Despite concerns over the spread of COVID-19’s Delta variant, the US economy has managed to recover to the pre-pandemic level and show clear signs of acceleration.
Meanwhile, earlier on Wednesday, the Senate approved the $3.5 trillion spending blueprint for President Joe Biden’s top priorities with a 50-49 vote, after lawmakers debated whether the huge spending to fight climate change and poverty was reasonable. This is the first step toward Democrats passing the huge spending plan without Republican votes.
The vote followed more than 14 hours of debate that started right after the Senate on Tuesday passed a $1 trillion infrastructure bill meant to make the country’s biggest investment in decades in roads, bridges, airports, and waterways.
Democratic Senate Majority Leader Chuck Schumer said:
“It’s been quite a night. We still have a ways to go, but we’ve taken a giant step forward to transforming America. This is the most significant piece of legislation that’s been considered in decades.”
Whether Congress passes either of the bills in the coming months, the stock market will continue to perform well due to the Fed’s easy monetary policy. This is a great time to invest and benefit from the stock market rally.
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 Asia Broadband, Inc (OTCMKTS: AABB), Business Warrior Corporation (OTCPK: BZWR), Ideanomics, Inc (NASDAQ: IDEX), and Kandi Technologies Group, Inc (NASDAQ: KNDI).
Hot Stocks to Watch #1 AABB
Asia Broadband, Inc has been quite bullish at the start of the week, gaining almost 30% since last Friday to trade at $0.14 on Tuesday. It seems that the price has bottomed out on August 2, when it touched $0.106, which was the lowest since February. After months of correction following February’s year-to-date peak at over 50 cents, the bullish momentum is gaining traction, although you can still buy this great OTC stock at a bargain price.
We first paid attention to AABB in mid-February, shortly before it hit the YTD high.
AABB is promoting itself as resource company that produces and sells precious and base metals, primarily to Asian markets. The company utilizes its specific geographic expertise, experience and extensive industry contacts to facilitate its innovative distribution process from the production and supply of precious and base metals in Mexico to client sales networks in Asia.
While this is a great business in itself, investors are excited about AABB’s recently minted gold-backed cryptocurrency. It is also developing its own proprietary digital exchange. AABB expects its token to become a worldwide standard of exchange that is stable, secured and trusted with gold backing, while having the added benefit of demand based price appreciation. These are unique and outstanding qualities relative to other cryptocurrencies.
The upcoming exchange will enable AABB Wallet users (the company is currently working on a proprietary digital wallet as well) to complete quick two-way exchanges of their AABB Gold (AABBG) tokens for major cryptocurrencies such as Bitcoin and Ether. The exchange will also add tremendously to transaction fee revenues and allow for the price appreciation of AABBG beyond the price of gold, influenced by market demand and the limited supply of tokens released into circulation.
In mid-July, the company said that it might test its prototype later this month. The exchange is expected to go live in September. There will be two versions of the exchange: the Quick Exchange will allow for the rapid trade of one currency for another at the best offered price, and the Advanced Exchange will allow users to manually set buy or sell orders at a selected price.
The platform will host at least 20 trading pairs, including major cryptos paired with AABBG.
We really like the way AABBG works – it has a floating price but the minimum value should be no less than the current price of gold, which makes it a good hedge against inflation and a potential investment opportunity since it can appreciate on the upside.
US inflation surged to a 13-year high in June, which caused some concerns. Famous investors like Warren Buffett and Ray Dalio have pointed to inflation risks, as the Fed pumped unprecedented amounts of free cash. Just watch this chart to get an idea of how much the money supply has increased:
A gold-backed cryptocurrency is a good long-term investment, and AABB goes further by developing an entire ecosystem built around its token. This is a good OTC stock to hold in your portfolio.
Hot Stocks to Watch #2 BZWR
Business Warrior Corporation has been making waves since the beginning of the month, gaining over 100%. Currently, the share price of the Pink Current $61 million company is fluctuating above $0.2130, up from $0.10 at the beginning of August. The OTC stock is currently trading at the highest level since March and is close to breaking the record high at $0.270.
BZWR is providing marketing and brand enhancement solutions to small businesses to help them get more customers. Business Warrior’s proprietary software takes a holistic view of a business’s online reputation, listings, website search results and social media. It uses predictive algorithms to recommend the most important actions needed to drive new customers, positively impact daily operations and improve profitability.
At the end of July, the company announced another record-breaking revenue figure, with growth surging 897% over the previous quarter. In May alone, the company reported over $1 million in gross revenue, which demonstrates the rapid expansion of BZWR.
The positive quarterly results enabled a 33% reduction in total liabilities and no leftover convertible notes. The company continues to improve its balance sheet.
Business Warrior CEO Rhett Doolittle said:
“We are projecting to be profitable for the year, which is nearly two years ahead of schedule. Our software and marketing solutions seamlessly work together to help businesses get more customers and scale-up quickly. This positive momentum has put us in a position to invest in future growth.”
BZWR will use the better-than-expected cash flow to launch its version 3.0 of the Business Warrior software, develop a new corporate website, and collaborate with banks to create a new solution that provides small businesses with access to growth capital.
The company is growing rapidly and it has a healthy balance sheet, which is very important. BZWR will be making new highs before you know it. The momentum shows no sign of slowing down.
Hot Stocks to Watch #3 IDEX
Ideanomics, Inc has been performing well in August, although larger timeframes show that the price has been moving within a horizontal channel following a pullback from the year-to-date high at $5.43 touched on February 8. At the time of writing, the NASDAQ-listed stock is trading at $2.42. The price action shows strong support at $2.32, which has proven to be resilient on several occasions this year.
