The new Delta variant may cause fresh concerns regarding the US economic growth, but the government won’t impose major lockdowns as it did one year ago, as almost 50% of the population is fully vaccinated. Thus, any potential slowdown in GDP growth should be temporary.
On Thursday, the Nasdaq closed at its all-time high after data showed US jobless claims dropped further last week, along with other mixed economic data before Friday’s much-awaited Nonfarm Payrolls report.
Initial applications for unemployment benefits declined by 14,000 to 385,000 in the week ended July 31, and layoffs fell to their lowest level in more than 21 years in July, according to data from the Labor Department.
Keith Buchanan, portfolio manager at Globalt Investments, told Reuters:
“The directional change has continued to be improving in the last few weeks and now it’s a new low since beginning the pandemic. I think that’s what (is) kind of leading to some optimism today and earnings to this point have been positive.”
Meanwhile, the US Senate will try this Saturday again to finalize the $1 trillion infrastructure bill.
Today is a great time to invest in OTC and Nasdaq markets, as there are many hot stocks to look into right now.
FINDING OPPORTUNITIES IN HOT STOCKS
There are plenty of opportunities for investors if they follow us here at Insider Financial.
The key to trading stocks is finding the 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 hot stocks. For some that can be as many as 10 to 20 or more hot stocks.
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.
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 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 hot stocks, of which two are listed on NASDAQ. They are Bit Digital, Inc (NASDAQ: BTBT), Cloudcommerce Inc/AiAdvertising Inc (OTCMKTS: AIAD), Cyberlux Corporation (OTCPK: CYBL), and Robinhood Markets, Inc (NASDAQ: HOOD).
Hot Stocks to Watch #1 BTBT
Bit Digital, Inc has shown some great performance since the end of July, when it touched the lowest level since December 2020. After bottoming out at $4.23 on July 23, the Nasdaq-listed stock has been ascending rapidly along with the crypto rally.
BTBT has gained 80% during the last five days and over 136% during the last month. These would be great figures for an OTC stock, but for a $675 million business, it’s more than impressive. The share price, which is now fluctuating near the highest level since mid-April, still has room for growth.
BTBT’s main operations focus on Bitcoin mining, which is still a lucrative business, especially after China started its crackdown on local miners several months ago. Bit Digital was previously known as Golden Bull Limited and changed its name to Bit Digital in September last year. The company operates through several subsidiaries.
BTBT is currently one of the largest publicly listed crypto miners, and it can grow even bigger. With a maximum hash rate of 1,920 ph/s, it has substantial revenue and can expand by purchasing more advanced ASIC miners. So far, BTBT has mined over 3,000 BTC since it started mining operations a few years ago, which would be worth about 120 million at today’s price of about $40,000 per coin.
In the first quarter alone, the company mined 1,013 Bitcoin, generating revenue of $43.95 million. BTBT acquired 100 more miners in the first three months of the year, getting to almost 50,000 machines. The net income for the same period was $35.79 million, and EPS was $0.74, compared with a net loss of $3.85 million and a loss per share of $0.25 in Q1 2020.
At the end of July, the company announced that China’s recent crackdown on local miners represented an opportunity for BTBT. Prior to the ban, China hosted about 50% of global mining capacity. BTBT immediately suspended its remaining mining operations in China, effective June 21, and accelerated its migration strategy to North America, which had been ongoing since October 2020. During Q2, BTBT shipped 14,500 miners to the US, which is the largest quarterly shipment to date. As of June 30, 70.8% of its fleet was already deployed, in transit to or awaiting installation in North America.
China’s move has benefited Bitcoin miners, with the mining difficulty level tumbling to the lowest level since the beginning of 2020.
At the end of July, the difficulty measure increased for the first time since the end of May.
Now it’s a great time for miners not only because of declining difficulty but an increase in the price of Bitcoin, which fluctuates just over $40,000.
At the end of July, BTBT consolidated a partnership with Digihost Technology Inc. (TSXV: DGHI; OTCQB: HSSHF) by signing a second strategic co-mining agreement, according to which Digihost will provide certain premises to Bit Digital for the operation of a 100 MW Bitcoin mining system to be delivered by Bit Digital for a term of two years. This collaboration between Digihost and Bit Digital is expected to facilitate an additional increase in hashrate of approximately 2 EH between the companies, and a total increase in hashrate between the two companies of approximately 2.4 EH.
All in all, we think BTBT has a healthy business, and it’s definitely a hot stock to look into right now, as the market conditions are great for crypto miners.
Hot Stocks to Watch #2 CLWD/AIAD
Cloudcommerce Inc has corrected on Friday, but it still has gained over 70% during the last five days. On Wednesday, the stock rose to $0.0338, which is the highest level since April, after which it pulled back to trade at $0.0283. The OTC stock is still far from its year-to-date high reached in mid-January at almost $0.17. We first reported on CLWD at the beginning of January, shortly before this hot stock hit the highest level since 2006.
At the beginning of the year, CLWD was surging in price after announcing plans to launch an artificial intelligence (AI) venture to focus on using the technology to enhance its successful SWARM solution with the goal of cutting advertising costs by as much as 50%. In June, the penny stock exempt company exceeded that target, as it said it had reduced media costs by more than 60% for Energy in Focus, a web-based platform that showcases diverse information on energy in California. Based on the first-round results, the client has committed to a second round.
Thus, CLWD departed from its cloud business to focus more on AI. During the last few days, investors have shown increased interest in the stock amid rumors of a potential merger.
— Stock Pop (@Stock_Pop) August 4, 2021
In fact, on August 4, everyone was talking about the merger that should have been announced on Thursday, though no one knew the merger candidate.
