If the first week of 2021 is the sign of things to come this year, traders and investors are going to make a lot of money. 4 NASDAQ stocks that really lit up the first week of 2021 were Ideanomics (NASDAQ: IDEX), Jaguar Health (NASDAQ: JAGX), Marathon Patent Group (NASDAQ: MARA), and Riot Blockchain (NASDAQ: RIOT).
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.
We got our subscribers in early on TSNP, which you can read our latest here, and ENZC, which you can read about here. It’s also best to own a portfolio of quality penny stocks. For some that can be as many as 10 to 20 or more penny stocks.
Now, when we say that we find momentum BEFORE it happens, we are investors 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 7750% in ENZC and over 18,650% in TSNP.
We always alert our subscribers first before we publish for our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here. We alert our subscribers with our best ideas before our regular readers.
Now we know many prefer to day trade, but we are not day traders here at Insider Financial. It doesn’t suit our personality and we don’t like the intraday moves markets make. We have found we made more money being patient and ignoring the day to day noise of the markets.
If you want to day trade, Insider Financial is not the place for you. When it comes to day trading, and if that’s what you are after, we recommend the folks at True Trading Group, which you can check out their live streams here.
OTC PENNY STOCKS VS NASDAQ PENNY STOCKS
The fact is that there is always a bull market somewhere. That’s why it’s important for penny stock investors to trade both OTC and NASDAQ/NYSE penny stocks. There are always opportunities if you give yourself the flexibility to trade all markets.
Last year, for the first half of 2020, it was much more profitable to trade NASDAQ penny stocks than OTC. That is where we and our subscribers were positioned. We captured the runs in SRNE, NIO, INO, IBIO, WHKS, and many others. Then once the summer came, many of the COVID runners had failed to find momentum. We then pivoted to OTC and caught the runs in TSNP, ENZC, MMEDF, and many others.
So far this year, it’s best to play both OTC and NASDAQ. With Bitcoin running, we are seeing crypto plays making huge moves. With Joe Biden coming into the White House and Democrats taking control of the Senate, we are seeing cannabis and green energy plays catching bids.
In this article, we take a look at NASDAQ stocks IDEX, JAGX, MARA, and RIOT to find out what’s behind the move and our outlook for each.
NASDAQ Stock #1: IDEX
The last time we wrote up IDEX, we sparked a rally from $1.54 to $4.75 back in November, which you can read here.
Two months prior, when IDEX was trading at just $.84 and which you can read here, we said that IDEX most undervalued EV player on the planet. With a current market cap of just $742 million, IDEX still looks to be the most undervalued EV player on the NASDAQ, especially when you consider that Nikola still has a $7 billion market cap and is nothing more than a business plan.
Here are just a few reasons to be bullish on IDEX:
- IDEX just acquired WAVE. WAVE is a provider of inductive charging solutions for medium and heavy-duty electric vehicles. The company’s customers include the largest EV bus system in the U.S., the Antelope Valley Transit Authority, and its partnerships include Kenworth, Gillig, BYD, Complete Coach Works. All the EVs on the road are going to need charging. With WAVE doing about $7 million in revenues last year, there is a long runway for growth.
- IDEX just acquired 100% of privately held Timios Holdings Corp. in an all-cash deal. Timios currently has 285 employees and operations in 44 states and has booked over $60 million in YTD revenues, including over $8 million in October 2020.
- Ideanomics increased its stake in California-based Solectrac thereby taking total ownership to 24%; post-money once the additional third-party investment is finalized stake will reduce to ~22% With this investment in Solectrac, Ideanomics expands its global footprint in the electric vehicle (EV) industry, specifically in the category of specialty commercial vehicles.
- Ideanomics’ Mobile Energy Global (MEG) division and its contracting entity Qingdao Chengyang Medici have signed an agreement with Meihao Chuxing, a JV between BYD and Didi, for purchasing an initial 2K units of model BYD D1. BYD D1 is the world’s first custom-built, all-electric car specifically for ride-hailing with smart technology, safety, and comfort features for both drivers and passengers.
