Small Cap and Copper Penny Stocks
It seems like small cap and copper penny stocks could get hot next week, despite the fact that copper futures were down again on Friday for the second day in a row. What has changed is that there is yet another copper mine going on strike in South America. The most recent being Peru’s Cerro Verde. Miners at the #3 mine in Peru are set to strike for 48 hours on September 7th in a fight for better wages. Cerro Verde’s strike is just one of many miner strikes that have gone on in South America recently, with Chile’s strike being most important. Currently, 4 out of the world’s top 15 copper producers are located in South America, with Chile being the 1st, Peru 3rd, Argentina and Brazil also round out the list at #’s 14 and 15 respectively.
We also know that a leftist, populist sentiment has been spreading quickly through the region and is potentially getting stronger. Now any prolonged mining strike certainly may help copper prices in the short term, but on the flip side, it may hurt multinational companies with a large presence in Latin America.
Copper Penny Stocks in Austrailia & Russia
But what does it do for small cap and copper penny stocks that rely on the bulk of their production from major copper producers like the United States, Australia, and Russia ? None of the 3 countries currently have major labor issues impacting their mines.
Well at PSE we are not quite ready to act, but you can count on several PR’s and promos coming out of small cap companies and copper penny stocks if the underlying commodity futures start to rip. Just remember, penny stock investors made massive percentage gains if they were in gold or silver names before while they were in the infancies of their runs.
Now I realize the copper situation is different, simply because at this point, it’s merely a potential supply disruption, but that doesn’t mean we can’t see a 2 or 3 week run in copper penny stocks.
So while it might be a little too early to act, you have to remember that penny stocks are news and event driven. So check back frequently or better yet, subscribe just in case we issue an alert. We are currently monitoring a few small cap and copper penny stocks just in case this news event gains major traction.
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