Trade This $4 Stock for a 34% Potential Upside

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: B2Gold Corp. (NYSE: BTG)

Today’s penny stock pick is the Canadian-based gold mining company, B2Gold Corp. (NYSE: BTG).

B2Gold Corp. operates as a gold producer company in Canada. The company operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. It also owns 100% interest in the Gramalote gold project in Colombia. In addition, the company has a portfolio of other evaluation and exploration assets in Mali and Finland.

Website:  https://www.b2gold.com/

Latest 10-K report: https://www.sec.gov/Archives/edgar/data/1429937/000106299325006466/exhibit99-1.htm

Additional Info:  https://s204.q4cdn.com/324791784/files/doc_financials/2024/q4/BTG-12-31-24-Exhibit-99-1-FINAL.pdf

Analyst Consensus: As per TipRanks Analytics, based on 10 Wall Street analysts offering 12-month price targets for BTG in the last 3 months, the stock has an average price target of $5.60, which is nearly 34% upside from current levels.

Potential Catalysts / Reasons for the Hype:

• Gold has hit record highs in 2025, driven by Fed rate cuts, central bank buying, and global uncertainties. This supports higher revenues for producers like B2Gold.
• Hedge Funds Increased Holdings by 694.9K Shares Last Quarter.
  

  Hedge Funds | Source: TipRanks.com

• The completion of the Fekola Solar Plant Phase 2 in March 2025 reduces fuel costs and emissions by 63,000 tonnes annually, enhancing efficiency.
• Gold enthusiasts and value investors see B2Gold as undervalued amid the rally, with a focus on its diversified assets and growth pipeline countering risks. Positives like Goose ramp-up completion and Fekola stability could drive Q4 results.

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.

#2 Price above MA: The stock is currently above its 200-day SMA, indicating that the bulls are already in control.

#3 Bullish Stoch:  The %K line of the stochastic is above the %D line, and has also moved higher from oversold levels, indicating possible bullishness.

#4 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.

#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 and 200-week SMA, indicating that the bulls are gaining control.

#6 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart as well, indicating possible bullishness.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, the ideal buy level for BTG is above the price of $4.25.

Target Prices: Our first target is $5.50. If it closes above that level, the second target price is $6.50.

Stop Loss: To limit risk, place a stop loss at $3.50. Note that the stop loss is on a closing basis.

Our target potential upside is 29% to 53%.

For a risk of $0.75, our first target reward is $1.25, and the second target reward is $2.25. 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:

1. The company has a history of net losses.
   

   BTG – Consolidated Statements of Operations

2. There is a general geopolitical risk in Mali. The Fekola Mine accounts for about 58% of production, but Mali’s government has pushed for higher royalties (from 20% to 35%), leading to disputes. While B2Gold’s operations remain unimpeded as of now, broader instability in the region (e.g., Barrick Gold’s warnings about potential suspensions) seems to be weighing on general investor sentiment.
3. Corporate Insiders placed Informative Sells of Shares Worth $5.1M in the Last 3 Months.
   

   Insiders | Source: TipRanks.com

4. Despite gold prices surging above $4,000–$4,300 per ounce in October 2025, gold mining stocks have faced corrections due to macroeconomic uncertainties, inflationary costs, and jurisdictional risks in regions like Mali and the Philippines.
5. The company executives are being paid significant compensation despite being a loss-making company.
   

   BTG – 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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