The US stock market continues to gain momentum, with the main indices fluctuating at their all-time highs while the OTCQX Composite is getting closer to the highest since August.
The Federal Reserve said on Wednesday that it would start reversing its bond-buying programs this month and end them next year. This was a highly anticipated move and investors have already priced in the Fed’s decision, but the central bank could have delayed the tapering for December.
Ryan Detrick, chief market strategist at LPL Financial, told Reuters:
“The Fed did not rock the boat on this one. It was fairly well-telegraphed what the Fed might do and they did what most people expected.”
Stocks have been also boosted by the Fed’s somewhat dovish tone when it reiterated that the high inflation was transitory and thus it wouldn’t hurry with raising the interest rates.
Fed Chair Jerome Powell said during the press conference that it was likely that the job market may have improved enough by H2 2022 to be regarded at “maximum employment,” which will open the door to the next rate hikes.
Meanwhile, major companies continue to report better-than-expected earnings, and this bodes well for OTC stocks as well.
Some of the OTC stocks are showing even greater returns thanks to new trends like blockchain, DeFi, NFTs, and the metaverse, as we’ll discuss below.
OTC STOCKS THE PLACE TO BE
Smart investors know that if you want to make the big money off a small account, the place to be is the OTC Markets. There are many good OTC stocks that can boost your portfolio’s value in the long term. For investors, we preach the key to trading penny stocks is finding momentum BEFORE it happens and ahead of the crowd.
We alert our subscribers with our best ideas before our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here.
If you watch the Insider Financial YouTube channel, you can get a sense of the ideal time to book profits. We warned our subscribers not to get greedy or get caught up in the diamond hands/paper hands BS.
We also recommend you own a portfolio of penny stocks. For some, that can be as many as 10 to 20 or more OTC stocks. This provides diversification and allows one to manage the market’s moods much easier. It also helps to own shares in the following 4 hot OTC stocks.
In this article, we look at 4 OTC stocks that will greatly reward patient investors. They are Asia Broadband, Inc (OTCPK: AABB), Health Revenue Assurance Holdings, Inc (OTCPK: HRAA), The Metal Arts Company, Inc (OTCPK: MTRT), and Tokens.com Corp (OTCQB: SMURF) (NEO Exchange Canada: COIN) (Frankfurt Stock Exchange: 76M).
OTC STOCKS #1 AABB
Asia Broadband, Inc has managed to reverse a long-term downtrend after bottoming out in August. The share price has more than doubled during the last five trading days, consolidating above $0.17. On Tuesday, it almost hit $0.30 when it rose to the highest level since April, with volume figures showing similar trends.
The last time when we covered AABB, it was struggling to break above the resistance of the five-month bearish trend that slashed over 80% of its February valuation. As we expected, the OTC stock has managed to make a U-turn, and it’s now moving higher.
AABB is a resource company that produces and sells precious and base metals, primarily to Asian markets. The company relies on its specific geographic expertise, experience, and extensive industry contacts to facilitate its innovative distribution process from the production and supply of precious and base metals in Mexico to client sales networks in Asia.
Investors have been excited about AABB’s recently minted gold-backed cryptocurrency and the development of its proprietary crypto exchange.
Last week, it announced the imminent launch of its exchange platform to integrate with its AABB Wallet. The exchange, known as BCGateway, will support a growing number of cryptocurrencies. The platform now accepts and supports 82 cryptocurrencies to buy the AABBG token in the AABB Wallet. Trade pairs for exchange are also being created from this growing list of cryptocurrencies.
Additionally, all customer accounts have now been migrated to the BCGateway, which will increase the speed of the AABB Wallet navigation and transaction processing. The network has also become more robust with a larger capacity for increases in transaction volume. Generally, the BCGateway will stimulate transaction growth by allowing for reduced blockchain gas fees for all currencies and increases in the speed of deposits, withdrawals, and internal transactions.
On Wednesday, the company announced that it had established a corporate presence and satellite office in El Salvador to serve as its Central and South American operations hub in preparation for the upcoming exchange launch.
We see that AABB is moving in the right direction with its proprietary exchange, wallet, and token, which it expects to become a worldwide standard of exchange that is stable, secured, and trusted with gold backing, while having the added benefit of demand-based price appreciation. The token has a unique structure that we like – it has a floating price, but the minimum value should be no less than the current price of gold, which makes it a good hedge against inflation and a potential investment opportunity since it can appreciate on the upside.
