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3 “Strong Buy” Penny Stocks with Massive Upside Ahead

3 "Strong Buy" Penny Stocks with Massive Upside Ahead



Stocks are on the rise, but why? The glum results of earnings season have not caused another panic – rather, investors seem to be taking them in stride as ‘baked in’ to the current financial situation. The indexes are generally holding steady, at resistance levels Wall Street had predicted two weeks ago. And this brings up the questions, How long will this last? and What will happen next? 

Weighing in from Morgan Stanley, chief US equity strategist Michael Wilson believes that stocks hit their true bottom on March 23. In his view, the coronavirus and the collapse in oil markets simply marked the end of the last US market expansionary cycle, and that the current rally has potential to develop into a true recovery. The relatively flat trading of the last few weeks is, in Wilson’s opinion, the market’s first break after a “torrid 35% rally from the lows.” 

Wilson cites several factors in support of his stance. In particular, he notes that stock markets typically lead an economic recovery by as much as two quarter – and that economists are predicting a general recovery to begin in 2H20. If they are correct, then the March 23 market trough and current rally would fit that pattern. Wilson also points to the enormous support and stimulus being offered by central banks and governments as a move that will benefit the equity markets. 

As a first step toward the next bull run, Wilson has advised his clients to buy into small-cap stocks. These companies typically fly under-the-radar, getting less notice from Wall Street – a quirk that sometimes helps them weather storms. We’ve taken Wilson’s advice as part of a profile, and used the TipRanks database to pull up three micro-cap penny stock companies with super-low entry costs (a dollar per share or less) and huge upside potential (greater than 90% in the year to come). Here are the details. 

Great Panther Silver (GPL) 

The first stock on our list is mining company Great Panther Silver. Most of Great Panther’s operations are located in Mexico, but the company also has an active mine in Brazil and exploration operations in Peru. The company focuses on gold and silver production. Great Panther has been in a time of transition, with a new CEO and top management team. 

Overall production has taken a hit from the COVID-19 pandemic. GPL reported that two workers at its Brazilian mine are confirmed to have the disease, and while they are now quarantined, the site’s mining operations remain at full capacity. In Mexico, production was halted through April 30 on orders from the Mexican government, and that order has since been extended to May 30. The Mexican Topia mine, located in a locality that has not experienced any coronavirus cases, may be able to reopen early, on May 18. Great Panther’s Peruvian operation is on hold until July. 

Despite the setbacks in production caused by the pandemic, Great Panther reported a 134% year-over-year increase in Q1 gold production, with output reaching 35,000 gold equivalent ounces. Silver production reached 393,000 equivalent ounces, for an 11% year-over-year increase. The high production complements a strong cash position – GPL reported $37 million in cash on hand at the end of 2019. The production numbers and cash position are welcome news, and reflect well on the new management team. 

Reviewing this stock for Cantor Fitzgerald, analyst Matthew O’Keefe sees a clear path forward, based on fine exploration opportunities. “We continue to highlight exploration as a key upside for the Company.  Exploration expenditures of approximately $7 … are primarily focused on near mine drilling activities intended to replace gold ounces mined in 2020.  These activities are ongoing, and we expect that a significant amount of the drilling to be completed by the end of Q3/20.  We continue to see excellent potential here,” he commented. 

O’Keefe puts a Buy rating on GPL, along with a $1.10 price target that indicates 134% upside potential. (To watch O’Keefe’s track record, click here

The Wall Street analyst corps clearly agrees with O’Keefe on GPL’s potential. The stock gets a Strong Buy rating from the analyst consensus, and it is unanimous, based on 3 recent Buy reviews. GPL is a penny stock, and sells for only 47 cents per share. The average price target is slightly more bullish than O’Keefe’s, at $1.15 per share, and it suggests an upside potential of 145% for the next 12 months. (See Great Panther Silver price targets and analyst ratings on TipRanks

Westport Fuel Systems, Inc. (WPRT) 

Next on our list is a company involved in clean transportation technology. Westport engineers and produces natural gas engines, along with fuel system components for passenger cars and on- and off-road commercial vehicles. The company is a leader in high pressure direct injection (HPDI) technology. 

The coronavirus pandemic was hard on Westport in Q1. The company’s Italian manufacturing facility was forced to shut down, and only resumed operations on May 4. Looking ahead, the company is expected to report a Q1 net loss of 5 cents per share come June. On positive note, Westport faces these difficulties after a year of growing revenues and earnings in 2019, culminating in Q4’s break-even EPS – much better than the 1-cent loss predicted, and far better than the year-ago quarter’s 8-cent loss. Revenues were up 23% year-over-year in Q4, and reached $74.3 million. 

