Smart investors know that if you want to make the big money off a small account, the place to be is the OTC Markets. There are many good OTC stocks that can boost your portfolio’s value in the long term. For investors, we preach the key to trading penny stocks is finding momentum BEFORE it happens and ahead of the crowd.
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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 penny stocks. For some, that can be as many as 10 to 20 or more OTC stocks. This provides diversification and allows one to manage the market’s moods much easier.
In this article, we look at 4 hot OTC stocks that have been making waves this week. Three of them are planning or conducting M&A deals and are poised to expand rapidly next year. The Pink Current stocks are Coastal Capital Acquisition Corp (OTCPK: CCAJ), Daybreak Oil and Gas, Inc (OTCPK: DBRM), Industrial Nanotech, Inc (OTCPK: INTK), and South Beach Spirits, Inc (OTCPK: SBES).
OTC stocks #1 CCAJ
OTC stocks #2 DBRM
OTC stocks #3 INTK
OTC stocks #4 SBES
OTC STOCKS #1 CCAJ
Coastal Capital Acquisition Corp was dormant for years until finally making some big moves this year, breaking above the penny mark for the first time since 2012. The Pink Current stock has gained over 60% since last week and is trading at $0.013, up more than 3,000% year-to-date.
CCAJ is promoting itself as a development stage enterprise that focuses on identifying and negotiating with merger and acquisition targets. It got the Pink Current status earlier this year. It has also managed to remove the “Caveat Emptor” symbol, which relates to suspicious activities, including misleading promotion, fraud, suspension, undisclosed actions, or other concerns.
The OTC profile says that CCAJ hasn’t identified any business combination target it hasn’t initiated any substantive business discussions, directly or indirectly, with any business combination target.
While we don’t know significant details about CCAJ’s potential negotiations, investors are waiting for a merger announcement by the end of this week.
Email Response from $CCAJ
“Yes, we will be making announcements by the end of the week for all shareholders to have a understanding of the direction the company is heading and the great opportunities that lay ahead in the near future” pic.twitter.com/QliJ6pYl2T
— Stock Pop (@Stock_Pop) December 21, 2021
The company also has a new website that is about to launch soon.
Some suggest that CCAJ has been acquired by a Nigerian energy company, although there is no official confirmation besides the hints.
$CCAJ Potential new merger Co CEO looks to be established @MattRiv2 @CoachTaylor_OTC @Stock_Pop https://t.co/PtpdYXtg6A pic.twitter.com/mmsYJlGAla
— Marty Byrde (@MartyByrdeOTC) December 17, 2021
Despite the vagueness, the $13 million company might be one of the best OTC opportunities at the moment because it really seems to be onto something. If you hold this stock, don’t make the mistake of exiting your positions before the big move.
$CCAJ Check out the clean website. Most OTC companies can’t even get a website up.
💥Clean shell, Low Float
💥Zero dilution
💥Low MC of 7 million 🤯
💥Potential O&G play 🛢
💥Responsive IR
💥New OTCM address located in the Bank of America Tower https://t.co/TfpVTphHrB— Marty Byrde (@MartyByrdeOTC) December 22, 2021
OTC STOCKS #2 DBRM
CCAJ may turn into an energy play, but Daybreak Oil and Gas, Inc is already leveraging this major sector. The Pink Current stock with a market cap of only $4 million has surged by over 160% since last week and is ready for more. You can buy DBRM stocks for $0.06 per share. On Tuesday, the share price broke above 10 cents for the first time since 2014.
DBRM is an independent crude oil and natural gas company engaged in the exploration, development, and production of onshore crude oil and natural gas in the US. It is developing its shallow crude oil reserves, where it owns a 3-D seismic survey that encompasses 20,000 acres over 32 square miles with approximately 3,500 acres under lease in Kern County in the San Joaquin Valley of California. The company owns a 70% working interest in 1,400 acres in the Michigan Basin where it has two shallow crude oil prospects.
In October, DBRM agreed to buy Reabold California, LLC, a subsidiary of Reabold Resources plc, a UK firm listed on the AIM Market of the London Stock Exchange under the ticker RBD.
Reabold California owns a 50% working interest and operates 10 producing wells in the Sacramento Basin in Northern California with proved reserves of 613,000 barrels of oil equivalent. After the transaction is completed, Daybreak will have 1,085,000 barrels of proved oil equivalent with a value of approximately $17.0 million. Reabold California’s production is approximately 70 barrels of oil per day. Combined, the production would be approximately 100 barrels of oil per day.
The acquisition will be an all-stock transaction where Gaelic Resources Limited, a wholly-owned subsidiary of Reabold Resources plc, will own up to 45% of Daybreak’s common stock at closing. As part of the transaction, Daybreak will also be raising approximately $2.5 million through the sale of its common stock to fund development programs in both the Sacramento Basin properties as well as its San Joaquin Basin properties.
The transaction is expected to close in Q1 2022.
The recent price spike came after DBRM filed an 8-K with the SEC, saying that it had finalized agreements with its directors, executive officers, and other employees with respect to the forgiveness and conversion of related party debts into shares of common stock at a conversion rate of $0.45 per share of common stock.
Completing this Debt Conversion is a condition to closing the previously disclosed Equity Exchange Agreement dated as of October 20, 2021 entered into by and among the Company, Reabold California LLC, a California limited liability company, and Gaelic Resources Ltd, pursuant to which Daybreak will acquire Reabold in exchange for issuing 160,964,489 shares of its common stock to Gaelic.
