Investors have managed to make great returns by investing in penny stocks globally. Trading penny stocks can be very rewarding if done effectively. These cheaper stocks have much higher volatility compared to blue chip stocks. As many may have seen, there could be big price movements in both directions. Those looking for penny stocks to buy should be aware that volatility can result in heavy losses as well.
Unlike in the US where most listed companies receive their fair share of coverage (even for penny stocks), things could not be more different for companies in Asia. As such, when there is limited news about a company, there are a few indicators that can help you find penny stocks to buy or sell. Things like above-average volume, irregular price spikes, RSI, MACD and major news can all be signs to watch out for.
Having said that, in order to avoid losses when investing in penny stocks, investors should come up with a strategy before investing. This might include things like entry and exit points, as well as stop losses in case a trade turns sour. Here are two penny stocks that are making big moves on the Canadian Stock Exchange & Hong Kong Stock Exchange.
Penny Stocks To Watch #1: IMC International Mining
IMC International Mining (IMCX) has begun to trend higher this month. On Wednesday, the gold exploration stock inched toward its all-time high but came just shy after hitting highs of $0.36. Furthermore, the stock saw one of its highest trading volume days of the year. The main focus of IMC is on exploring and developing gold assets. Not only does the company look for mining opportunities across the globe, but its current asset could also offer opportunities for gold discovery. IMC’s Bullard Pass property has already shown previous production levels that may justify the company’s stance on developing the site.
District production totals were 614,000 pounds of copper, 3,600 ounces of gold, and 15,000 ounces of silver from 17,000 tons mined that occurred between 1933 and 1956. Furthermore, the company’s leadership team has been involved in some of the biggest deals in the mining space.
For example, CEO, Brian Thurston, was instrumental in the initial exploration, land acquisition and development of Aurelian Resources’ Ecuador. That company was then acquired by Kinross in a $1.2 billion friendly deal. Could this be important considering the fact that M&A activity has picked up in the mining arena?
Penny Stocks To Watch #2: China Brilliant Global
We know that gold can be particularly attractive to hold during times of market uncertainty. You would notice that gold prices usually move in the opposite direction of the equity market. China Brilliant Global (8026.HK) has gone up at least 170% from July 2019; however, there are experts who believe that this could just be the start of company’s rise. As the outlook of global economy remains subdued, central banks are looking at more interest rate cuts. As such, gold and gold-linked stocks will likely benefit in the short to medium term.
Just recently, the Group has reported an increase of 21.6% of revenue (approximately HK$26,618,000) as compared to the corresponding period in the previous financial year. The increase in revenue was mainly attributable to the increase in the revenue from the Group’s Jewelry Business.
The Group’s Jewellery business under the Luk Fook brand has enjoyed an increase in revenue of approximately 101% year on year. The increase in revenue from the Jewellery Business for the period under review was mainly because of the increase in wholesale of golden jewellery products in PRC. Other jewellery products sold by the group includes gold, karat gold, platinum, diamond and gemstones.
Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp.(CSE:IMCX), Midam has been paid $200,000 for a period from January 7, 2020 to February 14, 2020. We may buy or sell additional shares of IMC International Mining Corp.(CSE:IMCX) 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). Click here for full disclaimer.