The US stock market was mixed on Thursday, with the tech sector being the only major winner, as consumers expect the increasing cases of COVID-19 to impact the economy while stimulating the digitalization trend.
Investors are now balancing concerns of slowing pace of economic recovery with expectations that the Fed will maintain its accommodative monetary policy. The recent stock rally started after Fed Chair Jerome Powell delivered his dovish speech at the Jackson Hole Symposium late in August.
Giuseppe Sersale, fund manager at Anthilia, told Reuters:
“Given that before Jackson Hole many FOMC members had come out in favor of tapering on a tight timetable, we’ll see if they confirm, or align with Powell’s more moderate message.”
Meanwhile, OTCQX Composite, which tracks over 400 OTC stocks, has also declined to the lowest level since the end of August.
You could say this is a healthy and needed correction after weeks of continuous bullishness that has sent stock indexes to their all-time highs, causing overbought market conditions.
Despite the bearish mood, this is actually the right time to enter the market and buy hot OTC stocks that provide great value. Investing in penny stocks can generate greater returns due to their small market cap compared to blue chips.
OTC STOCKS THE PLACE TO BE
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 then be patient.
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 hot OTC stocks that will greatly reward patient investors. They are Drone Guarder, Inc (OTCPK: DRNG), Majic Wheels Corp (OTCPK: MJWL), Quad M Solutions, Inc (OTCPK: MMMM), and PlantX Life Inc (OTCQB: PLTXF, CSE: VEGA, Frankfurt: WNT1).
Hot OTC Stocks #1 DRNG
Drone Guarder, Inc has had a great start to the month, gaining over 120% during the last five trading days. Despite the bullish move, you can still buy this penny stock for a bargain price of only $0.0054. At the beginning of August, the stock broke above one penny for the first time since 2018.
In the July-August period, the stock surged over 1,000% to its peak after Video River Networks (OTC: NIHK), an Electric Vehicles and Battery Technology holding company, announced that it had signed a deal to acquire DRNG, which is a security and surveillance company that focuses on commercializing a drone and artificial intelligence (AI) technology-enhanced home security system as a turnkey solution locally and internationally.
NIHK is running DRNG as an independent company. Thus, Adam Taylor remains as president and CEO, while Frank Igwealor has become Chairman and Co-CEO.
NIHK has been working on getting DRNG the Pink Current status. It has improved the business by hiring a Northrop Grumman aerospace veteran and reducing the number of authorized shares by 2.4 billion to 3.6 billion to prevent dilution. DRNG stated that it wouldn’t accept any reverse splits and no new toxic notes in the future.
On Tuesday, the company announced the Pink Current status, and the next day Igwealor released a shareholder letter, stating that the next few months would be “an inundation of product development, marketing, and outreach to form industry partnerships with the most potential to enhance Shareholder Value and Profitability.”
The fundamental mission of DRNG is to research and develop the most advanced drones and AI-based products with a focus on business, school, and residential security.
According to the FBI, there were over 1.1 million reported burglaries in the US in 2019, with over 3 billion in property losses, with barely 1 in 10 of those reported cases solved. The company intends to address this issue by providing efficient property surveillance solutions to replace the outdated systems currently in place.
DRNG’s app-based solution includes a drone, infrared camera, and an Android mobile app component. It works like this: once an alarm is triggered, the DroneGuarder immediately takes off from a wireless charging pad. The camera within the drone then records video for a few seconds, processes it, and sends an alert if a threat is found, which the DroneGuarder app sends in the form of a text, image, or short recorded video if supported by the GSM network. The DroneGuarder can fly for up to 20 minutes, using GPS to navigate in its preprogrammed areas and return back to its charging pad after completing surveillance.
According to the shareholder letter, the estimated Drone Market Value in 2021 is 20.8 Billion, with the total revenue expected to surge in 2028 to 501.4 Billion. With a compound annual growth rate (CAGR) of 57.5% from 2021 to 2028, DRNG looks forward to seizing this rapidly expanding marketplace with innovative technology and aggressive marketing campaigns.
Drone industry is expanding rapidly — looking forward to seizing hold of it. "Over the past few years, unmanned aircrafts have become central to the functions of various businesses and governmental organizations." $DRNG $NIHK $GMPW #Drone #AI https://t.co/stC7lxYJf7
— Drone Guarder Inc (@DroneGuarder) September 7, 2021
DRNG is starting its journey, and considering its small market cap, it can generate great returns in the long term, especially when it launches its great products.
Hot OTC Stocks #2 MJWL
Majic Wheels Corp has been one of our favorite crypto plays. Still, the penny stock has been correcting since July, giving investors the opportunity to buy the dip. Now the stock is gaining traction, adding 50% since last week to trade at $0.11. MJWL peaked at the beginning of July at over $0.25, surging over 13,000% since the beginning of the year. We presented our bullish case for MJWL in May when the OTC stock was trading at only $.014 a share.
After discontinuing its waste management business, Majic Wheels turned to fintech and software markets. In mid-May, MJWL appointed David Chong as new CEO and director, and it also applied for OTCIQ to become OTC Pink Current, getting the status recently.
The major news came the same month – MJWL announced its intention to acquire CGCX Ltd, a cryptocurrency exchange and custody service platform generating $150 million in revenue. In April, CGCX launched its first insured over-the-counter (OTC) crypto trading desk in India, offering traders a direct medium of exchange. The company enables Indian traders to directly buy and sell digital assets from a dedicated trading desk as individuals or as an institution. MJWL completed the acquisition at the end of June.
