Lithium is a game changer, as are penny stocks, though the latter depends on how comfortable you feel about being exposed to potential investment risk. Penny stocks have good days, but they also have bad, and that’s something to remember.
Today, we can see a few mining penny stocks suffering on the market. But why? And which ones?
Mining Penny Stocks in the Red: August 13th, 2018
On Monday, both Neo Lithium Corp. and Advantage Lithium Corp. plunged on the market, with one being down more than 5% at press time.
1. Neo Lithium Corp. (TSXV:NLC)
Based in Toronto, Ontario, Neo Lithium Corp. explores and develops resources properties. While most of its revenue comes from Canada, Neo Lithium also operates its business in Argentina.
The company has been pretty quiet, with its last announcement on July 19th. However, that announcement was quite the doozy. On the 19th, Neo Lithium announced a resource estimate update for its 3Q Lithium project. The company announced a 227% increase in measured and indicated categories.
Still, as good as that is, it wasn’t enough to keep the stock in the green in August. At least, not this week.
The Neo Lithium Stock
According to Yahoo Finance, as of 2:42 p.m. EDT, Neo Lithium is trading at $1.11, which puts this penny stock down 7.50%.
I don’t know about you, but that’s a pretty hefty drop on no news, negative or positive.
2. Advantage Lithium Corp. (TSXV:AAL)
Advantage Lithium Corp. is in a similar boat to Neo Lithium, in the sense that while the company hasn’t recently made an announcement, the last one was pretty positive.
Based in Vancouver, British Columbia, Advantage Lithium Corp. is an exploration company, with various projects such as Clayton and Antofalla.
The company’s last announcement was on July 17th. On that day, the mining company announced a private placement of more than 15,000 common shares of the company, valued at $0.77 per Common Share.
Again, the $12 million financing was not enough to send this penny stock into August worry-free.
The Advantage Lithium Stock
According to Yahoo Finance, as of 3:11 p.m. EDT, Advantage Lithium is trading at $0.78, which puts the penny stock down 3.70%.
The Takeaway
Are you surprised about the trading day these two penny stocks are having?
It’s difficult to say what’s causing the drop. Is it because the companies have been too quiet recently, or is it just one of those days? As I said, penny stocks can have their fair share of market troubles.
Let us know what you think, and check back in tomorrow for more penny stock news!
>> Two Mining Penny Stocks Entering the Weekend in the Green Zone
Featured Image: Depositphotos/© Thomaspajot
