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3 Hot Silver Penny Stocks With Massive Upside Potential

The gold-silver price ratio has come down from previous highs, putting the spotlight on the silver market and making silver penny stocks an attractive…



The gold-silver price ratio has come down from previous highs, putting the spotlight on the silver market and making silver penny stocks an attractive investment.

After a tough first quarter, silver prices are starting to catch up with gold and could outperform the yellow metal for the next few years, according to Brien Lundin of the Gold Newsletter.

Of course, Lundin isn’t the only market expert who’s bullish on silver. Analysts from CIBC expect silver to reach $18 this year and $19 the following year, while RJO Futures senior commodities broker Bob Haberkorn sees it reaching $20 in the coming weeks.

It’s clear that the silver market is getting a ton of attention, and investors are likely to follow once they catch on to how much of a bargain silver is selling for right now.

Although the gold-silver ratio has dropped from an unprecedented 127:1, it’s still astronomically higher than ever before, signaling a potential reset.

For those interested in the silver market, here are three promising silver penny stocks that could offer major upside.

3 Silver Penny Stocks With Potential: Silvercorp Metals Inc. (TSX:SVM) (NYSEAMERICAN:SVM)

Profitable Canadian mining company Silvercorp Metals Inc. has continued to make the headlines in recent weeks and is definitely one of the top silver penny stocks to watch right now.

Although SVM stock had a rough first quarter, much like the price of silver, the company is recovering from previous lows after an exciting M&A announcement in April.

On April 27, Silvercorp announced that it had signed a definitive agreement to acquire Guyana Goldfields Inc. (TSX:GUY) and create a diversified precious metals producer with two profitable underground silver mining operations in China and a gold mining operation in Guyana with a strong balance sheet to fund growth opportunities.

Earlier this week, the company announced an amending agreement that valued Guyana Goldfields much higher after Gran Colombia Gold (TSX:GCM) and Gold X made an unsolicited all-stock proposal to acquire the company.

>> 3 Undervalued Blue Chip Stocks on the Rise

Under the new terms, Guyana Goldfields shareholders will now receive CA$0.25 in cash for each share held and 0.1849 of a Silvercorp common share for a total of CA$1.30 per share. The improved offer values GUY at roughly CA$227 million, more than double the initial CA$105 million offer.

It’s clear that Silvercorp is willing to dish out the extra cash for the company’s promising asset and has the means to back it up.

Despite being forced to shutter its China operations temporarily due to COVID-19, SVM was able to achieve its full-year production target of 6.3 million ounces of silver, which was 3% above the company’s fiscal 2020 guidance.

Silvercorp is focused on its flagship Ying project in the Henan Province, which was acquired in March 2004 and started commercial production in April 2006, and the GC mine in Guangdong province.

Last year, an updated report for the GC mine revealed a 42% increase in the measured and indicated categories resources to 9.1 million tons. The resources contain approximately 24.5 million ounces of silver, 233 million pounds of lead, and 564 million pounds of zinc.

If the acquisition of Guyana Goldfields goes through, Silvercorp will also add the Aurora Gold Mine to its roster. Aurora, which reached commercial production on January 1, 2016, has a measured and indicated resource of 37.5 million tons grading 3.15 grams per ton (g/t) of gold.

Silvercorp has a market cap of CA$1.04 billion, with 173,816,834 shares issued. On Thursday, SVM stock was down 3.48 % to CA$5.83 and up 104% in the last 12 months. Meanwhile, the company’s US-listed stock was down 3.19% to $4.18 Thursday but is up 96% in the last year.

3 Silver Penny Stocks With Potential: Fortuna Silver Mines Inc. (TSX:FVI) (NYSE:FSM)

Next on the list of hot silver penny stocks to watch it Fortuna Silver Mines Inc., a precious metals producer with gold and silver projects across Latin America.

Despite facing a series of unfortunate events in the first quarter that led to a net loss of $2.2 million, Fortuna Silver reported a six-fold increase in its free cash flow to $14.2 million from the previous year.

