Is the OTC Market dead? That is the question a lot of traders and investors are asking themselves as the US stock market is flashing red day after day. However, the reality is that markets go through cycles and we’re only at the lowest since mid-October. There are bear and bull markets, and that’s OK.
Similarly, many were saying that crypto was dead after Bitcoin rose to just under $20k in December 2017 and then tumbled to $3100 a year later. Today, we are just under $60k with new highs possible before New Year’s.
Those that abandoned crypto in 2018 are kicking themselves today. Don’t make the same mistake when the OTC gets hot again.
Here are a few investing tips that we always preach:
- Never pigeonhole yourself to just one market. Trade all markets – OTC, NASDAQ, Big Boards, options, and crypto.
- Always book profits along the way.
- Never fall in love with ANY OTC stock. Remember, Amazon didn’t start on the OTC. The chances of your favorite OTC stock becoming the next Amazon are next to nil.
The fact is that there is always a bull market somewhere. That’s why it’s important for penny stock investors to trade both OTC and NASDAQ stocks, and sometimes get exposure to larger companies that still seem to have massive growth potential. There are always opportunities if you give yourself the flexibility to trade all markets.
In this article, we take a look at 4 hot penny stocks. They are Ardelyx Inc (NASDAQ: ARDX), One World Universe Inc (OTCPK: OWUV), Touchpoint Group Holdings, Inc (OTCQB: TGHI), and Tonner-One World Holdings, Inc (OTCPK: TONR).
HOT PENNY STOCKS #1 ARDX
Ardelyx Inc has been on the rise recently, rebounding from Tuesday’s record low at $0.82. The share price of the NASDAQ-listed company has more than doubled since then, with volume figures breaking their record to surge above 250 million shares per day on Tuesday.
ARDX is a biopharmaceutical company that develops and sells medicines for the treatment of kidney and cardiorenal diseases in the US and internationally. Its main product candidate is tenapanor, which has completed Phase 3 clinical trial for the treatment of patients with irritable bowel syndrome with constipation, as well as in Phase 3 clinical trial for the treatment of hyperphosphatemia in end-stage renal disease patients on dialysis. It also develops RDX013 – a small molecule potassium secretagogue program that is in Phase 2 clinical trial for the treatment of patients with hyperkalemia – and RDX020, a small molecule program for the treatment of metabolic acidosis.
On Tuesday, the share price bounced back after the announcement of plans to launch IBSRELA, the company’s approved treatment for irritable bowel syndrome with constipation (IBS-C) in adults, in the second quarter of next year.
ARDX President and CEO Mike Raab said:
“Over the last five years, the IBS-C market has grown to be sizeable and concentrated, with 9,000 high-writing physicians accounting for approximately 50% of the almost five million prescriptions written annually for drugs indicated for the treatment of IBS-C. This market is ripe for the entry of a novel therapeutic option like IBSRELA, as existing therapies do not adequately address all patient treatment needs. Our market research has clearly shown that treating physicians recognize the need for new therapeutic alternatives to address the unmet medical needs of patients currently managed for IBS-C. That same research demonstrates high interest in, and intent to prescribe, IBSRELA for a subset of patients. By capturing even a modest share, in the mid to high single-digit of this large market, IBSRELA has the potential to generate at least $500 million in peak annual net revenue. We will use the next few months to build commercial inventory and prepare the market for a second-quarter 2022 launch.”
Half a billion in annual revenue is huge for a $200 million company. Speaking about the market capitalization, ARDX used to be a billion-dollar company earlier this year, but its share price suddenly tumbled from over $8 to less than $2 in a matter of days because of alleged misleading statements regarding Tenapanor. Specifically, the company had submitted a New Drug Application (NDA) to the Food and Drug Administration (FDA) for Tenapanor in June 2020. The FDA accepted the NDA in September of that year and set a Prescription Drug User Fee Act date of April 29, 2021. During this period, ARDX touted the efficacy of Tenapanor and its “positive” clinical trial results that showed “improvements” over current treatments and reinforced its “potential” as a “transformative” treatment. However, on July 19, 2021, the company said that it had received a letter from the FDA that said the agency had detected issues with both the size and clinical relevance of the drug’s treatment effect.
