Well, in principle we have deals across the board. The U.S. government and Federal Reserve are set to start pumping trillions of dollars into the economy. Whether it’s through quantitative easing or sending checks in the mail, money is starting to flow. So what does this mean for the markets? Things could get a bit more volatile.
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“It is possible there’s going to be a very sharp, short, I hope short, recession in the next quarter because everything is shutting down of course,” former Federal Reserve Chairman Ben Bernanke said on CNBC’s Squawk Box.
The focus for the broader markets is getting away from “max fear” and taking back control of economic strength. These latest measures aim to do that in a much shorter time-frame. Needless to say, it hasn’t put a pause on volatility. Penny stocks are well-known for their erratic moves. Whether the market goes up, down, or sideways, you’re likely to find one small-cap stock making a big move.
Today, we’re looking at yet another round of penny stocks with volatility. One of the biggest topics of conversation thanks to the latest fiscal moves has centered around gold. It has been one of the top-performing asset classes during times of economic uncertainty and fiscal stimulus. At the very simple level, more money flooding into the market, the more diluted its value could become. We’ve also got a situation where there are very low rates, mortgage origination is now in a decline and the “safe-haven” argument grows. In this case, gold penny stocks could shine. This list of penny stocks includes a few juniors that have started catching attention after recent corporate and industry events.
Penny Stocks To Watch: IMC International Mining
This week, IMC International Mining (IMIMF Stock Report) (IMCX) hosted a corporate conference call with incoming Chairman, Greg Hawkins and current CEO Brian Thurston. The two discussed details of the company’s latest plan to acquire Thane Minerals. Something to take very important note of is the property that Thane owns 100% of, the Cathedral Property. Why is this so? Cathedral is an untapped piece of land stretching around 51,000 acres in an area called the Quesnel Terrane.
It hosts past and planned production of 50 billion pounds of copper, 28 million ounces of gold, and has 16 producing and development projects. With the rising price of gold, this acquisition could present bigger opportunities for IMC. Furthermore, Cathedral sits between two mines that have already shown big potential. This includes the Mt Milligan and Kemess mines.
Mt Milligan copper-gold porphyry deposit contains a combined Measured and Indicated Mineral Resource of 243.9 million tons at 0.134% Cu and 0.226 grams per ton of gold, containing 717.7 million pounds of copper and 1,769,000 ounces of gold. Kemess mine produced approximately 3 million ounces of gold and 700 million pounds of copper over the life of the mine. The fact that Cathedral not only located right in between these mines but is also still in a relatively unexplored portion of the Quesnel Terrane means that IMC has a real opportunity to strike gold first.
Penny Stocks To Watch: XpresSpa
Maybe you’ve seen these in airports. XspresSpa (XSPA Stock Report) are those convenient massage kiosks that you can go to during layovers. While this hasn’t been the biggest breakout story of the year, XpresSpa has attracted some attention recently. Just like IMC International, it’s all about 3 things: location, location, location. Their kiosks are in many airports. Considering the current state of the coronavirus epidemic it crossed their minds that something could be done.
Earlier this month the company announced ‘high-level” talks with turning all of its locations into COID-19 testing sites. Clearing an outside the box idea that has nothing to do with the current model. But a unique idea all the same. This week the company announced a formal partnership. It will partner with Relevant Healthcare Cost Containment. Registered under trade name Contain Holdings, the company will offer testing for COVID-19 through its contacts with Laboratory Corporation of America and Quest Diagnostics.
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Doug Saltzman, CEO, XpresSpa said, “This is a rapidly developing environment with private and public sectors working in unprecedented ways to partner for the benefit and protection of our citizens. We believe XpresSpa has a significant role to play in the fight against COVID-19 within the travel sector given our airport relationships, infrastructure, workforce with TSA clearance and strong desire to keep travelers and those who work in the airline industries safe.”
Penny Stocks To Watch: B2 Gold
B2Gold (BTG Stock Report) is another gold penny stock on the list. Shares have rallied since hitting lows of $2.16 earlier this month. With the rising gold price and new fiscal moves being made across the globe, the gold sector could be in high demand. Last week the company announced its COVID-19 response plan. This included travel restrictions, remote work, and mining projects implementing measures to deal with the outbreak.
In a follow-up this week, B2 temporarily suspended mining but will continue milling at its Philippines project. Its other mines in Mali and Namibia continue. The company is also moving its expansion and development projects forward. But there will also be certain restrictions and potential delays expected. Regardless, the company still expects to meet or exceed its consolidated gold production for the first quarter of 2020.
This comes about a month after reporting its Q4 results. These included an EPS beat as well as exceeding sales estimates. For the fourth quarter, EPS came in at $0.03 compared to estimates of $0.01. Sales were reported at just under $229.3 million while Wall Street expected something closer to $207.75 million.
Penny Stocks To Watch: Artelo Biosciences Inc.
Artelo Biosciences Inc. (ARRTL Stock Report) is another one of the penny stocks to watch on March 25. The main reason is based on what the company announced on the 23rd. Artelo is presenting at the SPring Investor Summit. While it was supposed to have been in New York, it was moved to a virtual setting due to obvious reasons. Needless to say, the company will be in front of active investors interested in the company starting around 11:45 AM EST.
Last month Artelo announced receipt of a grant from the National Cancer Institute for $4.2 million. Its FABP5 inhibitor platform is being developed as a potential treatment for prostate cancer. It will be interesting to see if the company mentions anything about COVID-19 in their presentations.
I say this because there’ve been many immunotherapy companies that have applied treatments as a potential coronavirus vaccine. Nothing of the sort has been mentioned by the company so this would be just speculation at this point.
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 April 30, 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.