Despite the correction of stock indexes amid rising inflation, there are many penny stocks that defy the general bearishness and continue to expand their market cap.
On Friday, Labor Department data showed that US producer prices rose last month more than expected, leading to the biggest annual gain in over a decade. The pandemic continues to put pressure on supply chains, and high inflation might persist for a while.
Will Compernolle, a senior economist at FHN Financial, told Reuters:
“Supply chain bottlenecks have persisted longer and more intensely than most predicted at the beginning of this year, and widespread labor shortages are among the main input issues producers are dealing with. This means consumer price inflation should remain elevated for a while.”
The producer price index (PPI) rose 0.7% in August after two consecutive monthly increases of 1.0%. The growth was led by a 0.7% increase in services following a 1.1% spike in July. In the 12 months through August, the PPI accelerated 8.3%, which is the biggest y/y increase since November 2010.
Inflation data put pressure on stock markets, with NASDAQ and OTCQX Composite declining by about 1%. However, the general picture is still favorable for stocks, with both indexes fluctuating near their record highs for the last few weeks. This is a great time to identify the best penny stocks 2021, and that’s what we do here at Insider Financial.
FINDING OPPORTUNITIES IN PENNY STOCKS
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The key to trading stocks is finding the momentum BEFORE it happens and then be patient. Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens.
It’s also best to own a portfolio of hot stocks. For some that can be as many as 10 to 20 or more hot stocks that include both OTC stocks and NASDAQ penny stocks.
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The fact is that there is always a bull market somewhere. That’s why it’s important for investors to trade both OTC and NASDAQ stocks, and sometimes get exposure to larger companies that still seem to have massive growth potential. There are always opportunities if you give yourself the flexibility to trade all markets.
In this article, we take a look at 4 best penny stocks 2021, one of which is listed on NASDAQ and another one on NYSE American. They are Camber Energy, Inc (NYSE American: CEI), DSG Global Inc (OTCQB: DSGT), Enveric Biosciences Inc (NASDAQ: ENVB), and ILUS International Inc (OTCPK: ILUS).
Best Penny Stocks 2021 #1 CEI
Camber Energy, Inc is on the rise, and its momentum doesn’t seem to fade away despite the general bearishness in the stock markets. CEI has gained 118% during the last five days and over 222% over the last month, after bottoming out on August 20 when it touched the lowest level in a year. The share price of the NYSE American-listed company is currently fluctuating just above $1.50.
The last time when we covered CEI, you could buy it for 50 cents. Our goal is to anticipate the bullish momentum before it gains traction, and this is why our subscribers manage to secure generous profits.
We first mentioned CEI in September 2020, when the penny stock also traded at about $0.5. Eventually, the price hit a YTD high at over $2 in February, making many of our subscribers and big winners.
Following a long-term correction, CEI is ready for another bull run, especially after it recently broke above the downtrend’s resistance.
CEI is engaged in the acquisition, development, and sale of crude oil, natural gas, and natural gas liquids (NGL) in the Cline shale and upper Wolfberry shale in Glasscock County, Texas. As of March 31, 2020, its total estimated proved reserves were 133,442 million barrels of oil equivalent, comprising 54,850 barrels of crude oil reserves, 43,955 barrels of NGL reserves, and 207,823 million cubic feet of natural gas reserves. Based in Houston, CEI’s management team is committed to building a platform for growth and the development of its proven oil reserves while continuing its focus on operating efficiencies and cost control.
At the end of August, CEI announced that its majority-owned subsidiary, Viking Energy Group, Inc., entered into an Exclusive Intellectual Property License Agreement with ESG Clean Energy, LLC (ESG) regarding ESG’s patent rights and know-how related to stationary electric power generation, including methods to utilize heat and capture carbon dioxide. The license is exclusive for all of Canada and non-exclusive for up to twenty-five locations in the US.
The ESG Clean Energy System is designed to generate clean electricity from internal combustion engines and utilize waste heat to capture ⁓ 100% of the CO2 emitted from the engine without loss of efficiency, and in a manner to facilitate the production of precious commodities (e.g., distilled/de-ionized water; UREA (NH4); ammonia (NH3); ethanol; and methanol) for sale.
This is already great news for CEI, but it also benefits from external factors, as oil prices have recovered and trade at their monthly peaks, with WTI fluctuating near $70. However, what makes us even more confident about CEI’s near-term potential is the surging price of natural gas, which continues to ascend and is trading at the highest level since 2018 near $5.
Natural gas is expected to keep rising in the coming months, and if there is a cold winter, Goldman Sachs analysts anticipate another doubling of price after the commodity surged about 100% YTD.
