The US Commerce Department said on Thursday that US corporate profits had jumped to a fresh record high in Q2, driven by robust demand and higher prices. Thus, it may be that the potential slowdown in GDP growth this quarter as a result of the Delta variant will be temporary.
The jump in profits came despite businesses dealing with higher costs due to shortages of raw materials and labor. Still, the spread of the Delta variant is putting pressure on demand for services like air travel and cruises, leading economists to cut their Q3 growth estimates.
Conrad DeQuadros, a senior economic advisor at Brean Capital, told Reuters:
“Based on the profits data, any slowdown in growth as a result of slower consumer spending is likely to prove temporary.”
Profits from current production rose 9.2% to a record $2.8 trillion, after rising at a 5.1% pace in the first quarter. Pre-tax profits as a share of GDP, a gauge to understand the economy-wide profit margins, rose 0.7 percentage points to 12.3%, their highest in six years.
The government said that the GDP had increased at an annualized rate of 6.6% in the three months to June, up from the initial reading of 6.5% reported in July.
With the rapidly recovering economy and increasing corporate profits, this is an exciting time to be an OTC stock investor.
OTC MARKETS 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 hot OTC 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 OTC 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 penny stocks.
In this article, we look at 4 hot penny stocks that will greatly reward patient investors. They are iQSTEL Inc (OTCQB: IQST), iAnthus Capital Holdings, Inc (OTCPK: ITHUF), Ozop Energy Solutions, Inc (OTCPK: OZSC), and TPT Global Tech Inc (OTCQB: TPTW).
Hot Penny Stocks #1 IQST
iQSTEL, Inc has had an exciting month so far, with the company getting ready to get uplisted on NASDAQ. The share price of the $84 million Penny Stock Exempt company has increased by over 20% during the last five days to trade at $0.51. IQST touched hit a swing high on Wednesday at $0.60, which is the highest since the end of July. While the company has been gradually declining from its YTD high touched in mid-February at $1.85, it has great fundamentals that could drive it to new highs.
Our subscribers had the opportunity to leverage the IQST rally at the beginning of the year, as we presented our bullish stance on the company at the end of last year.
IQST is a US-based company that offers telecom, technology, and fintech services for global markets, being present in 15 countries. The company provides services to the telecommunications, electric vehicle (EV), financial services, chemical, and liquid fuel distribution industries. iQSTEL used to have 5 business divisions, but it organized them into two major divisions:
- B2B division – it includes telecom, blockchain, and the Internet of Things (IoT).
- B2C division – it includes EV motorcycles and fintech, among others.
IQST operates through several subsidiaries, including Etelix, SwissLink, QGlobal SMS, SMSDirectos, Global Money One, IoT Labs, and itsBchain.
The portfolio of products and services includes SMS, VoIP, international fiber-optic connectivity for 5G, Cloud-PBX, OmniChannel Marketing, EV Batteries, EV Chargers, EV Battery Management System, EV IoT Connectivity, Mobile App For EV Connectivity, EV Dashboard Display, Visa/Mastercard Debit Card, cryptocurrency exchange services, money remittance, Mobile Top Up, IoT Smart Gas Platform, IoT Smart Tank Platform, Mobile Number Portability Application MNPA (Blockchain Platform) and Settlement & Payments Marketplace SPM.
Only judging by its services and products you can realize that IQST has a very healthy business. On top of that, the company is starting new operations. On Monday, the Board approved the Management’s plan for manufacturing its first lot of electric motorcycles to be sold under the Company’s B2C Division EVOSS operating unit. Manufacturing will start in Q4 this year.
The first EVOSS electric motorcycle model for Latin America, which can be used for work or fun, will compete in the low horsepower market against the 125cc combustion engine or equivalent class motorcycle. It will be a very versatile EV bike designed for everyday use.
IQSTEL CEO Leandro Iglesias said:
“The first batch of our EVOSS Electric Motorcycles will be manufactured in China. We selected China because it has the most mature market for low horsepower electric motorcycles in the world with more than 400 million of electric motorcycles running at this time. We plan to build on the existing electric motorcycle experience in China adding our technical knowledge to create a high value of EVOSS Electric Motorcycle Ecosystem product for the nascent Latin America EV Bike Market, presenting a huge earlier mover opportunity for IQSTEL.”
Meanwhile, last week IQST released its Q2 report, saying that the company was completely free of any dilutive debt and there were no outstanding convertible notes nor warrants. The business is growing and is on track to achieve the revenue forecast of $60.5 million for 2021 compared to $44.9 million last year. In fact, on August 26, IQST released an update saying that it may exceed the target.
H1 revenue rose 88% compared to the same period in FY2020. The company’s new businesses launched products that will support revenue. Thus, itsBchain, which operates in the blockchain industry, launched the Mobile Number Portability Application (MNPA) and IoT Labs deployed 2,500 IoTsmartTank devices and platform project for a Fortune 500 chemical firm.
