Connect with us

Economics

3 Silver Penny Stocks to Buy in June 2020

Gold may have been the hottest commodity in the first half of 2020, but now it’s silver’s time to shine. Among the stocks to watch […]

Published

on

Gold may have been the hottest commodity in the first half of 2020, but now it’s silver’s time to shine. Among the stocks to watch are a handful of silver penny stocks with serious upside potential.

The price of silver continues to test the $18 level and could go much higher later this year. In fact, Scotiabank analysts see the silver price reaching as high as $23 in 2020.

“Silver remains very inexpensive vs gold, despite putting in 15% gains in 2019 as geopolitical uncertainty, growth fears and a dovish Fed pause boosted the appeal of precious as an asset class,” said Scotiabank’s Metals Strategist Nicky Shiels in the 2020 Precious Metals Outlook.

“Silvers 2019 gains, despite weak fundamentals, confirms that it is still a precious metal, and can play a role as a currency hedge or quality asset, as well as provide relatively cheap optionality on further gold upside.”

Silver has been trading at a steep discount compared to gold for quite some time. In fact, the gold-silver price ratio hit an all-time high of 127:1 in March.

The gold-silver ratio has since retreated back to 95:1, but this is still significantly higher than usual and could signal big things for the silver price in the months to come.

Investors who want to get in on silver should consider these three hot silver penny stocks to add some sparkle to their portfolios.

3 Hot Silver Penny Stocks to Buy: Silvercorp Metals Inc. (TSX:SVM) (NYSEAMERICAN:SVM)

At the top of the list of hot silver penny stocks to buy is Silvercorp Metals, a Canadian mining company that produces silver, lead, and zinc in concentrates from mines in China.

While some miners have been forced to temporarily suspend operations due to the global pandemic, Silvercorp Metals has managed to ramp up its efforts. Not only did the company achieve its full-year production target, but it has also surpassed its fiscal 2020 guidance.

In fiscal 2020, the company saw a net income of $34.3 million, or $0.20 per share, and cash flow from operations of $77.2 million.

Silvercorp has also signed an agreement to acquire Guyana Goldfields Inc. (TSX:GUY) and its Aurora underground project in Guyana; however, several other companies are eyeing GUY, and the bidding war has begun to heat up.

The latest offer, which came from an unnamed mining company, represents a premium of about 35% to the implied value of the Silvercorp arrangement agreement, but otherwise is fairly similar.

In the last month, SVM stock has increased by 23.75% on the NYSE American to $4.95 after experiencing a low of $2.03 in March. According to analysts from BMO Capital Markets, the stock could reach $5.50 in the next 12 months.

Silvercorp Metals has a market cap of $858.9 million, with 173,886,000 shares issued.

3 Hot Silver Penny Stocks to Buy: Endeavour Silver Corp. (TSX:EDR) (NYSE:EXK)

Next on the list of hot silver penny stocks to buy in June is Endeavour Silver Corp, a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico.

Last month, Endeavour Silver announced the discovery of a new area of high-grade mineralization within the Melladito vein at its Bolanitos mine in Mexico. A total of 14 holes were drilled, with eight of the holes intersecting high grades over mineable widths.

>> 4 Most Popular Robinhood Penny Stocks

Highlights from the drilling include 1.5 meters of 24.3 grams per ton (g/t) gold and 787 g/t silver, 1.1 meters of 12.5 g/t gold and 50 g/t silver, as well as 2.7 meters of 7.37 g/t gold and 170 g/t silver.

“Last year at Bolanitos, we were successful in outlining new resources in the San Miguel vein, now under development, and we expect to commence mining at San Miguel in Q3, 2020,” said Endeavour Silver CEO and director Bradford Cooke.

“This year, we are discovering new resources in the Melladito vein, which should allow us to develop and mine there next year, as the orebody is only 300 m from the La Luz Ramp and 300 m from the San Miguel ramp.”

On Tuesday, EXK stock closed down 0.5% at $2.01, while EDR was down 0.37% at C$2.69. Endeavour Silver has a market cap of $289 million, with 143,838,000 shares issued.

3 Hot Silver Penny Stocks to Buy: Fortuna Silver Mines Inc. (TSX:FVI) (NYSE:FSM)

silver penny stocks

Last but not least on the list of hot silver penny stocks to watch is Fortuna Silver Mines, a precious metal producer with the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico, and the Lindero gold project, currently under construction, in Argentina.

Despite posting an adjusted net loss of $2.2 million in Q1 2020 due to a temporary suspension at its San Jose mine in Mexico, Fortuna Silver saw a six-fold increase in its free cash flow to $14.2 million.

Since the release of the results on May 14, FSM stock has gone up by 35.71% to $4.56 on the NYSE, but analysts expect it to go higher still. PI Financial sees the stock going up to $6.80 in the next 12 months, while BMO Capital Markets has offered the company a 12-month price target of $7.50.

Fortuna Silver Mines has since resumed operations at its San Jose mine and also recently closed a $69 million bought deal equity financing.

