3 Penny Stocks to Watch With As Russia-Ukraine Tensions Rise
With penny stocks and blue chips getting off to another wild day of trading, there is a lot for investors to know right now. Of course, the main concern in the stock market right now is the tension between Russia and Ukraine. As of Tuesday, February 22nd, Russia entered Ukraine via two breakaway regions in the eastern portion of the country.
As this occurred, several western nations including the U.K., Germany, and the U.S., began working to impose sanctions. This includes a bank account freeze by the U.K. and the blockage of the Nord Stream 2 pipeline by Germany. As a result, the price of oil jumped to its highest level since 2014, with Brent Crude trading around $99.50 per barrel.
Right now, many countries are hesitant to call it an invasion as they await Russia to move further into the country. But, it has already had a tremendous effect on both penny stocks and blue chips. So, because penny stocks are so speculative and reactive, understanding the effects of this event and events moving forward is crucial. Considering that, let’s take a look at three penny stocks to watch as Russia begins its invasion of Ukraine.
3 Penny Stocks to Add to Your List as Russia Enters Ukraine
- Indonesia Energy Corp. Ltd. (NYSE: INDO)
- Joby Aviation Inc. (NYSE: JOBY)
- Gran Tierra Energy Inc. (NYSE: GTE)
Indonesia Energy Corp. Ltd. (NYSE: INDO)
One of the largest gainers of the day so far is INDO stock. At midday, shares of INDO stock had jumped by over 70% to more than $7.68 per share. This is a staggering gain and one that brings INDO stock well out of penny stock territory. In the past month, shares of INDO have shot up by more than 109%, which is no small feat. So, why is Indonesia Energy climbing right now? Well, the main reason is an announcement that the company made during premarket trading today, however, before we get into it, there are other factors to consider as well.
As stated earlier, the price of oil is hitting its highest level in more than 8 years. Because of this, we are seeing shares of INDO stock and similar companies skyrocket. This is also not the first time that we’ve seen INDO stock climb substantially in a given trading day, as it shot up in the triple digits only a few weeks ago. As far as company-related news, Indonesia Energy announced the signing of a cooperation agreement with KEME Energy to begin developing a solar-to-green Hydrogen farm in Portugal.
“This agreement with a technological partner of international excellence like Fusion Fuel, and in an international logistics platform capable of receiving relevant counterparts from the maritime-port, industrial and logistics sectors is proof of the ability of green hydrogen to be a decentralized solution to support the decarbonization of the industrial and commercial transport sectors.”The CEO of KEME Energy, Miguel Matias
This is great news for the company and shows that it is working hard to grow right now. While it is tough to say what the long term ramifications of this deal will be. As of today, it is an exciting update for investors to consider. With that in mind, will INDO be on your list of penny stocks to buy?
Joby Aviation Inc. (NYSE: JOBY)
Another major gainer of the day so far is JOBY stock. At $4.94 per share, JOBY’s almost 4% gain during trading today brings it close to no longer being a penny stock. And, in the past month, shares of JOBY stock have climbed by over 14%, which is no small feat. To understand why, let’s take a look at what the company does and any recent announcements.
A few days ago, the company announced that a crash had occurred during an aircraft test. This resulted in a major drop in the price of JOBY stock. During a flight of its remotely piloted test flight, the company stated that its aircraft crashed without discussing the details of the accident. However, this is the reason for test flights and is a consequence of making a new product. Additionally, this comes after already going through over 1,000 successful test flights.
And, the drop in its price occurred shortly after it announced a partnership with Toyota and All Nippon Airways, increasing its price by over 27%. So, while JOBY stock is volatile, the company does have a lot going for it right now. With that considered, will it be on your penny stocks watchlist or not?
Gran Tierra Energy Inc. (NYSE: GTE)
While GTE stock’s 3% or so gain at midday is not much compared to other penny stocks today, it is substantial. However, in the past month, GTE stock has shot up by over 55%. This is a major gain and reflects the state of the oil and gas industry during that time. So, why exactly are shares of GTE stock pushing up right now?
Well, the big catalyst for GTE stock comes as the company is scheduled to release its fourth quarter 2021 and full year results after the market closes today. While it’s tough to gauge whether these will be positive or negative, we can assume that heightened market demand right now will be a plus for the company.
If you’re not familiar, Gran Tierra is a producer of oil and natural gas with exploration assets in Colombia and Ecuador. The company has remained a top player in the energy penny stock sector over the past few years and continues to attract new attention. So, with its balance sheet coming out today, will GTE be on your list?
Which Penny Stocks Are You Watching?
With so much going on in the stock market right now, it can be difficult to stay up to date with everything at once. However, understanding exactly what is going on and how to take advantage are crucial steps in making money with penny stocks. Now, with the current geopolitical crisis in play, it will be difficult to predict where the stock market will go with any degree of certainty.
[Read More] Best Penny Stocks to Watch This Coming Week
So, the only concrete assumption we can make is that volatility will remain high in the near and distant future. While this may seem disheartening, it should help to inform your trading strategy. With that in mind, which penny stocks are you watching right now?