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“In the month of May, we look forward to a gradual resumption of operations at San Jose and the re-commencement of construction at Lindero,”  said Fortuna Silver Mines President and CEO Jorge A Ganoza. “We have developed plans for, and are prepared to operate in the new COVID-19 business environment. Measures include aggressive opex and capex reductions of $23 million for 2020. The recently announced financing will provide the Company with the necessary financial flexibility to bring our Lindero gold mine into production at a time of unprecedented uncertainty.”

The financing Ganoza is referring to is a recently closed bought deal equity offering. Fortuna Silver issued 23,000,000 common shares at a price of $3.00 per share for gross proceeds to $69 million and includes the exercise, in full, of the over-allotment option of an additional 3,000,000 shares.

On May 15, Canaccord Genuity analyst Dalton Baretto reiterated a “buy” rating for the company and set a 12-month price target of CA$6.00, which is now just pennies above its current price of CA$5.98. Meanwhile, CIBC has offered a “neutral” rating but has boosted its 12-month price target for FVI stock to CA$6.50.

Fortuna Silver Mines has a market cap of $696.2 million, with 160,787,000 shares issued. FSM stock was down 1.62% to $4.16 at market close on Thursday but then regained $0.10 in after-hours trading. In the last month, FSM stock has increased by 57.7%.

3 Silver Penny Stocks With Potential: Great Panther Mining (TSX:GPR) (NYSEAMERICAN:GPL)

silver penny stocks

Another silver miner that hasn’t let COVID-19 setbacks hinder its progress is Great Panther Mining, an intermediate gold and silver mining and exploration company with projects in Brazil and Mexico.

Great Panther’s operations include its Tucano Gold Mine in Brazil and the Topia Mine and Guanajuato Mine Complex, comprising the San Ignacio and Guanajuato mines, in Mexico.

Despite the setbacks in production as a result of the pandemic, Great Panther reported a 11% year-over-year increase in its silver production, which reached an output of 393,000 equivalent ounces.

The company also saw a whopping 134% year-over-year increase in its Q1 gold production to 35,000 gold equivalent ounces, which was driven by a full 2020 quarter of Tucano mine production along with operational improvements.

On top of that, Great Panther raised $16.1 million through a recently closed bought deal financing, further strengthening its cash position of $37 million at the end 2019.

At the end of day Thursday, GPL stock closed at $0.40 but rebounded in after-hours trading to $0.42. However, analysts expect the stock to go much higher.

Cantor Fitzgerald analyst Matthew O’Keefe has offered Great Panther a “buy” rating and a 12-month price target of $1.10, which indicates a potential upside of 38%.

Great Panther Mining has a market cap of $135.17 million, with 312,392,000 shares issued.


The gold-silver price ratio is dropping, and it’s becoming clear to market watchers that silver is headed for big things this year. Investors who want to get in on the action may want to consider adding one of these hot silver penny stocks to their portfolio.

Are there any silver penny stocks on your radar lately? Tell us about them in the comments!

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Morgan Stanley: SPX could return to its pre-pandemic 3,400 level

The S&P 500 index could return to its pre-pandemic 3,400 level in the coming months that translates to another 15% downside from here, warned a Morgan…



The S&P 500 index could return to its pre-pandemic 3,400 level in the coming months that translates to another 15% downside from here, warned a Morgan Stanley analyst on Monday.

Don’t be fooled by the bear market rally

Michael Wilson dubs the recent bounce (about 4.0%) in U.S. equities a “bear market rally” and says investors should brace for more pain ahead as inflation and supply constraints remain a significant headwind. In his note, the analyst said:

With valuations now more attractive, equity markets so oversold an rates potentially stabilizing below 3.0%, stocks appear to have begun another material bear market rally. After that, we remain confident that lower prices are still ahead.

Last week, the U.S. Bureau of Labour Statistics said inflation stood at 8.30% in April – a marginal decline versus the prior month but still ahead of the Dow Jones estimate.

How to navigate the current environment?

Wilson continues to see a recession as unlikely, but agrees that the risk of such an economic downturn has certainly gone up. The U.S. economy unexpectedly shrank 1.40% in the first quarter of 2022.

That is just another reason why equity risk premium is too low, and stocks are still overpriced. The bear market won’t be over until valuations fall to levels (14 – 15x) that discount the kind of earnings cuts we envision, or earnings estimates get cut.

