The stock market continues to benefit from the Fed’s ultra-easy monetary policy, with NASDAQ and OTCQX Composite indexes fluctuating near their all-time highs.
The Nasdaq updated the record high on Wednesday after the downbeat private payrolls report raised hopes the Fed would keep pumping cash.
The ADP report, which comes ahead of the much-awaited Nonfarm Payrolls report on Friday, showed US private employers hired fewer workers than anticipated in August.
Tom Martin, senior portfolio manager at Globalt Investments, told Reuters:
“Information on inflation with regard to jobs and wages is something that will be an important factor affecting Fed decisions rather than demand and supply side issues, which is why the Friday jobs data will set the stage for the Fed’s September meeting.”
Meanwhile, US manufacturing activity unexpectedly rose last month amid strong order growth.
Now it’s an exciting time to invest in stocks, especially in penny stocks, as they show greater return potential. NASDAQ and OTC Markets hosts many hot stocks with solid fundamentals.
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 that include both OTC stocks and NASDAQ penny 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 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 2 are listed on NASDAQ. They are Sphere 3D Corp (NASDAQ: ANY), China Infrastructure Construction Corp (OTCPK: CHNC), Amani Gold Limited (OTCPK: BRYYF), and Pixelworks, Inc (NASDAQ: PXLW).
Hot Stocks #1 ANY
Sphere 3D Corp has been a huge runner for our subscribers this year. So far in 2021, shares of ANY are up over 557% and are showing no signs of slowing down. Recently, we anticipated that ANY was setting up for a major breakout and it blew through our immediate targets and rallied to just under $12.
In our last write-up, the price of ANY urged to more than $4 after entering into an agreement with Hertford Advisors Ltd, a privately-held company that provides Bitcoin mining solutions, to provide a 6-month exclusive right to assume all of Hertford’s rights to a number of Bitcoin mining agreements. ANY said that it had successfully assumed and executed the first Bitcoin Agreement directly with the manufacturer, for the purchase of up to 60,000 new Bitcoin miners, with deliveries to start in November and continue over the course of the next ten months. Upon completion, this will give ANY 5.7 Exahash of computing power.
Other than that, the $50 million company delivers containerization, virtualization, and data management solutions via hybrid cloud, cloud, and on-premise implementations through its global reseller network and professional services organization. Sphere 3D, together with wholly-owned subsidiaries Overland Storage and Tandberg Data, manage a strong portfolio of brands, including Overland-Tandberg, HVE ConneXions, and UCX ConneXions.
Meanwhile, on August 30, ANY announced that Minority Equality Opportunities Acquisition Inc, a company that ANY has an indirect interest in, closed its upsized IPO. Minority Equality is a new SPAC incorporated as a Delaware company. The SPAC closed its IPO of 12,650,000 units at a price of $10.00 per unit, resulting in total gross proceeds of $126,500,000. The SPAC will focus on companies with 51%+ minority-owned and operated by individuals belonging to an ethnic minority group. Sphere 3D sponsored the SPAC. Jarvis Stewart, Chairman and CEO of HP Global Advisors, a Black-owned corporate development and strategy firm, advised Sphere 3D and its subsidiary that sponsored MEOA during the SPAC and IPO process.
While we don’t know the details of the deal, sponsors typically get anything between 20% and 25% of the common equity in the SPAC for an investment of approximately 3% to 4% of the IPO proceeds, so this is certainly a great deal for ANY. We think the uptrend is sustainable and ANY will go even higher in the coming months.
Hot Stocks #2 CHNC
China Infrastructure Construction Corp is a much smaller company, and it has been on the rise, showing even greater returns. The share price surged over 100% during the last five days and has almost tripled in August. Currently, you can buy one CHNC share for $0.0045.
The company provides educational systems focused on medicinal cannabis in cities throughout the US and six countries in Latin America. It also provides services in therapeutic areas of clinical trials in the US. Previously, CHNC offered concierge medicine at an affordable price through its membership-based model in the Houston, Texas, area, but it terminated the business last year.
The company has recently updated the Pink Current status by releasing an Attorney Letter and eliminated all debt, which is a big deal for a $30 million business that is starting a new journey. CHNC said in its annual report released at the end of August:
“With the elimination of these obligations and the termination of the agreement under which the Issuer was required to issue shares, management intends to devote its full attention to the development of its businesses and increasing shareholder value.”
1.8M debt ELIMINATED in 6 months! $CHNC is DEBT FREE and ready for the future!
