The US stock market ended the week lower following some volatile sessions. On Friday, the OTXCQ Composite index, which tracks over 400 OTC stocks, tumbled by over 1.8% to the lowest since the end of July. Corrections like this are normal for an aggressively bullish market that we have experienced during the last few weeks, with Wall Street indexes fluctuating near their all-time highs.
Despite the pullback, there are many OTC stocks making waves based on strong fundamentals. We at Insider Financial make sure to identify penny stocks that provide value and can generate great returns.
This week, while the economy continues to recover, investors have been concerned about corporate tax increases, a surging number of COVID cases caused by the Delta variant, and the potential hawkish tone from the Fed.
Peter Cardillo, chief market economist at Spartan Capital Securities, told Reuters:
“We’re seeing a market where investors are pulling to the sidelines. It’s a market that’s being driven by cautiousness rather than any shift in fundamentals.”
Meanwhile, the US consumer sentiment steadied early this month after plunging in August to the lowest level in about 10 years.
While there may be much confusion in the markets, there are many great opportunities to look for.
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 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.
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 AVVAA World Health Care Products, Inc (OTCPK: AVVH), Defentect Group, Inc (OTCPK: DFTC), Enzolytics Inc (OTCPK: ENZC), and AppSwarm, Inc (OTCPK: SWRM).
HOT OTC STOCKS #1 AVVH
AVVAA World Health Care Products, Inc is on the rise again, after peaking at the end of June at almost 10 cents and then correcting until finding support at $0.023 in mid-August. Since the end of last week, the OTC stock has gained 158% to trade at $0.053.
When we first reported on AVVH in June, investors anticipated a merger with Gold Quest Group, LLC – a residential, commercial, and heavy industrial direct lender and financial brokerage firm based in Houston, Texas. It has been around two decades and lends over $500 million per year in Texas and across the US, becoming one of the largest lenders in the state.
The official news came later that month when AVVH announced that it had been acquired by Omnis Public Capital Management, LLC, which brought new management and presented the new direction of the company. The main plan of Omnis is to merge AVVH with the recently created company, Gold Quest Capital, Inc.
The goal of AVVH/Gold Quest Capital will act as the funder of choice for highly collateralized real estate first lien notes and real estate investments sourced and originated by the Gold Quest Group, LLC. AVVH/Gold Quest Capital will also take advantage of select real estate redevelopment projects and is evaluating the possibility of creating its own integrated properties, including branded hotels and resorts, in the future. AVVH/Gold Quest Capital will share some of the same management team, knowledge and strategies, as well as office space and resources, with Gold Quest Group.
Gold Quest Group CEO Miguel Sanchez became the CEO of the post-merger business.
Earlier this week, investors were excited as Kris Management LLC, which previously held the controlling stake in AVVH, confirmed the cancellation of over 50% or about 1 billion of AVVH’s outstanding shares, after which the merger will be conducted.
$AVVH Late yesterday, we filed a motion to amend the language in the custodian discharge paperwork to satisfy the TA. Hopefully, this is the last step to complete the share cancelation. Merger will happen immediately after judge acts. Look for GQC update next week. Be well.
— Krisa Management LLC (@KrisaManagement) September 10, 2021
The merger will probably be announced next week, and we anticipate the share price to surge to new YTD highs given the Gold Quest Group’s valuation.
HOT OTC STOCKS #2 DFTC
Defentect Group, Inc is a small company going with the Pink Limited Information symbol on OTC Markets. It has surged over 130% since last week and over 270% since mid-August to trade at $0.037, after peaking at $0.067 on Wednesday, which is the highest level in over a decade.
Formerly known as Splinternet Holdings, Inc, DFTC is a developer and provider of rapid response software applications for the threat detection industry. The company offers a global management and alerting system, which reacts to the detection of chemical, biological, radiological, nuclear and explosive (CBRNE) threats, as well as to data sent from other types of sensors. Defentect’s technology detects the threat and notifies key personnel and first responders so that appropriate action can be taken. The company is also moving to make strategic acquisitions in its historical markets.
DFTC released its annual report on September 10. There it said that it had signed a Letter of Intent with Hammer Fiber Optic Holdings (HMMR) in which it is contemplated that it would acquire all the operating assets of HMMR in a transaction that does not require additional financing, nor does it trigger a change of control for Defentect Group.
Investors are excited as HMMR’s market cap is 10 times larger than that of DFTC. HMMR is a telecommunications company investing in the future of wireless technology. Hammer’s ‘everything wireless’ go to market strategy includes the development of high-speed fixed wireless service for residential and small businesses using its wireless fiber platform, Hammer Wireless AIR, over-the-top services such as voice, SMS and video collaboration services, the construction of smart city networks and hosting services including cloud and colocation.
$DFTC 4M market cap company that trades at 5 cents is acquiring a 30M market cap company that trades at 52 cents.
Not sure what more ya need but I wanna see it 🔥
— Shemar anglin † (@S_AnglinIV) September 15, 2021
HOT OTC STOCKS #3 ENZC
It’s no secret that Enzolytics Inc is one of our favorite OTC stocks. We have high expectations of it even if it has been correcting from February’s YTD high. In fact, buying the dip is what we always recommend, and ENZC is one of the best candidates.