He recommends increasing exposure to real estate, health care, and utilities stocks to navigate the current environment, while tech and consumer discretionary stocks remain a big “no” for him.

The post Morgan Stanley: SPX could return to its pre-pandemic 3,400 level appeared first on Invezz.

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What Is Quantitative Tightening? How Does It Work?

What Is Quantitative Tightening?The main job of a central bank, like the Federal Reserve, is to keep the economy strong through maximum employment and…



Quantitative tightening is not the opposite of quantitative easing—they are distinctly different activities.

Ballun from Getty Images Signature; Canva

What Is Quantitative Tightening?

The main job of a central bank, like the Federal Reserve, is to keep the economy strong through maximum employment and stable prices. It does this by managing the Fed Funds Rate, which it sets at its Federal Open Market Committee meetings. This effectively raises or lowers the interest rates that banks offer companies and consumers for things like mortgages, student loans, and credit cards.

But when the economy needs help and interest rates are already low, the Fed must turn to other tools in its arsenal. This includes practices like quantitative easing and quantitative tightening; the former expands the shares of Treasury bonds, mortgage-backed securities, and even stocks on the government’s balance sheets, while the latter tightens the monetary supply. Both have a profound effect on liquidity in the financial markets.

The Fed came to the rescue with trillions of dollar’s worth of quantitative easing at the end of the 2007–2008 Financial Crisis, and again during the global Coronavirus pandemic.

But the Fed can’t go on printing money forever. Whenever it employs quantitative easing, the Fed must eventually turn to its counterpart, which is known as quantitative tightening, in order to limit some of the negative outcomes of the former, such as inflation.

How Does Quantitative Tightening Work? What Is an Example of Quantitative Tightening?

Through quantitative tightening, the Federal Reserve reduces its supply of monetary reserves in order to tighten its balance sheet—and it does so simply by letting the bonds and other securities it has purchased reach maturity. When this happens, the Treasury department removes them from its cash balances, and thus the money it has “created” effectively disappears.

Does the Fed know exactly when to ease the gas pedal on quantitative easing? According to the Fed, timing is everything. Remember how the Fed’s main job is to create a strong economy through stable prices and high employment? As it carefully monitors the effects interest rates are having on the economy, it also keeps a close eye on the overall measure of inflation. It’s both a constant battle and a juggle. 

Take the period following the Financial Crisis as an example. The 2007–2008 crisis stemmed in large part from the implosion of collateralized debt obligations, and so the Fed kept the Fed Funds Rate at virtually 0% for almost a decade in order to spur growth and maintain stable rates of employment.

During this period, it also undertook a series of quantitative easing measures, watching its balance sheet balloon from $870 billion in August 2007 to $4.5 trillion in September 2017.

The FRED graph below illustrates how the Fed Funds rate, in blue, remained at nearly zero for the period while the total size of the Fed’s balance sheet, in red, grew. The shaded areas indicate recession.

Federal Reserve Bank of New York, Effective Federal Funds Rate [EFFR], retrieved from FRED, Federal Reserve Bank of St. Louis;, May 16, 2022.

The Fed believed that as soon as employment became stable, it needed to turn its attention to meeting its 2% inflation target, which it accomplished by raising interest rates. And so, in October 2015, it began gradually increasing the Fed Funds Rate in 25 basis point increments. Over the next several years, rates went up from 0.0%–0.25% levels to 2.25%–2.5% in 2018. This course of action, in the Fed’s words, was known as liftoff.

After raising rates a few times with no disastrous consequences, in 2017 the Fed next embarked on an effort to reduce its balance sheet through quantitative tightening. This was also known as unwinding its balance sheet, because it was taking action in a slow and gradual way.

Between 2017 and 2019, the Fed let about $6 billion of Treasury securities mature and $4 billion of mortgage-backed securities “run off” per month, increasing that amount every quarter until it hit a maximum of $30 billion Treasuries and $20 billion mortgage-backed securities per month. By July 2019, the Fed announced that its unwinding was complete.

The Fed published a blog post detailing these efforts, categorizing them as its “balance sheet normalization program,” since it sought to “return the policy rate to more neutral levels.”

What Effect Does Quantitative Tightening Have on the Economy?

