While the past few days have been a sea of red for OTC investors, there have been a few runners. Three penny stocks on the move right now are BrewBilt MFG (OTCMKTS: BBRW), Ultrack Systems (OTCMKTS: MJLB), and Minerco (OTCMKTS: MINE).
In this article, we take a look at why these three penny stocks are running and what our outlook is for each.
HOW TO TRADE PENNY STOCKS
First up, it’s important to understand that trading penny stocks are not the same as trading blue chips. As we have stressed repeatedly to our subscribers, the key to trading penny stocks is finding momentum BEFORE it happens and then be patient.
Now, when we say that we find momentum BEFORE it happens, we are swing traders looking to position our subscribers BEFORE the move happens. This is where the big money is made and why so many of our subscribers are sitting on gains of over 8900% in ENZC and over 22,400% in TSNP.
If you want to day trade, this is not the place for you. If you want to make a few hundred bucks and then lose a thousand dollars the next day, we hear Tim Sykes has plenty of openings.
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Penny Stock #1: OTCMKTS: BBRW
There are a number of things to like about BBRW. BrewBilt is one of the only California companies that custom designs, hand crafts, and integrates processing, fermentation and distillation processing systems for the craft beer, cannabis and hemp industries using “Best in Class” American-made components integrated with stainless steel processing vessels using only American made steel.
California is where craft brewing began and now has over 900 operating breweries – being centrally located in this booming market was a large draw for BrewBilt to locate its manufacturing facility in the Sierra foothills.
Look at what the company is accomplishing. BBRW generated approximately $5M in new customer orders during the quarter ending June 30, 2020, with a sales target of $25M over the next 12 months, and opened new markets in Europe during QTR-III along with brewery and cannabis orders of an additional $2.5M.
In October, BBRW increased its share buyback from $1.5M to $5M. This is impressive when you consider the current market cap of BBRW is just $5.8 million.
In November, BBRW filed an 8-K today disclosing that it repurchased 70,025,000 common shares at a price of $.002 in value of $140,000. The shares have been returned to treasury. On November 13, 2020 the company filed its Form-10Q ending September 30, 2020 with approximately $1M in sales, up from $500,000 in 2019 for the same period; with more than $700,000 net profit up from $100,000 in 2019. The company is showing gains of 5X, while reducing liabilities in the amount of $100,000 compared to 2019.
Penny Stock #2: OTCMKTS: MJLB
MJLB is running after announcing that it is working with $25 billion telco TELUS Corporation (NYSE: TU). What’s even more impressive is that Telus is singing praises about working with MJLB. This will lead to many more deals with other big players. Telus is just the start after reading what Telus has said about MJLB.
TELUS wrote: “They [Ultrack Systems] prepared a phased approach to onboard new customers while converting their existing customers seamlessly over to the TELUS network. TELUS worked closely with Ultrack, focusing on developing systems and processes that took their multiple pricing plans and billing requirements, product roadmap, and hardware and software integrations into consideration.”
Telus is already talking about future plans.
TELUS wrote: “Future Expansion: With the pricing plans in place and a standardized process for new customer implementations, Ultrack has been able to focus on releasing their new hard-wired ELD device designed according to the Ministry of Transportation requirements and certified by their 3rd party certification organization. The device is the first of its kind and is available in the first quarter of 2021. The device will operate via the TELUS cellular network. It will conform to all Canadian regulations, including removing any risk of driver tampering by hard wiring the unit directly behind the vehicle’s dashboard. Files can be downloaded at any time and sent directly to the Ministry of Transportation, significantly streamlining compliance, data security, and reducing administrative processes by Ultrack’s back office team.”
MJLB is also a play on electric vehicles. MJLB has successfully integrated its tracking solutions into EV vehicles such as the BMW i8 and all Tesla models.
Dealership and leasing clients of Ultrack have increased their EV fleets inventory over the last 5 years and exclusively use MJLB’s tracking platform for their BMW i8 and Tesla models. Ultrack is preparing to expand further into the EV market in 2021 by updating our platform with specific features related to the EV sector.
Besides the recent news, we like the current structure of MJLB. The company has just $171k in total liabilities. Its current market cap is just $17 million on 350 million shares outstanding. If the company starts posting sales numbers, MJLB has plenty of room to run as there’s nothing but blue skies overhead. Just have a look at the 3-year chart.
Penny Stock #3: OTCMKTS: MINE
Lastly on today’s list is MINE. MINE is trading in the double zeroes and look at the 3-year chart.
What’s exciting about MINE is that it’s a play on two of the hottest sectors right now – psychedelics (magic mushrooms) and blockchain (Bitcoin).
MINE just announced that it is looking to raise up to $5 million via Regulation CF. This will allow MINE to:
- Acquire and Retire Toxic Debt to create a stronger and stable balance sheet.
- Acquire equipment needed to produce 1m psilocybin tablets daily to be sold to wholesale purchasers in Oregon, Vermont, domestically, and Jamaica, Amsterdam, Canada globally.
- Establish cash collateral reserves for MINE’S blockchain gateway and token SHRU. This cash collateral will springboard SHRU token onto the top Exchanges worldwide.
- Acquire and renovate properties for Production and lease in Oregon, Vermont, Jamaica.
MINE just got approval to launch its coin SHRU on 7 exchanges: Bitcratic, ForkDelta, EtherDelta, Bamboolay, SwitchDex, SaturnDex, and McAfee. These exchanges, with a tradeable volume of $400,000,000 daily, will give SHRU greater investment exposure.
MINE is also working with token developers to include SHRU on 5 more exchanges by the first quarter of 2021 and also launch its payment gateway. This gateway will allow dispensaries to accept Debit CARD purchases for psilocybin and cannabis that is still federally illegal.
MINE is in advanced discussions with CBD manufacturing white label company WLCCO for a potential acquisition. Through this acquisition, the company plans to advance its operations into the CBD/Psilocybin white label market and add $2,500,000 in revenues immediately to increase shareholder value.
In addition, Minerco will purchase manufacturing equipment to produce up to 1 million tablets of psilocybin microdots daily that will be sold in legal markets, plus a line of medical graded mushrooms sold nationwide.
Our only concern with MINE is that the company has $7.3 million in liabilities. The company needs to raise the $5 million and remove the toxic debt. If MINE can do this, MINE will be over a penny in no time.
These three penny stocks are bucking the trend right now. There are always opportunities on the OTC and it’s our job to find the bull markets. BBRW, MJLB, and MINE are in bull markets right now.
However, it’s important to keep in mind that penny stocks are volatile. Investors shouldn’t panic when markets sell-off. Sell-offs are inevitable. This has been a tremendous year for many penny stock investors and some want to lock in some profits before the New Year.
We also expect some selling come January when more investors book profits. Many, like us, do tax planning and we wait until the New Year to book gains for tax planning purposes.
Our best advice is to be patient and throw bids in below the market. Buying dips and selling rips as swing trades remains the best strategy in these markets.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.