The US stock market declined on Thursday as upbeat retail sales data caused an increase in Treasury yields and USD price in anticipation of a more hawkish tone from the Fed. Basically, economic indicators that clearly point to recovery are actually putting pressure on stocks because they give the Fed reasons to reverse the accommodative monetary policy and encourage alternatives to stocks.
As Ross Mayfield, investment strategy analyst at Baird in Louisville puts it:
“We’re at a point where sentiment is weighing on the market more than decent data is helping it. It’s the opposite of the melt-up we saw earlier in the summer.”
US retail sales surprisingly increased last month, probably driven by the start of the school season and child tax credit payments from the government. The unexpected increase in retail sales is showing a dissonance with tumbling consumer confidence. The Commerce Department said that the indicator had increased by 0.7% in August, following a decline of 1.8% in July. Economists expected a 0.8% drop in August.
Chris Low, chief economist at FHN Financial in New York, told Reuters:
“US consumption is not slowing as quickly as it appeared a month ago despite the fading stimulus, and the Delta variant did not much affect the industries feeding into retail sales. The economy continued to hum in August.”
Despite the Delta variant, the economy is maintaining momentum, and many small-caps aims to expand their operations during fast recovery. There are many penny stocks, both on OTC markets and NASDAQ, that are thriving these days, and our job is to identify the best opportunities.
FINDING OPPORTUNITIES IN HOT STOCKS RIGHT NOW
There are plenty of opportunities for investors if they follow us here at Insider Financial.
We preach the key to trading hot stocks is finding the momentum BEFORE it happens and then be patient. Now, when we say that we find the momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens.
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.
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.
If you watch the Insider Financial YouTube channel, you can get a sense of the ideal time to book profits. We warned our subscribers not to get greedy or get caught up in the diamond hands/paper hands BS.
We also recommend you own a portfolio of hot stocks. For some, that can be as many as 10 to 20 or more stocks. This provides diversification and allows one to manage the market’s moods much easier.
In this article, we take a look at 4 hot stocks right now, two of which are listed on NASDAQ. They are Alset EHome International Inc (NASDAQ: AEI), FuelCell Energy, Inc (NASDAQ: FCEL), MDM Permian, Inc (OTCPK: MDMP), and Valiant Eagle Inc (OTCPK: PSRU).
Hot Stocks Right Now #1 AEI
Alset EHome International Inc has been in bullish mode, gaining 26% during the last five days and over 75% since mid-August. The NASDAQ-listed stock had been a short squeeze candidate, and the bulls recently took control. The share of short interest tumbled by 40%, and as of today, only 3% of float consists of shorts.
Is the stock in the overbought zone after four weeks of consistent ascension?
Not really – the RSI maintains right below 80, and momentum is still there. AEI hit its YTD high at over $27 in mid-February, and there is a long way to go back there.
The $128 million company focuses on property development, digital transformation technology, finance, and biohealth activities in the US, Singapore, Hong Kong, Australia, and South Korea. Through its subsidiaries, AEI engages in land development, home building, sales and rental, and property management businesses. It also designs applications for enterprise messaging and e-commerce software platforms, and engages in the research of nutritional chemistry to create a natural sugar alternative, and natural foods and supplements, and treat neurological and immune-related diseases.
The recent price increase is related to AEI’s completion of a subscription agreement with Document Security Systems, Inc. (NYSE: DSS), which will issue 12.1 million shares of its common stock for a price of $1.234 per share for an aggregate purchase price of approximately $15 Million.
DSS is a $90 million company operating business segments in blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, and securitized digital assets.
Meanwhile, DSS itself invested $40 million in AEI’s subsidiary American Pacific Bancorp (APB), which provides traditional commercial banking services, digital banking, investment banking, and asset management. According to the agreement, APB will issue 6.6 million shares of its common stock at an appraised value of $6.00 per share.
As a result of this investment, DSS has acquired over 50% of APB’s outstanding shares of common stock, making DSS the majority-owner of APB. AEI continues to be a significant shareholder of APB. As APB acquires equity positions in commercial banks in the US, it intends to inject digital banking capabilities into the banks to provide global banking services to global clients and increase efficiency.