Educating others leads to change and progress. With an international scope, $CHNC is poised to build a framework for bringing #medicalmarijuana into the world! @WildRhino @S3xyRhinna @AlexDelarge6553 pic.twitter.com/iwK63YHsWR
— MikulScarn (@MikulScarn) September 1, 2021
You should keep an eye on CHNC because it’s starting from scratch, which means a lot of opportunities, and it is doing something unique in the fast-growing cannabis industry – it plans to become the high-end authority of the cannabis research industry. CHNC might be authorized by governments to certify other companies providing cannabis products.
Hot Stocks #3 BRYYF
Amani Gold Limited has been correcting since Wednesday, but it still maintains the bullish momentum and is a hot penny stock. The share price has surged at the end of August to $0.002, updating the highest level since May. The price has found strong support at $0.001.
The Pink Current company market cap is listed on the Australian Stock Exchange. It is targeting exploration at its flagship project, the Giro Gold Project, located within the significant yet under-explored Moto greenstone belt in the Democratic Republic of Congo (DRC).
BRYYF trading has been quite active at the end of August, as investors found out that the small company sits on $8 billion of gold reserves.
When you got $8B worth of gold reserves, $9M market cap doesn’t make sense. I always say, invest in value and watch your account grow. $BRYYF
— OTC Chairman 💰🥇 (@danyal54794544) August 30, 2021
However, when it comes to figuring out the share structure, things get more difficult. Despite having the Pink Current status, there are no disclosures on OTC Markets. Also, the market cap as of September 2 on OTC is just $2 million, while on ASX it’s over $20 million. Still, we don’t know the number of authorized shares and there may be the risk of dilution. The company keeps issuing securities from time to time, and we don’t know how often that happens and what the logic behind it is.
The good news is that the company’s CEO Klaus Peter Eckhof said a few months ago that Amani would be back on track after “cleaning up the Chinese mismanagement.” It will start to post on OTC Markets soon.
$BRYYF Well, wel.. I hope you loaded today " Yes very undervalued. Took a while to clean up the Chinese mismanagement but it’s now back on track.
Yes we will start soon with market updates and I will make sure that market updates will also be posted on otcmarkets."
— Auggie (@Auggie20010) May 4, 2021
Despite the missing info of Amani on OTC Markets, it’s a fully reporting company on ASX and it’s a hot stock that you should watch.
$BRYYF Fully reporting on the ASX, all fillings up to date. The company is sitting on massive reserves of gold 🤩 This gem is about to make an impressive run, loading is HUGE at the moment. Massive buys at the 14-15s levels setting up for the next leg. Reminds me of $AUNXF a lot! pic.twitter.com/ovVjKRWSKR
— KingElmo (@Amine_Elmo) August 30, 2021
Hot Stocks #4 PXLW
Pixelworks, Inc is another NASDAQ-listed penny stock making waves. The share price has surged over 35% during the last five days.
We first presented our bullish case about PXLW on August 25, when the stock was trading under $5. Now you have to pay $6.66 per share, but there is still room to run. On August 31, PXLW peaked at $7.90, which is the highest level since 2006. Prior to this, the stock used to find strong resistance and $4 and maintained near $3 for most of the year.
Pixelworks provides video and pixel processing semiconductors and software. In addition, the company also provides digital displays, projection devices, and digital signage.
The latest price surge came after Roth Capital analyst Suji Desilva confirmed his buy rating on PXLW, doubling his price target from $5 to $10 per share. Desilva met with the company CFO Elias Nader and CEO Todd DeBonis, and he found the company’s business prospects to be pretty solid. Specifically, the Roth analyst liked the “differentiated and sustainable” smartphone hardware and software combination that would help its clients optimize their flagship phones for better gaming and video viewing experiences.
Last week, PXLW announced that the iQOO 8 series smartphone from iQOO brand of vivo, which recently launched in China, incorporated the Pixelworks X5 Pro visual processor. The high-end iQOO 8 series plans to boost its ultra-premium display performance to a higher level, following the recent success of vivo’s iQOO Neo5.
PXLW’s mobile solutions include a portfolio of display processors, which include i3, X5, X5 Pro, i6, and i6 Pro.
In the second quarter, ASUS launched Zenfone 8 and Zenfone 8 Flip flagship smartphones that incorporate Pixelworks’ leading color calibration, DC Dimming, and HDR tone mapping technology. Projector revenue rose over 100% sequentially and 30% year-over-year, pointing to a recovery in customer and end-market demand.
Roth Capital’s bullish report was a u-turn from Colliers analyst Derek Soderberg’s downgrade target last week. Soderberg cited the strong gains of PXLW in recent weeks, anticipating a correction.
However, we’re still with Roth, as PXLW will continue to prove a winner. Even though the company is still unprofitable, it has a healthy balance sheet and a bright future, given the surging demand for its mobile products.
THE FINAL NOTE
Now is a great opportunity to invest in hot stocks with the Fed continuing to pump money into the 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.
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 penny 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 run 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.