5-star analyst Colin Rusch, of Oppenheimer, is optimistic that WPRT can weather this storm. He writes, “We believe the company is being prudent in declining to provide guidance given the clear uncertainty around the coronavirus containment efforts, particularly in Europe... We believe working capital management will be critical for WPRT as it navigates lower volumes for a period of time along with compressed margins. We remain constructive despite near-term headwinds.” 

Rusch’s comments support his Buy rating on this stock. He gives WPRT shares a $3 price target, which indicates confidence – and a 209% upside potential for next 12 months. (To watch Rusch’s track record, click here

Craig-Hallum’s Eric Stine is even more bullish on WPRT. The four-star analyst points out that the company will receive support from governments in Europe and Canada, and goes on to outline why the company has a strong future ahead. “With the shift to alternative fuels driven by straightforward economics and the competitive advantage gained, we believe that Westport Fuel Systems is at very early stages of a meaningful growth ramp,” he explained. 

Stine places a $5 price target on this stock, to support his Buy rating. His target implies a whopping one-year upside potential of 415%. (To watch Stine’s track record, click here

Westport Fuel is another company with a unanimous Strong Buy analyst consensus view. The rating is based on 3 Buy reviews set recently, and comes with an average price target of $3.33. This suggests room for an impressive 242% upside potential. (See Westport stock analysis on TipRanks)

Auryn Resources, Inc. (AUG

Our last stock is another mining company, operating in the Canadian North as well as in Peru. Auryn focuses on producing copper and high-grade gold. Working in the Arctic or the Peruvian mountains entails high overhead, and AUG operates at a net loss – but the loss has been narrowing steadily since 2H18. Even taking coronavirus disruptions into account, AUG is expected to show a further reduction in the net loss per share for Q1 2020. 

In additional good news, Auryn enhanced its financial position at the end of 2019, securing C$10.1 million ($7.22 million US) in funding by closing its private placing offering. The sale closed just as Auryn also improved its interest rates on existing loans. These improvements to the balance sheet gave the company a firm footing just before the disruptions caused by COVID-19 occurred. 

And finally, Auryn has also released the Preliminary Economic Assessment of the Canadian Homestake Ridge project. This assessment shows that the property has the potential to become a profitable, high-grade, small-footprint underground gold mine. The company estimates the new mine will produce up to 88,660 gold equivalent ounces when it reaches peak production, three years after opening, and will have a production lifetime of 13 years. 

Joseph Reagor, 4-star analyst with Roth Capital, sees Auryn as a solid stock to buy, and bases his recommendation on the high potential of the Homestake mine. Ironically, Reagor believes the company can secure maximum value by not directly operating this asset: “We believe that AUG is likely to either sell Homestake or spin it out and merge it with a junior producer. Each of these outcomes would likely result in a premium valuation…” 

Reagor places a Buy rating on AUG shares, and his $3.25 price target suggests an upside potential of 190%. (To watch Reagor’s track record, click here

With a Strong Buy analyst consensus rating, based on 3 Buy reviews, it’s clear that Wall Street is in agreement with Reagor about this stock’s potential. The Street is a bit more cautious, however; the average price target on this stock is $2.11, which implies an upside potential of 88% from the current share price of $1.12. (See Auryn Resources price targets and analyst ratings on TipRanks)

The post 3 "Strong Buy" Penny Stocks with Massive Upside Ahead appeared first on TipRanks Financial Blog.

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Tesla rival Stellantis unveils its lowest price electric vehicles

The Big Three automaker unveils details on its low-priced electric vehicles that will be delivered over the next two years.



Electric vehicle manufacturers have realized that the prices of their cars are making it more difficult for many of them to compete against makers of lower-priced internal combustion engine vehicles.

Tesla saw its third quarter deliveries fall below market estimates, prompting Elon Musk's company in early October to lower the list price of the Model 3 from $40,240 to $38,990 and its industry leading seller Model Y has recently fallen from $47,740 to $43,990.

Related: Tesla Japanese rivals debut concept vehicles in latest challenge

Tesla top rival Ford already cut the price of its all-electric Mustang Mach-E by up to $4,000 in May and its F-150 Lightning by about $10,000 in July.

Stellantis revealing entry-level electric cars

Stellantis  (STLA) - Get Free Report has been busy revealing low-priced entry-level electric vehicles that it plans to begin selling in 2024 to compete with French automaker Renault in Europe as well as Chinese EV companies. The company in August said it would unveil a second new entry-level Fiat-branded electric vehicle in July 2024 that will be priced less than €25,000 or about $27,390. The company, however, didn't say when the vehicle might be sold in the U.S.

The company said in June that it will deliver the new Citroën e-C3 electric car to Europe in early 2024. The Citroën e-C3 was expected to have a range of 186 miles on a charge and would be among lowest priced EVs on the market. Stellantis had already said it would bring Fiat's best-selling EV, the Fiat 500e, to the U.S. market in 2024 to compete against Tesla and the growing U.S. EV market.