For the first time, the company has positive working capital of $1.4 million compared with the working capital deficit of $4 million reported on December 31, 2020.
On August 25, the company said that it was one step closer to NASDAQ after establishing an Independent Audit Committee (IAC). We are bullish on IQST because it operates in fast-growing industries like blockchain, IoT, and fintech, and it has a healthy balance sheet. Buying it for 50 cents is a great deal.
$iqst I think these guys have a nice future beyond otc into the next years. Very undervalued still imo with a $60 million a year revenue guidance which will probably be surpassed 🤷🏻♂️💥 partnerships with Visa $V and Mastercard $MA
— Eric W – Psycho Trader (@ericwilliam1788) August 25, 2021
Hot Penny Stocks #2 ITHUF
iAnthus Capital Holdings, Inc is another relatively large company on the rise, although this one has the Pink Current status. This $70 million cannabis play has surged over 110% since last week and rose over $130% since the end of July, peaking on Thursday at $0.42, which is the highest level since mid-February and not very far from the YTD high at $0.46.
iAnthus owns and operates licensed cannabis cultivation, processing, and dispensary facilities throughout the US, providing investors diversified exposure to the US-regulated cannabis industry. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law, and healthcare services, the company provides a unique combination of capital and hands-on operating and management expertise. It uses these skills to support operations across six states.
The company used to trade above $2 before 2020, but it has been struggling with debt. For the six months ended June 30, 2021, ITHUF reported a net loss of $34.7 million and a massive accumulated deficit of $758.9 million. During the six months ended June 30, 2021, due to liquidity constraints, ITHUF did not make interest payments due to the lenders of the Company’s 13% senior secured convertible debentures and the 8% convertible unsecured debentures.
On March 31, 2020, the company defaulted with respect to its long-term debt and is currently in default of those obligations, which, as of June 30, 2021 consisted of $97.5 million and $60.0 million of principal amount, and $22.9 million and $7.2 million in accrued interest, with respect to the Secured Notes and Unsecured Debentures, respectively.
As a result, the Board formed a special committee comprising of five independent, non-management directors of the company to explore and consider strategic alternatives in light of the prospective liquidity requirements of the company, the condition of the capital markets affecting companies in the cannabis industry, and the rapid change in the state of the economy caused by the pandemic. ITHUF entered into a restructuring support agreement dated July 10, 2020 with the holders of its Secured Notes and a majority of the holders of its Unsecured Debentures to effectuate a proposed recapitalization transaction to be implemented by way of a court-approved plan of arrangement under the Business Corporations Act (British Columbia). If consummated, ITHUF intends to issue up to an aggregate of 6+ million common shares upon the extinguishment of $22.5 million of Secured Notes (including the Exit Fees), $40.0 million of Unsecured Debentures (including interest accrued thereon) and interest accrued on the interim financing in the amount of $14.7 million provided by the Secured Lenders.
The Recapitalization Transaction is subject to the receipt of all necessary regulatory approvals and approval by the Canadian Securities Exchange, since ITHUF is based in Canada as well.
Last week, the company said that it had received a purported notice from the Lenders and the Consenting Debenture Holders. The notice seeks to unilaterally extend the outside date for closing the recapitalization transaction beyond the existing Outside Date, August 31, 2021, to “the date on which any regulatory approval or consent condition to implementation of the Plan is satisfied or waived.”
All in all, ITHUF has great operations, but adding it to your OTC portfolio may depend on how it addresses its massive debt. With an unlimited number of authorized shares, it can find a way to arrange its debt, although the share value might be eventually diluted. The share price has recently bottomed out, and if a solution is found soon, it may never look back.
Hot Penny Stocks #3 OZSC
Ozop Energy Solutions, Inc. is a well-established company with Pink Current status. While it’s generating considerable revenue, the share price has corrected since its mid-February YTD high near 40 cents. Still, this is a great opportunity to buy the dip.
OZSC has gained about 40% during the last five days, touching the highest since the beginning of July. Despite the long-term correction, the OTC stock is still up over 500% since the beginning of the year. We first paid attention to OZSC in January, well before the price surge to the YTD high, which proves the value of subscribing.
OZSC, through its subsidiaries, designs, develops, manufactures, and distributes ultra-high-power chargers, inverters, and power supplies for a wide variety of applications in the defense, heavy industrial, aircraft ground support, maritime and other sectors. Its strategy focuses on capturing a significant share of the rapidly growing renewable energy market as a provider of assets and infrastructure needed to store energy. The company offers a broad portfolio of Renewable Energy products at competitive prices.
In the first quarter, OZSC had a negative net income of over $200 million, but the cash flow was improving and the debt to assets ratio dropped from the previous quarter.
