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The key to trading stocks is finding the momentum BEFORE it happens and then being 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 penny stocks. For some that can be as many as 10 to 20 or more stocks that include both OTC stocks and NASDAQ stocks. We don’t necessarily stick to OTC tickers since NASDAQ-listed penny stocks can also generate impressive returns.
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The fact is that there is always a bull market somewhere. That’s why it’s important for 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 penny stocks that can do well in 2022, two of which are listed on NASDAQ. They are All American Pet Company, Inc (OTCPK: AAPT), Nxt-ID, Inc (NASDAQ: NXTD), U.S. Energy Initiatives Corporation Inc (OTCPK: USEI), and 22nd Century Group Inc (NASDAQ: XXII).
PENNY STOCKS #1 AAPT
All American Pet Company, Inc is maintaining its bullish momentum even though it has been correcting since September’s YTD high – which is the highest in over 8 years. The Pink Current shell, which is a reverse merger play, is now trading at two pennies, up more than 90% over the month.
AAPT has been going through a restructuring process. The company dumped its business related to pet wellness products and has searched for an acquisition candidate that would bring value to shareholders. AAPT recently appointed David Chong as CFO while maintaining Kareem Mansour as CEO and director.
Back in September, the company announced its intention to buy Kuora Industrial Interconnect Limited in a $200 million deal. The Chinese company was founded in 2018 and operates as an online services e-technology platform that connects businesses and individuals searching for technical expertise. The company’s revenue comes from B2B, B2C, and C2C interactions on its platform, which has attracted about 200k users, 1,000 experts, and over 3,000 enterprises. The company’s name seems to be inspired from Quora, the popular Q&A platform, although the two have nothing in common.
Kuora’s platform aims to combine the services provided on Quora, Upwork, and Zhihu. Businesses and individuals can post technical questions within a portal and then connect and hire professionally qualified technical experts, providing solutions both online and offline. David Chong said:
“Kuora is positioned to be a key player in the Gig Economy. The niche it operates in is largely underserved. The geographic market is still unsaturated and as such, there is a significant growth within the Asian market without even including future planned markets. It is also an incentivized industry in the geographical region it currently operates in.”
On Tuesday, AAPT said that it had been listed as the sole owner of Kuora in China.
$AAPT @AAPTCo officially listed as 100% owner of the business #Kuora in China. WOFE status confirmed. All shareholders of $AAPT has legally protected equity interest in #Kuora. No VIE risk. Well done Mr Li of #Kuora. @RealDavidChong
— Kuora Inc (OTC PINK: AAPT) (@AAPTCo) December 28, 2021
AAPT has a great share structure, with authorized shares almost maxed out. With a market cap of less than $60 million, the company is definitely undervalued at this price.
PENNY STOCKS #2 NXTD
Nxt-ID, Inc has been on the rise this week despite correcting on Wednesday by 16%. The NASDAQ-listed stock is up almost 30% during the last five trading sessions. On Monday, NXTD touched the highest since the beginning of November near the $5 mark. The share price is now fluctuating near $3.3, which is close to the lowest on record at less than $2.5. The stock has much room for growth until ascending closer to the YTD high at over $26.
The $30 million company provides technology products and services for healthcare applications. It develops and markets solutions for payment, Internet of Things (IoT), and healthcare applications with experience in access control, biometric and behavior-metric identity verification, security and privacy, encryption and data protection, payments, miniaturization, and sensor technologies. The company, through its subsidiary, LogicMark LLC, manufactures and distributes non-monitored and monitored personal emergency response systems.
In mid-December, NXTD announced that it had been awarded a US General Services Administration (GSA) contract to bring its personal emergency response systems (PERS) to federal, state, and local government purchasers as of Q3 2021. The company will be able to distribute its life-saving technology directly to long-term partners like the Veterans Health Administration and to other government agencies to help more people feel safe and secure at an affordable price.
NXTD’s goal is to use its patented technology to help improve the lives of seniors and others affordably.
CEO Chia-Lin Simmons said:
“We’re thrilled to be awarded this General Services Administration contract. These contracts are challenging to win and with this partnership now we can bring our products and services to more federal agencies, states and state municipalities so that they can serve more people in that partnership.”
About 19% of the floating stock is shorted, meaning that NXTD is turning into a good short squeeze candidate that can test new resistance levels soon to build a long-term bullish trend.
Unfortunately, the company reported negative revenue and profit during its latest report in September, but it has a long cash runaway that allows it to drive business growth for the next few years. While NXTD may not reach the $25 mark soon, it’s a short squeeze play that might have bottomed out and may not look back for the months to come.
