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Penny Stocks to Watch This Week? 3 For Your June Small-Caps Watchlist

Which penny stocks are on your June watchlist?
The post Penny Stocks to Watch This Week? 3 For Your June Small-Caps Watchlist appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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3 Penny Stocks to Watch in June 2021

As June gets off to a swift start for penny stocks, which sectors are investors watching? Well, to understand this, we have to consider what is going on in the world. For example, with Covid cases decreasing globally, the trend of reopening penny stocks continues to be popular. 

These are small-caps that either benefitted or are benefitting from economic reopening. This could include anything from entertainment penny stocks to tech stocks and more. It’s difficult to confine this term to just one industry as it truly depends on what the individual company does. 

[Read More] Why Investing in Penny Stocks in 2021 is Unlike Any Other Time

Next, we have biotech penny stocks. These companies had a great year in 2021, and have continued to be on a hot streak. With biotech, it’s important to consider what the company does, and how far along its compounds are in the trial process. While these are not the only two industries that are hot right now, they do both have a major correlation to Covid. 

And to understand how to invest in penny stocks in 2021, investors need to utilize the idea of cause and effect. So, regardless of the industry, what role does the company have in both its industry and in the post-Covid economy. With all of this in mind, let’s take a look at three penny stocks to watch this week for your small-caps list. 

3 Penny Stocks for Your June Watchlist 

  1. Evofem Biosciences Inc. (NASDAQ: EVFM
  2. NextDecade Corp. (NASDAQ: NEXT
  3. Borqs Technologies Inc. (NASDAQ: BRQS)

Evofem Biosciences Inc. (NASDAQ: EVFM) 

Up by around 14% in pre-market trading on June 7th is Evofem Biosciences Inc. We’ve covered EVFM stock plenty of times in the past few weeks as the bullish sentiment surrounding it remains quite strong. So, why did EVFM jump today? Well, the best explanation is an analyst shift in price target coming early in the morning. Specifically, the analyst Raghuram Selvaraju at H.C. Wainwright dropped his price target on EVFM stock to $4 from $7. Additionally, he maintained a buy rating for the stock. 

While dropping a price target may seem like a bad thing, a more realistic target is always a positive. And, a $4 price target implies more than 300% upside potential for EVFM stock right now. While these targets are just that, they still can be indicative of what investors are feeling about a company. To dive deeper, let’s take a closer look at what Evofem does. Evofem is a commercial-stage biopharmaceutical company working on products to treat women’s health needs. This includes its FDA-approved product known as Phexxi. 

Additionally, its lead candidate right now, EVO100, is in studies to see its efficacy in preventing urogenital Chlamydia. Only a few weeks ago, Evofem announced the closing of a major $50 million public offering of 7.5 million shares of common stock. The proceeds from this will go toward both commercialization activities for Phexxi as well as the phase 3 trial of EVO100. Considering all its movements in the past few weeks, will EVFM stock be on your watchlist?

NextDecade Corp. (NASDAQ: NEXT) 

Another major pre-market gainer is NextDecade Corp. Pushing up by almost 30% during early morning trading, NextDecade is a clean energy company, working on the future of renewables in the U.S. Through its subsidiaries Rio Grande LNG and NEXT Carbon Solutions, NextDecade is working on a major 27 mtpa LNG export facility in Texas, as well as a massive carbon capture and storage project.

The company states that the Rio Grande facility could be the largest U.S. LNG export solution that links the Permian Basin with the Eagle Ford Shale to the global liquid natural gas market. So, a play for NEXT stock is a play for the renewable energy market. 

[Read More] Former Penny Stocks That Exploded in Value, One Up Over 3,500%

Today’s major gain for NEXT also comes alongside an analyst rating. This morning, NextDecade was given an ‘Overweight’ upgrade from ‘Equal-Weight’ by Morgan Stanley, with a price target of $6. At $2.44 as of its close on Friday, this represents more than double its current price. Again, it’s worth noting that price targets won’t always be achieved. But, the analysts at these major firms tend to know what they’re talking about. Because of this, these ratings are always important for investors to consider. 

Additionally, the speculative effect of an analyst firm upgrading or downgrading a stock will always be high. This means that a stock can either jump or fall substantially in a short period. But, with Biden pushing clean energy more than ever, many investors are betting on the future of renewables in the U.S. and globally. Because of this, NEXT stock could be worth adding to your watchlist in June. 

