With the Fed raising the interest rate by 0.75% for the fourth time, the stock market is preparing for another wave of bearish pressure. In times like these, it’s best to identify individual OTC stocks with growth potential that can defy the general bearishness. That’s what we’re doing here at Insider Financial.
This article looks at 4 hot OTC stocks that will continue to make new highs. They are Meta Materials Inc (OTCPK: MMTLP), Global Developments, Inc (OTCPK: GDVM), Wialan Technologies, Inc (OTCPK: WLAN), and CGrowth Capital Inc (OTCPK: CGRA).
We discussed these in our latest video, and here is more due diligence material:
OTC STOCKS #1 MMTLP
Meta Materials Inc continues to rally, breaking above the $7 mark again after doing so earlier in October when it hit an all-time high at $7.51 amid record volumes. MMTLP has provided one of the most impressive performances in the penny stock market, gaining about 400% in less than a month. The Pink Current stock is trading at $7.30, up over 27% during the last five trading sessions.
MMTLP is a short squeeze story that is still heating up. The stock has been shorted heavily since it announced that it planned a spinoff, with Next Bridge Hydrocarbons set to spin off soon and stay private.
Next Bridge Hydrocarbons is an energy company engaged in acquiring, exploiting, and/or developing oil and natural gas properties in the US. Next Bridge’s main focus is the company’s oil and gas project located in the Orogrande Basin in West Texas. It includes leases representing approximately 134,066 net acres. The company also has interests in the “Hazel Project” located in the Midland Basin in Texas, which includes leases representing 645 net acres and 2 well interests in Oklahoma.
Soon, one MMTLP Series A Preferred share will be exchanged into one Next Bridge common share when the spinoff is executed.
The Series A Preferred shareholders won’t be required to pay any consideration for the Common Stock they receive in the spinoff. More importantly, all shares of Series A Non-Voting Preferred Stock of Meta shall be canceled right after the spinoff.
It is estimated that about 80 million shares are shorted. Once the S-1 form (the registration of new shares with the Securities and Exchange Commission) takes place, the shorts must be covered within two weeks. If short-selling investors fail to cover, the brokerage firms will have to cover for them, and when that happens, they will dump everything and eventually pay the needed price to close out the massive position. If this short squeeze scenario happens following the S-1 approval, the expected price for MMTLP ranges between $30 and $70.
This can become one of the best short squeezes since GameStop stock, and buying at $7 can still provide generous returns, especially given the hype from retail investors.
$MMTLP "Make The Shorts Pay" Strategy pic.twitter.com/nonSfTpQeS
— PaulT (@PaulusGreatus) November 1, 2022
Meanwhile, META is thriving with its smart material business as well. On Tuesday, the company announced that it secured a partnership with DuPont Teijin Films and Mitsubishi Electric Europe. Using META’s PLASMAfusion, the parties plan to develop a proprietary, high-volume, roll-to-roll manufacturing system for film-based, coated copper current collectors. The film-based products will reduce battery weight and cost, improve energy efficiency, extend vehicle range, and enhance safety against the risk of battery fires (known as thermal runaway) compared to standard Li-Ion batteries for electric vehicles and other use cases.
META President and CEO George Palikaras said:
“Current Li-Ion battery innovations focus mainly on extending battery range and life span. With today’s climate crisis and the increased demand for Electric Vehicles, a next generation Li-Ion battery is required that is more sustainable and safer. We are excited to form a strategic alliance with Dupont Teijin Films and Mitsubishi Electric Europe focused on scaling PLASMAfusion® in a proprietary high volume battery coating system that can reduce copper volume and provide superior functionality, reduced cost, and improved battery safety.”
On Wednesday, META will release its Q3 financials, but all eyes are on the potential S-1 approval for now.
$mmtlp Who sold at $5.85, who said it was all over, who said there is no value in the asset? Someone with big regrets. The journey is just beginning and we will be winning.
— TradingSecrets (@TradingSecrets7) November 1, 2022
OTC STOCKS #2 GDVM
Another stock that has been surging these days is Global Developments, Inc, which has gained over 47% during the last five trading sessions alone. The Pink Current OTC stock has more than doubled since the beginning of October, currently trading at $0.047.
GDVM is both a reverse merger and a short-squeeze play. The company’s CEO Melvin Ejiogu has recently become the major shareholder of GDVM. He is also the President of VeeMost Technologies, a Cisco Premier partner. VeeMost is a well-established company that provides IT digital services. VeeMost specializes in architecting, deploying, and managing secure digital solutions and platforms for customers to be more efficient, profitable, and relevant in their businesses. It offers guidance from the start and helps teams plan, deploy, optimize, and manage entire technology lifecycles.
Besides Cisco, VeeMost’s list of partners also includes Microsoft.
Since becoming CEO, Melvin Ejiogu has implemented a new dilution policy, leading to a massive share reduction that trapped market makers who were short.