PENNY STOCKS #3 USEI
U.S. Energy Initiatives Corporation Inc may be a great OTC stock pick as it’s only starting its journey and taps into the metaverse market, which is growing really fast. The company got the Pink Current status earlier this year has been exploring various business opportunities.
The $16 million company has grown by over 170% during the last five days and over the month to trade at $0.0027, the highest since the end of April.
In November, management said that it had investigated 2 business ventures that would bring significant shareholder value.
Earlier this month, USEI said that it planned to use its “Digital Assets” to grow this firm. Currently, the company’s Sumcoin assets hover between $40- $60 Million dollars, and the projected value of this index-based token is expected to continue to grow next year.
The company said:
“It is management’s goal to initially place $10 million dollars of those assets “under management” this week with BMCS SUMCOIN INDEX FUND, a publicly traded company (OTCMKTS: BMCS), and the plan for this transaction is to receive the fair market value for the assets at the point of sale. The proceeds from this sale (which is projected to occur in the 1st quarter of 2022) will be utilized to commence a “green energy mining operation” for the firm (details of this plan will be forthcoming).”
Last week, USEI confirmed that it had transferred $10 of its tokens to BMCS to be sold at market value to generate capital to execute its 2022 Business Plan that includes “green energy mining” and also entering the metaverse sector.
CEO Anthony K. Miller explained:
“When the capital is available, Management will initiate a significant mining operation that encompasses green energy as the source of power. Management has done significant research on this operation and believes that the revenue projections will be outstanding. Additionally, Management has been investigating opportunities for the Company in the Metaverse.”
On Monday, USEI reiterated its metaverse plans in another interview conducted by the company.
The company’s authorized shares are maxed out and it said it had no plans to increase the number of authorized shares. Also, there is no plan for any reverse split. USEI is poised to grow rapidly once it reveals more details about its businesses, especially given that it’s a metaverse play. Besides this, it holds over $40 million in Sumcoin, which is about three times more than its current market cap. This makes USEI a discount entry opportunity at current levels.
— ⛩🐐🅼🅽 🅶🅾🅰🆃 🆃🆁🅰🅳🅴🆁📈 (@mn_goat_trader) December 27, 2021
PENNY STOCKS #4 XXII
22nd Century Group Inc has had a great week so far, gaining almost 40% since last Thursday, which is pretty significant for a ~$500 million company. The NASDAQ-listed stock is hovering above $3. Last week, it hit the highest since mid-September at $3.4, managing to break above the resistance level of a multi-month bearish trend.
XXII is a biotechnology company that develops plant-based solutions for the life science, consumer product, and pharmaceutical markets. It develops very low nicotine content tobacco and cigarette products under the Moonlight and Moonlight Menthol brands, as well as SPECTRUM research cigarettes for use in independent clinical studies.
The company has collaborated with Keygene N.V. to develop hemp/cannabis plants for exceptional cannabinoid profiles and other superior agronomic traits for medical, therapeutic, and agricultural uses, as well as other applications.
The latest price spike came after the company said that the Food and Drug Administration (FDA) had authorized the marketing of its VLN® King and VLN® Menthol King reduced nicotine content cigarettes as modified risk tobacco products (MRTPs). Thus, the federal agency found that VLN – which smokes, tastes, and smells like a conventional cigarette but contains 95% less nicotine than conventional, highly addictive cigarettes – “help reduce exposure to, and consumption of, nicotine for smokers who use them.”
XXII CEO James A. Mish said:
“Today’s decision to authorize VLN®’s MRTP application places the FDA and 22nd Century together at the vanguard of transforming the tobacco industry. With 60% of adult smokers in our US market research telling us they are likely to try VLN®, this is a complete game-changer for 22nd Century, the tobacco industry, public health, and adult smokers looking to change their relationship with nicotine – the addictive chemical found in all tobacco products. This is the first, and most likely will be the only, combustible cigarette to ever carry the FDA’s MRTP designation. The FDA’s decision to require the additional headline claim ‘Helps You Smoke Less’ alongside our requested headline claim of ‘95% Less Nicotine’ gives adult smokers a crystal-clear reason to replace their conventional and highly addictive cigarettes with VLN®.”
We think XXII is a great bet at this point, as its VLN cigarette is the first and only combustible cigarette to come to market that complies with the FDA’s proposed nicotine cap for conventional cigarettes as well as New Zealand’s recently proposed reduced nicotine content mandate.
$XXII I am keeping what's left for Q1 2022! think they will get some partnerships and some marketing initiatives with their product!
Low risk since have low average and if good pulls will add more to it!
Risking below entry 2.49! https://t.co/GbHLOIFg1q
— HODOR (@Maximus_Holla) December 28, 2021
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.