Penny_Stocks_to_Watch_NextDecade Corp. (NEXT Stock Chart)

Borqs Technologies Inc. (NASDAQ: BRQS) 

While a 7% pre-market gain may seem small compared to the penny stocks above, it is still quite substantial. For some context, Borqs Technologies is a tech company working on everything from 5G to software IP libraries and more. 

Today’s solid gain for the tech penny stock comes as Borqs received a 1.7 million square foot land use right to the 5G Industrial Park Project in Huzhou, China. Here, it will further develop its 5G infrastructure for mobile technologies as well as relating R&D and incubation activities. On top of this, it will use this facility to develop its IoT products manufacturing and assembly. 

The company states that this project should be operational by the end of this month which is a staggeringly quick timeline. As a tech company, Borqs has benefitted greatly from the pandemic. Its work on Android-based smart connected devices as well as cloud-service solutions help to make it one of the leaders in this side of the tech industry in China and globally. 

And, according to the company, it is “leveraging its unique strategic chipset partner relationships as well as its broad software and IP portfolio.” So while today’s move is both speculative and fundamentally exciting, the future of 5G penny stocks could be even more exciting. Whether this makes BRQS a penny stock to watch, however, is up to you. 

Penny_Stocks_to_Watch_Borqs Technologies Inc. (BRQS Stock Chart)

2021 is Shaping Up To Be a Banner Year For Penny Stocks 

2021 has already been an exciting year for investors. While the past month or two has mostly been filled with major volatility, low volume, and uncertainty, the future could turn this around.

[Read More] 5 Penny Stocks Analysts Say To Buy With Targets Up To 219% Right Now

With Covid ending around the world, investors are excited about a post-pandemic stock market. Because there is so much reopening left to occur, it looks like we are only at the tip of the iceberg as far as market potential is concerned. So with 2021 shaping up to be a banner year for penny stocks, which small-caps are on your watchlist?

The post Penny Stocks to Watch This Week? 3 For Your June Small-Caps Watchlist appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Economics

Baltimore City Responds After Dozens Of Businesses Threaten Not To Pay Taxes

Baltimore City Responds After Dozens Of Businesses Threaten Not To Pay Taxes

This weekend, the Baltimore Police Department (BPD) closed down multiple city streets around the Inner Harbor, in a stretch called "Fells Point," after dozens…

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Baltimore City Responds After Dozens Of Businesses Threaten Not To Pay Taxes

This weekend, the Baltimore Police Department (BPD) closed down multiple city streets around the Inner Harbor, in a stretch called "Fells Point," after dozens of local businesses threatened the new city government, run by Mayor Brandon Scott, to not pay taxes because they're "fed up and frustrated" with the outburst of violence. 

Last week, 37 restaurants and small businesses sent a letter to the mayor's office titled "Letter to City Leaders From Fells Point Business Leaders." They threatened to stop paying city taxes and other fees until "basic and essential municipal services are restored." This comes as Madam State's Attorney Marilyn Mosby halted petty crimes during the pandemic and made such a measure permanent - the idea was to decrease violent crime, but that seems to have severely backfired.

What's happened in the historic bar strict is absolute mayhem at night, transformed into a dangerous area where violent and rowdy crowds have ruined the once pleasant atmosphere along with multiple shootings. 

So this weekend, BPD closed down streets around Fells Point, which includes parts of Aliceanna, Thames, and Bond streets.

In addition, Maryland State Police will conduct sobriety checkpoints in Fells Point. 

Local news WJZ13's Mike Hellgren tweets a couple of images of the increased police presence across Fells Point.

One of the 37 concerned business owners on the list is Bill Packo, who owns Barley's Backyard and has been operating in Fells Point for three decades. He spoke with WJZ13 about the out of control violence and public drunkenness:

"It's a shame. What they're letting happen to Fells Point is what they let happen in the Inner Harbor, and now it has made its way here," Packo said. "There's alcohol being sold by individuals out there, drugs, and clearly we all know about the shootings that took place last weekend. But there needs to be some control out there. There is none whatsoever."

BPD's mobile police command was spotted outside another shop in the bar district. It looks very dystopic. 

Meanwhile, Scott, who was newly elected, skipped out on the virtual community town hall meeting on Thursday at 7 p.m that was to address the issues in Fells Point. 