Add to that that CEI has a healthy balance sheet and innovative technologies, and you get one of the best penny stock picks to get exposure to.
Best Penny Stocks 2021 #2 DSGT
DSG Global Inc is another penny stock our readers may be familiar with. This EV play has more than doubled in price since last week and is up over 60% over the month. Now you can buy DSGT for $0.28, although the price started the year at the $1 mark, so there is much room for growth. We wrote about this OCTQB penny stock in October last year, when DSGT was trading at only $0.15 before running to $1.50 a share.
DSGT is a Software-as-a-Service (SaaS) company operating in the IT industry as well as an electric vehicle distributor and brand management. Its wholly-owned subsidiary Vantage Tag Systems, Inc provides electronic tracking systems, fleet management solutions, mobile digital data, and a new lineup of Vantage Golf products. In fact, the company has historically focused on the golf industry, where golf course operators manage their fleet of golf carts, turf equipment, and utility vehicles remotely using DSGT’s SaaS technology. With the new look and technology change, Vantage Tag Systems has expanded into numerous other opportunities.
However, we’re more interested in DSGT’s second wholly own subsidiary known as Imperium Motor Corp – which distributes a wide variety of low-, mid-and high-speed electric vehicles including cars, trucks, vans, scooters, and more. The company has already decades of EV experience in golf, including the distribution of highly advanced carts.
In 2019, DSGT secured exclusive US distribution rights for Jonway (Zhejiang Jonway Automobile Co.) EVs. Jonway began manufacturing vehicles in 2003 and today produces three and five-door electric SUVs. Jonway vehicles are exported to more than 80 countries and comply with all US safety and environmental standards. Besides this, another large distribution agreement was established with Skywell (Skywell New Energy Automobile Group Co. Ltd.), which produces electric passenger cars and buses.
Earlier this week, Imperium announced that it would reveal the initial dealerships that will carry its inventory.
Imperium Canada President Christian Dubois said:
“The company has received over twenty-six formal requests in Canada with further inquiries coming in from the USA with great demand for dealer applications representing the top EV markets from coast to coast. We are extremely pleased with the quality of candidates and the facilities being offered by potential partners. With each applicant’s supplied budget suggesting an average of over 300 Imperium Motor vehicles sold per year.”
Rick Curtis, CEO of Imperium Motors, stated:
“It is exciting to see strong interest from consumers, dealers and member of the media. Our team has put in a lot of work, and this will start to pay dividends as we expect production and deliveries to begin next quarter.”
Note that the Imperium Motor business hasn’t even managed to generate significant revenue and profits, and DSGT can quickly because a valuable stock.
In November, California Mobility Works and Imperium Motors will host the unveiling of the Sagitta EV at the LA Auto Show. The three-wheel, four passengers EV model will impress the automotive world with its innovative styling and superb engineering.
We believe DSGT is undervalued and that it will start to expand its market cap once it increases sales in the second half of this year and in 2022.
I went to the $DSGT grand opening to see their products and meet the team in person. You can see me in the YouTube video on their website. I flew to California to see where my $750,000.00+ investment is doing. I'm looking forward to the near and long-term gains. pic.twitter.com/IQaMz6UueN
— Brian Desmot 🦈 (@BDesmot) September 10, 2021
Best Penny Stocks 2021 #3 ENVB
Enveric Biosciences Inc is a NASDAQ-listed penny stock that we covered quite recently, and the price has managed to gain over 40% since then. ENVB is now trading at $3.45, up 80% for the month, touching the highest level since mid-March. The bull run came after the penny stock bounced back from the lowest level since December 2020.
The $70+ million company develops various cannabinoid medicines for cancer care. It has a pipeline of development programs for radiodermatitis, glioblastoma multiforme, pruritus, rashes, and dry skin, and chemotherapy-induced neuropathy.
The current bullish run has been driven by the ongoing acquisition of MagicMed Industries Inc, which was announced earlier this year. In May, ENVB confirmed the definitive agreement of the acquisition of the privately-held biotech firm that creates a library of novel derivative psychedelic molecules such as psilocybin, N, N-dimethyltryptamine (DMT), and other molecular derivatives with applications across multiple indications.
MagicMed’s library, known as Psybrary™, includes novel psychedelic derivatives developed through the combination of synthetic biology and traditional chemistry techniques. MagicMed has 13 patent applications filed for derivatives of psilocybin and DMT, 2 patent applications filed for derivatives of mescaline and MDMA with further intellectual property protection for mescaline, MDMA, ibogaine, and LSD in process.
