March is quickly approaching, and investors are on the hunt for the best penny stocks to watch. While the last week of February is not off to a great start for blue-chip stocks, many penny stocks continue climbing. In the past few weeks, we’ve seen much more volatility on a daily basis.
This is symbolic of the various geopolitical and economic factors occurring both in the U.S. and abroad. As much as we like to think that trading is done with fundamentals, emotions will always come into play. This means that speculation will remain a factor to keep in mind. It will also likely contribute to greater volatility.
It’s best to narrow down a watchlist to companies based on your market strategy with penny stocks. Are you looking long-term, or are you looking for more of a short-term trade? Also, investors should always consider what is going on in the world and how it may affect the stock market. Right now, we see bullish sentiment among a variety of industries. While volatility is at a very high level, investors can learn to use this to their advantage. With all of this in mind, let’s take a look at four penny stocks to watch heading into March 2021.Penny Stocks to Watch, March 2021
- Taseko Mines Ltd. (NYSEAMERICAN: TGB)
- Peabody Energy Corp. (NYSE: BTU)
- Gran Tierra Energy Inc. (NYSEAMERICAN: GTE)
- Northern Dynasty Minerals Ltd. (NYSEAMERICAN: NAK)
Taseko Mines is a penny stock that has been at the top of mind for many investors this year. Since early January, shares of TGB stock have climbed by around 50%. This seems to be a common theme amongst many mining penny stocks. Back at the beginning of last year, most mining operations around the world came to a halt. This was obviously due to the effects of the pandemic.
But, as time went on, operations began to resume slowly. Now a year or so after the pandemic began, many mining companies have resumed operations fully. The recent bullish sentiment surrounding TGB seems to be due to its plans to release its year-end 2020 financial results. The company states that it will be doing so on February 24th. This is always exciting for investors, as it allows insight into what a company is doing.
Ahead of this, let’s take a look at what Taseko has been up to in the past few weeks. This month, the company announced that it had completed a $400 million offering of aggregate senior debt notes. Stuart McDonald, President of Taseko, states that “this bond refinancing upsize has significantly strengthened Taseko’s financial position and lowered our cost of capital. We now have a cash balance of approximately $200 million and no significant debt maturities until 2026. With the majority of the required funding for our Florence Copper project now in hand, we are moving forward with final design engineering of the commercial production facility.”
With more attention on metals and mining stocks, TGB has continued turning heads. As the 24th approaches, it will be interesting to see if speculative momentum becomes a factor.Peabody Energy Corp.
Peabody Energy Corp. is another penny stock that we’ve been discussing for several months now. At around $4.50 per share as of late February, BTU looks like it is on its way out of penny stock territory. We’ve been seeing a lot of bullish sentiment around energy penny stocks in the past few months. This is due to a variety of factors, including increased energy consumption due to dropping covid cases.
Peabody is a producer of coal used in the creation of steel and electric energy for some context. While industrialization has taken a backseat role during the pandemic, many believe that it will resume as cases decline globally. A few weeks ago, the company announced that it would be purchasing roughly $22.5 million worth of aggregate senior debt notes. This is a move made by plenty of energy companies, as it is used to help improve balance sheets. With less debt on the books, the company can focus on creating resources and funding other projects.
Only a week before this, the company announced its fourth-quarter 2020 operating results. The company posted revenue of around $737 million, with an adjusted EBITDA of $103.2 million. Glenn Below, CEO of Peabody, stated that “whilst 2020 was a year unlike any other with Covid impacting all facets of our business – from the customers, we serve to the communities in which we operate – the Peabody team worked hard to position against these challenges and we look forward to driving continued improvements in 2021.”
In the quarter, the company lowered costs per ton and produced a less capital-intensive corporate structure. So, does this make BTU a penny stock to watch?Gran Tierra Energy Inc.
Another energy penny stock that investors have been talking about is Gran Tierra Energy Inc. Before we dive into it, let’s take a look at Gran Tierra from a broad perspective. The company explores for and produces oil and gas with properties worldwide, including its holdings in Ecuador and Colombia. Gran Tierra recently announced that its fourth-quarter and full-year 2020 results would be released on February 24th. While we wait for these results to come to light, we can use its previous quarterly reports to take a closer look at the company.
In an operational and reserves update posted a month ago, the company achieved some exciting results. Gary Guidry, CEO of Gran Tierra, stated that “our teams in Columbia, Ecuador, and Canada rose to meet the many challenges of 2020 through their diligent management of Covid-19 safety protocols and a sharp focus on maintaining and increasing the value of our assets. As a result, we are pleased to announce significant reserve additions in both the PDP and 1P categories, despite our large reductions in capital investment during 2020. This achievement demonstrates the company’s core conventional oil assets continue to show positive waterflood responses and low base decline rates.”
As an energy company, results have been mixed across the board. However, much of the momentum in companies that have already reported stemmed from what management’s comments were on 2021 guidance. But, with higher reserve amounts and decreased expenses, could GTE surprise investors?Northern Dynasty Minerals Ltd.
In the past few months, shares of NAK stock have been quite volatile. In a single day last year in November, shares of NAK dropped by over 50%, illustrating just how large price movements can be. The company has been struggling with negative results from a permitting application in Alaska, over the past few months. Recently, however, the company has been working through the appeal process. As we can see, a lot of the sentiment surrounding NAK right now has to do with this project and the appeal that was made.
Northern Dynasty states that its proposed plan does not go against the Clean Water Act regulations and that the decline of its proposal is not in line with the law. The company also announced that it should be receiving results regarding whether or not the appeal is complete sooner than later. With penny stocks, any announcement can affect share prices either negatively or positively.
The hopes are that its appeal can be accepted, and Northern Dynasty can begin the formal exploration process. Because this mine is the only project that the company has, we see just how important this is. While NAK could be worth watching in the meantime, the upcoming announcement is significant to the company’s future. This poses a potentially higher risk situation should the appeal not move forward. With that in mind, it’s up to you to decide if NAK is a penny stock to watch.