While the goal of quantitative easing is to spur growth, quantitative tightening doesn’t hinder it; in fact, many Governors of the Federal Reserve believe quantitative tightening doesn’t have much effect on the economy at all.

“Quantitative tightening does not have equal and opposite effects from quantitative easing,” said St. Louis Fed President Jim Bullard, “Indeed, one may view the effects of unwinding the balance sheet as relatively minor.”

Former Fed Chair Janet Yellen famously described quantitative tightening as “something that will just run quietly in the background over a number of years,” and that “it’ll be like watching paint dry.”

St. Louis Fed Research Director Chris Waller compared quantitative tightening with “slowly opening the stopper in a drain and letting the water run out,” and by doing so, they were “letting the supply of U.S. Treasuries in the hands of the private sector grow.”

But critics have argued that the excess reserves the Fed creates by “printing money” through quantitative easing have negative consequences on the overall economy. For example, these reserves can lead to currency devaluation and higher inflation, which is defined as when prices rise faster than wages. Inflation can have disastrous effects on an economy, resulting in asset bubbles and even recessions.

Even the Fed admitted as much when St. Louis Vice President Chris Neely noted that between 2008–13, the Fed’s asset purchases led to a decrease in 10-Year Treasury yields by 100–200 basis points. He said, “this reduction modestly raised prices and real activity.”

Just remember that the Fed’s principal aims are to generate stable prices and high employment. So while the Fed hasn’t explicitly said so, reducing its balance sheet might be one of its methods to combat inflation.

Why Is Quantitative Tightening on the Fed’s Agenda Again?

In 2022, inflation reached decades’ high, stemming from a number of factors, including fallout from the global Coronavirus pandemic, which increased labor prices, and Russia’s invasion of Ukraine, which affected energy and commodities. In March, 2020, the Fed slashed the Fed Funds rate to 0.00%–0.25% in response to the pandemic. In May, 2022 it raised rates again by 0.5%.

What Is the Schedule for Quantitative Tightening?

On May 4, 2022, the Fed announced it would be undertaking a “phased approach” of quantitative tightening measures beginning with a 3-month period of unwinding $30 billion of Treasuries and $17.5 billion mortgage-backed securities beginning on June 1, 2022. By September, 2022 these caps would increase to $60 billion and $35 billion, respectively.

Is Quantitative Tightening Really So Frightening?

TheStreet’s Ellen Chang says that, according to economists, inflation is on a downward trend, most likely to decline to 3% by the end of the year, and that higher interest rates as well as quantitative tightening should do what they’re supposed to, and reduce pricing pressure. 

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Recession-Proof Stocks To Buy Now? 4 Retail Stocks To Know

These retail stocks could be in focus ahead of April’s retail sales data.
The post Recession-Proof Stocks To Buy Now? 4 Retail Stocks To Know appeared…



Do You Have These Top Retail Stocks On Your Radar This Week?

As we begin another week of trading in the stock market, retail stocks appear to be in focus. Investors can expect plenty of action from the sector as Walmart, Lowe’s (NYSE: LOW), and many other consumer juggernauts are expected to report their earnings. In fact, Dillard’s (NYSE: DDS) has already set the tone last week after announcing favorable first-quarter financials. The company reported a comparable retail sales growth of 23% year-over-year and a record high retail gross margin of 47.3%. Aside from that, April’s retail sales report is also scheduled to be released on Tuesday. Hence, it would not be surprising that investors are paying close attention to the retail sector this week.

Now that the world is returning to normalcy, many would expect retailers to see a strong rebound from their pandemic struggles. For instance, Seattle-based Nordstrom (NYSE: JWN) recently announced plans to open a new Nordstrom Rack in the spring of next year. The new store will be a mixed-use complex in the North Hollywood neighborhood of Los Angeles, California. It will be part of the heart of the area that features other top retailers such as LA Fitness, Regal Cinemas, Ulta Beauty (NASDAQ: ULTA), and others. With all said and done, retail companies will likely stay relevant if they can keep up with the times. So, here are some of the top retail stocks in the stock market today worth checking out. 

