The OTC stock market continues to perform well in May, with the major OTC stock indexes, including OTCQX Composite and OTCQX US, fluctuating near their all-time highs. Every bull run is followed by a major correction, but we feel this is a great time to enter the market anyway, as there are many hot OTC stocks that are just starting their ascent.
Investing in penny stocks can be lucrative since small-cap companies have much room for growth. You can’t expect Apple or Amazon to surge in price by several times in a relatively short period. Tesla was a surprising exception last year, but there are way more such opportunities in the OTC stock market.
For example, Good Vibrations Shoes (OTC PINK: GVSI) has jumped by over 2,400% since February, making many investors happy. We will discuss GVSI in the present article, along with three other hot OTC stocks with great potential, including Enzolytics, Inc (OTC PINK: ENZC), Northwest Biotherapeutics, Inc (OTCQB: NWBO), and Regen BioPharma (OTCMKTS: RGBP).
Trading OTC stocks is much easier than getting exposure to blue chips. You don’t need a big account, and it’s technically extremely easy to make the first steps. All you need is a laptop and a brokerage account.
Nevertheless, keep in mind that small-cap stocks are subject to enormous volatility like what we have witnessed in the April-May period. Penny stocks are not for intraday traders.
If you want to buy and hold the OTC stocks we recommend, remember these two important rules:
- Buy low and sell high.
- Don’t be afraid to book profits.
However, don’t rush to book profits too early. 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.
The key to trading small caps is finding momentum BEFORE it happens and then be patient. Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens.
It’s also best to own a portfolio of small-cap stocks rather than betting all on a single company. For some that can be as many as 10 to 20 or more OTC stocks. Obviously, our recommendation to build a portfolio means that day trading is not an option for us. Day trading 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.
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 let’s dive into the four hot OTC stocks that are looking promising as of today:
HOT OTC STOCKS #1 ENZC
Enzolytics Inc., a drug development company, has been consistently declining from its highest level in over a decade hit in mid-February. Nevertheless, the company has some robust fundamentals that can drive the OTC stock price in the long term. At the time of writing, ENZC trades at 10 cents, down almost 90% from the YTD peak at $0.83.
Enzolytics focuses on the commercialization of its proprietary proteins for the treatment of debilitating infectious diseases. It has patented anti-HIV therapeutics and uses its own methodology for producing human IgG1 monoclonal antibodies for treating infectious diseases with non-toxic passive immunotherapy.
The company has trialed anti-HIV therapeutics. It has developed a proprietary cell line that generates human monoclonal antibodies that neutralize HIV.
We confidently shared our bullish sentiment on ENZC in November 2020, well before the bull run that led to the highest level in over a decade. At the end of last year, ENZC merged with BioClonetics Immunotherapeutics, Inc., a biotech firm that also has its own technology for producing fully human monoclonal antibodies (mAbs) against infectious diseases, including HIV, influenza A, influenza B, rabies, tetanus, and diphtheria.
On a side note, a monoclonal antibody is a laboratory-made protein that mimics our immune system’s capability to fight off viruses and other pathogens. It is produced by cloning a unique white blood cell. Monoclonal antibodies represent a great innovation that can support the treatment of various diseases.
The bullishness surrounding the resulting company from the ENZC merger with BioClonetics has been driven by expectations that monoclonal antibodies could be used for treating COVID-19, which is caused by the SARS-Cov-2 virus.
However, it seems that little progress has been made during the last few months, which left some investors disappointed. Our position is that ENZC is still a good stock to buy, especially when it trades at the lowest level since the beginning of January – a bargain price.
The company can be a game-changer in the treatment of HIV and Covid – how many biotech firms of this size can brag with such potential?
On May 11, ENZC announced that it had hired TEN Associates LLC to help it with disseminating and updating relevant and factual information about its progress in fulfilling its business strategy to market makers, the brokerage community, investors, media, and the public.
ENZC CEO Charles Cotropia commented:
“We have shared with our investors and the public the many advancements, partnering prospects and new patentable developments over the past five months and have many more new developments that we will be outlining in the near future. As a result, we are confident in our future. We hope our plans for communicating the current and expected future progress toward success will be just as successful as our expected success in the lab.”
HOT OTC STOCKS #2 GVSI
Good Vibrations Shoes Inc. has been surging during the last few months, and its momentum isn’t fading away. At the time of writing, the GVSI share costs 5 cents, up over 2,400% from $0.002 in February and March. The OTC stock has gained over 20% during the last five days alone.