You can buy ENZC shares for $0.14, up about 15% from last week. The share price found strong support near $0.12, which has been tested several times this year. We think bears won’t be able to push the share price lower than that in the near future, so this is your chance to get exposure to ENZC when it starts the rally.
We shared our bullish sentiment on ENZC last October at just $.014 a share, helping many of our subscribers secure generous profits before the pullback from the YTD high. For those of you who still hold ENZC, rest sure that another rally is on the horizon. ENZC sits on strong fundamentals – it is developing multiple therapies and has pending patents.
The bullish sentiment intensified recently as investors marked the one-year anniversary of the letter of intent related to the merger between ENZC and BioClonetics, which we reported on in November last year.
The company patented anti-HIV therapeutics and applies its proprietary methodology to produce human IgG1 monoclonal antibodies for treating infectious diseases with non-toxic passive immunotherapy. ENZC has tested its anti-HIV therapeutics and has developed a proprietary cell line that generates human monoclonal antibodies that neutralize HIV. We explained in an extensive analysis why ENZC’s HIV therapeutics are better than Gilead’s products that have monopolized the space.
Following the merger with BioClonetics, ENZC adopted its proprietary technology for producing fully human monoclonal antibodies (mAbs) against infectious diseases, including HIV, influenza A, influenza B, rabies, tetanus, and diphtheria.
Recently, ENZC has been recognized by Intel Corporation for its work with monoclonal antibodies, when the tech giant released a white paper titled “Optimizing Empathetic AI to Cure Deadly Diseases,” focusing on ENZC’s potential to use artificial intelligence (AI) technology in the development of monoclonal antibodies.
Meanwhile, ENZC has made some progress in developing monoclonal antibodies that can target all types of HTLV-1 virus, which causes a rare form of cancer. Here is the drug development pipeline:
ENZC has been working very hard this year and might come up with some important updates that may push the share price higher. On a side note, ENZC has a great share structure that prevents dilution.
The company’s COO Dr. Gaurav Chandra asked that he could be interviewed by James Hicks at the end of September, and he may come up with some significant announcements.
$ENZC – This needs to be said again. Company interview with @jameshicks is being planned for EOM. Last time this happened, we had significant PRs (Lonza/Creative Biolabs). It's not a coincidence, @drgauravchandra working on "handful of milestones".
— Godfather Capital (@GodfatherCap) September 2, 2021
HOT OTC STOCKS #4 SWRM
AppSwarm, Inc has had a great month so far, gaining over 60% during the last two to three weeks. On September 3, the OTC stock almost touched two cents, which is the highest level since May. It did so again on September 15, but it turns out there is strong resistance at two pennies. Now you can buy the penny stock for $0.014 per share.
SWRM is an application developer that creates, tests, and programs apps for computers and almost every type of device, from desktops to mobile devices. The Pink Current company also partners with application developers to help market their apps and it also seeks to acquire dynamic applications and technologies developed by others.
The share price jumped earlier this month on SWRM’s plans to deploy and host Dogecoin nodes at its TulsaLabs facilities. A full node is a program that fully validates transactions and blocks of a blockchain. According to the block explorer, Blockchair, Dogecoin only has around 1,090 nodes worldwide.
SWRM has recently launched a new division called DogeLabs, which is led by Tom Bustamante.
While the first swing high came after investors found out about the connection with Dogecoin, the eighth largest cryptocurrency, SWRM quickly corrected after everyone realized there are no incentives for running full nodes.
Still, SWRM may be a good investment as it got the Pink Current status only recently and plans to expand its business. Last month, the company appointed a new CEO, who pledged to review core business segments to provide a clearer focus on operations and shelve non-performing assets for the time being.
The latest price surge came after it had announced an advisory agreement with Geometric Energy Corporation (GEC) for their SpaceX DOGE-1 mission to the Moon. DogeLabs will assist in providing corporate and strategic partnerships to the DOGE-1 project and establish a working relationship to explore future space-related projects under TulsaLabs. DOGE-1 is the first-ever commercial lunar payload in history paid entirely with Dogecoin, launching aboard a SpaceX Falcon 9 rocket. The mission will deploy a small CubeSat into lunar orbit that will be equipped with a camera to record video of the satellite’s pixel display screen that is enabled to play digital content, including NFT art. The display screen will then be live-streamed from the CubeSat to various social media and streaming platforms, including Twitch or YouTube.
— AppSwarm (@appswarm) September 15, 2021
DogeLabs founder Tom Bustamante said:
“We are very excited to be working with Geometric Energy on their DOGE-1 project. Geometric’s depth of expertise and experience in space also makes them a great partner for potential future collaborations in both blockchain and space projects.”
Meanwhile, last week, SWRM said that it had been retained by GTX Corp (OTC: GTXO), a pioneer in wearable technology and the health and safety wearable device market, to develop ‘health analytics’ utilizing AI to assist in potentially extending the human life span.
As we see it, SWRM is going to the moon, both literally and figuratively.
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.