We recently started a series called “Penny Stock of the Day”. These ideas are geared towards traders with an extremely high risk appetite.
Our Penny Stock of the Day is chosen by screening for stocks under $5 and then applying technical analysis on the shortlisted set of penny stocks showing unusual volume. When making these trades, please make sure to pay vigilant attention to pricing moves and have a strict stop loss in place to avoid significant losses.
Penny Stock of the Day: United States Antimony Corporation (NYSE: UAMY)
Today’s penny stock pick is the mining, transportation, milling, smelting, and selling company, United States Antimony Corporation (NYSE: UAMY).
United States Antimony Corporation produces and sells antimony, silver, gold, precious metals, and zeolite products in the United States and Canada. It operates through Antimony, Zeolite, and Precious Metals segments. The company offers antimony oxide that is primarily used in conjunction with a halogen to form a synergistic flame retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper, as well as color fastener in paints and as a phosphorescent agent in fluorescent light bulbs; antimony trisulfide used as a primer in ammunition; and antimony metal for use in bearings, storage batteries, and ordnance.
The company also offers coarse and fine zeolite for soil amendment and fertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, and animal nutrition applications, as well as in catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, and floor cleaners, as well as carriers for insecticides, pesticides, and herbicides. In addition, it recovers unrefined and refined gold and silver.
Website: https://usantimony.com/
Latest 10-k report: https://www.usantimony.com/_files/ugd/3b68bf_b41003c9f63c41b48708bc7899039d7e.pdf
Analyst Consensus: As per TipRanks Analytics, based on 3 Wall Street analysts offering 12-month price targets for UAMY in the last 3 months, the stock has an average price target of $2.78, which is nearly 25% upside from current levels.
Analysts | Source: TipRanks.com
Potential Catalysts / Reasons for the Hype:
- Antimony surged to a record $51,000 per ton, driven by tightening Chinese export controls and escalating global demand.
- Corporate Insiders placed Informative Buys of Shares Worth $389.5K in the Last 3 Months.
Insiders | Source: TipRanks.com
- The company entered an exclusive option agreement to acquire 100% ownership of 120 state mining claims in Alaska, covering approximately 17,900 acres with significant Stibnite antimony mineral potential, through a series of staged payments and exploration commitments.
On analyzing the company’s stock charts, there seem to be multiple bullish indications…
Bullish Indications
#1 Symmetrical Triangle Pattern Breakout: The daily chart shows that the stock has currently broken out a symmetrical triangle pattern, which is marked as purple color lines. A symmetrical triangle pattern represents a period of consolidation before the price breaks out. This is typically formed when there is indecision in the price movements and uncertainty among the buyers and sellers. Once a breakout from the upper trend line occurs, it usually signifies the start of a new bullish trend.
UAMY – Daily Chart
#2 Price above MAs: The stock is currently above its 50-day and 200-day SMA, indicating that the bulls have currently gained control.
#3 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.
#4 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30. This indicates bullishness.
#5 Above Support Area: The weekly chart shows that the stock is currently trading above a support area, which is marked as a pink color dotted line. This looks like a good area for the stock to move higher. The stock is also trading above its 50-week as well as 200-day SMA, indicating that the bulls are in control.
UAMY – Weekly Chart
#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart, indicating possible bullishness.
#7 MACD above Signal Line: In the weekly chart, the MACD (light blue color) is currently above the MACD signal line (orange color). This indicates a possible bullish setup.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for UAMY is above the price of $2.30.
Target Prices: Our first target is $3.50. If it closes above that level, the second target price is $4.50.
Stop Loss: To limit risk, place a stop loss at $1.60. Note that the stop loss is on a closing basis.
Our target potential upside is 52% to 96%.
For a risk of $0.70, our first target reward is $1.20, and the second target reward is $2.20. This is a nearly 1:2 and 1:3 risk-reward trade.
In other words, this trade offers 2x to 3x more potential upside than downside.
Potential Risks / Red Flags:
- The company has a history of net losses.
UAMY – Consolidated Statements of Operations
- The company is dependent on a single supplier in Canada for its ore supply for antimony. A decrease in the supply or an increase in the cost of this supplier’s ore could have a material adverse effect on UAMY’s business, results of operations, and financial condition.
- The company is subject to geopolitical risk as certain operations are in Mexico. Any political or social disruptions unique to Mexico would have a material impact on the company’s operations.
- UAMY has customer concentration risk. In 2024, the company’s two largest customers accounted for 43% of its consolidated revenues.
- Despite being a loss-making company, the executives are being paid significant compensation.
UAMY – Executive Compensation
As you can see, today’s featured penny stock offers big upside potential… but it also comes with a number of risks and red flags. As always, when dealing with penny stocks, we advise caution before entering into such high-risk ventures. Remember to think before you trade… understand the risks… and if you decide to trade, stick to your stop-losses!
Happy Trading!
Trades of the Day Research Team
READ BEFORE TRADING PENNY STOCKS: The allure of penny stocks lies in their potential to deliver massive gains in a short period of time. However, in exchange for that opportunity, most penny stocks carry tremendous risk. They can be extremely volatile and are susceptible to “pump and dump” schemes and fraud.
Unlike regular stocks, the financial condition of most penny stock companies can be extremely difficult to analyze, as the majority of such stocks are traded on over-the-counter (OTC) exchanges, which are typically less transparent and less regulated than the major exchanges. In fact, in the penny stock space, it’s often easier to spot warning signs and red flags than it is to identify a sound investment. Nevertheless, we do our best to identify short-term trade opportunities in this exciting space because we know some of our readers are looking for high-risk, high-reward ideas. We just urge you to make sure you fully understand the risks before making any of these trades.
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