Enveric said that the acquisition will expand and complement its current pipeline of naturally occurring compounds, which is primarily focused on cannabinoids, to now include a robust portfolio of psychedelic-derived molecules. Upon closing of the acquisition, Enveric intends to commence drug discovery and development for the treatment of cancer-related Post Traumatic Stress Disorder (PTSD) patients who are currently in treatment for cancer and those who are in remission.
Investors expect the stockholder meeting scheduled for September 13, when the closing of the transaction with MagicMed will be announced.
Last month, ENVB CEO David Johnson said that the company had a strong balance sheet of about $20 million in cash, no debt, and an efficient capital table. This emerging next-gen neuroscience platform is a great penny stock for the long run.
Best Penny Stocks 2021 #4 ILUS
ILUS International Inc is a Pink Current stock that has managed to break about the resistance of a bearish trend at the end of August and lay the foundation of what may become a long-term bull run that could send the price to the $1 mark and then higher. At the time of writing, you can buy ILUS for $0.155 per share, up 287% over the last month. The penny stock is currently trading at the highest since mid-March and is now not very far from the YTD high at $0.17.
ILUS has already gained over 15,000% YTD after restructuring its business and receiving the Pink Current status. Formerly known as Ilustrato Pictures International, Inc, the company used to produce feature theatrical films for international release. At the beginning of the year, it turned into an M&A firm that acquires and grows companies operating in the technology, engineering, and manufacturing sectors globally. ILUS has evolved out the industrial sector mainly from Emergency Services products, Emergency Response vehicles, Vehicle conversions, EVs, Wearable tech & Smart Tech. It looks to acquire companies that have strong management and potential to grow rapidly and benefit from cross-pollination of territories, products, and skills from other group companies. ILUS is usually acquiring businesses with revenue in the $1 million to $5 million range.
After conducting two acquisitions in the first quarter when buying FireBug and The Vehicle Converters, the company focused on more candidates in the three months to June. In mid-April, it acquired BCD Fire, a fixed fire systems integrator headquartered in Dubai, UAE. At the time, ILUS said that it was in discussions with five further acquisition targets, four of which are in the US and one in Europe.
BCD Fire and other subsidiaries of ILUS have already managed to secure major contracts with governments and the private sector in several countries, and you can read more details about the recent contract in Dubai in our previous ILUS post.
To focus on business growth, ILUS appointed internationally experienced Sales Director, Jason Bolze, at the end of August. During the last few weeks, it also hired a new Finance Director, EV Engineer, Senior Product Manager, and Global Marketing Director.
ILUS has a great share structure and has turned into a $190 million company that continues to grow rapidly. In fact, only a few months after getting the Pink Current status, the management feels that the OTC tag is not right for ILUS anymore, with the company having ambitions for NASDAQ.
$ILUS Director JP states he doesn’t feel OTC tag is right for us.
We want NASDAQ! We’ll achieve this eventually with organic Q2Q revenue growth, along with (10) innovative & profitable acquisitions that bring real value to $ILUS shareholders. pic.twitter.com/9B1ewNrIH0
— Torah (@TorahTrading) September 8, 2021
We stick to our bullish stance on ILUS, and it’s still a great time to invest in this fast-growing company. It quickly wins a lot of contracts and plans new acquisitions. It will soon be serving US firefighters with a wide range of equipment for wildland firefighting, technical rescue, incident management, and more.
$ILUS will soon be serving US firefighters with a complete range of equipment for wildland firefighting, technical rescue, HazMat requirements, incident management and much more. #growth #acquisitions #ILUS #IlusArmy pic.twitter.com/qrVpyKe71q
— ILUS International Inc (@OTC_ILUS) August 26, 2021
Also, ILUS merchandise will soon be available for sale online.
The company said that it would release a big announcement soon, so be ready for the continuation of the rally.
— ILUS International Inc (@OTC_ILUS) September 10, 2021
THE FINAL NOTE
Now is a great opportunity to invest in hot stocks with the Fed continuing to pump money into the economy. Our job is to identify the best stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
The 4 best penny stocks discussed today are on the rise and are good stocks to hold. Nevertheless, our best advice is to be patient and enter the market during corrections. Buying dips and selling rips as swing trades remains the best strategy in the stock market. Still, whenever a hot stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye penny stocks that have room for growth and have yet to make their explosive move. There are plenty of opportunities, and we take our time to monitor hundreds of penny stocks to buy each week, trying to find the best alerts for our subscribers.
Remember, all you need is one or two hot stocks to run in order to crush the market averages.
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.