With a great share structure that prevents dilution, this $70+ million business is definitely a buy.
— Thad Caltagirone (@Jude_11) November 1, 2021
OTC STOCKS #2 HRAA
Health Revenue Assurance Holdings, Inc has also been on the rise and is currently trading near its recent YTD high. The share price is now fluctuating near $0.038, up almost 80% during the last five days. At the end of September, the Pink Current stock broke above $0.50 for the first time in over 8 years.
We first reported on HRAA at the beginning of September, which you can read here. HRAA is up almost 2,000% year-to-date, which proves why penny stocks are worth trading. Subscribing to Insider Financial can open the door to a lot of great opportunities like these.
HRAA has been a David Lazar play. He is known for taking over shells and then identifying merger candidates that bring value to shareholders.
The stock started to surge after it reported a private transaction during which 10 million shares of HRAA Series A-1 preferred stock of $0.001 par value per share were transferred from Custodian Ventures, LLC to AmeriGuard Security Services, Inc, making the latter the majority shareholder.
AmeriGuard is a security company with over 500 employees and over $100 million annual revenue, with clients including corporate giants like General Electric and PG&E Company, as well as government agencies, including Federal Court House in San Francisco, Federal Aviation Administration Oakland ARTCC in Fremont, Homeland Security, and more.
With a market cap of only $20 million, this stock has much room for growth.
David Lazar has already been replaced by AmeriGuard CEO Lawrence Garcia as the new CEO and President of HRAA.
The company’s share structure leaves the door open for dilution, but AmeriGuard is too huge to consider this a major issue as of today. The stock price can easily go above $1 and even higher as AmeriGuard will likely uplist to NASDAQ.
If you want easy dollar $HRAA is the play. Reverse Merging with Ameriguard security Over 100m in revenues 500+ employees 30+ years in business. 1.85 PT would be a 1x revenue multiple
— Zack (@Fr3nchMontana) November 2, 2021
OTC STOCKS #3 MTRT
The Metal Arts Company, Inc continues to gain momentum and is ready to update its recent YTD high. The share price is now trading at $2.52, up about 200% over the month. MTRT hit a record high at over $5 in early September, then corrected to by bulling back below $1 and is now back on track again. It has shown an impressive rally in the August-September period, surging about 5,000%.
MTRT used to focus on contract electroless and electroplated nickel, aluminum anodizing, and other surface coating and enhancement operations but recently turned into a blockchain and crypto play.
With the Pink Current status fresh from the oven, the company has been engaged in a reverse merger with Medium Inc, a company incorporated under the laws of South Korea. A new board of directors of MTRT, consisting of Pan Jong Kim, Kiwoon Biak, and Yunho Chung, was appointed.
Medium is one of the largest blockchain companies in South Korea – the hub of blockchain.
Medium operates a blockchain platform called MDL (Medium Distributed Ledger). It’s based on Hyperledger Fabric and can process 2,000 transactions per second.
As we previously reported, Medium and China’s Peersafe partnered to build ASEAN’s largest trade finance platform. They will build and expand the China Trade Finance Union blockchain platform (CTFU) of the China Banking Association (CBA) as a Korea-China trade finance trading platform.
Medium is also working to form a consortium of the Bank of Korea to link Korea-China trade transactions worth 243.4 billion dollars (about 265 trillion won) per year and improve the cost structure of thousands and trillions of dollars that are excessively consumed in international trade transactions.
The Korean blockchain firm is also behind KOK Play, whose token has a market cap of over $300 million, as per Coinmarketcap data. Medium acquired KOK Play earlier this year.
KOK CEO, Jiwon Kang, explained that the project KOK PLAY was created to compete against Google, Apple, Netflix, and Youtube in the upcoming years, at least when it comes to the Asian region.
While Medium’s blockchain platform is free to use, the company wants to implement a business model similar to Red Hat, one of the most popular open-source solutions companies. Red Hat used to offer free enterprise open source products, but it charged businesses for further development or maintenance. It started to generate massive revenues and was acquired by IBM for over $34 billion.