- Mobile Energy Global (MEG) delivered a total of 151 vehicle units in November, all of which were units for the taxi/ride-hailing business segment. The company had 205 units invoiced (pending expected delivery) from July through November.
- Ideanomics owns 51% of Treeletrik, a Malaysian-based EV manufacturer whose business is primarily in logistic vans, mopeds, and scooters. As the China EV market matures, its manufacturers will face oversupply issues. This is where Treeletrik comes in.
- The company’s Medici Motor Works division is set to unveil 6 new electric vehicles.
- With the Timios and WAVE acquisitions and momentum in MEG growth, revenues should be on the low-end $140 million to as high as $200 million in 2021.
- 16% of the float is short. The shorts have bet $100 million that IDEX stock is going to drop. Just like how Elon Musk squeezed the shorts in Tesla, we expect CEO Alf Poor to do the same to IDEX shorts.
- We see IDEX taking one or more of its EV divisions public via IPO or SPAC. This makes a lot of sense as there are two divisions – electric vehicles and fintech. At current levels, both divisions are tremendously undervalued.
NASDAQ Stock #2: JAGX
Last week, JAGX announced that the 28-day preclinical toxicology and safety study in dogs began on January 6, 2021, to support the development of lechlemer, the second generation, plant-based anti-secretory drug candidate of Napo Pharmaceuticals, Jaguar’s wholly-owned subsidiary, for the symptomatic relief of diarrhea from cholera.
The Company believes that lechlemer, which has the same mechanism of action as crofelemer and is significantly less costly to produce, may support development efforts to receive a priority review voucher from the FDA for an indication for the symptomatic relief of diarrhea from cholera.
Priority review vouchers are granted by the FDA as an incentive to develop treatments for neglected diseases and rare pediatric diseases. Priority review vouchers are transferable and, in past transactions by other companies, have sold for prices ranging from $67 million to $350 million.
Additionally, the Company believes lechlemer represents a long-term pipeline opportunity as a second-generation anti-secretory agent, on a global basis, for multiple gastrointestinal diseases – especially in resource-constrained countries, in part, because requirements often exist in such regions for drug prices to decrease annually.
Jaguar Health is also in preliminary discussions with Swiss Growth Forum, a sponsor of a European SPAC for its potential merger with the company’s operational subsidiary to be established in Europe with an exclusive license to crofelemer and Mytesi for the indications of inflammatory diarrhea and HIV-related diarrhea.
JAGX has a current market cap of $362 million.
NASDAQ Stocks #3 and #4: MARA and RIOT
We are going to discuss MARA and RIOT together because they are running for the exact same reason – BITCOIN! We said back in August that MARA was heading higher, which you can read here when it was still considered a penny stock.
We said that there was still a lot more room for MARA stock to run, especially when you look at the last Bitcoin bull run when MARA stock hit $40 a share. Our bullish reasons at the time were as follows:
- Its current market cap was only $82 million.
- Marathon just raised almost $7 million in July. The company did not need to raise any more capital.
- We believed Bitcoin was heading higher. That would drive MARA stock higher as it’s a pure-play on Bitcoin.
- Robinhooders could not buy OTC stocks like GBTC and BTCS on the Robinhood platform.
- New buying would force the shorts to cover and further drive the price higher.
- If you look at where MARA stock traded at in the last Bitcoin bull run ($40), there was a lot more upside to be had.
We said the same about RIOT in August as well, which you can read here. RIOT was trading at just $4 at the time. The bull case for RIOT remained the same as MARA, another pure-play Bitcoin miner trading on the NASDAQ.
We expect both MARA and RIOT to keep heading higher as the Bitcoin bull run shows no signs of slowing down. 17% of the float in MARA is short and 21% of the float in RIOT is short. Look for the shorts to keep getting squeezed.
These 4 NASDAQ stocks are hot right now. There are always opportunities in penny stocks and it’s our job to find the bull markets. Huge gains can be made in such a short amount of time.
For those that missed out on the recent run in these 4 NASDAQ stocks, 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.
Remember, all it takes is one or two to become an IDEX, JAGX, MARA, or RIOT and you’ve crushed the market indexes for the year. Whoever said to avoid penny stocks has no clue what they’re doing.
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.