The US stock market is in bullish mode at the end of May, as major and OTC stock indexes are maintaining close to their all-time highs.
After investors found out earlier this month that the consumer prices index (CPI) rose twice as much as expected in April, another inflation index came out on Friday to confirm the acceleration. The core personal consumption expenditures (PCE), which excludes the volatile food and energy components, rose 0.7% in April, more than analysts’ 0.6% prediction. The index surged 3.1% in annual terms, way above the Federal Reserve’s 2% target, as the recovering economy has driven demand.
Given that the PCE index is preferred by the Fed, investors feared that the central bank would hint at tightening monetary policy, which would put pressure on stock prices. Nevertheless, the Fed repeatedly said that it was not ready to scale back its bond-buying program and increase the interest rate. This stance has supported stock markets at the end of the week.
The OTCXQ Composite is fluctuating at its all-time high above 1,600.
Now Is A Great Time To Buy OTC Stocks
All in all, this is a great time to invest in OTC stocks, as the US and the global economy are gradually recovering from the devastating impact of the COVID-19 pandemic, and the earnings season is only starting.
With blue chips, you can’t generate substantial returns given their massive market cap. One option would be to employ leverage, but it is risky, and there are few brokers and trading instruments that allow leverage on major stocks.
The good news is that there are OTC stocks with robust fundamentals that are trading at bargain prices, and we’re here to bring them to light.
Generally speaking, trading OTC stocks is much easier than getting exposure to blue chips. You don’t need a big account, and it’s technically extremely easy to make the first steps. All you need is a laptop and a brokerage account.
Nevertheless, you should keep in mind that small-cap stocks are subject to enormous volatility like what we have witnessed in the February-April period.
Also, remember these two important points when it comes to investing in small caps.
- Buy low and sell high.
- Don’t be afraid to book profits.
However, don’t rush to book profits too early.
Finding the right balance is not that difficult if you’re not getting too greedy and stay disciplined.
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.
The key to trading small caps is finding 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.
We recommend you to own a portfolio of small-cap stocks. For some that can be as many as 10 to 20 or more OTC stocks. Obviously, our recommendation to build a portfolio means that day trading is not an option for us. Day trading doesn’t suit our personality, and we don’t like the intraday moves markets make. We have found we made more money being patient and ignoring the day-to-day noise of the markets.
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.
Today, we’ll share 4 OTC stock to watch before they might surge in price. Here they are: Eline Entertainment Group, Inc (OTCPK: EEGI), EVIO, Inc. (OTCPK: EVIO), PHI Group (OTCPK: PHIL), and Trans Global Group, Inc. (OTCPK: TGGI).
OTC Stock to Watch #1 EEGI
Eline Entertainment Group, Inc. has been trading sideways for the last few days, though it’s still not far from its peak at one cent. Currently, the OTC stock is trading at $0.0063. We first introduced our subscribers to EEGI about two weeks ago, and now there are some more updates.
Previously, the company used to offer educational services via its subsidiary Graystone Education, Inc. However, nothing had been heard of it for years. Instead, the community found out that EEGI CEO, Joshua Egelston, is also CEO of Xtreme Sports Marketing Inc and COO of Xtreme Organics, which are somewhat successful businesses that have been transformed by Egelston.
He came to Eline Entertainment only recently, and EEGI stockholders expect him to boost the company thanks to his connections. For example, Xtreme Sports Marketing is a global sports and entertainment marketing agency that has worked with Red Bull, Sony, Universal, and NBC Sports, among others.
Egelston also recently registered X Stream Channels, Inc., and there were rumors of a reverse merger between EEGI and the new firm. While no official press release has been published, the website says “Invest: EEGI” at the top, which confirms the reverse merger.
We believe EEGI is a good OTC stock to buy at this low price before any official news connecting EEGI with one of the Xtreme companies could boost its price.
— Steve A. Smith Jr. (@SteveASmithJr) May 26, 2021
X Stream Channels is an over-the-top (OTT) Streaming provider and distributor of video content.
Meanwhile, it seems that Egelston is also starting XMC Xtreme Music Collaboration, which promotes itself as the future of music and entertainment. Interestingly, XMC appeared on a TV commercial ad on FOX Sports, which is huge for an OTC stock like EEGI.
— Coy (@xKINGCOYx) May 29, 2021
Previously, EEGI shareholders were dissatisfied with toxic financing activities, and now they’re welcoming the restructuring. All past management has been removed, and EEGI is ready to thrive.
OTC Stock to Watch #2 EVIO
EVIO, Inc. has been correcting, but the OTC stock has some great potential and might try to update its year-to-date high. At the time of writing, EVIO is trading at $0.0021, down from $0.0034 last week. At the beginning of the year, you had to pay more than one cent for this stock.
