Mining penny stocks often waver. It doesn’t matter if its gold stocks or vanadium stocks. That’s universally recognized. Penny stocks are volatile but can reap major benefits. One company, however, that belongs to the vanadium penny stocks category is experiencing this volatility more so than others today.
Today, December 17th, Largo Resources (TSXV:LGO) has dropped, currently down close to 10%. Interestingly, this drop comes twenty-four hours after the Toronto-based company announced that it further reduced its debt.
Vanadium Penny Stocks: Largo Resources
Largo Resources is a strategic mineral company that focuses on vanadium flake production and high purity vanadium powder. On the 17th of December, the company announced that it “repurchased and retired $26M in aggregate plus premium and accrued and unpaid interest.”
“We are very proud,” Mark Smith, CEO, said about completing this repurchase. The company’s outstanding debt balance is now less than $100 million; Smith anticipates the outstanding balance will be “repaid in Q2 2019.”
Even though Largo Resources is happy with the news, the market is reacting differently. However, as mentioned, vanadium penny stocks often fluctuate, so there’s no way of knowing for sure what the root cause of the stock’s plunge was.
According to Yahoo Finance, as of 2:34 PM, Largo Resources is trading at $2.75, putting the stock down 9.24%.
Earlier in the trading day, Largo Resources was down around 11%.
It will be worth keeping an eye on Largo Resources as we move forward. Not only should mining and penny stock investors watch out to see when LGO pays its outstanding balance, but watch its stock movement. It may not seem it now, but LGO is one of the vanadium penny stocks that excelled in 2018. And, it helps that the vanadium market will never die down as there is a high demand for the metallic element.
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Featured Image: depositphotos/Thomaspajot