The share price of AEI started to increase in mid-August after the company released its financial data. The company said that revenue had increased 142% to $12.2 million in the six months ended June 30, 2021, up $7.2 million from H1 2020, driven by strong growth in its real estate and biohealth segments.
AEI remains 89% below its 52-week high of $29.49 a share. We see current levels as a discount entry opportunity.
Hot Stocks Right Now #2 FCEL
FuelCell Energy, Inc has been on the rise these days but the larger timeframes point to a long-term correction. This is a great time to buy the dip and get exposure to a company with strong fundamentals and a bright future.
Meanwhile, FCEL is also a good short squeeze candidate as well, considering that the short float figure maintains near 17%.
Like AEI, FCEL touched its YTD peak at over $27 in mid-February during the penny stock frenzy, after which it consistently declined and bottomed out on September 10 at $5.53, which was the lowest since November last year. The share price then bounced back and is now trading at $6.14 after peaking on Tuesday at $7.37.
On that day, the $2.2 billion company released its Q3 data, announcing that it had incurred a quarterly loss of only 4 cents per share, lower than the Zacks estimate of a 5% loss and better than the Q3 2020 loss of 7 cents. FuelCell’s revenues came in at $26.8 million, up 43.2% compared to last year and up 26.4% against Zacks expectations.
FCEL is a global leader in fuel cell technology and aims to use its proprietary, state-of-the-art fuel cell platforms to enable a world empowered by clean energy. It designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation. It offers its SureSource product line based on carbonate fuel cell technology in various configurations, including on-site power, utility grid support, distributed hydrogen, and carbon utilization, as well as micro-grid and multi-megawatt applications. It also has other product lines, including SureSource Recovery, SureSource Capture, and SOFC/SOEC, and Energy Storage.
Analysts are bullish on companies like FuelCell, as they would benefit from the infrastructure bill passed by the House in August. According to the legislation, the federal government would build a clean hydrogen strategy and invest billions to set the foundation for a nationwide hydrogen network.
We like that institutional ownership accounts for over 41%, which is a good sign since institutions tend to analyze all potential factors when deploying their capital. Considering the positive financials, the fast-growing market, and the high percentage of shorts, we think FCEL is poised to grow and trade above $10 sooner than later.
$FCEL Highest volume stock of the day + positive earnings + high short interest. You know what's next 💫$AMC $GME $ZOM $AAL $NIO $TSLA $AMZN $AAPL $SPY $LIFE $PROG $BAC $AMD $BABA $ROKU pic.twitter.com/QleUfHEHzl
— Louis ⚔💵📚💡 (@Bigpapi_louis) September 14, 2021
Hot Stocks Right Now #3 MDMP
MDM Permian, Inc is a tiny Pink Current company that may become huge in the near future, and you might be among the lucky investors that get exposure to this penny stock at an early stage. The share price gained about 50% during the last five days despite pulling back from the Tuesday peak at over ten cents. Now you can buy the stock for $0.059 per share.
The $20 million company is seeking to build value in the Permian Basin of West Texas and Eastern New Mexico. This will be accomplished through strategic lease acquisition, drilling and producing oil and natural gas, purchase of existing production, re-working old oilfields for overlooked reserves, and waterflooding energy depleted zones. MDM Energy, Inc is a wholly-owned subsidiary operating company of MDM Permian. For over 10 years, MDM Energy has drilled over 125 wells in the Illinois Basin and had been involved in all aspects of oil and gas development in the basin for over three decades.
On September 9, MDMP dropped the big news when it said that it had experienced advances in the overall business plan in the Permian Basin. The company had completed a 4-year focused study, on a 24 sq. mile area in the Permian Basin. There are several over-looked targets in this area that have been identified, including the San Angelo, Clear Fork, Wichita Albany, Dean Wolfcamp, and Canyon Sands formations. Third-party engineers have confirmed an estimated 84 million barrels of producible oil in place from all sections combined. At today’s prices, this area has an estimated value of as much as $5 billion in undiscounted future revenues at current prices. The company plans to drill only vertical wells that are low risk and cost as compared to horizontal wells (HZ). It estimated Lease Operating Cost (LOE) is $8.00 per BOE-on risk-adjusted return. MDMP is now planning to go into the drilling and development phase.
