As vaccine rates around the world continue to spike, many believe that penny stocks could benefit from the end of the pandemic. Of course, penny stocks are not the only securities that will see improvements in financials in the coming months.
Rather, a massive reopening economy could be a major benefit to the entire stock market and world economy. To take advantage of this, it is best to create a list of penny stocks that could benefit greatly from reopening. These are aptly known as reopening penny stocks.
However, this term expands into many different industries, meaning a large range of penny stocks could be considered. Now as always, it is best to do as much research as you can before investing in a given penny stock. This ensures that you know exactly what you’re getting into. And in June of 2021, there is a lot to consider. Factors such as Reddit and social media investors alongside inflation fears have both set a very volatile tone in the stock market.
While the past two months have been marked by relatively negative investor sentiment and sideways trading, investors are looking forward to the future. It is difficult to say exactly when the pandemic will end, but if vaccine trends continue, we could see a light at the end of a year and a half long tunnel. With all of this in mind, here are three hot penny stocks to watch as vaccine rates hit new highs.3 Penny Stocks to Watch With Reopening in Mind
- McEwen Mining Inc. (NYSE: MUX)
- Camber Energy Inc. (NYSE: CEI)
- Ampio Pharmaceuticals Inc. (NYSE: AMPE)
McEwen Mining Inc. is a penny stock that has been performing very well over the last year and a half. For context, MUX is an exploration company that, develops, produces, and sells mineral resources. These mineral resources include silver, gold, and copper. McEwen owns 100% interest in the El Gallo project, Fenix project, and Black Fox mine among others. These properties are located in Mexico, Canada, Argentina, and the United States.
One year ago this company was at under $0.90 per share on average. Now in June of 2021, it is at $1.60 per share on average. So what is the reason that this company has been performing so well in the market? Well, this has to do with the mineral resources that McEwen searches for. Gold, silver, and copper all saw huge price increases throughout 2020, and some momentum this year as well.
Currently, there is a lot of inflation fears in the market. If inflation occurs it could cause the price of precious metals such as those mentioned above to rise exponentially. This has placed mining penny stocks in the eyes of many investors right now.
In fact, despite the price of gold and silver being down on June 15th, MUX trading volume is much higher than its average. When inflation is a possibility, investors will often turn to resource stocks like those that mine gold, silver, and other precious metals. So keeping all of this information in mind, will McEwen Mining make it onto your penny stock watchlist this week?Camber Energy Inc. (NYSE: CEI)
Camber Energy Inc. is an oil and gas penny stock that has taken advantage of the recent uptick in energy demand. This company acquires, develops, and sells a variety of products in the energy market. These products include crude oil, natural gas, and natural gas liquids.
As of last year, its estimated proved reserves were 133,442 million barrels of oil. This was comprised of over 54,000 barrels of crude oil reserves, nearly 44,000 barrels of natural gas liquids reserves, and 207,823 million cubic feet of natural gas reserves. These numbers indicate that Camber has a substantial amount of resources on hand. While it is constantly mining more, high reserves are always a great sign for investors to take note of.On May 25th the company’s majority-owned subsidiary, Viking Energy Group Inc., announced its first-quarter results.
“We are pleased with Viking’s Q1 results, especially following the unprecedented conditions experienced in 2020. We are extremely encouraged with the foundation we have established, and are intensely focused on pursuing growth opportunities.”President and CEO of Camber Energy, James Doris
Despite some negative performance in the market recently, CEI stock is has had a few green trading days in the past week or so. This penny stock shot up by around 1% on June 15th and is up by a solid 7.4% in pre-market trading on June 16th. As many oil and gas penny stocks continue to perform well in the market, Camber continues to take advantage. So with all of this to note, will CEI stock make it onto your penny stock watchlist?Ampio Pharmaceuticals Inc. (NYSE: AMPE)
Switching industries momentarily, biotech penny stocks are another high-performing sector right now. Ampio Pharmaceuticals is a pure-play biotech penny stock that develops immunology-based therapies to treat prevalent inflammatory conditions.
One of its products that has caught attention in the last year is AP-016. AP-016 is an intravenous treatment in Phase I/II clinical trial for COVID-19 patients with respiratory complications. Ampio also has AP-014 which is an inhaled treatment in Phase I clinical trial for COVID-19 induced respiratory distress.
The pandemic shocked the world and has resulted in an increased focus on respiratory health. While it has also resulted in a focus on Covid-related biotech companies, the industry as a whole has increased in popularity during this time. In the United States, where the company is based, the COVID-19 pandemic is closer to ending than it ever has been. More than 43% of the United States population has been vaccinated, and COVID-19 cases are the lowest they have been in a very long time.
So now, Ampio has put a lot of focus on using its treatments in other countries that are struggling a lot from COVID-19, such as India, and others affected by the more dangerous Delta variant of the coronavirus. The company announced on June 15th that it has expanded enrollment of its AP-019 Phase 2 study to India, assessing inhaled Ampion to treat people suffering from respiratory distress caused by COVID-19. With this recent advancement in mind, AMPE stock is up 5% as of June 15th. So will AMPE make your list of penny stocks to watch?Which Reopening Penny Stocks Are on Your Watchlist?
Making a reopening focused penny stocks watchlist can be a great benefit to your portfolio. While there are still hotspots where Covid exists around the world, for the most part, cases are on the decline.
This is a major positive for investors as the hopes are high that the economy will rebound in the coming months. But, staying on your toes and up to date about all information regarding the pandemic is a great strategy. With all of this in mind, which reopening penny stocks are on your watchlist?