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Last Updated on April 14, 2020
It is no secret that most stocks have taken quite a beating in recent weeks due to the global problems stemming from the CO-VID 19 virus. Nobody knows when this will turn around, which is why it is important to look for some good buys right now. If there is one thing that history tells us, it is that every stock market crash is followed by a rebound at some point. The key is to be ready when that happens by purchasing stocks that are poised for a quick rebound. If your investment dollars are severely limited at the moment, you might want to consider the following penny stocks that could do you quite well this spring. According to Money Morning, “Penny stocks – which typically trade for $7 per share or lower – offer high-upside opportunities given the current conditions in the market.”
Smith Micro Software
As with most stocks of late, shares of Smith Micro Software have dropped dramatically of late. For a penny stock, that means it is now in the $3 per share range. This is a company that has been around for quite some time, so you have history to look at. Every time that their earnings have taken a deep hit, they have recovered quite nicely. Just in recent weeks, their shares have increased by almost 20 percent. If you are looking at this one in the late spring, it will likely be a tremendous value.
Fortuna Silver Mines
There is always something to be said about the value of precious metals, particularly in tumultuous times. Here is a company that is focused on silver. Specifically, they are heavily involved in silver mines and this is a sector that is currently undervalued. In this difficult time, many experts agree that the prices of silver and gold will begin rising. That will create a pent up demand for mining services. Keep in mind that you will need to be patient with this one, but you can buy quite a few shares right now and hold on to them long past the spring.
Eros International Plc
With so many millions of people being asked to stay home now, streaming video services have never been more popular. Eros International is a small company that is getting heavily involved in this sector. While they are not a household name like Netflix or Hulu, they are nonetheless positioned for tremendous growth in this sector in the future. With a current share price under $2, it is a great buy this spring.
Americas Gold and Silver Corporation
Here is another lesser-known company in the precious metals industry that has some great potential. When it comes to penny stocks to watch, this one is anticipating an over 300 percent increase in production by the end of 2021. If even a fraction of that happens, the share value is expected to grow quite high. Many expect it to be $4.50 per share by the end of year, up from a current value of $1.50.
This is a small company focused on gold production. The share value has decreased 40 percent over the last year, which is in the opposite direction of the way it should be. Something should change there, so with a current share price of $2, this is one to watch as the spring moves on.
The lure of penny stocks is that they are so cheap. The five stocks we have mentioned here are trading for less than $5 a share. This means that you can buy quite a few shares of each if you believe that they will go up in value. There are some good companies that are positioned to do well when the current world situation settles down. The value of penny stocks is that you can realize a steep increase in earnings when the price per share even moderately increases. Take a look at these and see what you think as you plan your investments for this spring.