The OTC bear market continues; however, this too shall pass. We’ve been here before and will be here again. Markets go in cycles and OTC stocks aren’t immune. Matter of fact, the OTC probably sees more bull and bear markets in a year than any other market.
But even in a bear market, there are still opportunities. In this article, we look at 4 hot OTC stocks that are defying the current bear market, three of which are related to crypto or NFTs. The hot OTC stocks are Axis Technologies Group, Inc (OTCPK: AXTG), DeFi Technologies Inc (OTCPK: DEFTF) (NEO: DEFI) (GR: RMJR), Nitches Inc (OTCPK: NICH), and Progressive Care, Inc (OTCQB: RXMD).
OTC STOCKS #1 AXTG
Axis Technologies Group, Inc had a great week, gaining about 6% since Monday. However, the Pink Current stock has been moving horizontally during the last six months, finding strong support near $0.015. The stock is now trading above three pennies, which is relatively the same level where we found it in July.
AXTG is a holding company that promotes decentralized finance (DeFi) business. The company supports and develops companies involved with blockchain and DeFi projects.
As we reported last year, AXTG had passed through a major restructuring to adopt the new business direction. AXTG managed to obtain the Pink Current status at the beginning of the summer. It has managed to get rid of the shell symbol as it had purchased TienChat Pte Ltd and T8 Exchange Pty Ltd, which are operating entities. The entities generated revenue in the second half of last year.
Blockchain is one of the leading technologies of the fourth industrial revolution, while DeFi turns out to be the most important use case, as it pledges to transform financial services from the core. Bank of America (BoA) and ING have independently concluded that DeFi was more disruptive potential than Bitcoin itself.
TiENCHAT is a Singapore company that has designed, developed, and built a global social software program that relies on blockchain to create borderless global access in ‘multilingual social networking + cross-border payment + digital currency transactions’. The company was founded by William Tien.
The other subsidiary, T8 Exchange, is run by an Australian company that owns the T8EX and Trams Dex application, a decentralized exchange (DEX) platform that enables existing TiENCHAT users to trade, swap, and use cryptocurrencies as payment inside the application. Besides this, T8 Exchange developed ETHFUND, a decentralized NFT minting, swap, listing, and exchange platform that enable existing TiENCHAT users to trade, swap, and utilize NFTs (non-fungible tokens) as a form of payment inside the platform.
At the end of August, AXTG announced that TiENCHAT would engage in cryptocurrency mining, focusing on Ethereum.
Earlier this year, the company officially launched TiENWORLD, an Ethereum-based virtual reality platform where users can create play-to-earn (P2E) content and applications. The metaverse ecosystem has its own token called NATI. The private sale of NATI launches on February 9.
— TIENWORLD.ETH (@TiENWORLD2021) February 5, 2022
AXTG is trying to leverage the most innovative technologies that are making these days – think about blockchain, DeFi, NFTs, metaverse, and P2E games. It is moving in the right direction, as it focuses on DeFi and NFTs. With a market cap of only $9+ million, this OTC has much room for growth as it starts to generate revenue, especially given that it has a decent share structure.
OTC STOCKS #2 DEFTF
DeFi Technologies Inc has had a great start to the month, recovering some of the previous losses. DEFTF is much bigger than most companies in the Pink Current group, with about $400 million, which is why the price fluctuations are moderate. At the time of writing, you can buy DEFTF stock for $1.91 per share, up 20% over the month. The price broke above $3 in November for the first time in over a decade, and the bullish momentum on larger timeframes is maintaining despite the correction.
DEFTF is a tech company that focuses on decentralized finance (DeFi), one of the most important sectors of the cryptocurrency industry. ING and Bank of America have separately concluded that DeFi was more disruptive than Bitcoin itself, which may the uninitiated ones realize how big it is. For those unfamiliar, the DeFi movement is promoting all kinds of financial services built on blockchain infrastructures so that no middlemen can control the transactions.
