As the year 2020 rolls to a close, I make certain much of us– myself consisted of– are delighted to wave goodbye to what has actually been a long, difficult, and at times utterly befuddling 12 months.
I hesitate, however, that the financial and monetary roller-coaster trip is only just beginning. As I explain in my latest videos on the Peter Leeds YouTube channel, I think that we remain in for some months of deflation before striking a period of quite extreme inflation.
In this environment, I still believe the junior/intermediate gold and silver miners are the very best place to be as the U.S. dollar declines. Read on for a few of my top mining choices and find some brand-new penny stocks to check out.
Some of the set-ups I describe below might no longer be relevant or undamaged as of the time you read this post. Please perform your own due diligence. Numerous stocks discussed here were likewise talked about in the Peter Leeds Newsletter. Peter might own shares in some of the investments discussed, in which case that truth will be plainly indicated. Please note that penny stocks are notoriously volatile.
First, Some Updates …
First Majestic Silver Corp. (AG).
I’ve been a fan of First Majestic Silver Corp. (AG) for a long time. For numerous customers to my newsletter, the year 2020 wasn’t all bad due to the fact that they saw their financial investments in First Majestic almost triple between March and August.
Now that many silver miners have returned a part of those gains, nevertheless, is it time to leave Very first Majestic stock? Never, in my viewpoint. I anticipate 2021 to be an even much better year for investors, with the company reporting increasingly promising outcomes with each quarter and stock exchange volatility stimulating the flight to security stocks like the rare-earth elements.
Image Sensing Systems, Inc. (ISNS).
I introduced readers of this Investopedia column to Image Sensing Systems, Inc. (ISNS) last month. It has actually done remarkably well ever since, roaring up roughly 27% over the past few weeks. That climb appears to have actually primarily occurred on the back of some strong 3rd quarter results released in mid-November, and relative trading volume has actually skyrocketed.
However, with the relative strength index (RSI) clocking in at 71.19, Image Sensing Systems stock might be overbought at the minute. We might accordingly see the stock kick back over the next couple of weeks as investor excitement settles down around this one. Still, over the longer term– say, the next 6 to eighteen months– I strongly believe that Image Sensing Systems shares will climb up above $5 yet again.
New Gold Inc. (NGD).
In contrast to Image Sensing Systems, New Gold Inc. (NGD) fared quite inadequately throughout November, with a 20% drop in its share rate bringing it to just $1.75 as of the time I was writing this article.
I don’t expect this scenario to continue much longer, nevertheless. My bullish view on the junior and intermediate gold miners reaches New Gold, and as the U.S. dollar declines, the stock should climb up much higher in 2021, in my viewpoint. I do keep in mind with some concern the company’s precariously high debt/equity ratios, so make no error: the potential advantage is strong here, but the attendant danger is, too.
… And Some New Ones.
RF Industries, Ltd. (RFIL).
RF Industries, Ltd. (RFIL), a recent Hot Choose from the Peter Leeds newsletter, has gotten quite a great deal of attention from the financial press over the previous couple of months. The attention is well should have, in my opinion, since I believe this radio frequency device maker must benefit hugely from the inevitable 5G transformation. Its products are essential to the wireless information transmission procedure, and its basics are strong.
Nevertheless, somehow the stock is still flying under the radar for many investors, with RF Industries shares down around 17% over the previous half year. This may be due to the fact that its third quarter profits for 2020 was struck hard by COVID-19, falling around 40%. But to cross out RF Industries for that reason is short spotted, in my view. The epidemic has definitely slowed the roll-out of 5G around the world– however its takeover is anticipated to be completed in the majority of places by the end of 2021.
In conclusion, RF Industries may need a little persistence from its shareholders. However I believe the wait will be worth it, and I would not be shocked to see the stock skyrocketing at a time when most other equities are suffering.
Turkcell Iletisim Hizmetleri A.S. ADR (TKC).
Telecommunications need stays strong, and it will likely end up being even more powerful, in my view, no matter what turns the international economy takes. Reflecting this strength, Turkcell Iletisim Hizmetleri A.S. ADR (TKC), another recent Hot Select from my newsletter, has an outstanding five-year income development average of 35.5%. When I first discussed it, Turkcell Iletisim Hizmetleri was, at $4.82, considered a penny stock, despite beating a number of its more costly peers.
Its P/E ratio of 10.55 and forward P/E ratio of 7.81 are much more powerful than the market median, recommending excellent value in the stock. Meanwhile, quarterly incomes per share (EPS) were up 83% in the previous quarter, and EPS over the next 5 years are expected to climb by an average of 33%. Not surprising that costs rose to $5.35 in the middle of November prior to sinking a bit since then to $5.05. (This means Turkcell Iletisim Hizmetleri is no longer technically a cent stock … however it’s close enough that I’ve chosen to include it here anyway.).
There are, of course, some problems to keep an eye out for with Turkcell Iletisim Hizmetleri. Its financial obligation levels are worryingly high, and geopolitical tensions abound. Possibly the business ought to consider cutting its dividend and working on fortifying its financial resources.
But I keep in mind that the benefit capacity for Turkcell Iletisim Hizmetleri is also tantalizingly strong. For example, the business’s subsidiary Lifecell runs throughout 39 different nations throughout the Caribbean, Central America, and Pacific regions, too– all locations where telecom demand is expected to grow substantially over the next decade (with 320 million “possible consumers,” as the business calls them, in those areas). I’ll be keeping a close eye on Turkcell Iletisim Hizmetleri over the next year. I expect to bring you good news about it not too long from now.
Finest Brokers for Cent Stocks
Interactive Brokers’ really low per-share trading commission of $.005 ($ 1 minimum per trade) and up-to-the-split-second real-time margin calculations are perfect for penny stock traders. IBKR Lite clients can trade penny stocks for $0.
Pros Low commissions, optimum 1% of trade value for IBKR Pro, $0 for IBKR Lite.
Streaming real-time data, including account info.
IBot, IB’s AI-powered online assistant, can assist find functions Cons Data streams on only one device at a time.
Traders Workstation sets up a high learning curve.
IBKR Pro consumers are charged fees to trade, though they are low.
Schwab’s research study pages point out the exchange on which a stock trades, which will keep you informed of the intrinsic risk. There are a range of platforms offered; the StreetSmart platforms have personalized charting and streaming real-time quotes. Schwab does not charge trading commissions on all stocks (consisting of penny stocks) and ETFs.
Pros Exceptional screeners offered on StreetSmart Edge.
Free access to a large array of news feeds.
Modification and customization options on StreetSmart Edge are fantastic Cons The sheer variety of functions and reports readily available can feel overwhelming.
Schwab preserves transaction history for simply 24 months online.
Schwab does not sweep uninvested cash into a cash market fund.
Cent stocks are unpredictable and can create catastrophic losses. Rate levels in this post are hypothetical and do not represent buy recommendations or investment recommendations. Bear in mind that it’s your duty to make trading decisions through your own experienced analysis and threat management.
Peter Leeds is the author of several books, consisting of the global bestseller, “Cent Stocks for Dummies.” He and his group likewise issue a newsletter dedicated solely to cent stock choices and analysis, as well as a popular YouTube channel PeterLeedsPennyStocks.