There hasn’t been much to get excited about so far in 2022. We are seeing a choppy market and a lack of multi-day runners. This is a trader’s market and not an investor’s.
Right now, one needs to be quick to take profits and go where the opportunities are. For us and our subscribers here at Insider Financial, that means trading both OTC and Nasdaq stocks.
There are plenty of opportunities for our subscribers in OTC, Nasdaq, and NYSE penny stocks with low floats, news, and a significant short position.
Smart investors know that if you want to make the big money off a small account, the place to be is in penny stocks. There are many good penny 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.
In this article, we take a look at 4 hot NASDAQ stocks that can do well in 2022. Two of them are Trump plays and one of them is a short squeeze candidate. They are CF Acquisition Corp. VI (NASDAQ: CFVI), Digital World Acquisition Corp (NASDAQ: DWAC), Reliance Global Group, Inc (NASDAQ: RELI), and Stran & Company, Inc (NASDAQ: STRN).
PENNY STOCKS #1 CFVI
CF Acquisition Corp. VI has been bullish since the end of last year, consolidating above the $10 mark, which is the standard starting price for most SPACs that get listed on stock exchanges. The share price of this NASDAQ stock is fluctuating near $12.20, up 5% over the month, which puts its market cap at over $470 million.
Investors have been paying attention to CFVI after discovering its plans to merge with Rumble, the Canadian video-sharing site seeking to go public via the SPAC. The company is regarded as a Trump play as it has attracted many conservatives thanks to its commitment to free speech, which is especially relevant when Big Tech doesn’t think twice before censoring certain information and voices that may go against the general consensus or the official take. Last month, Trump Media & Technology Group (TMTG) announced its partnership with Rumble, which will deliver video and streaming for Trump’s Truth Social as well as TMTG’s video service TMTG+.
Rumble continues to grow at a fast pace. It exploded after former President Donald Trump got kicked off social media, with the number of users surging from 2 million to more than 44 million as of today, while viewer engagement jumped 44 times during the same period.
UPDATE: Rumble Sets New Historic Highs for its Weekly Video Consumption & User Uploadshttps://t.co/BMRKX9oeqC
— Rumble (@rumblevideo) January 11, 2022
Last week, right-wing commentator Dan Bongino said that his Rumble channel reached the 2 million mark, twice as much as on YouTube. He said:
“The explosive growth in followers on Rumble has no parallel. We haven’t seen anything like it on other content platforms. The subs, the views and the hours-watched on Rumble speak for themselves. Rumble IS the future.”
Many investors have high expectations of the post-merger stock, especially given the success of DWAC, another Trump play that we’ll discuss below.
Last week, Rumble said it was gradually launching its own advertising system. Initially, a significant portion of its advertising inventory is being deployed through an early version of its advertising marketplace instead of public ad exchanges. Eventually, all ads on the platform will be served through Rumble’s own advertising system, which will be an alternative to the current advertising ecosystem by offering real-time bidding, extensive targeting, and the ability for publishers to participate and list their websites in the exchange.
CEO Chris Pavlovski said:
“Current exchanges are opaque, they don’t let advertisers choose where to advertise, and they are enormously susceptible to cancel culture pressure. We want to build a transparent advertising eco-system for creators, publishers, and advertisers that is immune to cancel culture.”
The merger with CFVI gives Rumble a valuation of over $2 billion. The deal will be completed in several months, and we think the share price is undervalued at this point. As more high-profile politicians and commentators will move to the site, as Senator Rand Paul did, Rumble is set to be come a true YouTube alternative.
— The Epoch Times (@EpochTimes) January 4, 2022
This is a great opportunity to get exposure early and benefit from potentially massive returns.
PENNY STOCKS #2 DWAC
Another Trump play is Digital World Acquisition Corp, a $2+ billion company that exploded at the end of last year. DWAC, a NASDAQ-listed SPAC, saw its price surging from about $10 in mid-October to a record high at over $170 a few days later. The price has corrected since then and bottomed out in late November near $40. Now you can buy DWAC stock for about $62, up 20% during the last five trading sessions.
The price surge came after DWAC announced in October that it would merge with TMTG.
The current bullishness comes amid fresh updates about the launch of Trump’s social media platform Truth Social, which is expected to go live on February 21.
— Titi Valk (@TitiValk) January 6, 2022
Truth Social will resemble both Twitter and Facebook, which previously banned Trump from their platforms. The app will provide features to follow other people and trending topics. Its message will be dubbed “truth”.
