3 Penny Stocks That Investors Are Watching Amidst Geopolitical Conflict
Penny stocks and blue chips saw another volatile day of trading today as geopolitical tensions are rising with Russia and Ukraine. On Monday, the U.S. announced that it would close its embassy in Kyiv alongside relocating certain diplomats. The Secretary of State, Antony Blinken, stated that this is due to “the dramatic acceleration in the buildup of Russian forces.”
Now, most would lean toward defense stocks in a time like this, but there are plenty of other penny stocks that investors are watching. This includes those in the mining industry, and others that may have a relation to the tensions at play. The best way to find penny stocks that will offer a greater chance of making money, is to think outside of the box. This means looking at industries or specific companies that may benefit as tensions rise or fall.
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While it can be difficult, this is the best way to have a thorough understanding of profiting in the stock market right now. So, while it can be just as easy to lose money with penny stocks as it is to make money, having a strategy and understanding the current state of the stock market are both crucial. With that in mind, let’s take a look at three penny stocks to watch as Ukraine-Russia tensions rise.
3 Penny Stocks to Add to Your Watchlist Right Now
- New Gold Inc. (NYSE: NGD)
- Phunware Inc. (NASDAQ: PHUN)
- Harmony Gold Mining Co. (NYSE: HMY)
New Gold Inc. (NYSE: NGD)
By EOD on February 14th, shares of NGD stock had shot up by over 3.3%. This brings its five day gain to over 11.7%, which is no small feat whatsoever. And, in the past six months, shares of NGD stock have climbed by a very respectable, 62%. Before we get into why it is climbing, it’s worth talking about why it’s on this list.
The main reason that New Gold Inc. is worth watching as tensions in Ukraine rise is due to its industry. Often in times of geopolitical turmoil, investors will turn to mining stocks as a way to hedge bets against market insecurity. And as a gold mining company, New Gold Inc. perfectly fits that bill. While NGD stock can be quite volatile, the company does look like it has a lot to offer investors. And as a result, it could be worth adding to your penny stocks watchlist. To understand this further, let’s take a look at the company wholly.
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New Gold Inc. as stated earlier is a mining company focused on producing gold in Canada. It operates both the Rainy River gold mine and the New Afton copper-gold mine. While it has stakes in other assets in Canada, these two represent its main portfolio. In its latest Q4 operational update, the company posted 16% growth in its Rainy River production. This is substantial and could be part of the reason that the company is making bullish headway right now. So, with this in mind, will NGD be on your watchlist this month?
Phunware Inc. (NASDAQ: PHUN)
Another penny stock that climbed today is PHUN stock. By EOD, shares of PHUN had shot up by over 5.3%. This is a substantial rise and one that follows a five day gain of over 23%. Phunware is a play for the shifting political tides rather than one that would directly benefit from the Ukraine-Russia tension.
To understand this, we have to take a look at what the company does. Phunware produces a range of softwares that offer companies the ability to monetize their products. This includes marketing automation, advertising, and location-based services. The most recent news from Phunware came a week or so ago when it announced a partnership with Campaign Nucleus. This concerns the integration of its Smart Advocacy Solution and the Multiscreen-as-a-service software from Phunware.
While Phunware is highly volatile, the company does have a lot of interesting prospects in the works. And in its latest quarterly report, the company posted an increase in application transactions of 44% YoY. And, its YoY total income rose 512% with its net income rising more than 100%. All of these numbers show that Phunware is growing quickly and making a name for itself in the tech industry. Considering this, will it be on your penny stocks watchlist this month?
Harmony Gold Mining Co. (NYSE: HMY)
On February 14th, shares of HMY stock shot up by around 3%. For the same reason that NGD stock is climbing right now, HMY is as well. And, this is a similar situation when we consider Harmony Gold and the looming geopolitical tensions going on right now. In addition to all of this, the broader gold market is rising right now.
With the price of gold up by around 0.5% today and 2.9% in the past month, its clear that investors are bullish on the shiny substance. While we are not near the all time high of over $2,070 an ounce, we are closing in at around $1,870. As stated earlier, many investors view gold as a traditionally safer asset class when geopolitical tensions are rising.
And because this is the case right now, we are seeing companies like HMY stock push up. It’s important to consider that gold stocks tend not to rise in the double or triple digits as they are often more stable than other penny stocks. However, we should not rule out the potential for a gold stock to rise and fall substantially in a given trading day.
Which Penny Stocks Are on Your List Right Now?
With tensions continuing to rise between Russia and Ukraine, investors are looking for ways to benefit. Of course, this event is a tragedy for all involved, however, factors like these always present movement in the stock market.
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Therefore, it is up to us as investors to understand how to make money during these times. While it can seem difficult, thinking outside of the box will be your best chance at succeeding here. Considering that, which penny stocks are on your list right now?
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