Small cap markets are finally getting back to normal. In February, we saw small cap stocks top out across the board in both the NASDAQ and OTC Markets.
However, we can’t complain. From last summer to February, it was an incredible time to be a small cap investor. There was a new 10-bagger practically every week on the OTC Markets. Quite simply, it was easy to make money.
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/HMBL, ENZC, MMEDF, and many others.
The fact is that there is always a bull market somewhere. That’s why it’s important for small cap investors to trade both OTC and NASDAQ small caps. There are always opportunities if you give yourself the flexibility to trade all markets.
How To Invest In Small Cap Stocks
First up, it’s important to understand that trading small caps is not the same as trading blue chips. Small cap stocks are subject to enormous volatility like what we have witnessed over the past few weeks.
Also, remember these 2 important points when it comes to investing in small caps.
- Buy low and sell high.
- Don’t be afraid to book profits.
This is why we have preached over and over again on our Insider Financial YouTube channel to book profits along the way. We warned our subscribers to not get greedy or get caught up in the diamond hands/paper hands BS.
The key to trading small caps 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.
It’s also best to own a portfolio of small cap stocks. For some that can be as many as 10 to 20 or more small caps.
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.
The good news is that we are finally getting the multi-day runners like we are used to here at Insider Financial. In this article, we take a look at 4 hot small cap stocks Green Global International (OTCMKTS: GGII), MicroVision (NASDAQ: MVIS), Ocugen (NASDAQ: OCGN), and 12 Retech (OTCMKTS: RETC).
Hot Small Cap Stock GGII
GGII is up 576% over the past 5 days.
The CEO of GGII is Sandro Piancone. He is also the CEO of Hempacco, a Hemp cigarette company.
Hempacco seeks to disrupt the $1 Trillion tobacco industry with hemp-based alternatives to cigarettes by manufacturing and marketing consumer goods. The Company owns research and development, manufacturing and sales of smokable hemp brands, including The Real Stuff™ Hemp Smokables.
Hempacco’s profit centers include private label agreements, Intellectual Property licensing, and the development and sales of their brands using patented counter displays as well as six hundred Kiosk vending machines called HempBoxes™.
Our only concern is that there is some confusion regarding Hempacco. There are 2 different websites – hempaccoinc.com and hempaccopackaging.com. Hempacco Inc says that they are going public via an IPO and they’re in the process of raising $5 million.
The deal that was signed between Maple Leaf Green World (OTCMKTS: MGWFF) and Hempacco directs visitors to hempaccopackaging.com.
Right now, GGII is running on speculation. Until we get confirmation of what the official role is between Hempacco and GGII, we can only speculate. We have reached out to Sandro Piancone for clarification and will update subscribers as soon as we know more.
Hot Small Cap Stocks MVIS
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.
MicroVision, which develops laser scanning technology for automotive lidar sensors and augmented reality, was the most mentioned stock on Reddit’s popular WallStreetBets forum on Monday. MVIS is squeezing the shorts as 19.52% of the float has been borrowed by shortsellers.
We have speculated that Microsoft might be interested in buying MicroVision, which you can read here. Unfortunately for Microsoft, MVIS is a lot more expensive to buy now than before.
MVIS is due to report results on April 29. We will be on the conference call and updating our subscribers after.
Hot Small Cap Stocks OCGN
We first told our subscribers about OCGN when it was just $2.77, which you can read here.
We knew back in January about OCGN and Bharat Biotech. It took investors a month to wake up to the potential. It was all there for everyone to research.
According to the NY Times, Bharat Biotech’s vaccine kills the coronavirus. Covaxin works by teaching the immune system to make antibodies against the SARS-CoV-2 coronavirus.
Once the researchers produced large stocks of the coronaviruses, they doused them with a chemical called beta-propiolactone. The compound disabled the coronaviruses by bonding with their genes. The inactivated coronaviruses could no longer replicate. But their proteins, including spike, remained intact.
The researchers then drew off the inactivated viruses and mixed them with a tiny amount of an aluminum-based compound called an adjuvant. Adjuvants stimulate the immune system to boost its response to a vaccine.
Inactivated viruses have been used for over a century. Jonas Salk used them to create his polio vaccine in the 1950s, and they’re the basis for vaccines against other diseases including rabies and hepatitis A.
OCGN has an exclusive deal with Bharat Biotech for the US. Under the terms of the agreement, Ocugen will have US rights to the vaccine and will be responsible for clinical development, regulatory approval (including EUA) and commercialization for the US market.
Bharat Biotech will supply initial doses to be used in the US upon Ocugen’s receipt of an EUA. Ocugen will share the profits from the sale of COVAXIN in the US with Bharat Biotech, with Ocugen retaining 45% of the profits.
Bharat Biotech’s vaccine, Covaxin has shown efficacy against the new variant behind India’s second wave.
With almost 15% of the float short and India’s COVID-19 pandemic continuing to get worse, we see OCGN making new highs sooner than later.
Hot OTC Stocks RETC
RETC is up 781% in the past 5 days after merger whiz George Sharp made this announcement on Twitter.
Today, my attorney is filing for custodianship of $RETC on my behalf. Those buying shares must know that there is incredible risk here. My application could be denied. I could find really bad skeletons.
Do not ask me questions regarding the progress. You will be blocked
— George Sharp (@GeorgeASharp) April 26, 2021
As you can see from the chart below, when George speaks, the market listens.
The last deal George got involved with was Tesoro Enterprises (OTCMKTS: TSNP) where he orchestrated the merger with HUMBL Inc (OTCMKTS: HMBL). HUMBL is now a unicorn.
With a market cap of just $20 million, small cap investors are betting that George has the same magic to do for RETC what he did for TSNP/HMBL.
As we keep saying, there are always opportunities in the markets and it’s our job to find hot small cap stocks for our subscribers. Huge gains can be made in such a short amount of time.
If you like any of these 4 hot small cap 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.
It’s also important to look for small cap stocks that have yet to run. There are plenty of opportunities out there and we look at hundreds of small caps to buy each week trying to find the best alerts for our subscribers.
Remember, all it takes is one or two to become a winner and you’ve crushed the market indices for the year.
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.