In the stock market today there are several things in focus that have driven broader markets lower and speculative stock higher. Concerns over the spread of the coronavirus continue to spin. While broader sector stocks and blue-chips feel pressure, many higher volatility penny stocks are making moves higher. We’ve already seen several sectors bolster momentum in the market. In this article, we are covering one penny stock in the US and one penny stock in Hong Kong.
For the uninitiated, the GEM board, also known as the Growth Enterprise Market, is a board on the Hong Kong stock exchange for growth companies that do not meet the main board’s listing requirements.
The attractive part about investing in penny stocks is that when there is a surge in the price of the stock, the returns can be enormous in percentage terms. A price surge as little as USD 0.02 can translate to decent gains. Having said that, we have to note that thinly traded penny/ GEM stocks can create an illusion of high returns when there are only a few transactions per day. As such, we have filtered out those stocks and are only providing coverage for penny stocks with significant trading volume.
Penny Stocks To Watch: International Land Alliance
One of the sectors weathering this global COVID-19 storm has been real estate. Specifically, commercial real estate has bucked a bull trend. In light of this, investors have taken a liking to certain real estate and real estate development stocks in recent months. Case in point, both the iShares U.S. Real Estate ETF (IYR Stock Report) and Real Estate Select Sector SPDR Fund (XLRE ETF Report) are up 7 and 8% respectively since the start of 2020. As of this morning’s opening bell, the S&P ETF (SPY ETF Report) was only up about 3.5% since 2020 started. So it may not be a bad time to be looking at penny stocks in this arena right now.
International Land Alliance (ILAL – Free Report), for example, has managed to climb since late last year. The company is a land investment and development company building a portfolio of exclusive properties. Its main target areas are in an untapped area of development in Baja California, Mexico. And right now, International Land Alliance could present an immediate opportunity to be among developers in a growing market area that has become increasingly popular for tourism and retirement.
Mexico is the world’s 15th largest economy with the potential to become 5th by 2050. It’s the most stable economy in Latin America. Over the next two years, the International Monetary Fund projects a growth of 2.3% and 2.7%, respectively. But this particular area of Northern Baja California, Mexico has quickly become a hotbed for tourism and even baby boomers looking to relocate. Meanwhile, International Land Alliance boasts a project portfolio with revenue potential north of $70 million, according to the company.
GEM Stock To Watch: 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 220% 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 36.9% of revenue (approximately HK$87,260,000) 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.
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Disclaimer: Eastmoneystocks.com is owned and operated by Midam Ventures, LLC. Pursuant to an agreement between Midam Ventures LLC and International Land Alliance (ILAL), Midam is being paid $225,000 for a period from January 31, 2020, to May 18, 2020. We may buy or sell additional shares of International Land Alliance (ILAL) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about International Land Alliance (ILAL). Read our full disclaimer here.