Oil penny stocks are volatile in the present climate.
The sector fell into a nasty bear market in late 2018, quickly wiping months of steady gains off the board. With prices falling as low as they did (under $50 a barrel), the biggest international brands suffered just as much as the small-fry ones.
So where do you stand as a potential oil penny stocks investor at the start of 2019?
Oil Penny Stocks: Noble (NYSE:NE)
Penny stocks, of course, offer the cheapest entry point for investors, though they come with a higher risk of little to no return. (At least for short-term buyers, anyway.)
That said, at $3.40 and steadily paring its woeful December losses, is London’s Noble Corporation (NYSE: NE)
According to S&P Global Market Intelligence, Noble plunged 37% in December. Ouch. The stock plunged from highs of $7.17 in October to $2.37 by December’s end.
But this was a result of an entire market sell-off and not a unique occurrence to Noble. There is solace to be found in that and it’s offered new investors an opportunity.
January kicked off the new year, and the NE penny stock has been steadily climbing again. So perhaps there are some risks in this sector worth taking right now.
Of course, oil prices do dictate this sector like no other, so it really depends on if you think the oil economy will bounce back.
Nobody can be sure of this, but that’s why oil penny stocks, in particular, are so intriguing at present. Many are showing undervalued prices off the back of December’s crash, yet, if oil prices shoot back up in the morning, these stocks are bound to go with it.
The Bottom Line
Operationally, Noble just purchased a second jack-up rig from PaxOcean. The news is a good development for the business, but in the short-term, this penny stock will likely follow oil price fluctuation.
What do you think?
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