Fortuna Silver Mines has a market cap of $838 million, with 183,787,000 shares issued.

Takeaway

Silver prices have been hovering around the $17.50 mark for quite some time, but analysts see it going much higher later this year.

As the gold-silver price ratio closes, more investors are turning to silver as a hedge against lowered interest rates, increased market uncertainty, and the prospect of rising inflation due to unprecedented monetary stimulus.

If you haven’t already added silver to your portfolio, the aforementioned silver penny stocks are a great place to start.

Are there any silver stocks on your radar? Let us know in the comments!

>> Read More Penny Stock News

Featured Image: Depositphotos ©TunedIn61

Please See Disclaimer

Read More

Continue Reading

Economics

“This Is A Crucible Moment” – Sequoia’s Ominous Warning To Companies On How To “Avoid The Death Spiral”

"This Is A Crucible Moment" – Sequoia’s Ominous Warning To Companies On How To "Avoid The Death Spiral"

"This is not a time to panic. It is…

Published

on

"This Is A Crucible Moment" - Sequoia's Ominous Warning To Companies On How To "Avoid The Death Spiral"

"This is not a time to panic. It is a time to pause and reassess," begins the thought-provoking presentation from veteran venture capital firm Sequoia Capital.

But that's about as 'positive' as they get as the founders of the firm warn of a prolonged market downturn and urges the startups in its portfolio to preserve cash and brace for worse to come.

"We believe this is a Crucible Moment, one that will present challenges and opportunities for many of you. First and foremost, we must recognize the changing environment and shift our mindset to respond with intention rather than regret."

And in its somewhat ubiquitous historically grim outlooks (its "R.I.P Good Times" in 2008 and "Black Swan" memo in March 2020 have become legendary) don't expect a quick rescue and recovery this time.

"Sustained inflation, and geopolitical conflicts further limit the ability for a quick-fix policy solution. As such, we do not believe that this is going to be another steep correction followed by an equally swift V-shaped recovery, like we saw at the outset of the pandemic," the note said.

They argue that it will be "Survival of the Quickest"...

In particular, Sequoia urged companies to look at cutting projects, R&D, marketing, and other expenses, noting that companies should be ready to cut in the next 30 days.

"We expect the market downturn to impact consumer behaviour, labour markets, supply chains and more. It will be a longer recovery and while we can't predict how long, we can advise you on ways to prepare and get through to the other side," it said.

The founders/CEOs who face reality, adapt fast, have discipline rather than regret will not just survive, but win, noting that "It is easier to preserve cash when you have more than six months left. Recruiting is about to get easier. All the FANG have hiring freezes."

They conclude their presenttation by noting that:

"At Sequoia, we believe that the one who wins is the one most prepared."

In other words America, brace for capex cuts, hiring freezes to accelerate, and growth to evaporate.

*  *  *

Read the full presentation below:

Tyler Durden Thu, 05/26/2022 - 15:45

Read More

Continue Reading

Economics

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart,…

Published

on

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart, Target indicated that it is seeing a shift in the consumer wallet away from the pandemic purchases and into reopening purchases - including apparel - and the pace of this shift caught some retailers off guard on inventory. WMT, COST, and TGT all saw their stocks fall sharply last week as investor concerns around a US consumer slowdown mounted and investors reconsidered just where, if anywhere, you can play "defense" in the current market.

But as Goldman's Chris Hussey writes today, this week, results from companies like DKS, Macy's, JWN, WSM, DLTR, and DG painted a decidedly different picture.

Deep discount retailers Dollar Tree - or rather Dollar 25 Tree - and Dollar General both posted strong results and DLTR raised top-line guidance.

Which isn't surprising: as we discussed in "Middle Class Is Shutting Down As Spending By The Rich Remains Robust" when consumers are trading down - as they are doing now due to Biden's runaway inflation - dollar stores see more business.

As a result, Dollar Tree surged as much as 20% on Thursday, the biggest intraday move since October 2020. Evercore ISI said Dollar Tree's move to a "$1.25 price point" last November from $1 “came in the nick of time" adding that "given the broad-based inflationary cost pressures, the 25% price increase drove material sales and margin upside for both the namesake division and the total company," wrote analyst Michael Montani who also said that while freight, transport, and labor headwinds are real, some of the pressure cited by Target last week was likely company specific.

The analyst concluded that the read-across from DG and DLTR is “favorable,” and it seems that the low-end consumer is “hanging in better than initially thought.” Or rather, the middle-class is getting crushed and it has no choice but to trade down to the cheapest retail outlets.

And with countless shorts having piled up and getting massively squeezed, the S&P 500 Consumer Discretionary Index today has risen as much as 5.6%, its best day since April 2020, as optimism on the health of the consumer returns following a string of better-than-expected earnings reports from retailers.

Top performers in the S5COND index include Dollar Tree, Dollar General, Norwegian Cruise, Caesars Entertainment and Carnival; the Discretionary Index is on pace for its best week since March 18, when the group climbed 9.3%; the index sank 7.4% as Walmart and Target reports spooked investors. The index is still down almost 30% YTD.

