If January and February are a sign of things to come in 2021, traders and investors are going to make a lot of money this year. 4 hot small cap stocks on the move are Corbus Pharmaceuticals (NASDAQ: CRBP), Medical Marijuana (OTCMKTS: MJNA), Microvision (NASDAQ: MVIS), and Global Battery Metals (OTCMKTS: REZZF).
HOW TO TRADE HOT SMALL CAP STOCKS
First up, it’s important to understand that trading small cap stocks is not the same as trading blue chips. As we have stressed repeatedly to our subscribers, the key to trading hot small cap stocks 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. We got our subscribers in early on TSNP, which you can read our first article here, and ALPP, which you can read about here. This is where the big money is made and why so many of our subscribers are sitting on gains of over 9633% in ALPP and over 19,900% in TSNP.
It’s also best to own a portfolio of quality small cap stocks. For some that can be as many as 10 to 20 or more small cap stocks.
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 SMALL CAP STOCKS VS NASDAQ/NYSE SMALL CAP STOCKS
The fact is that there is always a bull market somewhere. That’s why it’s important for small cap stock investors to trade both OTC and NASDAQ/NYSE small cap 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 small cap stocks than OTC. That is where we and our subscribers were positioned. We captured the runs in SRNE, NIO, INO, IBIO, WKHS, 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/NYSE small cap stocks. There is no shortage of multi-baggers in both markets at the moment. As we have said repeatedly, there’s no better time to be a small cap stock trader and traders need to be aggressive. It’s like being at the casino. When you have a hot hand and the house keeps losing (hedge funds and institutions), take advantage of it while you can.
In this article, we take a look at 4 hot small cap stocks on the move, CRBP, MJNA, MVIS, and REZZF to find out what’s behind the move and our outlook for each.
Hot Small Cap Stock #1: CRBP
CRBP is a rebound play as the stock was trading over $9 back in September.
What’s attractive about CRBP is that it’s a cannabinoid pharma player that looks awfully cheap after Jazz Pharmaceuticals (NASDAQ: JAZZ) bought GW Pharma (NASDAQ: GWPH) for $7.2 billion. CRBP has a market cap of just $290 million.
Corbus has Lenabasum, a cannabinoid receptor type 2 agonist, in phase 3 for systemic sclerosis and dermatomyositis. Unfortunately, Lenabasum did not meet primary endpoints for either the phase-3 study in systemic sclerosis or the phase 2b cystic fibrosis trial.
Although the trials did not meet their endpoints, there was plenty of positives that came out of the studies. For one, Corbus gained insightful data which still leads management to believe that there remains plenty of potential to bring these drugs forward.
We are expecting a major breakthrough when it comes to Lenabasum. Management now has the data it needs to advance new trials. CRBP also has over $80 million in cash to see the trials to completion. With 19% of the float short, there’s plenty of room for CRBP to run. This is one hot small cap stock to have on your radar.
Hot Small Cap Stock #2 MJNA
MJNA always runs whenever cannabis stocks get hot. The company has the best name recognition in the industry since MJNA was the first publicly traded cannabis company. MJNA always runs whenever we get a Green Rush.
MJNA has been busy launching new products.
In the U.S., MJNA subsidiary Kannaway officially launched its Pure CBG tincture. Each one-ounce bottle of the tincture infuses 1,000 mg of CBG isolate into multi-chain triglyceride (MCT) oil for increased absorption.
Kannaway’s Green Hemp Oil, now available to consumers in Europe, combines organic hemp seed oil with raw hemp oil to bring the nutrition of broad-spectrum cannabinoids as they are found in a live hemp plant. Each one-ounce bottle contains 500 mg of CBD and its acidic precursor CBDA.
Compared to most other cannabis plays on the OTC Markets, MJNA has solid financials with $97 million in total assets and just $7.7 million in total liabilities. In the year ending 12/31/2019, MJNA reported $75 million in revenues and a gross profit of $57 million.
With a large shareholder base, there’s still more room for MJNA to run.
Hot Small Cap Stock #3: MVIS
MVIS has been a huge winner for our subscribers that stuck with the company. We profiled MVIS in August, which you can read here when it was trading at just $1.25 a share. It’s taken a few months, but subscribers are now up over 1000%!!
MVIS is running after receiving the necessary components and equipment to meet its April milestone of completing A-Samples or functional prototypes of its long-range lidar sensors. The company has also started outdoor testing of key performance features for its development platform.
“We expect MicroVision’s Long Range Lidar Sensor, (LRL Sensor) which has been in development for over two years, to meet or exceed requirements established by OEMs for autonomous safety and autonomous driving features,” says CEO Sumit Sharma.
As we said before, MVIS has over 450 issued patents, pending patents, and licensed patents worldwide. This patent portfolio is very, very valuable. No doubt one or more of the companies above are already infringing on Microvision’s patents already.
There’s also the heavy short interest with 15% of the float short. We love seeing the shorts getting squeezed 🙂
Hot Small Cap Stock #4: REZZF
REZZF is running as an emerging play on the enormous lithium demand for EVs.
Global Battery Metals currently has two projects: (1) an option to acquire up to 90% of the North-West Leinster lithium property in Ireland, and (2) a 55% stake in Peru-based Lara copper property, which has over 10,000 metres of drilling. As previously disclosed, Minsur S.A., a Peruvian mining company, entered into an option agreement with GBML and Lara Exploration Ltd. to acquire the Lara property for staged payments of US$5.75 million. GBML will retain a 0.75% net smelter royalty.
REZZF has already outlined its drill program in Ireland.
“We are very excited to begin drilling our North-West Leinster Lithium Project in Ireland,” stated Michael Murphy, President & CEO. “We have identified four high-priority targets and will test the Aghavanngh target with our initial drill program. The target areas are near the Avalonia project, where Ganfeng and International Lithium have previously drilled high-grade pegmatite (see below). With $1.4 million in our treasury, and a drill budget of up to $150,000, we are fully funded to rapidly advance lithium exploration activities at North-West Leinster.”
With a market cap of just $48 million, REZZF remains one of the cheaper lithium plays on the OTC Markets.
These 4 hot small cap stocks are on the run right now. There are always opportunities in the markets and it’s our job to find winning stocks. Huge gains can be made in such a short amount of time.
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 winner and you’ve crushed the market indices for the year. Whoever said to avoid small cap stocks has no clue what they’re doing.
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.