Penny Stocks to Watch for February 2022: The penny stocks are well-known for being low-quality high risk and high high volatility. But, if you do your the art of due diligence and a little bit of diligence, you could uncover many hidden treasures hidden in the most unlikely locations.
Here, there are the latest news on penny stocks previously mentioned from this column, which are followed by a few fresh and low-cost trade ideas that remain under the radar of most investors.
1. BRF S.A. (BRFS)
BRF S.A. ( BRFS) was unable to break through it’s $5.20 resistance level in the first week of October 2021, sabotaging the hopes of a break-through for the price of shares. In the years since, BRF’s share price has been a constant loss due to the immense costs from rising inflation.
The tide is changing for the Brazilian meatpacking business, however. BRF shares have risen 5.47 percent in the last month following the announcement of the $1.17 billion capital raise which, in turn, sparked speculation that the minority shareholder Marfrig will purchase a majority part of the company.
Why is this (potentially) positive? If the rumored deal actually comes to fruition – could be a transformational deal for BRF. With the subsequent spike in BRF’s share price investors are signaling that they believe that’s exactly what the beleaguered business requires.
Even even if Marfrig does not add more stakes to the company, the outlook is better for BRF in 2022. China and Russia have once more allowed imports of meat. Forecasts suggest that EPS will increase to by 733% this year.
2. Amyris, Inc. (AMRS)
Following the time that Amyris, Inc. ( AMRS) was initially listed as a penny stock to be watched in the year 2020, the stock’s value rocketed to $20 and even higher it was still over that of the “penny stock zone” (composed of stocks that are valued below five dollars per share) throughout the entire year of 2021.
But, shipping delays and manufacturing problems delays in shipping and manufacturing in China have taken a huge cut into earnings for Amyris. The possibility of diluting can also be cause for problem for shareholders. In addition, the company’s fast as well as present percentages between 0.40 and 0.60 and 0.60, respectively, aren’t enough to warrant concern. The share price dropped to $4.07 at the time of writing.
There are a few grounds to believe that the selling off isn’t as effective as it was. Think about the fact that it is true that the company plans to bring two plants (in Brazil and Nevada) to market soon, which could alleviate some of the earlier shipping problems. However, Amyris still has excellent double-digit earnings per share (EPS) and the growth of revenue and an incredible gross margin of 66.40 percent and a stunning increase in return on equity (ROE) which is 337.40 percent.
3. Snipp Interactive Inc. (SNIPF)
Snipp Interactive Inc. ( SNIPF) is an Canadian company that is a loyalty technology and promotion firm that, according to its own terms, “provides mobile marketing, rebates, and loyalty solutions in the United States, Canada, Ireland, and internationally.” Its price is $0.16, Snipp is a much better investment than it’s entitled to be. It boasts an impressive list of customers that include famous names as PepsiCo, Inc. (PEP), The Estee Lauder Companies Inc. (EL), L’Oreal S.A. (LRLCY), Starbucks Corporation (SBUX) as well as Nestle S.A. (NSRGY).
One major issue The main issue is that the the cost of sales (COGS) can be far excessive, far more than revenue each year for the last five years. On an average basis COGS is also declining each year, falling to $12.39 million at the end of 2020, down from $19.87 million in 2017. This is positive, which suggests that the company is successful in decreasing costs and improving efficiency.
Furthermore, Snipp’s 50 percent growth in bookings at the end of December. 31st in 2020 (compared to the end of 2019) in the range of $6.7 million is a sign that the company is making its way back towards profitability. In addition, the booked backlog at the time of December. 31st, 2021 is currently at $10 million, which is the largest backlog ever recorded by the company in its history.
With all of these advantages (including Snipp’s unique technological capabilities and impressive client list) It could be an ideal acquisition potential. Snipp stock therefore deserves to be traded at a more expensive price than what it’s currently trading at, and could get back to the $0.25 mark and even higher not far off when its turnaround begins to take shape.
4. Taseko Mines Limited (TGB)
Taseko Mines Limited ( TGB) is an exploration and development company operating within the copper sector. Copper is particularly intriguing in the present, as despite recent declines, prices are rising significantly to the point of 2022 (to an average of $4.45 average, compared to $2.80 by 2020) due to the lower U.S. dollar and tighter supply in the world. Copper is also being used in the electric vehicle (EVs) as well as in the infrastructure space as well as in the infrastructure space, each of these are predicted to increase significantly in the coming decade.
In addition, the recently-confirmed election of a brand new leader for Chile, based in part on his pledge to end an enormous copper mining venture in Chile (the largest copper producer)–suggests that companies may soon look elsewhere for copper.
Taseko Mines operates in Canada as well as the U.S., meaning it’s likely to be able to solve certain issues Chilean copper miners are confronting. The most promising thing is that Taseko has finally seen an initial EPA permit granted for the Florence Copper mine and the final permit is scheduled to be in place by 2022, and the mine’s operations expected to start in 2023-2024. According to certain estimates, Florence could enhance Taseko’s cash flow positive liquid cash flows to around $280 million when copper is valued in the $4/pound range. (Note it is selling for $4.31 currently.)
The lifespan of mine for Florence also spans an impressive 21 years and another 18 years at the company’s current site in Gibraltar in which the company has recently signed a labor contract with employees who are unionized up to 2024.
Taseko also has some impressive financial ratios, which indicate a high value at the current price, such as the Forward P/E of 10.82 P/C at 2.82, P/FCF of 5.74 as well as healthy quick or current ratios.
As a long-term investment copper companies are in a position to profit from the economic boom in China and also from the EV revolution. The gains they will see won’t come in a flash, which is why companies like Taseko Mines are still trading at penny-priced price. But, investors who are patient and willing to take a chance for risk could find something to like about this company.
Penny stocks are volatile and can generate catastrophic losses. Price levels in this article are hypothetical and do not represent buy recommendations or investment advice. Keep in mind that it’s your responsibility to make trading decisions through your own skilled analysis and risk management.