After a difficult couple of weeks in which the outbreak of the Coronavirus, coupled with escalating geopolitical tensions, threatened to derail growth in the equity markets, the Dow Jones and S&P 500 rose to record highs today. With China saying it will roll back on some tariffs, it finally looks as though we’ve entered a period of appeasement in Trump’s trade war. Investment opportunities are ample, so we’ve picked out two penny stocks that might help you get a slice of the pie.
Intelsat SA (NYSE:I)
Shares in satellite communication firm Intelsat tanked last week after the US Senate introduced the final draft of the C-Band auction bill, which is intended to get satellite firms off bandwidth for 5G networks and would cap satellite incentive payments at US$1 billion, despite having invested over US$50 billion in developing the infrastructure over the last 40 years. Trading for nearly $35.00 in October 2018, this is the first time Intelsat has been in penny stock territory in over two years.
However, the stock is taking off again today after the FCC reportedly reached a much more suitable deal with Satcom firms. The revised terms will see Intelsat and other satellite providers share around US$15 billion in compensation. A vote on the deal will take place on February 28, which could see Intelsat rocket above the penny stock threshold.
Hecla Mining Company (NYSE:HL)
Small-cap mining stocks can often be a source of steady returns, which bucks the trend generally associated with penny stocks. Hecla Mining has been on the up and up for much of the last nine months and is currently enjoying its best single day of trading in over a year following the release of its Q4 results. Despite posting a net loss of US$8 million, this was a significant improvement on the previous quarter’s loss of US$23.8 million. The foundation of value creation for any mining firm is increasing reserves, and Hecla’s silver, lead, and zinc reserves are currently the most in its history.
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