While this situation is something you should know about, the launch of IBSRELA can get the stock price back to $8, which makes it undervalued at this point.
Laura A. Williams, M.D., M.P.H., chief medical officer of Ardelyx, commented:
“The approval of IBSRELA was based on two successful Phase 3 trials involving over 1,200 patients with IBS-C. Both trials met their primary and most secondary endpoints. Additionally, in both trials, improvements from baseline in average weekly bowel movements and abdominal pain were observed by Week 1, with improvement sustained through the end of treatment. IBSRELA can play a meaningful role in the treatment of patients suffering from IBS-C.”
We think ARDX has some great potential to consolidate above $5 soon, so make sure to get exposure to this stock after doing your due diligence.
$ARDX This is the best chart setup and pattern in the Penny Stock Market! We are waiting for a $2 breakout. Once $2 breaks, we will have room to run to $6! This play has massive potential, but it needs to break $2 for buyers to move in! pic.twitter.com/dho2T7Auwx
— DekmarTrades via TradeCaster (@DekmarTrades) December 2, 2021
HOT PENNY STOCKS #2 OWUV
One World Universe Inc is a metaverse play, and it has exploded to the highest in over a decade, surging almost 800% during the last month alone.
The OTC stock is already a big winner for our subscribers and readers who took notice of our recent article dedicated to OWUV, which we posted at the beginning of November. This demonstrates once again our commitment to identify the best penny stocks BEFORE they rally, which provides great opportunities for our subscribers.
Metaverse is a huge trend that is here to stay and change the way the internet looks like. It represents a 3D online environment where people can work, play games and communicate through avatars. Facebook is rebranding to Meta, which reflects the importance of this emerging trend.
OWUV invests in sports-related businesses, distressed assets, and business opportunities within emerging industries and providing humanitarian efforts in over 185 countries. Recently, the company said that it was weighing multiple projects related to crypto, sports, blockchain, NFTs, and metaverse.
On Tuesday, OWUV announced the creation of a new subsidiary called Meta Universe Holding Corp, which will merge all metaverse-related projects. The news pushed the share price higher to hit a YTD peak near 20 cents.
The company has already purchased LAND within “The Sandbox” and has intentions of purchasing more real estate within the Sandbox and the popular “Decentraland” metaverse worlds.
$OWUV One World Universe, Inc Announces New Subsidiary ‘Meta Universe Holding Corp.’ – Enters Metaverse Real Estate Market with LAND Purchases within The Sandbox $SAND and Decentraland $MANA Worlds https://t.co/9kBPUghiti pic.twitter.com/wmKYbxaYCW
— J Craig Holding Corp (@JCHC_UPWT) November 30, 2021
The Sandbox is a community-driven platform where creators can monetize voxel assets and gaming experiences on the blockchain. The Sandbox metaverse comprises a map made up of 166,464 LANDS. LAND owners can host contests and events, stake SAND to earn and customize assets, monetize assets and experiences, vote in the metaverse governance, play games that you or others create, and more.
Decentraland (MANA) is an Ethereum blockchain-powered virtual world, developed and owned by its users, who can create, experience, and monetize content and applications.
Caren Currier, CFO of One World Universe, said:
“Available LAND is very limited, and we are in the midst of a land grab. Many major crypto whales and famous companies such as Atari, Adidas, Binance, and more have bought up large blocks of land. Just like real estate, an area our CEO and myself have extensive experience in, can be bought and sold, developed, rented, and leased just like actual property.”
Our readers may be familiar with Decentraland from our post discussing Tokens.com (OTCQB: SMURF) – another metaverse play that is making waves right now. Recently, Tokens.com purchased a patch of virtual real estate on Decentraland for a record $2.4 million worth of MANA, which reflects the magnitude of this new trend.
