there that may be set up for a more sustained move. Don’t just pay attention to what message boards are saying. Look at “text-book chart patterns” and read through news & filings to understand if “now” is the best time to buy penny stocks you’re looking at or if waiting is the best route. Once you have a game-plan, then it’s time to put together your top list of penny stocks you’re interested in.
As I said above, this coming week could be another wild one. Be ready to practice core trading strategies, setting proper stop-loss orders, and making sure to keep the basics of penny stocks in mind. With this in mind, here’s a quick penny stocks watch list to start the week.
Mining & Gold Penny Stocks To Watch:
IMC International Mining
Many gold stocks took a hit last week. But IMC International Mining (IMIMF Stock Report)(IMCX) actually tested its 52-week high for the 3rd time this year. Even though IMC is a junior gold stock, it has been one of the only that hasn’t dropped during gold’s consolidation. The company has just signed the definitive agreement for a multi-million dollar acquisition in British Columbia. It also brought on a new Chairman of the Board who has over 50 years of industry experience.
While the acquisition (of Thane Minerals) brings on a relatively untapped property, the location has shown to be extremely viable to the extent of gold discovery. Thane’s 51,000+ acre Cathedral property sits in an area called the “Quesnel Terrane” which is rich in mineralization. Furthermore, the property is right between the Mt. Milligan Mine and the Kemess Mine.
The importance of this is that the Mt Milligan copper-gold porphyry deposit contains a combined Measured and Indicated Mineral Resource of 243.9 million tons. This is at 0.134% copper (Cu) and 0.226 grams per ton of gold, containing 717.7 million pounds of copper and 1,769,000 ounces of gold. Then there’s the Kemess Mine. It produced approximately 3 million ounces of gold and 700 million pounds of copper over the life of the mine. The fact that Cathedral is located right in between these mines is important. But what’s also key is that it’s still in a relatively unexplored portion of the Quesnel Terrane.
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.
So, this could be one of the main attractions for investors right now. There will be a corporate conference call on March 23 to discuss full details of this transaction. If IMC International is on your list of penny stocks or you think it might be soon, the conference call details are in IMC’s last press release.
SilverCrest Metals Inc.
SilverCrest Metals Inc. (SILV Stock Report) (SIL) focuses on precious metals mining with silver as a major target. The company has operations in Mexico and Canada targeting the development of mining properties. While shares trade on the cusp of penny stock range, like IMC it is one of the few mining stocks that have performed better than the sector, recently. Since hitting lows of $3.28 on the 16th, SILV stock has managed to climb to highs of $5.57 on Friday. What’s more, is that the market for SILV saw one of its highest share volume days ever with over 12 million traded.
So what happened with SilverCrest? You won’t find any new updates on the company’s newsfeed. But if you look at its filings, you’ll see a March 19th disclosure showing something interesting. Earlier this month, National Bank Financial agreed to participate in a 9.1 million financing with the company. That financing has effectively been canceled. It could also give the company an opportunity to benefit should it prove to win a legal battle against NBF.
“In SilverCrest’s opinion, the novel coronavirus pandemic considered by NBF as the basis for terminating this agreement was fully evident when the “bought deal” financing was agreed upon with expectations that the precious metals market would respond positively to this known risk.”
With metals and mining stocks likely to be a focus this week, SILV stock could be one to watch. Central banks are looking to flood in trillions to support relief efforts of coronavirus. Similarly, if currencies become devalued as a result, precious metals prices could benefit.
Biotech Penny Stocks To Watch:
Similar to IMC International, Aytu Bioscience (AYTU Stock Report) has been one of the penny stocks to watch for a few weeks, now. We first reported on the company in February when shares traded around $0.70. Since then, AYTU stock has managed to jump as high as $2.99, saw healthy consolidation, and appears to be back on the move.
During its March 20 session, shares of the company closed up about 5% from the open. This came after the company struck a deal to raise some $20 million at an average price of $1.595 per share and associated warrant. Even with the stock dropping, it’s important to keep some things in mind. First, Aytu just expanded its distribution right to commercialize a clinically validates coronavirus IgG/IgM rapid test. It grants the company rights to distribute and commercialize the test in North America including the U.S., Canada, and Mexico.
Right now, testing is key. “The testing capacity remains extraordinarily limited compared to where we should be. And in many ways we are absolutely flying blind at the moment,” said Michael Mina, an epidemiologist at the Harvard T.H. Chan School of Public Health. The company’s test was also featured on a FOX segment titled: ” Englewood company says it can get COVID-19 test results in 2-10 minutes.”
Considering that companies like Danaher (DHR Stock Report) and its Cepheid company are receiving FDA emergency use authorization for a point-of-care test, Aytu may also be a name people add to their list of penny stocks to watch this week.
AIM ImmunoTech, Inc.
Finally, AIM ImmunoTech Inc. (AIM Stock Report) has been one of the “OG” coronavirus penny stocks to watch this year. We’ve reported on this company since late-January when the stock traded around $0.80. Its biggest focus has been on its Ampligen treatment. Initially, the company discussed how its flagship is being studied in a number of immuno-oncology clinical trials. With the advent of coronavirus vaccines, AIM immediately went to work on applying Ampligen to become a potential treatment.
In fact, 2 days after writing the first article on AIM, we explained how “right now the coronavirus is a big topic”. This was to our point that “following trends in the market” could help determine potential penny stocks to watch. Fast-forward and Ampligen has tested Ampligen as a potential treatment for COVID-19.
“As we have been saying all along, this emerging pandemic is caused by a virus that has nearly identical regulatory RNA sequences to the original SARS coronavirus, known as SARS-CoV-1, in respect to pathogenesis. This means that the prior studies of Ampligen in SARS-CoV-1 animal experimentation may predict similar protective effects against the new virus. The WHO has recently renamed this emerging, highly pathogenic virus as SARS-CoV-2,” said AIM CEO Thomas K. Equels.
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.