Also, the company has secured many orders for its products during the last few months, which will be positively reflected in the Q2 financials. On June 9, OZSC said that it had received an order for 38 electric vehicle charging stations to be installed in various locations in Brooklyn, NY, continuing its steps in developing a regional NeoGrid Modular Network (patent pending) that will spark a new generation of electrical supply, storage & distribution. The orders are valued at $2 million.
The latest price spike was driven by the news that it would use Tesla MEGAPACK in battery storage system design. The company’s subsidiary, Ozop Energy Systems, Inc had executed a purchase order for a Tesla MEGAPACK for its first of more than a half dozen projects, staged in a queue of portfolios of several hundred properties. The start of this energy storage project will be designed using the Tesla Megapack and will be managed in conjunction with STEM’s Athena Artificial Intelligence that will control the system for the next 20 years. At the site level, this system requires 40% less space and 10X fewer parts. As a result, this high-density, the modular system can be installed many times faster than current systems on the market.
— OZOP Energy Solutions (@OzopEnergy) August 25, 2021
The Tesla Megapack, manufactured by EV carmaker’s clean energy subsidiary, is a large-scale rechargeable lithium-ion battery stationary energy storage product, designed for use at battery storage power stations.
Ozop CEO Brian Conway said:
“We look forward to working with this team of consummate professionals, as Ozop Energy Systems is committed to providing solutions to make a positive impact in our country’s energy transition challenges.”
We think OZSC is turning into an important energy player, and collaborating with companies like STEM or using unique products from giants like Tesla tells you about the potential of this OTC stock. Also, OZSC is focused on renewable energy, which is a massive trend, especially with Biden in the White House and Democrats in control of Congress.
Hot Penny Stocks #4 TPTW
TPT Global Tech Inc has been on the rise, gaining over 300% during the last few days alone. The share price of this $34 million company has increased from one cent last week to the current level of $0.0455, peaking on Thursday at $0.0617, which is the highest level since the beginning of March. We first mentioned TPTW in February 2020, when the stock was trading below a penny.
TPTW, a penny stock exempt company, is a tech-oriented business that provides telecommunications, medical technology and product distribution, media content for domestic and international syndication as well as technology solutions. The company offers Software as a Service (SaaS), Technology Platform as a Service (PAAS), and cloud-based Unified Communication as a Service (UCaaS).
TPT Global Tech also operates as a Master Distributor for nationwide Mobile Virtual Network Operators (MVNO) and Independent Sales Organization (ISO) as a Master Distributor for pre-paid cellphone services, mobile phones cellphone accessories and global roaming cellphones.
Last year, TPT Global Tech launched TPT Med Tech to help fight COVID-19 with a wide array of advanced medical products including the mobile QuikLAB rapid COVID-19 testing unit.
The latest 300% price surge followed the announcement that the company had entered into a strategic technology agreement with Skybridge West Africa (SWA) to participate in the development of 20 SMART Villages emulating that of Duval County Florida in the Country of Ghana.
SWA has been awarded a $5B community development approval from the Ghanaian Ministry of Works and Housing to develop and build over 100,000 newly constructed homes utilizing the latest green technology over the next 5 years. The Smart Village infrastructure will consist of new home design and construction, new transportation capabilities, renewable energy, waste management technologies, installation of high-speed fiber-optic, 5G wireless cell towers, last-mile wireless technology, and ultra-performance cement technology. Skybridge will also develop the education system and programs for the new Smart Village.
For the project, TPT Global Tech and its subsidiaries will provide the Ghanaian Smart Village with its proprietary suite of technology platforms including its ‘QuikLABS’ and ‘QuikPASS’ medical testing and verification systems, design and build the 5G wireless cell towers, fiber infrastructure and renewable energy technology for electricity and water. The company will also be providing ultra-performance concrete technology for roads, plumbing, sewer pipes, toilets, bathtubs, sinks, tiles and decorative fixtures for the housing community and medical clinics throughout the Smart Village. The estimated contract award portion to TPT Global Tech for its technology contributions and infrastructure build is estimated to be $3.5B of the total $5B USD Smart Village budget over the next 5 years.
There is nothing to tell you more – a $3.5 billion contract handed to an OTC firm. This is your chance to get exposure to this OTC stock before it exceeds the $1 mark and goes higher.
$tptw This has all the makings of a huge runner!
– penny stock exempt
– multi-billion dollar projects in both Africa and India
– great share structure
– institutional investors and possibly plans to uplist to a major exchange 🔥🔥🔥 pic.twitter.com/sTZ5yIMtcp
— Double Down (@DoubleDownnn) August 25, 2021
THE FINAL NOTE
All of the 4 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 an OTC stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye 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 OTC 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.