Retail Stocks To Watch This Week


Walmart is among the top retail names in the stock market. Put simply, the company offers shopping opportunities in both retail stores and through e-commerce and provides access to its other service offerings. Moreover, the company often promotes its services at everyday low prices to attract the interest of consumers. Elsewhere, its International segment includes various formats that include supercenters, supermarkets, hypermarkets, and e-commerce entities. Now, all eyes are on WMT stock ahead of its first-quarter earnings report on Tuesday, May 17. 

Furthermore, the company has also been actively promoting its Walmart+ membership program. Late in April, Walmart announced that Walmart+ members will be eligible for lower fuel costs with a bigger discount per gallon at the pump at more than 14,000 fuel stations nationwide. With the addition of 12,000 Exxon and Mobil locations across the U.S., its members will save 10 cents per gallon at participating Exxon and Mobil locations. Also, Murphy and Walmart U.S. stations will offer a reduction of 5 to 10 cents per gallon. Considering these, would you be investing in WMT stock ahead of its earnings report?

Source: TD Ameritrade TOS

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Another top retail company to note right now is Lululemon. For those unaware, the company is a designer, distributor, and retailer of lifestyle-inspired athletic apparel and accessories. On a sense of scale, the company has approximately 575 stores in 17 countries around the globe. Most of its retail stores are either located in on-street locations, lifestyle centers, or within shopping malls. With that being said, Lululemon has been making several positive strides in the right direction over the past month. For starters, the company announced the nationwide expansion of lululemon Like New in April. 

This marks the brand’s first trade-in and resale program that is now available to all guests across the U.S. The company plans to reinvest all of its profits to support the company’s commitment to making 100 percent of its products with sustainable materials and end-of-use solutions by 2030. On top of that, Lululemon also announced that it plans to double its 2021 revenue of $6.25 billion to $12.5 billion within the next five years. It believes that significant growth can be expected across key pillars such as product innovation, guest experience, and market expansion. For example, the company’s Power of Three x2 growth strategy plans to double men’s and digital revenues and quadruple international revenues relative to 2021. Given these plans, should investors be keeping a closer tab on LULU stock now?

LULU stock chart
Source: TD Ameritrade TOS

Home Depot

Following that, let us have a look at the home improvement retailer, Home Depot. In detail, the company offers an assortment of building materials, lawn and garden products, decor products, home improvement products, and many more. Besides that, the company also provides several services such as home installation services, and tool and equipment rental. With approximately 2,300 stores throughout the U.S. and other parts of the world, the company is no stranger to most consumers. However, HD stock has been trading sideways over the past month. Investors are likely hoping that a strong earnings report on Tuesday may change the sentiment for the stock. 

Earlier this month, Home Depot announced a partnership with Bonnie Plants and For the uninitiated, Bonnie Plants is the largest grower of vegetables and herb plants for home gardens in the U.S. The collaboration aims to empower gardeners to grow and donate to local food pantries. So, gardeners can ensure they will have an abundance of amazing harvest by expanding their garden with the Bonnie Plants Harvest Select line that is available exclusively at Home Depot. It is also noteworthy that UBS recently set a price target of $360 on HD stock, representing an upside of about 20%. All things considered, would HD stock be worth watching right now?

HD stock
Source: TD Ameritrade TOS

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Foot Locker

Lastly, we have the shoes and apparel retailer to sum up the list, Foot Locker. In brief, the company uses its omnichannel capabilities to bridge the digital world and physical stores. As such, it provides buy online and pickup-in-store services, order-in-store, as well as the growing trend of e-commerce. Well, some of its most notable brands include Eastbay, Footaction, Foot Locker, Champs Sports, and Sidestep.

Not long ago, the company and one of the leading sports brands in the world, Adidas, announced a new and enhanced partnership. This new collaboration will be built around product innovation, deeper consumer connectivity, and overall better experiences. Moving forward, Foot Locker will be the lead partner for Adidas in the basketball category. Additionally, the partnership will target over $2 billion in retail sales over the next three years. Given such exciting developments, do you think FL stock could see brighter days ahead soon?

FL stock chart
Source: TD Ameritrade TOS

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The post Recession-Proof Stocks To Buy Now? 4 Retail Stocks To Know appeared first on Stock Market News, Quotes, Charts and Financial Information |

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