So far, no updates have come from the CEO, but this is a great reverse merger play that will create shareholder value.
$GDVM majority control acquired and all outstanding debt purchased. I also purchased 12% of outstanding shares and returned them to the treasury. No dilution will occur. I’ll be sharing updates soon with everyone on our new journey.
— Melvin Ejiogu (@MelvinEjiogu) September 21, 2022
Ejiogu seems to be a serious executive. He holds a bachelor’s degree in Business Administration from the University of Akron in Ohio. Melvin is also involved in the IT industry, one of the few individuals holding the Cisco Certified Internetwork Expert (CCIE) certification.
GDVM is an interesting play that should be under your radar.
OTC STOCKS #3 WLAN
Wialan Technologies, Inc has shown even better performance lately, skyrocketing over 240% during the last five days alone. The Pink Current stock peaked on Tuesday at $0.0077 on record volumes, hitting an all-time high. The $19+ million company is now trading at $0.0069.
WLAN operates as a software and hardware integrator that manufactures industrial-grade Wireless Access Points to enable the deployment of IP base services. The company provides wireless network solutions through Wi-Gate series access points for ISP hot zone coverage applications, 3G offload, video surveillance, municipal security, public safety, public transportation, marinas, parks, hotels, residential, small businesses, and more. It also provides these solutions for the Internet, voice-over-IP, early warning systems, multimedia streaming, and other IP applications.
Investors started accumulating the stock after the company announced that it had engaged former T-Mobile engineer Tony R. McDowell as a special adviser. He served as Senior Director of Network Engineering and Operations for T- Mobile US, covering South Florida and the Caribbean.
More importantly, WLAN said it had acquired the exclusive license to build and sell a patented street light fixture that can host micro wireless devices, including cellular small cells for cellular operators, to significantly improve internet reception and connectivity from the reach of each street light pole.
The product is already tested, as it had been implemented in a Miami Dade County city and several sites in Mexico, operating efficiently. The light fixture has the technology to host a variety of LTE devices and is also ready for the next generation of newer technologies, including 5G devices and hosting Wi-Fi devices and video surveillance equipment.
WLAN expects its patented technology to substantially improve connectivity and security in urban areas presently suffering from insecure and unstable Wi-Fi internet. It plans to roll out these devices in greater numbers to a variety of city locations, both in the US and overseas. These results are expected to be reflected during fiscal 2023 and increasingly after that.
It seems that T-Mobile previously filed WLAN’s patent, and McDowell brought it with him to WLAN.
$WLAN– patent listed on OTC Markets is in fact the one filed for by T-Mobile. pic.twitter.com/qOljLYnIDQ
— ScalpIt (@nxtplse) November 2, 2022
This is huge for an OTC stock, and the good news is WLAN has a great share structure, which makes it an amazing investment with long-term potential.
OTC STOCKS #4 CGRA
CGrowth Capital Inc is yet another Pink Current stock on the rise. The stock has doubled since last week, gaining over 330% over the month to trade at $0.041. CGRA peaked on Wednesday near $0.05 to hit the highest level in a decade.
The company provides diverse services and capital resources designed to build value from the US mining, minerals, and natural resource industries. It focuses on acquiring or claiming land assets that contain valuable minerals and natural resources, then providing management support and logistical services necessary for the successful execution of ore mining, mineral processing, and oil and gas recovery. CAGR builds value by proving reserves; providing processing through its joint venture partners, subsidiaries, and future processing plant(s); and generating revenues from its diverse projects.
We reported on CGRA in mid-October when it was trading near $0.015. The stock has already increased by 170% and still has much room for growth.
Investors are excited about CGRA as it has been preparing for an acquisition, although it can be about a reverse merger. On Tuesday, the company said that it was working to close a transaction that had previously been set for the end of October. CGRA is waiting for buyer instructions and will eventually release the official announcement.
We are still tracking to close a transaction. Initially set for month end, the company is working to file its quarterly early this week as part of the conditions to close that came up in DD. Otherwise, we are awaiting buyer instructions. $CGRA
— CGRA (@CGRAOTC) October 31, 2022
Although CGRA has been mentioning an upcoming acquisition for weeks, the “buyer instructions” remark points to a reverse merger, which is even bigger news. CGRA has a great share structure, with authorized shares maxed out, so when the official news goes live, expect this stock to accelerate the rally.
As we keep saying, there are always opportunities in the markets, and it’s our job to find winning penny stocks to buy. Huge gains can be made in such a short amount of time.
It’s important to look for penny stocks that have yet to run. There are plenty of opportunities, and we look at hundreds of penny stocks to buy each week to find the best alerts for our subscribers.
Remember, all it takes is one or two to become a winner, and you’ve crushed the market indices (and Jim Cramer) for the year.
Good luck to all (except the shorts and Cramer)!
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Disclosure: We have not been compensated for this article/video. Insider Financial is not an investment advisor; this video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This video is not a solicitation or recommendation to buy, sell, or hold securities. This video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.