If the first trading days of 2021 are the sign of things to come this year, traders and investors are going to make a lot of money. 4 hot penny stocks to start 2021 are Zomedica (NYSEAMERICAN: ZOM), Sundial Growers (NASDAQ: SNDL), Enzolytics (OTCMKTS: ENZC), and Optec International (OTCMKTS: OPTI).
HOW TO TRADE PENNY STOCKS
First up, it’s important to understand that trading penny stocks are not the same as trading blue chips. As we have stressed repeatedly to our subscribers, the key to trading penny stocks is finding momentum BEFORE it happens and then be patient.
We got our subscribers in early on TSNP, which you can read our latest here, and ENZC, which you can read about here. It’s also best to own a portfolio of quality penny stocks. For some that can be as many as 10 to 20 or more penny stocks.
Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens. This is where the big money is made and why so many of our subscribers are sitting on gains of over 7750% in ENZC and over 18,650% in TSNP.
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 we know many prefer to day trade, but we are not day traders here at Insider Financial. It 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.
If you want to day trade, Insider Financial is not the place for you. When it comes to day trading, and if that’s what you are after, we recommend the folks at True Trading Group, which you can check out their live streams here.
OTC PENNY STOCKS VS NASDAQ PENNY STOCKS
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/NYSE penny stocks. There are always opportunities if you give yourself the flexibility to trade all markets.
Last year, for the first half of 2020, it was much more profitable to trade NASDAQ penny stocks than OTC. That is where we and our subscribers were positioned. We captured the runs in SRNE, NIO, INO, IBIO, WHKS, and many others. Then once the summer came, many of the COVID runners had failed to find momentum. We then pivoted to OTC and caught the runs in TSNP, ENZC, MMEDF, and many others.
So far this year, it’s best to play both OTC and NASDAQ. With Bitcoin running, we are seeing crypto plays making huge moves. With Joe Biden coming into the White House and Democrats taking control of the Senate, we are seeing cannabis and green energy plays catching bids.
In this article, we take a look at hot penny stocks ZOM, SNDL, ENZC, and OPTI to find out what’s behind the move and our outlook for each.
Hot Penny Stock #1: ZOM
ZOM is a hot penny stock that is up 300% since the first of the year. We think this one has a lot more room to run as 8% of the float is short and commercialization of TRUFORMA nears.
On January 1st, Robert Cohen was named permanent CEO of ZOM. He brings more than 30 years of executive leadership and operations experience from the medical device, biotechnology, and pharmaceutical industries to ZOM. New CEO Cohen brings a lot to the table after working at three multi-billion-dollar medical technology companies and a successful track record in building early-stage companies and developing and launching a series of medical devices and biotechnology products.
Mr. Jeffrey Rowe, Chairman of the Board, commented, “Over the past six months we have enjoyed collaborating with Rob and have been thoroughly impressed with his business acumen and the professional leadership skills he has brought to Zomedica at such a crucial time. The Board is excited that Rob has agreed to accept the CEO position as we near our most pivotal milestone. Rob’s successful track record in launching medical devices is perfectly aligned for Zomedica’s needs as we complete the development of our TRUFORMA™ platform and achieve its commercial launch. The Board and our employees remain excited about the near-term launch, our commercialization strategy, and Zomedica’s longer-term growth opportunity.”
ZOM has over 70 patents and is in one of the hottest market sectors – pets. More importantly, ZOM focuses on the unmet needs of clinical veterinarians. We believe that ZOM is going to be this year’s CHWY.
Hot Penny Stock #2: SNDL
SNDL is up 50% since January 1st but is still down big from its IPO. As you can see from the chart below, there’s a lot more room for SNDL to run.
SNDL is extremely undervalued at current levels. The company has NO DEBT and C$52 million in cash!
SNDL just acquired a special purpose vehicle, which owns C$58.9M of the principal amount of senior secured debt (annual interest rate of 14% with a maturity date of Mar.31, 2025) of Zenabis Investments, a subsidiary of Zenabis Global. According to the senior loan terms, Zenabis will also pay Sundial a royalty based on quarterly sales revenue from its medical, recreational, and wholesale cannabis lines; payable for 32 fiscal quarters.
Last month, SNDL inked a license agreement with Simply Solventless Concentrates (SSC) for the processing and manufacturing of a suite of solventless cannabis concentrates products by Sundial in its Rocky View facility using SSC’s intellectual property. Under the agreement, SSC will receive a royalty on the sale of products manufactured and it will pay Sundial a monthly administration fee and will supply the non-cannabis materials to produce SSC concentrate products. Also, both the parties are underway selling the Rocky View asset for $5M post completion of regulatory approvals. SSC products are targeted to be in store in 2Q21.
On November 9, 2020, Sundial announced a partnership with Chokolat to launch a cannabis-infused confectionary brand. This allowed Sundial to expand into the edibles segment. The companies have announced they expect to scale the collaboration across the country, beginning in the Alberta market.