The OTC stock bottomed out at the end of January at $1.1, the lowest since August. The rebound started when DEFTF released a series of announcements reflecting its ambitions. On January 25, it said that it had invested CHF 25 million ($27 million) in SEBA Bank AG, a fully integrated FINMA licensed digital assets banking platform. The next day, DEFTF announced that it was about to be added to CoinShares Blockchain Global Equity Index administered by Solactive AG. The index tracks public companies involved with blockchain and crypto and includes popular names like Microstrategy, Galaxy Digital, and Hive.
Earlier this month, DEFTF announced that Valour Inc, its subsidiary focused on digital asset exchange-traded products (ETPs), got the green light to start trading its Solana ETP on the Boerse Frankfurt Zertifikate AG. Trading of Valour Solana ETP started on February 2. The ETP allows investors to gain exposure to SOL, the native cryptocurrency in the Solana and the eight largest digital coin by market cap.
DEFTF CEO Russell Starr said:
“We also look forward to introducing several new products in the coming days, and ultimately launching all our products on the Euronext exchange, the fourth largest exchange in the world.”
Meanwhile, Valour applied for a Swiss VQF membership through its Switzerland-based entity DeFi Europe AG. The VQF membership is awarded by the Financial Services Standards Association, a self-regulatory association for the financial industry supervised by the country’s official watchdog, the Swiss Financial Market Supervisory Authority (FINMA). Once approved, DeFi Europe will be operating as a broker for digital assets, fully compliant with Swiss anti-money laundering legislation, and will enable the company to offer access and liquidity in digital assets. DeFi Europe CEO Valour Tommy Fransson commented:
“We are fully supporting and embracing a more regulated environment for investments, specifically in digital assets. Admission as a member of the VQF will further our mission to bridge traditional capital markets and the new digital era with a focus on transparency and investor utility.”
— DeFi Technologies (@DeFi_NEO) February 2, 2022
DEFTF has some great and diverse products for the DeFi space, including ETPs and DeFi ventures. The way it operates is quite unique, meaning that it has no real competitors. While the company is still not profitable at the moment, it has a healthy balance sheet and is expanding rapidly across various DeFi protocols. This might not be a penny stock for much longer.
OTC STOCKS #3 NICH
Nitches Inc has exploded this year, surging about 500% since the beginning of January to trade at the highest in over a decade. The price skyrocketed from about six pennies on January 21 to the current level of $0.60, peaking on Monday at $0.66. The market cap figure has broken above $100 million and now hovers above $130 million.
NICH specializes in creating merchandise, manufacturing high-end luxury brands, goods, and collectibles for influencers and celebrities. It is focused on sports clothing, athleisure brands, sustainable products, non-fungible tokens (NFTs), and technology.
Besides its merchandise and manufacturing business, Nitches is partnering with brands that are innovating outside of the box.
The price started to explode after investors found out about NICH’s involvement with blockchain and NFTs.
Last month, the company announced that it was launching its Owner Verification System (OVS), which is in the patent application process. The system is used to prove the authenticity of the company’s high-end capsule collections that are created with influencers and celebrities. Investors showed increased interest in the OVS since it leverages blockchain and NFTs, which represent the fastest-growing trend. While NICH will use OVS for its products, it plans to make it available to other businesses that want to protect their merchandise from counterfeiting.
Our Owner Verification System Proves authenticity and ownership of our #influencers capsule lines, thus counteracting the counterfeiting and protecting the #NIL of #celebrities and #influencers#nft #blockchain #merchandise pic.twitter.com/ErGKW9C1Qw
— Nitches (@nitchescorp) January 27, 2022
The system works like this: the company sews a unique QR code into every item it manufactures. Buyers can scan these codes to register their products with a phone number and/or email address on Nitches’ proprietary mobile app, available both on iOS and Android, to verify ownership and originality.
