The best way to look at investing is to focus on what’s working and ignore what’s not. In other words, KISS (Keep It Simple Stupid).
I know this doesn’t help many people who have been buying the OTC dip for over a year and are left holding a lot of bags. I’m sorry to say that many of those names won’t ever come back to breakeven. There are simply too many shareholders underwater and the dilution spigot never got turned off. Too much supply is never good in the OTC.
This is why I tell folks to never fall in love with an OTC stock. Churn ’em and burn ’em. Make that money and move on to the next play. OTC is for traders (day traders and swing traders). Do you want a position for the long term? Go buy Apple (NASDAQ: AAPL) or an index fund.
What’s a trader to do?
For one, never trade just 1 market. I hate when a trader says I only trade OTC, NASDAQ, NYSE, or crypto. These markets won’t always be hot and it’s our job to find the hot markets. As they say, there’s always a bull market, and it’s our job to find it.
Likewise, when the mainstream media talks about a bubble, George Soros is in the market pressing his bets that the bubble is going to keep going until it bursts.
Many OTC traders focus on what’s running in outside markets (crypto, cannabis, gold, silver, energy, etc) and then look for penny stocks in that sector that can be pumped. This works when outside markets are hot but can be devastating when markets run cold.
Reverse Merger OTC Stocks
There’s one component of the OTC Markets that’s always hot and that’s reverse merger OTC stocks. The only thing that varies is the degree of hotness. Are we looking at 1x, 2x, 3x, 10x, 50x, or 100x?
The reason reverse merger OTC stocks are so explosive is their low floats and market cap.
Take, for instance, the TSNP/HMBL reverse merger which we covered for our subscribers at just $.027 a share. Its market cap at the time was just $21 million. Prior to completing the merger, the company was valued at more than $7 billion!
It was the excitement of the merger and that lack of supply in the system. It wasn’t until after the merger was completed, that the printing press got turned on and share certificates flooded the markets.
The fact is that reverse mergers will always occur on the OTC Markets because merging with an OTC shell is the fastest way for a company to go public and access the capital markets.
In this article, we take a look at a recent reverse merger and look at 3 otc stocks with near-term deals in play.
Reverse Merger OTC Stock #1 TXTM
ProText Mobility, Inc exploded after the announcement of a reverse merger deal. The share price surged from $0.002 at the beginning of the month to the current level at $0.0164, gaining over 700%, which demonstrates once again that the OTC is the place to go even when the stock market is bleeding.
On Monday, June 13, Republic of South Africa Medical Marijuana Dispensaries Acquisitions LLC (RSAMMDA) announced that it had acquired TXTM. Specifically, 100% of capital stock in RSAMMDA is exchanged for Preferred Stock in TXTM.
RSAMMDA is a jointly owned company focused on acquisitions with two principals, Mr. Dylon Du Plooy and Dr. Ahmed Jamaloodeen (Dr. J), who represent the South African business entities of RSAMMD and Leeds Boerdery. RSAMMD is a South African pioneer in the research, cultivation, production, and distribution of medical cannabis and cannabinoids. Leeds Boerdery, controlled by Dr. J, owns the 5000-hectare New Castle Farm as well as cannabis and hemp licenses issued by the Government of South Africa. Following the deal, TXTM is led by Mr. Du Plooy, who is CEO and Director, and Dr. Jamaloodeen, who acts as President and Chairman of the Board.
Dr. Jamaloodeen commented:
“We are excited about this transaction and taking Protext to the next level. We believe there to be numerous synergies to incorporate the Protext proprietary live plant extraction technology and processes into our existing infrastructure. We envision adding other assets into the operations of Protext, including our off-take agreements and present sales, with the goal of uplifting exchanges in the future. As previously announced, Protext and RSAMMD jointly worked together and conducted a series of tests on live cannabis to prove out that the Kettle system and extraction technologies did what they were supposed to do. We look forward to discussing this further as well as our upcoming operational plans.”
The reverse merger deal has been in the making for months. We reported about it in August 2021, when TXTM was trading below $0.002. This is already a big win for our subscribers, but we’re confident that the best is yet to come.
Du Plooy said that the new management would share the roadmap and the long-term plans, such as adding other valuable assets to the company which complements the core business and executing on commercializing the proprietary live plant extraction technology as well as deploying its crypto platform.
The stock is trading at the highest level in almost a decade, but there is still room for growth. TXTM is a good example of an OTC stock with a great share structure, which is attractive for reverse-merger deals.
Reverse Merger OTC Stock #2 INQD
INQD has been making a run up the charts after appointing Leslie Bocskor as the company’s new Chairman and CEO. In his new role at the helm of the Board, Mr. Bocskor will guide his team to discover new acquisition candidates that will build out the Company business portfolio, build new relationships in events and media, consumer products, and international markets, and spearhead business development opportunities for the Company, now from his Board level in addition to his ongoing role as the CEO and CFO.
Leslie has already riled up the #INQDArmy on Twitter and volume has been pouring into the stock.
— Leslie Bocskor (@lesliebocskor) June 16, 2022
Currently trading with a market cap of $34 million, INQD has quickly become one of the most talked-about names on the OTC Markets. We will be monitoring INQD for future updates for our subscribers.
Reverse Merger OTC Stock #3 RMRK
RMRK is a double-zero reverse merger candidate with just a $5 million market cap. Double zeroes with 6 or 7-figure market caps are about as good as it gets on the OTC.
We are expecting an update from the company either this week or next.
$RMRK As indicated in our April 18/22 news release the Company is currently conducting due diligence on various acquisitions. We expect the DD to be completed shortly and will update shareholders accordingly. Stay tuned !
— Rimrock Gold Corp (@rimrockgold) June 2, 2022
We will update our subscribers as soon as we know more on RMRK.
Reverse Merger OTC Stock #4 GEGP
GEGP is a triple-zero with just a $5 million market cap.
GEGP has some impressive stats and getting ready to make a major announcement.
We will update our subscribers as soon as we know more about GEGP.
It’s very important to eye OTC stocks that have yet to make their explosive move. Many Pink Current OTC stocks with low floats and market caps are just waiting to reverse merge.
There are plenty of OTC reverse merger candidates, and we take our time to monitor hundreds of OTC reverse merger stocks, trying to find the best alerts for our subscribers.
Remember, you only need one or two penny stocks to run 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.