— 👑HDOGTX – Momentum Kings👑 (@HDOGTX) August 5, 2021
In reality, the big news came on August 6, and it was not about any merger. The company said that it changed its name from CloudCommerce to AiAdvertising, Inc, and will go with the new stock ticker AIAD. This has been done through a merger with its subsidiary AiAdvertising.
The company’s CEO Andrew Van Noy said:
“With our increased focus on artificial intelligence, we believe that AiAdvertising is a more appropriate name for our public company. Also, we were fortunate to be granted the stock symbol AIAD. Combining AI with AD makes it clear to Wall Street that we are all about artificial intelligence and advertising.”
It remains to be seen how the market will react now that there is no massive merger on the horizon as anticipated. Still, the new name indeed better reflects the company’s main business that relies on SWARM, which the company is turning into a cloud-hosted software platform that will harness the power of AI, machine learning, and predictive algorithms to eliminate the inefficiencies, waste, and guesswork that is inherent and accepted in today’s data-driven digital marketing campaigns.
At the end of June, the company said that it would file patent applications to protect its novel use of AI and natural language processing (NLP) to cut the cost of advertising. If it succeeds, AIAD will be able to monetize its approach, which makes it a long-term buy.
Hot Stocks to Watch #3 CYBL
Cyberlux Corporation has been volatile since the end of July after investors found out that the company moved closer to become Pink Current. CYBL quickly made the list of hot stocks monitored by investors at the end of July. The share price increased from $0.0050 at the beginning of July to $0.0177 on August 5, which is the highest level in over a decade. The OTC stock has gained over 250% since the beginning of July and over 1,260% since the start of June.
CYBL develops and sells advanced lighting systems that use white, infrared (IR), and other light-emitting diodes (LEDs) as illumination elements. The company’s product applications of solid-state LEDs are up to 70% more energy-efficient and require less maintenance cost to operate than traditional lighting systems.
The company uses its proprietary technology to create portable illumination systems for the US Department of Defense (DoD), military markets, and lighting products focused on energy efficiency and total cost of ownership minimization.
On July 9, the company released an update regarding its plans to become Pink Current. CYBL stated that once it gets the OTC Pink Current status, it would reduce the number of authorized shares from 20 billion to 8.75 billion, down 56.25%.
On top of that, the outstanding share balance of 5.1 billion shares includes 700 million phantom restricted shares from a transaction in 2014. Those 700 million restricted shares were confirmed lost in 2018 and will never be tradeable.
Also, the company said that it wouldn’t engage in any reverse stock split for a period of up to 5 years.
In its monthly update at the end of July, CYBL said that it had established its growth plans that include expanding across government agencies, targeting specific commercial markets, driving growth in South America and expanding its technology IP, with the following priorities:
- OTC Pink Current ASAP
- Build the Org-Key Hires 3Q
- Contracts-Pipeline 3Q/4Q
- Acquisition-Priorities 3Q
- Products 3Q/4Q
- South America-Pipeline 3Q/4Q
- Strategic IP 4Q
With government contracts and proprietary technology, which think CYBL is really a hot stock to hold in your portfolio.
Remember when $DPLS had a nearly $1 Billion Market cap and $0.20 PPS after they announced Government contracts. $CYBL only had a $90 Million Market cap & $0.0169 and the share structure is better. And they already have Gov. Contracts w/ Drone Acq. soon. This will be a story 📙
— Moon Market (@MoonMarket_) August 5, 2021
Hot Stocks to Watch #4 HOOD
Robinhood Markets Inc has definitely been one of the hottest stocks these days. The Nasdaq-listed company became public only recently and has already made waves.
Robinhood’s flagship product is a trading app that lets you buy and sell stocks, exchange-traded funds (ETFs), cryptocurrencies, and commodities. Earlier this year, the app was super popular as it was used by many retail investors to drive the so-called “meme stocks” like GameStop.
After a difficult IPO start at the end of July, when HOOD lost 8% during its first trading day, it has quickly become a meme stock itself, with its active users, who are mostly amateur traders, supercharging HOOD on social media.
The share price of HOOD surged 24% on Tuesday and an impressive 50% the next day, peaking at over $70 per share. Data from VandaTrack showed that Robinhood was the third most-bought stock on retail platforms Wednesday, with $50.5 million in net purchases.
However, on Thursday, the price collapsed over 27% to close just above $50, after it was found out that some major shareholders received the right to cash out up to 97.8 million shares. However, the filing from Robinhood indicating that early investors, including Andreessen Horowitz and Ribbit Capital, can sell about 98 million shares is not really bad news. The share price might be affected in the coming weeks, but the number of floating share will increase, which will smooth out volatility.
Robinhood $HOOD to sell 97,9 million shares from early investors (the same bloated billionaire VC funds that get in at dirt cheap prices). I said on my show be careful not to be long when lockup ends and firms begin ratings.
Be nimble if you are a trader.
— Charles V Payne (@cvpayne) August 5, 2021
All in all, HOOD is a great stock to hold if you manage to enter the market during a major price correction like the current one. The company will continue to expand its client base, especially as the Fed keeps pumping money into the markets.
THE FINAL NOTE
Today is a great opportunity to benefit from the stock market’s bullishness and invest in hot stocks with great potential during a reviving economy. Our job is to identify the best stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
All of the 4 hot 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 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 hot 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 hot stocks to buy each week, trying to find the best alerts for our subscribers.
Remember, all you need is one or two hot stocks to succeed in order to crush the market averages.
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.