"Retail earnings are bullish.... with four blow-outs,” said Vital Knowledge’s Adam Crisafulli, referring to quarterly reports from Williams-Sonoma, Macy’s, Dollar General, and Dollar Tree.  “The overall retail industry is experiencing stark changes and the market is incorrectly conflating these shifts with underlying demand weakness when the actual health of the consumer is much better than it seems,” Crisafulli says, although there are many - this website included - who wholeheartedly disagree with his optimistic view of the US consumer.

Remarkably, thanks to today’s rally, even Burlington Stores, which sank as much as 12% in premarket on disappointing results, is trading up as much as 11% and some say, the rally helped reverse the earlier tumble in NVDA shares.

The discretionary group is also getting a boost from airline operators Southwest and JetBlue, helping travel-related names, while on the economic front, better-than-expected personal consumption (for the revised Q1 GDP print). and jobless claims may be adding to the bullishness according to Bloomberg.

Tyler Durden Thu, 05/26/2022 - 15:00

Read More

Continue Reading

Spread & Containment

Asymptomatic SARS-CoV-2 infections responsible for spreading of COVID-19 less than symptomatic infections

Based on studies published through July 2021, most SARS-CoV-2 infections were not persistently asymptomatic, and asymptomatic infections were less infectious…

Published

on

Based on studies published through July 2021, most SARS-CoV-2 infections were not persistently asymptomatic, and asymptomatic infections were less infectious than symptomatic infections. These are the conclusions of an update of a systematic review and meta-analysis publishing May 26th in the open access journal PLOS Medicine by Diana Buitrago-Garcia of the University of Bern, Switzerland, and colleagues.

Credit: Monstera, Pexels (CC0, https://creativecommons.org/publicdomain/zero/1.0/)

Based on studies published through July 2021, most SARS-CoV-2 infections were not persistently asymptomatic, and asymptomatic infections were less infectious than symptomatic infections. These are the conclusions of an update of a systematic review and meta-analysis publishing May 26th in the open access journal PLOS Medicine by Diana Buitrago-Garcia of the University of Bern, Switzerland, and colleagues.

Debate about the level and risks of asymptomatic SARS-CoV-2 infections continues, with much ongoing research. Studies that assess people at just one time point can overestimate the proportion of true asymptomatic infections because those who go on to later develop symptoms are incorrectly classified as asymptomatic rather than presymptomatic. However, other studies can underestimate asymptomatic infections with research designs that are more likely to include symptomatic participants.

The new paper was an update of a living (as in, regularly updated) systematic review first published in April 2020, which includes additional, more recent studies through July 2021. 130 studies were included, with data on 28,426 people with SARS-CoV-2 across 42 countries, including 11,923 people defined as having asymptomatic infection. Because of extreme variability between included studies, the meta-analysis did not calculate a single estimate for asymptomatic infection rate, but it did estimate the inter-quartile range to be that 14–50% of infections were asymptomatic. Additionally, the researchers found that the secondary attack rate—a measure of the risk of transmission of SARS-CoV-2 — was about two-thirds lower from people without symptoms than from those with symptoms (risk ratio 0.32, 95%CI 0.16–0.64).

“If both the proportion and transmissibility of asymptomatic infection are relatively low, people with asymptomatic SARS-CoV-2 infection should account for a smaller proportion of overall transmission than presymptomatic individuals,” the authors say, while also pointing out that “when SARS-CoV-2 community transmission levels are high, physical distancing measures and mask-wearing need to be sustained to prevent transmission from close contact with people with asymptomatic and presymptomatic infection.”

Coauthor Nicola Low adds, “The true proportion of asymptomatic SARS-CoV-2 infection is still not known, and it would be misleading to rely on a single number because the 130 studies that we reviewed were so different. People with truly asymptomatic infection are, however, less infectious than those with symptomatic infection.”

#####

In your coverage, please use this URL to provide access to the freely available paper in PLOS Medicine:

http://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1003987  

Citation: Buitrago-Garcia D, Ipekci AM, Heron L, Imeri H, Araujo-Chaveron L, Arevalo-Rodriguez I, et al. (2022) Occurrence and transmission potential of asymptomatic and presymptomatic SARS-CoV-2 infections: Update of a living systematic review and meta-analysis. PLoS Med 19(5): e1003987. https://doi.org/10.1371/journal.pmed.1003987

Author Countries: Switzerland, France, Spain, Argentina, United Kingdom, Sweden, United States, Colombia

Funding: This study was funded by the Swiss National Science Foundation http://www.snf.ch/en (NL: 320030_176233); the European Union Horizon 2020 research and innovation programme https://ec.europa.eu/programmes/horizon2020/en (NL: 101003688); the Swiss government excellence scholarship https://www.sbfi.admin.ch/sbfi/en/home/education/scholarships-and-grants/swiss-government-excellence-scholarships.html (DBG: 2019.0774) and the Swiss School of Public Health Global P3HS stipend https://ssphplus.ch/en/ (DBG). The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.


Read More

Continue Reading

Trending