Citroën e-C3 all-electric subcompact hatchback.


Big Three automaker unveils its low-priced electric vehicles

Stellantis on Oct. 17 revealed its updated all-new, all-electric Citroën e-C3, which is its first European-designed, European-built B-segment, or subcompact, EV hatchback. The new vehicle is now estimated to have a 199-mile range, charging 20% to 80% of capacity in as little as 26 minutes. The EV accelerates 0 to 62 mph in 11 seconds with a provisional top speed of 84 mph for everyday driving and traffic in urban and suburban areas.

The company estimates that the vehicle will be priced below £23,000 ($27,900) in the UK. No word yet if the Citroën e-C3 will roll out in the U.S.

In 2025, Stellantis will offer a Citroën e-C3 with a 200 km- or 124-mile range and priced at €19,990 or $21,068, the company said. That price would be lower than any new EV sold in the U.S. today. General Motors  (GM) - Get Free Report Chevy Bolt's lowest manufacturer suggest retail price is $26,500, while the 2024 Nissan  (NSANY) - Get Free Report Leaf has a starting price of $28,140.

The new Citroën e-C3 will be available in three versions You, Plus and Max. The You version's standard equipment includes LED headlights, Citroën Advanced Comfort Suspension, Active Safety Brake, the new Citroën Head Up Display, ‘My Citroen Play with Smartphone Station’ for infotainment, electric door mirrors, auto lighting, rear parking radar, rear spoiler, cruise control, manual air conditioning, and six airbags.

Plus vehicles include 17-inch alloy wheels, Citroën’s two-tone paint with contrasting roof, decorative roof rails, front and rear skid plates, the 10.25-inch color touchscreen with smartphone mirroring, Citroën Advanced Comfort Seats, auto wipers, power-folding and heated door mirrors, leather-effect steering wheel, 60/40 folding second-row seat, and driver seat adjustment.

The premium Max version additionally has LED rear lights, rear privacy glass, enhanced seat textiles, automatic air conditioning, 3D navigation, wireless charging, rear camera, electrochrome rear-view mirror, and rear power windows.

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Putin, Xi In Beijing Pitch For ‘Alternative World Order’ As Biden Departs A Burning Middle East

Putin, Xi In Beijing Pitch For ‘Alternative World Order’ As Biden Departs A Burning Middle East

As a Rabobank note has highlighted, the main…



Putin, Xi In Beijing Pitch For 'Alternative World Order' As Biden Departs A Burning Middle East

As a Rabobank note has highlighted, the main theme on display during Xi Jinping and Vladimir Putin's Wednesday talks in Beijing was one of "common threats" bringing the two "dear friends" closer, according to a press readout. Observed Rabobank earlier in the day, "Meanwhile, as the Middle East rages and the West recoils, Xi Jinping welcomes Russia’s Putin and a host of Global South leaders, ex-India, to his Beijing Belt and Road Forum to talk about what an alternative world order might look like. The ‘global’ Western press mostly failed to even cover it."

Putin said at a media briefing following the meeting with his Chinese counterpart, "We discussed in detail the situation in the Middle East." He added: "I informed Chairman (Xi) about the situation that is developing on the Ukrainian track, also quite in detail." The Russian leader then emphasized: 

"All these external factors are common threats, and they strengthen Russian-Chinese interaction."

AFP/Getty Images

CNN subsequently called it a "pitch for a new world order" at a moment crisis has gripped the Middle East.

Yet, almost simultaneously, Bloomberg reported that Biden is overseeing a fast unfolding disaster in the Middle East:

President Joe Biden’s 7.5-hour trip to Tel Aviv signaled full US backing for Israel but fell short on another key goal: winning over Arab leaders.

Amid growing signs the conflict may be spinning out of control, Biden made plain that the US will protect its ally, sending a clear message to rivals in the region like Iran to stay out of the fight. With one US aircraft carrier in the area and another on the way, Biden promised a new package of “unprecedented support.”

The Bloomberg headline aptly reads, "Biden’s Whirlwind Israel Trip Fails to Calm Fears of Wider Middle East Conflict." At this time, Lebanon, Jordan, and Egypt are on edge - with Western and Saudi embassies reducing staff and issuing travel advisories. 

Meanwhile, related to Xi's Belt and Road (the purpose of the gathering in Beijing), Putin praised the potential for it to usher in a "fairer, multi-polar world" as Moscow and Beijing grow closer based on "deep friendship"

In his speech at the opening ceremony, Putin hailed Xi’s flagship foreign policy Belt and Road Initiative as “aiming to form a fairer, multi-polar world,” while touting his country’s deep alignment with China.