NICH CEO John Morgan explained:
“Because we are working with celebrities and our collections only include 200 – 300 select clothing items, it was paramount that we safeguard our intellectual property and luxury brand. We believe our verification technology will be a game-changer for other companies worried about counterfeit products in industries from fashion to sports equipment to home furnishing.”
After the QR code is canned, the OVS stores the data on blockchain. NICH said that blockchain-based metaverse environments would also enable it to protect the NFTs of its clothing items in the digital world, leading to increased interactivity and more secure ownership.
Earlier this week, the company said that it had started testing its OVS ahead of schedule. Testers will use different devices to comprehensively test the app, ensuring it achieves optimal performance and user satisfaction. The OVS mobile app is targeted for completion next month.
Besides the app itself, Nitches also designed application programming interfaces (APIs) for the web store, including product listings, order creation, user creation, one-time password (OTP) verification, NFT transfers and more. The company is collaborating with NFT artists to create integrated digital designs for its luxury streetwear items that can be transferred to buyers.
Nitches OVS features 10 easy steps to validate the authenticity of products purchased and obtain NFTs for use in the metaverse.
NITCHES Game-Changing Ownership Verification System (OVS) Technology to Protect Clothing from Counterfeiting and Prove Authenticity. Nitches OVS proprietary mobile app to verify ownership and originality.#NFT #celebrity #blockchain #Influencer $NICH #NICH pic.twitter.com/hmEpUxrvfe
— Nitches (@nitchescorp) February 1, 2022
NICH will monetize its approach by patenting it and giving it to other businesses. This OTC stock has some great potential, with the share price soon to be expressed in dollars. We expect NICH to continue making new highs.
OTC STOCKS #4 RXMD
Progressive Care, Inc is the only OTCQB stock on this list, but it’s smaller compared to NICH and DEFTF. The $30 million company saw its price gaining about 80% over the month, touching the highest level since October to trade at $0.055. If RXMD manages to confidently break above this level, it may open the door to new highs, as this turns out to be a strong resistance that can eventually become solid support. It hasn’t managed to break above six pennies since May.
The Florida-based company, through its subsidiaries, is offering prescription pharmaceutical services, risk management and data analytics to healthcare organizations and providers.
The share price bottomed out in mid-January to trade at the lowest in about a year, but started to recover after RXMD said it had partnered with Aimpoint Digital, a premier Alteryx consulting partner, to accelerate value realization from their analytic investments. Alteryx is a NYSE-listed Analytics Automation company that delivers breakthrough business outcomes via its user-friendly, code-free platform.
However, the momentum has kept building on RXMD’s COVID-related announcement. At the beginning of February, the company said that had experienced strong demand for its COVID-19 testing. Specifically, Q4 and annual 2021 COVID-19 testing revenue rose 132% and 620%, to $1.4 million and $4.3 million, respectively.
CEO Alan Jay Weisberg, said:
“During 2021, we launched an aggressive expansion of our COVID-19 testing service, which contributed to accelerated revenue growth rates. The fourth quarter was particularly strong, as we continued to market our PharmcoRx brand to corporate clients as a one-stop-shop for COVID-19 testing and vaccine management solutions. We believe our positioning as a leading Florida health services organization and provider of COVID-19 testing and vaccine services will build additional value for our shareholders.”
RXMD now operates over 40 COVID-19 Rapid PCR Test analyzers.
Meanwhile, PharmcoRx gained status as one of the 35 approved COVID-19 test vendors in the US for travel to China for the Beijing Winter Olympic Games.
RXMD is generating decent revenue thanks to its COVID tests, and we think five pennies still doesn’t reflect its fair value. There is much room for growth, and as demand for its COVID tests is increasing, the share price will continue to rise.
THE FINAL NOTE
All of the 4 OTC stocks discussed today have rewarded their shareholders recently. The momentum looks set to continue as investors focus on riding winners while cutting their losers.
It’s also very important to eye OTC stocks that 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.