We introduced Insider Financial readers to IDEX in July 2020, when the share price was trading below $1.50. After a major rally and the consequent correction, we’re still confident in this stock.
The $1.1 billion company is focused on facilitating the adoption of commercial electric vehicles (EVs) and developing next-generation financial services and fintech products. Its EV division incudes:
- Mobile Energy Global (MEG), which provides group purchasing discounts on commercial electric vehicles, EV batteries, and electricity as well as financing and charging solutions.
- Energica, a leading manufacturer of high-performance electric motorcycles.
- Medici Motor Works – it works with strategic partners to develop a line of medium- and heavy-duty buses.
- Solectrac – it produces battery-powered tractors.
- Treeletrik – this Malaysian EV maker focuses on electric scooters and motorbikes. It has been a key leader in promoting electric mobility in the ASEAN region.
- US Hybrid – it specializes in the design, manufacturing, and distribution of zero-emission powertrain components for electric, hybrid, and fuel cell transportation applications.
- WAVE – the company’s high power wireless charging systems offer a modular solution (125kW to 500kW) across a broad range of commercial applications, including mass transit, ports, and warehouse and distribution centers. The largest electric mass transit bus fleet in the U.S. is powered by WAVE.
The other major division is related to fintech solutions. Ideanomics Capital includes DBOT to provide innovative financial services solutions powered by AI and blockchain. Another subsidiary working with blockchain is Liquefy, which provides a tokenization and investor onboarding SaaS platform for institutional asset owners.
We think IDEX is a great NASDAQ penny stock to hold given its wide range of operations related to EVs and fintech, two industries expected to share our future.
The company’s subsidiaries are expanding their operations and becoming leaders in their fields. At the beginning of August, Solectrac announced the launch of the all-new e70N electric tractor, a specially designed, narrow model purpose-built for easy handling and maneuverability on vineyards and farm operations. The news follows the company’s July 1 announcement that long-time agriculture and construction industry veteran Mani Iyer has been appointed Solectrac CEO.
Meanwhile, WAVE has been awarded a cooperative purchasing contract in the wireless inductive charging solutions category from Sourcewell, a self-sustaining government organization with more than 40-years of dedicated service offering cooperative purchasing with more than 400 competitively solicited contracts to government, education, and nonprofit entities throughout North America.
$IDEX The contract allows 50,000 organizations to Purchase WAVE’s charging solutions at a discount without facing the time consuming RFP, bidding, and vendor selections process. That’s a lot of potential sales. The potential is ABSURD! 🐺 Ever seen a bear shit themselves 👀 👀 pic.twitter.com/z2jrt5mie3
— The__Wolf💭 (@The_WolfofStonk) August 6, 2021
Hot Stocks to Watch #4 KNDI
Kandi Technologies Group, Inc is another NASDAQ-listed stock that has been performing well during the last few days but has been moving horizontally on larger timeframes. At the time of writing, KNDI is trading at $5.50, up 8% during the last five days. The price touched its year-to-date high in February at $9.49.
We have first covered KNDI a few years ago. The last time we shared our bullish stance on the NASDAQ stock was in July 2020, when KNDI was trading near $7. The price eventually surged to almost $15, enabling many of our subscribers to book profits. The stock eventually corrected, but we expect it to consolidate above $10 in the coming months. What we like about KNDI is that it has shown strong support at about $4 for over 8 years.
China-based KNDI develops, produces, and distributes EV products and parts, as well as off-road vehicles in China and internationally. It offers off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, and related parts, along with EV parts comprising battery packs, body parts, EV drive motors, EV controllers, air conditioners, and other auto parts.
In 2018, KNDI acquired SC Autosports, LLC to be its exclusive U.S. distributor, operating as Kandi America. Headquartered in Garland, Texas, Kandi America specializes in the development, manufacturing, and commercialization of electric vehicles, all-terrain vehicles, battery packs, automobile motors, controllers for electric vehicles, and air-conditioning systems.
KNDI is expanding rapidly and has a healthy balance sheet. Last month, the company announced the expansion of its battery cell business with the acquisition of Jiangxi Huiyi, a leading cell producer in Jiangxi Province, China. Kandi is a leader in electric vehicles and associated parts, including the cell business of subsidiary Ankao and the intelligent battery exchange system, so this acquisition is a natural fit for its vertical integration strategy. Jiangxi produces approximately 90 million 18650 lithium-ion rechargeable cells annually. The cells have a variety of applications, especially in consumer products. Kandi intends to further grow its cell business by using the newly acquired technology to address many new applications, eventually including EV battery packs.
At the beginning of August, KNDI shared its Q2 financials, which demonstrates the company moves in the right direction. KNDI’s total revenues rose 53.7% to $29.9 million, from $19.4 million in the same period of 2020. EV parts sales fell by about 50% y/y, and off-road vehicles sales fell over 10% y/y, but electric scooters, electric self-balancing scooters, and associated parts sales surged to $16.5 million, from $0.4 million in the same period of 2020, exceeding the combined sales of EV parts and off-road vehicles. Sales of battery exchange equipment and battery exchange service, a new business for the company, were $0.6 million.
Net income was $40.9 million, or $0.54 per fully diluted share primarily due to a gain on the disposal of a long-live asset recognized as part of the Jinhua facility relocation that was completed in the second quarter. This compares to a net income of $4.1 million, or $0.08 per fully diluted share for the same period of 2020.
The EV and battery market is expected to surge in the coming years, and KNDI is well positioned in this emerging industry. We have high expectations of this company, especially considering that the Chinese government supports the EV market.
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.