Russia and China share an “aspiration for equal and mutually beneficial cooperation,” which includes “respecting civilization diversity and the right of every state for their own development model” – he added, in an apparent push back against calls for authoritarian leaders to promote human rights and political freedoms at home.

This is at a moment Putin is "wanted" by the International Criminal Court (ICC) and shunned and sanctioned by the West, while at the same time Global South countries are expressing growing anger at Israel's unrelenting bombing of the Gaza Strip, as the Palestinian death toll soars into the thousands.

Directly related to this, a Thursday UN Security Council resolution brought by Brazil and seeking a ceasefire in Gaza was shot down, given the US was the only "no" vote.

Also missed by the mainstream media was the following pro-China sentiment expressed by a top Palestinian official over a week ago:

China will soon lead the world, and it supports the “Palestinian position, whatever it may be,” according to Fatah’s Central Committee member Abbas Zaki.

In a public address that aired on Palestine TV on Sept. 29, Abbas Zaki called on the United States to “reconsider its stance” with regard to Israel or risk becoming irrelevant. The Israelis, he said, were “sons of bitches,” “murderers” and agents of instability, while the Palestinians are “messengers of peace.”

“I know that there is serious change in Europe and even in the United States,” said Zaki.

But, he added, “do not forget the emerging camp, which is on your side—the Chinese camp. China is going to lead the world, and it proclaims: ‘There can be no stability and progress without the liberation of Palestine, with East Jerusalem as its capital.'”

Putin too, has expressed more sympathies with the Palestinian side, days ago warning Israel of the "catastrophic" death toll its attacks on Gaza will result in. He has also held calls with Arab leaders, seeking to mediate peace and a possible two-state solution.

Tyler Durden Wed, 10/18/2023 - 19:40

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Survey delivers bleak news for remote workers

Remote work is increasingly under fire.



Covid-era alternative work solutions have come under fire as businesses increasingly deploy a carrot-and-stick approach to convincing employees to return to offices.

Technology titan Meta Platforms  (META) - Get Free Report, which owns Facebook, threatened poor performance reviews if workers failed to attend offices three times weekly. JP Morgan Chase  (JPM) - Get Free Report CEO Jamie Dimon recently suggested workers uncomfortable with returning to offices should look for employment elsewhere.

Workers don’t like the idea of giving up the flexibility afforded by remote work, but a recent survey shows that these workers may face an uphill battle if they hope to continue working from home.

A woman working on a laptop in a cafe, on Sept. 14, in Edmonton, Alberta, Canada. (Photo by Artur Widak/NurPhoto via Getty Images)

NurPhoto/Getty Images

Remote work loses its luster

Companies big and small rushed to offer flexible alternative work schedules like remote and hybrid work during Covid. Remote work quickly became a key benefit used to fill jobs created by those who took early retirement and newly created positions in response to demand growth fueled by easy-money policies.

Related: Facebook issues more tough-luck news to workers

Remote work initially appeared to be a win/win for companies and employees. It allowed businesses to source job candidates nationally rather than locally and sometimes save money by closing expensive offices. Meanwhile, workers could live in the suburbs rather than crowded cities and save money by eliminating expensive childcare costs.

Unfortunately, the love affair with remote work has soured over the past year.

Businesses, from technology to financial services, have rolled back remote work, citing a need for increased collaboration and greater productivity. Many companies have likely sought to reduce the number of remote workers as part of layoff plans or to fill otherwise vacant office spaces.

Businesses are winning the return-to-office battle

Worker surveys suggest employees prefer remote work. However, they’re losing the battle with employers demanding more office face time.

The Census Bureau’s latest Household Pulse Survey shows remote work has reached a new post-pandemic low, with declines seen in all 50 states, reports Bloomberg.

More Jobs:

The survey showed that fewer than 26% of households include someone who works remotely at least one day weekly. That’s a significant drop-off from the high of 37% in 2021. A total of 31 states had remote work rates above 33% at the peak. Now, only seven states exceed that hurdle.

States with the highest percentages of remote workers are typically Democratic states, mainly on the east and west coasts. Middle America and the South boast some of the lowest rates of remote work.

There’s also a more significant push for a return to office (RTO) in major metro markets where office building valuations are tumbling because of empty offices. During its recent quarterly conference call, Goldman Sachs  (GS) - Get Free Report told investors that it reduced valuations on office properties in its portfolio by 50%.

The impact of lower valuations on financial companies could contribute to the stricter return to office demands. Big banks like JP Morgan have been among the most vocal in demanding RTO, and they’re also heavily exposed to commercial real estate.

For instance, in addition to loans held on commercial properties, JP Morgan is building a new multibillion-dollar headquarters in New York City.

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