All in all, OWUV doesn’t depend on the metaverse hype alone, as it has a well-diversified business, and we think this is a good stock to hold. December will be a busy month, as the company plans to reveal two additional acquisitions and multiple additions to the new Metaverse Holding company, including the development of OneWorldMetaverse.com.
HOT PENNY STOCKS #3 TGHI
Touchpoint Group Holdings, Inc is in a bullish mood right now, surging to the highest level since March at over four pennies before correcting to the current level at $0.0291.
The company, through its subsidiaries, operates as a software development company in the US, Hong Kong, China, and the UK. It develops and supplies a fan engagement platform that enhances fan experience and drives commercial aspects of the sport and entertainment business. Its fan engagement platform also brings users closer to the action by enabling them to engage with clubs, favorite players, peers, and relevant brands through various features, including live streaming, access to limited edition merchandise, gamification, user rewards, third-party branded offers, credit cards, and associated benefits.
While it’s an OTCQB member, TGHI’s market cap is surprisingly small, with a valuation of only $12 million. This might suggest great opportunities for investors, as the stock has much room for growth.
Recently, TGHI released its 10-Q report, and investors paid attention to the update regarding the World Championship Air Race (WCAR). In September, TGHI bought certain rights to the WCAR, and management and all key operations staff for the WCAR will join the company’s subsidiary Air Race Limited. In addition, all key supplier, participating host city, and participating team contracts are to be assumed by TGHI.
WCAR is a race format developed by Red Bull as the Red Bull Air Race. The Red Bull Air Race was founded in 2003 and has hosted 94 championship series races around the globe. It attracted viewers in 187 countries and has been broadcast to an audience of over 230 million viewers with over 2.3 billion media impressions worldwide in its most recent season.
TGHI plans to utilize its expertise in audience engagement through its application development to enhance the audience’s experience, while at the same time creating new revenue-generating verticals for the races.
WCAR was developed to push the boundaries of modern air racing by delivering a platform that supports and showcases the latest technological developments in green power and advanced aerial mobility. New race categories to be introduced include electric-powered aircraft EVTOL (vertical take-off and landing) and JetPacks.
The growth opportunity for TGHI is huge, as the company expects $60 million in revenue next year. This is a great OTC stock to buy at this low price.
HOT PENNY STOCKS #4 TONR
Tonner-One World Holdings, Inc is a tiny Pink Current shell that you can get at a very low price. This is a crypto play that is only starting its journey and can be a huge bet for early investors. The share price has corrected by about 40% during the last month, but this is a great time to get exposure to the stock, which has increased by ten times since the summer to trade at $0.006. The share price broke above the one penny mark at the end of September.
Recently, CEO Ejike Arinze said in a letter to shareholders that the company’s business model would focus on acquisitions and operation of businesses and assets in the fast-growth fintech industry. TONR is now actively reviewing merger and acquisition candidates, operating cryptocurrency exchanges, DeFi, or Fintech businesses.
Previously, the company focused on designing and marketing dolls but now the company is shifting to crypto and fintech. The immediate tasks are as follows:
- Clear out all remaining toxic notes through negotiations or litigations;
- Identify and cancel improperly issued shares;
- Acquisitions, acquisitions, and more acquisitions;
- Engage PCAOB auditors to prepare the company for QB uplisting;
- Smoothly integrate acquired businesses.
$TONR is close to completing the first of a series of mergers in the crypto industry. The lawyers are debating jurisdiction for the crypto exchange: got to choose between Estonia, Poland and Lithuania. @CalvinRitche $nsav $BKKT $COIN
— Tonner-One World Holding, Inc. (@TonnerOne) December 2, 2021
With only 3.2 million authorized shares that are maxed out, this is a massive opportunity for early investors, especially after the correction.
THE FINAL NOTE
Now is a great opportunity to invest in top penny stocks with great potential. Our job is to identify the best penny stocks with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio.
Buying dips and selling rips as swing trades remains the best strategy in the stock market. Still, whenever a hot stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye penny 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 run 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.