Packo called out Scott for not attending the meeting: 

"It's an embarrassment to the city. It's an embarrassment to the mayor no matter what the schedule was," he said.

Again, as we've said before, the chaos in Fells Point comes as the city descends into what could be the most violent period ever. Mosby has halted police officers going after petty crimes that have inadvertently backfired. Another liberal-run town with good intentions in policies not exactly panning out as they thought. 

Local news WMAR2's Eddie Kadhim interviewed a man who summed up the city's response in Fells Point: 

Another man said the violent crime in low-income neighborhoods is just spilling over into the downtown area. 

Tyler Durden Sat, 06/12/2021 - 15:00

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Economics

Visualizing The History Of US Inflation Over 100 Years

Visualizing The History Of US Inflation Over 100 Years

Is inflation rising?

The consumer price index (CPI), an index used as a proxy for inflation in consumer prices, offers some answers. In 2020, inflation dropped to 1.4%, the lowest rate..

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Visualizing The History Of US Inflation Over 100 Years

Is inflation rising?

The consumer price index (CPI), an index used as a proxy for inflation in consumer prices, offers some answers. In 2020, inflation dropped to 1.4%, the lowest rate since 2015. By comparison, inflation sits around 5.0% as of June 2021.

Given how the economic shock of COVID-19 depressed prices, rising price levels make sense. However, as Visual Capitalist's Dorothy Neufeld notes, other variables, such as a growing money supply and rising raw materials costs, could factor into rising inflation.

To show current price levels in context, this Markets in a Minute chart from New York Life Investments shows the history of inflation over 100 years.

U.S. Inflation: Early History

Between the founding of the U.S. in 1776 to the year 1914, one thing was for sure - wartime periods were met with high inflation.

At the time, the U.S. operated under a classical Gold Standard regime, with the dollar’s value tied to gold. During the Civil War and World War I, the U.S. went off the Gold Standard in order to print money and finance the war. When this occurred, it triggered inflationary episodes, with prices rising upwards of 20% in 1918.

However, when the government returned to a modified Gold Standard, deflationary periods followed, leading prices to effectively stabilize, on average, leading up to World War II.

The Move to Bretton Woods

Like post-World War I, the Great Depression of the 1930s coincided with deflationary pressures on prices. Due to the rigidity of the monetary system at the time, countries had difficulty increasing money supply to help boost their economy. Many countries exited the Gold Standard during this time, and by 1933 the U.S. abandoned it completely.

A decade later, with the Bretton Woods Agreement in 1944, global currency exchange values pegged to the dollar, while the dollar was pegged to gold. The U.S. held the majority of gold reserves, and the global reserve currency transitioned from the sterling pound to the dollar.

1970’s Regime Change

By 1971, the ability for gold to cover the supply of U.S. dollars in circulation became an increasing concern.

Leading up to this point, a surplus of money supply was created due to military expenses, foreign aid, and others. In response, President Richard Nixon abandoned the Bretton Woods Agreement in 1971 for a floating exchange, known as the “Nixon shock”. Under a floating exchange regime, rates fluctuate based on supply and demand relative to other currencies.

A few years later, oil shocks of 1973 and 1974 led inflation to soar past 12%. By 1979, inflation surged in excess of 13%.

The Volcker Era

In 1979, Federal Reserve Chair Paul Volcker was sworn in, and he introduced stark changes to combat inflation that differed from previous regimes.

Instead of managing inflation through interest rates, which the Federal Reserve had done previously, inflation would be managed through controlling the money supply. If the money supply was limited, this would cause interest rates to increase.

While interest rates jumped to 20% in 1980, by 1983 inflation dropped below 4% as the economy recovered from the recession of 1982, and oil prices rose more moderately. Over the last four decades, inflation levels have remained relatively stable since the measures of the Volcker era were put in place.

Fluctuating Prices Over History

Throughout U.S. history. there have been periods of high inflation.

As the chart below illustrates, at least four distinct periods of high inflation have emerged between 1800 and 2010. The GDP deflator measurement shown accounts for the price change of all of an economy’s goods and services, as opposed to the CPI index which is a fixed basket of goods.

It is measured as GDP Price Deflator = (Nominal GDP ÷ Real GDP) × 100.