— Jake Long (@somewherenow) January 6, 2022
Last month, TMTG, which is valued at over $5 billion, raised an additional $1 billion from private investors, suggesting that supporters are confident that conservatives and the Republican political base can convert the post-merger company into a big success.
Last week, Republican Devin Nunes of California resigned after about 20 years in the House of Representatives. He said last month he would be CEO of the TMTG.
While the SEC is investigating TMTG and DWAC over alleged talks they had prior to DWAC raising money that violated SEC rules, TMTG will grow as many people are looking for information from alternative sources. The post-merger company is set to run as the Don gears up for another run at the White House in 2024.
PENNY STOCKS #3 RELI
Reliance Global Group, Inc has surged by over 200% over the last month despite the recent correction that saw its price declining from around $10 on January 5 to less than $6 on Friday. At the time of writing, you can buy the stock for $7.89 per share.
RELI engages in the acquisition and management of wholesale and retail insurance agencies in the US. It provides healthcare and Medicare, personal and commercial, trucking and transportation, and employee benefits insurance products.
Investors started to pay attention to RELI as they try to identify the next short squeeze candidate. Short squeezes like GameStop (NYSE: GME) have become popular lately, as retail investors pump their price to go against shorts.
RELI is heavily shorted at this point, with the short percent of the float being at 53%, up 269%, as per shortsqueeze.com data.
— Jeremy (@mehabecapital) January 8, 2022
Other sources put RELI’s short interest ratio at over 10%, which is significant anyway.
Shorts can easily lose control as RELI gets more visibility on social media, which can turn into a massive rally once they have to close their positions. They started to put pressure on RELI after it announced a private placement that put its stock price at $4.09.
On Tuesday, the $80+ million company announced that it had completed the acquisition of Medigap Health Insurance Company, which was first revealed last month. Medigap is an insurance brokerage company headquartered in Florida, specializing in Medicare supplement insurance. It generated revenue of about $7 million for the trailing twelve months ended September 30, 2021.
RELI CEO Ezra Beyman said:
“The acquisition of Medigap is a major milestone for the company as it immediately increases our revenues by approximately 70%, significantly expands our geographic footprint and broadens our capabilities within the Medicare supplement market. Medigap is one of the nation’s fastest growing providers of Medicare supplemental insurance coverage with licenses and doing business in 47 states. Our goal is to aggressively expand their operations, as well as capitalize on cross-selling opportunities across our existing portfolio companies.”
Total consideration for Medigap was $20.1 million, consisting of both cash and restricted common stock of RELI.
Considering the improving revenue figures expected this year, RELI can easily consolidate above $10 and squeeze the shorts.
$RELI Has moved to the #2 spot on the short squeeze list. There are currently 0 share available according to @fintel_io. The top row of data on @ORTEX is delayed by 2 days but shows this ticker is primed and ready to blow… But keep in mind MM and Hedgies know that too. pic.twitter.com/JiKb4mxqz2
— UncleSmokeyStockTrades (@SmokeyStock) January 11, 2022
PENNY STOCKS #4 STRN
Stran & Company, Inc is a new name among NASDAQ stocks, as it has been trading since November last year. The stock peaked last month at $7 and is now trading at 4.49%, up almost 8% on Tuesday.
STRN provides outsourced marketing solutions. It offers clients custom sourcing services and e-commerce solutions for promoting branded merchandise and other promotional products, managing promotional loyalty and incentives, print collateral and event assets, order and inventory management, designing and hosting online retail popup shops, fixed public retail online stores, and online business-to-business service offerings. It also provides creative and merchandising services, as well as warehousing/fulfillment and distribution, print-on-demand services, kitting services, point of sale displays, and loyalty and incentive programs.
Last week, the $87 million company said that it had secured a multi-year contract with a large healthcare company to provide incentive products and literature designed to help drive consumer health behaviors.
In December, STRN posted upbeat financials for the third quarter ended September. Its revenue increased 30.9% y/y to $10.9 million, while gross profit surged 72.0% to $3.7 million. The company has become profitable, securing a net income of $0.7 million versus a loss of $0.2 million in Q3 2020.
STRN has a healthy balance sheet and strong fundamentals, which makes it a great bet. Investors started to pay more attention to the stock after it was backed by trader Zack Morris, who has almost 600k followers on Twitter.
$STRN After this Moons I’ll be adding those profits into the rest of the index.
— Zack Morris (@MrZackMorris) January 10, 2022
If STRN manages to break above the $7 mark, it’s blue skies ahead.
THE FINAL NOTE
Now is a great opportunity to invest in top penny stocks with great potential. Our job is to identify the best penny stocks with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio.
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 penny 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.