The return on investment of this penny stock has been impressive, but you should still treat it as a risky buy, as the company hasn’t reported any financials so far, so we don’t know how to evaluate it at all. The official website came out only last year.
Driving the momentum is George Sharp’s tweet that he had become a custodian of GVSI. He first announced about the filing for custodianship last month, contributing to the bullish move.
— George Sharp (@GeorgeASharp) May 4, 2021
It’s difficult to make a prediction at this point, but the GVSI momentum seems to go on, and this is a very attractive OTC stock for the months to come, especially if George Sharp is able to pull off another deal as he did with Tesoro Enterprises and HUMBL Inc (OTCMKTS: HMBL).
We first covered the TSNP/HUMBL deal when the stock was just $.027, which you can read here.
We will be updating our subscribers as soon as we know more.
HOT OTC STOCKS #3 NWBO
The share price of biotech firm Northwest Biotherapeutics Inc. has been quite stable during the last few weeks and months, which is somewhat unusual for penny stocks, even though we’re speaking about a billion-dollar company. NWBO didn’t react very much during the general bullishness observed in the February-March period.
The OTC stock is currently trading at $1.40. It has been trading sideways since November last year. In October, NWBO spiked to $2.30 for the first time in many years, though it couldn’t withstand the pressure from bears.
We first mentioned Northwest Biotherapeutics in September, well before the price surge that led to the highest level in years.
In October, NWBO announced that it had locked its raw data of a 13-year long phase III trial of DCVax, which is a personalized immune therapy for glioblastoma brain cancer. While independent statisticians haven’t been fully analyzed the data yet, if the results are positive, NWBO must be a big buy. All in all, NWBO is heavily reliant on its cancer vaccines under the DCVax brand, and the Phase III results will have a major impact on the stock price.
For more info, we recommend taking a look at what our biotech analyst Chris Sandburg had to say about NWBO last week.
HOT OTC STOCKS #4 RGBP
Regen BioPharma, based in La Mesa, California, is a biotech firm that is only starting its business. It has much room for growth and will likely thrive if it gets the needed licenses and approvals for its products. It is one of those OTC stocks that we would include in our penny stock portfolios with a longer-term target.
The share price of RGBP has been correcting since mid-April when it hit the highest level since 2018. You can buy the OTC stock right now at $0.016, down from six cents in April. Despite the price decline, we are still bullish on the stock and think that it’s a discount entry opportunity.
One area of focus of Regen BioPharma is the commercialization of stem cell therapies. The stem cell industry is gaining momentum and is expected to hit $15 billion in six years from now. For those unfamiliar, stem cells are special cells that can develop into any type of human cells.
RGBP produces medicines for diabetes, heart-related illness, circulatory issues, and Chronic Obstructive Pulmonary Disease. The company is waiting for regulatory approval for a number of products and is conducting trials in cell therapy.
Besides stem cells, the biotech firm is working on small molecules capable of targeting cancer and autoimmunity.
Previously, Regen signed two deals with Oncology Pharma, a $720 million company that is a leader in oncology treatments. One deal is between Oncology and Regen for treating pancreatic cancer, and the other one is between Regen’s subsidiary KCL Therapeutics, Inc, and Oncology for the treatment of colon cancer.
On May 7, Oncology entered into a licensing agreement with Regen to use its technology related to small molecules to activate immune checkpoints for the treatment of colon cancer. With the help of Regen’s technology, Oncology will identify small molecules that inhibit the NR2F6 nuclear receptor, which Regen considers to be a potentially critical immune cell inhibitor (an immune checkpoint) and cancer stem cell differentiator.
RGBP is only making the first steps. With more than 20 patents and several regulatory filings, we feel that the company has much room for growth once it is able to monetize its products.
For more information, I recommend taking a look at what my colleague Alex Carlson has to say about Regen BioPharma.
The Final Note
Today, investors can benefit from the stock market’s bullishness and find great opportunities as the economy is reviving. Our job is to identify the hot OTC stocks with evident growth potential and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
If you like any of these 4 OTC stocks, 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 an OTC stock is in the middle of a bull run, we recommend our subscribers benefit from the growing momentum.
It’s very important to consider OTC stocks that have room for growth and don’t seem to be at their culmination. 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 OTC stocks to succeed in order to have a lucrative portfolio.
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.