$5 billion is the least generous estimation, as oil prices may go higher. Anyway – $5 billion for a $20 million company? You should do the math and allocate a good chunk of your portfolio to MDMP because this is getting serious. The ratio of authorized share to outstanding is 3 to 1, which might lead to some dilution as the company will need cash to start drilling operations, but paying only pennies per share is the real deal anyway.
$MDMP do people realize that with an O/S of 400 million, todays news places their stock price of over $12 at today’s current price per barrel???
Currently trading at .0975 cents
🔥 🔥 🔥 🔥
— Net Prophet (@HighFloor84) September 14, 2021
Hot Stocks Right Now #4 PSRU
Valiant Eagle Inc is another Pink Current company that has been recently on the rise but, as in the case of MDMP, it has recently bottomed out. PSRU has doubled in price since last week to trade at $0.007, but it’s far away from the YTD high hit in January at over $0.04. Still, what’s important is that the latest spike came in with record volumes. On Tuesday, over 1 billion PSRU shares changed hands, which is three times higher than previous records and multiple times higher than the average volume figures.
PSRU focuses on the energizing of entertainment in television, internet, and social media. It aims to achieve unparalleled advances in those media through content featuring music, sports, entertainment, and, with respect to the millennial generation, through technology. In other words, it looks to bring consumer satisfaction by feeding high-quality, fulfilling program content to iPhones, Android phones, tablets, computers, and smart TVs.
On Tuesday, PSRU announced that Cinevision Global had signed a letter of intent to allow Valiant Eagle’s NFT marketplace, Fungy, to sell Cinevision’s film and TV catalog of over 2,000 titles. Meanwhile, PSRU is looking to launch Fungy in the coming weeks. If it goes live, it will possibly be the largest NFT source to date.
Cinevision has titles with A-list stars such as Bruce Lee, Mel Gibson, Morgan Freeman, Keanu Reeves, Charlie Chaplin, Sandra Bullock, Jackie Chan, Tom Selleck, Morgan Fairchild, George Clooney, Nicole Kidman, and many more. Fungy has the chance to create unique and one-of-a-kind NFTs.
PSRU CEO Xavier Mitchell said:
“Plain and simple this could be valued around $4 billion if our Fungy marketplace is as successful as we anticipate. Our goal is to secure between $1.3M and $4M in NFT revenue for Cinevision within the first three months of operation.”
For those unfamiliar, NFT is the abbreviation of non-fungible token, which represents a blockchain-based token with unique value that is pegged to a real-world asset like artwork or luxury item or digital asset. NFTs have been one of the fastest-growing trends within the crypto space, with almost $1 billion in sales being generated in the crypto art segment alone.
In July of this year, Valiant Eagle announced the purchase of all rights to “Fists of Fury” starring Bruce Lee and several other notable titles. The twelve iconic movies acquired in that deal will provide further content to be transformed into NFTs.
Earlier this month, PSRU appointed Leon ‘RoccStar’ Youngblood Jr. as President of the company. According to the agreement, Xavier Mitchell assigned a significant portion of his preferred share control block to Roccstar – a multi-Grammy nominated producer who has worked with some of the biggest artists in the world such as Chris Brown, Rita Ora, Usher, Prince Royce, Kendrick Lamar, Melissa Etheridge, Post Malone, Jennifer Lopez, Fergie, and numerous other A-list artists.
After months of bearish pressure, it’s time to rally, and the $1.2 billion volume figure is a strong argument.
THE FINAL NOTE
Now is a great opportunity to invest in hot stocks with great potential. Our job is to identify the best companies with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
The 4 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 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 stocks to buy each week, trying to find the best alerts for our subscribers.
Remember, all you need is one or two stocks to run in order to crush the market averages.
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.