At the end of July, MJWL said that CGCX had recorded revenue of $5+ million in the 12 months to December 2020. In the six months to June, it has already exceeded the $5 million mark. For the remainder of 2021, additional revenues will be realized from the India Crypto Exchange, the Custody Solutions, and the Crypto Mining business lines. The projected revenues for the year ending December 31, 2021, and the following two years are:
- 2021: $22.9 million;
- 2022: $142.7 million;
- 2023: $446.8 million.
So far, CGCX, which operates in Singapore, Malaysia, and Mauritius and is about to reach India, the UAE, and the US, is running three main business lines, which is the crypto exchange (46% of revenues), custody solutions (13%), and mining operations (41%).
By the end of the year, the company is about to launch a crypto mining farm pilot, acquire a crypto exchange platform in India, and acquire a blockchain insurance solution.
CGCX CEO Subbu Vempati said:
“We have been experiencing a strong growth of our exchange in the markets we are currently present in. For the first six months of this year, our company has already reached revenues of FY 2020. Our net profits have doubled. We expect to continue to have an exponential growth as we continue to enter new markets. Concurrently, our other business lines of Custody Solutions and Cryptocurrency farming will start to contribute to earnings starting in Q3 and show strong growth.”
On Monday, MJWL said that it had signed an agreement with a New York-based investment bank. It said that institutional interest in the company had been increasing. More details should come this week, which will likely drive the stock higher.
$MJWL Signed agreement with New York based Investment Bank. Rising institutional interest in our Company. More details in press release this week. #NASDAQ #NYC #INVESTMENTBANK pic.twitter.com/0oAAnC6SET
— Majic Corp (@MajicCorp) September 7, 2021
We continue to believe that MJWL is the real deal. You should get exposure to this penny stock before it’s too late. If it really exceeds the $400 million revenue mark in two years, that means MJWL will no longer be a penny stock.
Hot OTC Stocks #3 MMMM
Quad M Solutions, Inc has been gaining momentum, with the penny stock doubling in price since the beginning of August and expanding by over 180% during the last six months. On Wednesday, the OTC stock broke above $0.50 for the first time since May 2020.
MMMM owns and operates four wholly owned subsidiaries, PR 345, Inc doing business as Openaxess Inc, PrimeAxess, Inc, PrimeAxess 2, LLC, and NuAxess 2, Inc, which is currently the most active business. Through its subsidiaries, the company provides small to medium size group employers, entrepreneurs and independent contractors in the Gig Economy (which consists of millions of potential clients) with affordable and sustainable health benefit plans, self-insurance plans, employee benefits and retirement plans through the use of Health Savings Accounts.
Using employer-friendly transparency, the company has developed a proprietary package of products and services enhancing the patient-doctor relationship intended to offer better benefits via the use of value-based plans. The company’s plan is to assume a leadership role compared to the historic, non-competitive insurance industry practices which are virtually monopolistic by nature.
The latest uptick in price is related to NuAxess. At the beginning of September, NuAxess, an employee staffing company that provides its employees partially self-insured medical insurance, entered into a sales and marketing agreement with Acrisure, LLC to market NuAxess’ staffing solution. Acrisure is the third largest and fastest growing privately owned insurance agency in the US.
Acrisure will market NuAxess’ staffing solution to its PEO (Professional Employer Organization) vendors and its agency partners. Acrisure currently has over 60 PEO vendors. Acrisure is initially targeting, over the next several months, PEO’s with over 650,000 employees and has approximately 15,000 agents who will market this staffing solution. Acrisure believes these staffing and benefit solutions will be extremely attractive to its PEO partners and will allow them to be successful with a significant portion of their PEO clients.
And here is the interesting part: if the companies meet internal goals, NuAxess’ monthly revenue could exceed $20 million per month with a contribution margin at and above industry standards by the end of the year. This is a significant revenue target considering that MMMM’s market cap is just above $27 million.
We think MMMM has a solid business model, especially amid the pandemic that redefines how people are employed. The only concern is that the number of outstanding shares of 57 million is tiny compared to the 900 million authorized shares.
Hot OTC Stocks #4 PLTXF
PlantX Life Inc has just broken above the resistance of its long-term bearish trend on strong volume, suggesting that the OTC stock might have bottomed out at the end of August when it touched the record low at $0.177. Currently, you can buy the OTCQB-listed stock for $0.347.
PLTXF is an e-commerce company that offers plant-based products in Canada, the US, the UK, and Germany. The company provides plant-based groceries, ingredients, food and beverages, cosmetics, pet foods, plants, and prepared meals. It distributes its products through its e-commerce platform, wholesale arrangements, and drop-shipping to restaurants and grocery stores.
In other words, it is a one-stop shop for everything plant-based. With its fast-growing category verticals, the company provides customers across North America over 10,000 plant-based products.
In addition to offering meal and indoor plant deliveries, the company currently has plans underway to expand its product lines to include cosmetics, clothing, and its own water brand.
Besides its e-commerce business, PLTXF uses its digital platform to build a community of like-minded consumers, and most importantly, provide education.
On Tuesday, PlantX life appointed Fred Leigh as director and Executive Chairman of the Board of Directors, which consists of experienced executives in the business, finance, and marketing industries. Leigh had previously served on the PlantX Advisory Board, which has been dissolved to provide additional cost-savings.
Earlier this month, the company launched its redesigned Canadian website www.PlantX.ca, powered by Shopify. The new website offers a refreshed and modern design, simplified navigation and upgraded search tools and functionality to improve overall user experience and brand impact. PlantX plans to launch a redesigned US site on the Shopify platform later this year.
We like that PLTXF is redefining its image and has a new CEO, which suggests new opportunities for investors. Also, the company has a healthy balance sheet and provides great value. In the Q1 of FY 2022, ended June 30, 2021, PLTXF generated gross revenue of $4.1 million, up $3.95 million from the same period last year.
THE FINAL NOTE
All of the 4 hot 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 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.