EVIO is operating in the cannabis industry and has been around for some years. In fact, it has been constantly declining since it first reached the OTC market. In 2018, EVIO shares were priced at over $1.
EVIO Labs is promoting itself as the leading provider of cannabis, hemp, and CBD testing. Its network of labs across the US and Canada offer analytical, R&D, and consulting services. EVIO’s solutions are more relevant as the legalization of cannabis for recreational use is ongoing in the US. Meanwhile, CBD is increasingly more used in medicine.
EVIO’s capabilities include up to 13 cannabinoids, 42 terpenes, 66 pesticides, heavy metals, residual solvents, microbial tests, plant leaf ratios, plant inspections, and more.
Last month, EVIO announced the launch of full compliance cannabis testing in collaboration with its subsidiary, C3 Labs, LLC, doing business as Steep Hill CA.
In 2020, C3 Labs, LLC merged lab operations with Steep Hill CA to operate in its new 35,200 square foot laboratory at 2448 6th St. Berkeley, CA. Today, the combined laboratory serves as one of the largest square foot and total capacity cannabis testing labs globally. It applies best practices from both the EVIO and Steep Hill family of laboratories. The lab is licensed with the California Bureau of Cannabis Control and accredited to ISO 17025 standards.
Note that all cannabis sold in California must be tested in a lab like the one operated by EVIO.
The latest launch of one of the largest labs bodes well for the stock price, but you should keep in mind that EVIO has declined dramatically during the last few years. Nevertheless, it seems that this might be the bottom for the $1.4 million company.
Earlier this month, EVIO hired Jeremy L Sackett as Chief Science Officer. He comes from Cascadia Labs, which he founded and also served as CSO.
It remains to be seen whether EVIO can manage to return to its previous shape, but the OTC stock community is quite bullish these days, especially considering the company’s expansion plans.
OTC Stock to Watch #3 PHIL
PHI Group is a company that has value but might not get the deserved attention. The OTC stock is now trading at $0.0043, up from $0.0026 at the beginning of the week. PHIL hit a year-to-date high at almost one cent in mid-February.
PHI Group operates PHILUX Global Funds, a group of Luxembourg bank funds organized as Reserved Alternative Investment Fund (RAIF). It also focuses on the development of the Asia Diamond Exchange (ADE) in Vietnam. PHIL also engages in M&As and invests in select industries and special situations that may boost shareholder value. Besides everything, PHIL’s wholly-owned subsidiary, PHILUX Capital Advisors, Inc offers M&A consulting services and helps companies go public.
The $100+ million company is about to update its financial situation and get its operation current by conducting all the necessary filings. Some investors have been disappointed about the delays in filings, but you should keep an eye on PHIL as it provides the necessary updates.
$PHIL All necessary filings will get done and we will definitely get the company current. It will just take a bit longer then expected. For this, I am truly sorry. I value your trust and patience, and continue to work tirelessly to to prove that your trust is not misplaced.
— PHI GROUP INC (@PHIGROUP) May 14, 2021
At this point, it’s difficult to anticipate an outcome for this OTC stock, but the potential is there.
OTC Stock to Watch #4 TGGI
Trans Global Group, Inc. has been moving sideways during the last five days, but the OTC stock is trading near its monthly peak at $0.004. Still, it’s far from the year-to-date high touched in March at $0.09, but the stock can do better in the coming weeks, mainly driven by a potential merger.
Trans Global used to be a green company. Through its subsidiaries, it has focused on the renewable energy and solar energy sector. Nevertheless, it now considers itself to be an investment company.
The $30+ million firm stipulated in a note to financial statements at the end of last year that it would invest in liquor companies in China, sparking rumors of an upcoming merger that could boost its share price.
— InvestmentGuru (@InvestmentGuru_) May 23, 2021
Last year, the company went to a new CEO, Ren Chen, who bought the control block of shares. The community found out that he also owns a wine/liquor firm in China that is listed on the Shanghai Market. It turns out he wanted to get listed on the NASDAQ but failed with his Chinese firm, so he acquired TGGI to turn it into his wine company and list it on NASDAQ.
Investors have already confirmed that Guizhou Zuixiangui Wine Industry Co., Ltd. is merging with TGGI, though no official news has been released. The two firms share the same phone number.
-Here’s the scary part. $TGGI being the Wine company merger has been a rumor.
WE HAVE A LINK THAT PROVES TGGI IS THE LIQUOR COMPANY!
— Drew (@DrewDiligencee) March 21, 2021
All in all, some big press releases are about to be published, and it would be better to already hold TGGI by that time, as the share price might be driven to new highs.
The Final Note
Today is a great opportunity to benefit from the stock market’s bullishness and invest in OTC stocks with great potential during a reviving economy. Our job is to identify the best OTC stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
If you like any of these 4 OTC stocks, 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 penny stock market. Still, whenever an OTC stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to consider OTC 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 OTC 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.