Just this week, SNDL launched a line of premium concentrates under its Top Leaf brand. Sundial’s new products will contain solventless cannabis extracts that are obtained without the use of harsh chemicals. Top Leaf products also contain no additives, fillers, or artificial flavors.
SNDL has many irons in the fire and the stock remains cheap with a current market cap of just $542 million with no debt and C$52 million in cash. We don’t expect SNDL to remain this cheap for long. Once SNDL eliminated its debt, the company is dressed up for a suitor and is a likely takeover candidate.
Hot Penny Stock #3: ENZC
ENZC has been a tremendous winner for Insider Financial and our subscribers. Even our regular readers are doing well as we wrote about ENZC on October 6th when it was trading at $.014 a share and which you can read here.
ENZC has hired Houston-based PCAOB Audit firm to Audit the Company’s year-end financial statements, subject to the receipt and acceptance of the engagement letter. The proposal covers the 2019 and 2020 calendar years for filing with the OTC Markets. This will get the YIELD sign removed and further boost the share price.
On January 8, 2021, Enzolytics received comments from the OTC Markets Compliance Department referencing the September 30, 2019 filings and has made the edits and suggested changes, correcting the filings.
In addition, the first tranche of additional funding has been received and with the engagement of the PCAOB auditor, the third tranche from the outside investors, along with the first tranche from management, will bring the total new funding since September 15, 2020, to $1,300,000.00.
“We are excited about working with our new auditors and achieving fully reporting status. The Company has been focusing on several fronts on which we have made considerable progress. Administratively, we have achieved our goal of bringing our filings current and expect the yield sign to be lifted eminently. We have engaged the Auditor to issue an audited statement in order to achieve our goal of fully reporting by April, if not sooner. One of our top priorities is finalizing the necessary steps for completing the permitting process for our ITV-1 HIV/AIDS therapeutic in Bulgaria. We have received proposals from FDA approved manufacturers to produce the quantities necessary for such certification and those are under review. Our lab at Texas A & M University meets our exact needs for completing development of additional monoclonal antibodies for treatment of the HIV and SARS-CoV-2 viruses,” stated Charles Cotropia, CEO.
ENZC has a number of upcoming catalysts that can keep the momentum in the stock.
- All filings current.
- Further updates from Texas A&M
- Update on GMP production
- IND submission
These are the near-term catalysts that we are expecting. Anything new from the company would be an added bonus. To further understand why the ENZC/Bioclonetics merger is such a big deal, we recommend reading our last article on ENZC here.
Hot Penny Stock #4: OPTI
We said that OPTI was a smart bet when shares were trading at just $.025 a share, which you can read here. Since then we said that OPTI was on the direction of a nickel, dime, and then quarters. We’ve hit the nickel and dime. A quarter is next.
OPTI is one of the best penny stocks for investors looking to play the COVID-19 pandemic. OPTI is a PPE company with a number of products that will see wide-spread use, regardless of a vaccine. This is why Dr. Drew is now involved with OPTI.
Dr. Drew stated “I am so very privileged to work with Mr Roger Pawson and OPTEC International. Roger has led Optec skillfully such that it has become a company that is nimbly responding to the needs of the moment. The public is increasingly becoming aware of the importance of personal protective gear and the very real threats posed by viral and microbial pathogens. The tragedy of the present pandemic has driven the point home for us all. As a result, people are searching for best approaches to protect themselves and their family. Optec products not only responded to this market demand, but they have led the consumer by creating the highest quality technologies. I do not leave home without the Optec UV-C iWand. The design is astonishing. It is an ergonomic and sturdy instrument that can truly call itself the iPhone of the product space. The OPTEC iWand reliably destroys pathogens; the instrument fits comfortably in my pocket and in my hand. I look forward to bringing Optec’s technologies to the public to support health maintenance. And hopefully reduce the impact of viral and bacterial pathogens”.
OPTI was one of the biggest runners on the OTC Markets in 2020. As a result, OPTI became one of the most popular OTC penny stocks. With a steady stream of press releases and now Dr. Drew’s involvement, we believe OPTI can keep running in 2021.
These 4 penny stocks are hot right now. There are always opportunities in penny stocks and it’s our job to find the bull markets. Huge gains can be made in such a short amount of time.
For those that missed out on the recent run in these 4 penny stocks, our best advice is to be patient and throw bids in below the market. Buying dips and selling rips as swing trades remains the best strategy in these markets.
Remember, all it takes is one or two to become a ZOM, ENZC, or OPTI and you’ve crushed the market indexes for the year. Whoever said to avoid penny stocks has no clue what they’re doing.
As always, good luck to all (except the shorts)!
WHEN INSIDER FINANCIAL HAS A STOCK ALERT, IT CAN PAY TO LISTEN. AFTER ALL, OUR FREE NEWSLETTER HAS FOUND MANY TRIPLE-DIGIT WINNERS FOR OUR SUBSCRIBERS. WE SPECIALIZE IN FINDING MOMENTUM BEFORE IT HAPPENS!
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.