Apr 02, 2020 (Penny Stocks via COMTEX) -- One of the biggest drivers of penny stocks has been news. It might be general market news, company news, or even sector news. But usually, when you see penny stocks moving fiercely, there’s likely a headline that you can point to. Right now we’ve seen a lot of attention being placed on commodities and mining. Oil and gas penny stocks and gold penny stocks are grabbing a lot of attention in the market. So if you’re of the train of thought that the trend is your friend, then these are two sectors you’ll want to be looking at right now.
[Special Report] Junior Gold Stocks Creating Massive Opportunity for Investors
Furthermore, the U.S. president came out in a statement today that could bode well for the energy sector as a whole. The President tweeted, “Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!”
Of course, oil and energy penny stocks jumped after this. But I also mentioned gold penny stocks as well. If you look at other economic events recently, you can almost paint a picture that’s perfect for gold stocks right now. We’ve got record unemployment, declining economic growth, low rates, low yields, and a stimulus package that will flood the market with trillions in aid.
All things considered, these are some of the biggest drivers for a gold rally similar to what was in place during the financial crisis. So, with this in mind, let’s look at some penny stock to watch right now.
IMC International Mining ( IMIMF ) has been one of the top gold stocks to watch this year. This is not only for its price movement but for a major acquisition the company has been working hard to complete. Back in February, IMC announced the signing of a letter of intent to acquire Thane Minerals and its 100% owned Cathedral Property.
This asset would effectively double up its pipeline of mining assets and give it a property in one of the most prolific regions for gold discovery in the world: northern British Columbia.
Over the weeks to follow, the company managed to sign a definitive agreement getting it close to the finish line. This week, IMC was able to finalize the acquisition and, in turn, officially bring on industry veteran, Greg Hawkins, as its Chairman. In a preliminary conference all, Hawkins discussed the true opportunity ahead for IMC and the Thane acquisition. The Cathedral property is located between two established mines: Kemess and Mt. Milligan, which is owned by Centerra Gold. One of the leading gold streaming companies, Royal Gold ( NASDAQ:RGLD ) has an interest in Centerra’s Mt Milligan project as well.
In line with this, Hawkins explained how important the location of Cathedral is. Furthermore, he discussed that since it has been untouched by any other mining company, it could position IMC perfectly in the region after the acquisition was completed. Considering the fact that gold prices are climbing back above $1,600 an ounce, the closing of this deal could be perfect timing for the company.
With the president’s comments on Thursday, energy stocks are having a strong day. Denbury Resources ( NYSE:DNR ) reached highs of $0.23 during the mid-morning portion. Despite price target cuts and lowered production guidance, the sector surge appears to have boosted interest in DNR stock for the time being.
In its last corporate update, Chris Kendall, Denbury's President, and CEO, commented, "Our unique portfolio of high quality, low decline assets allows us to swiftly adjust to changes in market conditions, including changes as significant as those we have experienced over the last few weeks.”
The company expects to meaningfully reduce its LOE and G&A expenses, which, combined with proceeds from previously announced working interests sale could allow it to target cash flow neutrality for the year. According to Kendall, that’s if NYMEX oil prices average $35 per barrel for 2020. Needless to say, shares of DNR stock continue to move higher. Just a few days ago, the penny stock hit fresh 52-week lows of $0.1675. Can the latest Trump Tweet help boost this oil and gas penny stock to new highs this week?
Another gold penny stock to watch is Kinross Gold ( NYSE:KGC ). Shares extended weekly gains on Thursday as KGC reached highs of $4.83 during the morning session. This marked a firm 77.5% move since the mid-March gold sector drop. Furthermore, like IMC International, this week comes with more than just sector momentum.
Kinross reported its first-quarter production figures. While it stated that it can’t predict the future impact of the COVID-19 pandemic, it dow see a strong cash balance right now. According to the company, cash and equivalents total more than $1 billion right now.
For the first quarter, Kinross sees its sales totaling around 540,000 gold equivalent ounces with production coming in around 560,000 gold equivalent ounces. On top of this, Kinross made a point to state that all of its mines continue to operate and haven’t been materially impacted thus far.
Earlier this week we talked about names you would have never assumed to be a penny stock. Well, Marathon Oil ( NYSE:MRO ) joins the ranks. But, like many of the other oil and gas penny stocks today, Marathon is moving higher. After plummeting from more than $14 earlier this year, MRO stock reached 52-week lows of $3.02 this week. But the latest series of comments made by the U.S. president seems to have brought some upbeat sentiment to the downtrodden energy stock.
When asked about Marathon, outspoken TV personality Jim Cramer explained that investors should look at the debt side. He says, “When a stock trades so low and it has a big yield, it tends to mean that its credit side is not strong.”
But in the interim, sector momentum has been on fire Thursday. Since those Wednesday mid-day lows, MRO stock has managed to rally by more than 20% over the last 24 hours. Will this be able to continue through the week? If Trump is successful in getting a production cut, will that help Marathon regain some of what it lost?
Disclaimer: Pursuant to an agreement between Midam Ventures LLC and IMC International Mining Corp. /zigman2/quotes/214411183/delayed CA:IMCX -1.45% (IMIMF), Midam has been paid $200,000 for a period from January 7, 2020, to February 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to March 14, 2020. Midam has been paid an additional $200,000 and extended its period of coverage to April 30, 2020. We may buy or sell additional shares of IMC International Mining Corp. /zigman2/quotes/214411183/delayed CA:IMCX -1.45% (IMIMF) 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. /zigman2/quotes/214411183/delayed CA:IMCX -1.45% (IMIMF). Full disclaimer here .