Recently, investors got excited about an interview with Dr. Thomas Frey a leader of futurology and director at the ‘Da Vinci Institute’. Frey, now a technical adviser to Medium, stressed that he was a good friend with the Medium management and expected the company to thrive, especially after the merger with KOK Play.
$MTRT THIS IS HUGE!! I SMELL SOMETHING BIG IN THE MAKING, Dr. Frey commented on his relationship with MEDIUM, further emphasizing his faith in the MEDIUM team and how he looks forward to discovering new opportunities with them. https://t.co/HgEoxB3bDi pic.twitter.com/u6AxoTTYr7
— Ars617 (@redcardinal617) November 2, 2021
“Blockchain has become an important part of the world’s infrastructure. And the Medium team plays a very important role in this area,” he said.
Investors are also excited about KOK’s plan to tap into the metaverse, a buzzword that describes the upgrading of the Internet to a whole new level. The trend is so huge that Facebook rebrands to Meta to reflect this revolution.
Buying MTRT for only $2.5 is a great deal considering how much it can grow following the merger with Medium /KOK.
OTC STOCKS #4 SMURF
Tokens.com Corp is another blockchain play in this list, and it’s also exploring the Metaverse. The OTCQB stock has jumped over 120% since the beginning of October, currently trading at $1.30. SMURF peaked near $1.5 earlier this month, which is the highest level on record.
The $100 million company provides transaction processing and validation services for various digital assets that power Decentralized Finance (DeFi) applications and Non-Fungible Token (NFT) platforms.
DeFi and NFTs have been the fastest-growing trends within the crypto space during the last year. The total value locked (TVL) in DeFi protocols is now at a record high of over $106 billion, as per DeFi Pulse data.
Last month, Tokens.com announced that it had closed the acquisition of a 50% stake in Metaverse Group by issuing 2 million common shares at a price of CAD 0.84, making it one of the highest value equity investments ever in a specialized Metaverse real estate firm.
Metaverse Group is one of the world’s first virtual NFT based real estate companies and owns an extensive portfolio of virtual NFT real estate properties in major blockchain-based Metaverses including Decentraland, Somnium Space, The Sandbox, Cryptovoxels, and Upland. Metaverse Group operates additional services including virtual property development, property management, and assisting companies with marketing and advertising in the Metaverse.
SMURF CEO Andrew Kiguel said:
“The Metaverse is a game-changer for how advertisers and brands market their products. Physical and virtual real estate are extremely similar. As more people congregate in these virtual cities, the land becomes more sought after for its ability to reach a new global demographic. Brands like Adidas and Gucci are discovering this, as are artists like Snoop Dogg and Ariana Grande.”
For those unfamiliar, a metaverse is a 3D online city where people can work, play games and communicate in a virtual environment. Tech firms have implemented metaverse elements in popular games including Animal Crossing, Fortnite, and Roblox.
Do you want to learn more about the #metaverse? Visit the https://t.co/Sy7NgzO4mv website and hit the Metaverse tab in the header to view our library of great articles for investors to learn more about the metaverse! https://t.co/VzgHviZ2Ol $COIN.n $SMURF pic.twitter.com/7HQltzzu9P
— Tokens.com (@tokens_com) November 2, 2021
Besides Facebook, which plans to become a metaverse company, Microsoft has also embraced the metaverse as the convergence of the virtual and physical world which has only been accelerated with the pandemic.
Last week, Tokens.com said it had increased its previously announced private placement led by Stifel GMP on behalf of a syndicate of agents, including PowerOne Capital Markets Ltd, Canaccord Genuity Corp., Eventus Capital Corp., M Partners Inc., and Richardson Wealth Limited, where it will offer shares at a price of $0.90 for aggregate gross proceeds of $12.0 million. The proceeds will be used for making investments in cryptocurrencies to be used for staking, investments in its 50% subsidiary, Metaverse Group Ltd., and for working capital and general corporate purposes.
We think SMURF is the real deal. Recently covered by Forbes, the company is getting more and more attention from retail and institutional investors, especially amid the general excitement about innovative trends like DeFi, NFTs, and the Metaverse.
THE FINAL NOTE
All of the 4 OTC 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 penny stock market. Still, whenever a penny stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye the best OTC 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 penny stocks to succeed 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.