According to this measure, inflation hit its highest levels in the 1910s, averaging nearly 8% annually over the decade. Between 1914 and 1918 money supply doubled to finance war efforts, compared to a 25% increase in GDP during this period.

U.S. Inflation: Present Day

As the U.S. economy reopens, consumer demand has strengthened.

Meanwhile, supply bottlenecks, from semiconductor chips to lumber, are causing strains on automotive and tech industries. While this points towards increasing inflation, some suggest that it may be temporary, as prices were depressed in 2020.

At the same time, the Federal Reserve is following an “average inflation targeting” regime, which means that if a previous inflation shortfall occurred in the previous year, it would allow for higher inflationary periods to make up for them. As the last decade has been characterized by low inflation and low interest rates, any prolonged period of inflation will likely have pronounced effects on investors and financial markets.

Tyler Durden Sat, 06/12/2021 - 19:00

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Visualizing The Biggest Companies In The World In 2021

Visualizing The Biggest Companies In The World In 2021

Since the COVID-19 crash, global equity markets have seen a strong recovery. The 100 biggest companies in the world were worth a record-breaking $31.7 trillion as of March 31 2021,…

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Visualizing The Biggest Companies In The World In 2021

Since the COVID-19 crash, global equity markets have seen a strong recovery. The 100 biggest companies in the world were worth a record-breaking $31.7 trillion as of March 31 2021, up 48% year-over-year. As a point of comparison, the combined GDP of the U.S. and China was $35.7 trillion in 2020.

In today’s graphic, Visual Capitalist's Jenna Ross uses PwC data to show the world’s biggest businesses by market capitalization, as well as the countries and sectors they are from.

The Top 100, Ranked

PwC ranked the largest publicly-traded companies by their market capitalization in U.S. dollars. It’s also worth noting that sector classification is based on the FTSE Russell Industry Classification Benchmark, and a company’s location is based on where its headquarters are located.

Within the ranking, there was a wide disparity in value. Apple was worth over $2 trillion, more than 16 times that of Anheuser-Busch (AB InBev), which took the 100th spot at $128 billion.

In total, 59 companies were headquartered in the United States, making up 65% of the top 100’s total market capitalization. China and its regions was the second most common location for company headquarters, with 14 companies on the list.

Risers and Fallers

What are some of the notable changes to the biggest companies in the world compared to last year’s ranking?

Tesla’s market capitalization surged by an eye-watering 565%, temporarily making Elon Musk the richest person in the world. Food delivery platform Meituan and PayPal benefited from growing e-commerce popularity with their market capitalizations growing by 221% and 151% respectively.

Tech companies TSMC and ASML Holdings were also among the top 10 risers, thanks to a shortage of semiconductor chips and growing demand.

On the other end of the scale, Swiss companies Nestlé, Novartis, and Roche Holding were all among the bottom 10 companies by market capitalization growth. China Mobile was the only company to decline with a -12% change. The company was delisted from the New York Stock Exchange as a result of an executive order issued by former president Donald Trump, and recently announced its intention to list on the Shanghai Stock Exchange.

A Sector View

Across the 100 biggest companies in the world, some sectors had higher weightings.

Technology had the highest market capitalization and was also the most common sector, with Big Tech dominating the top 10. Companies in the consumer discretionary, financials, and health care sectors also had a strong representation in the ranking.

Despite having only five companies on the list, the energy sector amounted to almost 10% of the top 100’s market capitalization, mostly due to Saudi Aramco’s whopping valuation.

An Uncertain Recovery

From near market lows on March 31, 2020, all sectors saw increases in their market capitalization. However, top 100 companies in some sectors outperformed their respective industry index, while others did not.

Basic materials and industrials, both cyclical sectors, were high performers in the top 100 and outperformed their respective industry indexes. Technology companies also outperformed, and accounted for $255 billion or 31% of all shareholder distributions by the top 100, far more than any other sector. Apple alone spent $73 billion on share buybacks and $14 billion in dividends in the 2020 calendar year.

On the other hand, the worst-performing sectors in the top 100 were health care, utilities, and energy. While the index performance for health care and utilities was also relatively poor, the wider energy sector performed fairly well.

It’s perhaps not surprising that all sectors saw positive returns since their low levels in March 2020, buoyed by fiscal stimulus and central bank policies. As countries begin to reopen, will the value of the biggest companies in the world continue to climb?

Tyler Durden Sat, 06/12/2021 - 23:00

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