All in all, this is a bargain price for an OTC stock that can end up with a valuation of over $200 million – at least that’s what Reabold’s assets might be valued at.
$DBRM
Reabold California comprises three licence areas: Monroe Swell, West Brentwood and Grizzly Island. The California assets have a combined NPV of up to US$235m net to Reabold according to the contract operator (non-compliant).— HokieHead (@OneManCircus43) December 22, 2021
The conversion rate of $0.45 per share already suggests that DBRM is undervalued as of today.
OTC STOCKS #3 INTK
Industrial Nanotech, Inc has maintained a general bullish mood for over a year. The Pink Current stock has gained over 15% since last week to trade at $0.012, which is relatively the same level where it was at the beginning of October when we discussed the stock. It peaked at the end of September at $0.014, the highest since 2014.
INTK develops sustainable nanotechnology-based solutions designed to save energy, protect assets, and reduce carbon footprints. Its technologies help the world save energy, protect assets, and live and work more sustainably. The company’s products are sold through a global network of distributors.
INTK has a diverse range of products that include protective thermal insulation and corrosion prevention coatings, asset protection, insulation and mold resistant coating for food sensitive environments, protective insulation and mold prevention coating, industrial and commercial insulation and protective coating, colors for exterior painting projects, automotive coating, and insulation for solar panels, among others.
INTK updated from Pink Limited Information to Pink Current a few months ago.
On Tuesday, CEO/CTO Stuart Burchill provided an update for next year, highlighting five main points:
- INTK sales of EnergyProtect to Italy under the Superbonus 110 program to begin Q1 2022. The company’s distributor in Italy expects that sales could grow to $19 million annually by the end of 2022.
- INTK expects sales of EnergyProtect for the EU under the EU-sponsored Energy Performance of Buildings Directive to begin Q1 2022. The distributors in the EU anticipate that sales could grow to $45 million annually by the end of 2022.
- The company expects sales of their new product, TalkingPaint, their new smart coating product line, to begin by the end of Q1 2022. It intends to capture 15% of the potential market by the end of next year, which could generate sales of $30 million annually.
- INTK plans to establish a manufacturing facility in South Carolina for their new self reporting insulation for pipes. Sales may start in Q2 2022.
- Last but not least, the company is preparing for uplisting, including having PCAOB audited financials for 2021 and 2020. INTK confirmed that there is no plan for a reverse split. The timeline for application to uplist to NYSE or NASDAQ is 2023. The company will be focused primarily on revenue 24/7 during 2022.
Industrial Nanotech publishes highlights of live presentation. See attached. $INTK #goforit pic.twitter.com/apnrP0Z43k
— Industrial Nanotech Inc (@indnanotech) December 21, 2021
Thus, the new product lines should generate an additional $90+ million in annual revenue since next year, which is huge for a company with a market cap of $30 million as of today. With a great share structure and dilution-free history, INTK is undervalued at only one penny. You can boost your portfolio by adding INTK at this price.
$INTK This has all of the makings of a 5000% kind of OTC run. The product is cool, useful and necessary, the revenue potential is huge, the company is pushing for heavy growth in 2022 and has uplist goals for 2023. https://t.co/GDbWkbQaFN
— Jonny Rockets (@JonnyRocketsOTC) December 22, 2021
OTC STOCKS #4 SBES
South Beach Spirits, Inc has had an exciting month so far. After bottoming out in mid-December to touch the lowest level in over a year at $0.0007, the share price bounced back and has jumped by over 530% since then, currently trading at $0.0045.
The $16 million company apparently has no operations and is seeking a merger candidate.
It seems that SBES is turning into a metaverse and blockchain play, which translates into great opportunities for early investors. Also, the market is excited about SBES’ relationship with Caren Currier, who has positioned herself as a great advisor to OTC firms. The company is led by CEO Robert (Meihua) Xu, an experienced executive that has connections in the crypto space. His background is impressive: he founded CDAX (Canadian Digital Asset Exchange), iBank.io, Bitgoose inc, and the North American Blockchain Foundation, Canada, among others. Xu is working on a reverse merger that would provide shareholder value.
SBES is developing Finalverse.com, which, when completed, will likely be operating on the WORLD’S first large scale Metachain operating system, Kinglory.org.
$SBES
Reasonable to conclude that https://t.co/LdwbVQUXCI, when completed, will be operating on the WORLD'S first large scale Metachain operating system, https://t.co/wm3WBibYof, and will be operational to the public early 2022. Both on the launchpad 💺🚀🌎🌍🌏 #Metaversemarket pic.twitter.com/C31mgKzsrt— 𝖳𝖱𝖠𝖣𝖤𝖱99 (@pennytrader99) December 18, 2021
Some suggest that Kinglory, a large blockchain and metaverse company based in Canada, could be the merger candidate, although no official information is available.
$SBES In my opinion Xu is in talks for a merger with Kinglory Blockchain based on very good DD ..which is all over social media. Kinglory looks to be at the crossroads of thier development as a company and at the threshold of launching a disruptive metaverse platform pic.twitter.com/cKAINXgctN
— INITIUM (@MagnusOpes) December 21, 2021
SBES has a decent share structure, no debt, and goes with the Pink Current status, which makes it an ideal reverse merger candidate. The company is preparing some big announcements very soon, and it’s better to already hold the stock when that big news hits the tape.
THE FINAL NOTE
All of the 4 OTC stocks discussed today are good stocks to hold. The upside is much greater than the downside at these levels.
It’s also very important to eye OTC stocks that 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 penny stocks to succeed 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.