Best Penny Stocks to Add to Your Watchlist as Geopolitical Tension Increases
Right now, those who invest in penny stocks and blue chips are on edge as fighting intensifies between Russia and Ukraine. If for some reason you’re not familiar with what’s going on, let’s get you up to speed.
Why the Dow Dropped 700 Points Today
Today, new video came out showing that Russia has a 40-mile long convoy on the way to the Ukrainian border. Russia has also stated that it has plans to ‘crush’ Ukraine, which is not encouraging news for the stock market whatsoever.
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And as a result of this massive geopolitical tension, investors are on edge right now as to where penny stocks or blue chips may head in the near future. Today, we saw the stock market drop by roughly 700 points with the price of oil spiking as well. Both of these are incredibly common as of the past two weeks and continue to be the effect of the war going on in Ukraine right now.
While it is tough to predict what will happen in the coming months in regard to this, we do know that for right now, there is a lot for investors to keep in mind. And because penny stocks are so reactive, understanding exactly how these factors will impact your penny stocks watchlist, is crucial. With all of that in mind, let’s take a look at three penny stocks to watch as Russia begins its attack on Kyiv.
3 Penny Stocks For Your March 2022 Watchlist
- Tellurian Inc. (NYSE: TELL)
- Transocean Ltd. (NYSE: RIG)
- Harmony Gold Mining Co. (NYSE: HMY)
Tellurian Inc. (NYSE: TELL)
One of the bigger gainers of the day at market close is Tellurian Inc. By the end of the day, shares of TELL stock had climbed by more than 4.9%, to over $4 per share. This is a sizable uptick and one that reflects the recent bullishness on the energy industry. In the past five days, shares of TELL stock have shot up by over 56%, which is one of the major reasons that so many investors are watching it right now.
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Aside from the industry moves, Tellurian has seen positivity due to its recently released 2021 results. In the results, the company stated that it has completed the first phase of its Driftwood LNG sales and purchase agreements. This came in at nine million tones per annum. In addition to this, the company executed on a long-term ground lease agreement with the Lake Charles Harbor and Terminal district.
“The global economy is in the early stages of an energy supercycle driven by strong demand for natural gas and several years of underinvestment in energy infrastructure.
Tellurian is optimally positioned with fully executed market-based LNG SPAs and a permitted project. Bechtel will begin construction of Driftwood LNG in April and we will seek to conclude the financing process shortly thereafter.”
The CEO and President of Tellurian Inc., Octavio Simoes
So with these results in mind, it’s easy to see why so many investors are interested in TELL stock right now. Considering that, will it be on your penny stocks watchlist or not?
Transocean Ltd. (NYSE: RIG)
Another penny stock that we have covered numerous times in the past few weeks, and one with similar momentum to TELL stock, is RIG stock. During trading today, shares of RIG shot up by over 2.2%.
And in the past five days, shares of RIG have climbed by more than 9.7%. Similarly to Tellurian, the majority of the momentum with Transocean right now is related to its position as an energy penny stock. The most recent news from Transocean came on February 22nd when it reported its fourth quarter and full year 2021 results.
In the fourth quarter, the company brought in contract drilling revenue of $621 million. Additionally, it managed to bring in a revenue efficiency of 94.5%. While this is slightly less than the previous quarter, it is still quite high. At the end of February 2022, the company states that its contract backlog is $6.5 billion. This should give it ample capital to continue building and engaging in its current operations. With that in mind, is RIG worth adding to your list of penny stocks to buy?
Harmony Gold Mining Co. (NYSE: HMY)
One of the largest gainers of the day so far is Harmony Gold Mining. During trading, shares of HMY stock shot up by over 13%. This is a major gain for a gold stock, let alone a gold penny stock. In the past five days and one month periods, the story has been the same with shares of HMY stock shooting up by over 23% and 33% respectively.
While HMY itself does have a lot to offer, the company has benefitted substantially from the investing environment on gold right now. In the past few weeks, the price of gold has jumped dramatically. This is due to investors fears over the current geopolitical turmoil at play. Often when events like the one going on between Russia and Ukraine occur, investors will turn to gold for its safe haven properties.
Can Penny Stocks Climb This Month?
The short answer to this question is that it is tough to say. While we do know that volatility will continue in the near future, the reality is that the next few weeks will likely be unpredictable. With certainty, we know that the tension between Russia and Ukraine will not end in the next few weeks.
However, there may be changes that are crucial for those who invest in penny stocks to consider. And, understanding what those are and how they play into your trading strategy is paramount to making money with penny stocks.
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In addition, we likely have not seen the full effects of the Russian invasion of Ukraine. And for that reason, staying on your toes will help to avoid losing money with small caps. So, with all of that considered, do you think that penny stocks can climb this month or not?
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