The US economy has been improving during the last few months. It turns out that the deep downturn caused by the pandemic was also the shortest recession in US history, with only two months of GDP contraction. More than one year after the pandemic started, stock indexes hover near their all-time highs, including the OTCQX Composite, which tracks over 400 OTC companies.
88% of companies tracked by the S&P 500 that have presented their financials for Q2 beat expectations, which bodes well for investors, benefiting OTC stocks as well.
This week, all eyes will be on the Fed, which is scheduled to meet on July 28 to update its monetary policy. Investors expect the central bank to become more hawkish due to the increasing inflation and improving economy.
All in all, the economy is doing great, and this is a great time to invest in OTC stocks, which can generate higher returns compared to blue chips.
OTC MARKETS THE PLACE TO BE
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 hot OTC stocks is finding momentum BEFORE it happens and then be patient.
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.
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 OTC 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. It also helps to own shares in the following 4 trending OTC stocks gaining momentum.
Today, we’ll look at 4 trending OTC stocks that will greatly reward patient investors. They are Eline Entertainment Group, Inc (OTCPK: EEGI), Energy Management International, Inc (OTCPK: ENMI), Fernhill Corp (OTCPK: FERN), and Health Discovery Corporation (OTCPK: HDVY).
OTC Stocks to Watch #1 EEGI
Eline Entertainment Group, Inc. has been in a bullish mood for a while. The OTC stock has gained 50% during the last five days and has increased by more than 30% on Monday alone. EEGI is currently trading at 0.0045, but it still has room for growth as it peaked at the end of May near 1 cent.
We first introduced our subscribers to EEGI in mid-May, shortly before the share price hit its year-to-date high. However, we think EEGI might be a good pick with long-term potential, so the resistance near $0.01 is certainly not the limit.
On the OTC market, EEGI still maintains the dark or defunct badge, though the company is currently working to become Pink current, and this might be a great opportunity for early investors. Previously, Eline Entertainment provided educational services via its subsidiary Graystone Education, Inc. However, nothing had been heard of it for years.
Recently, investors 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 EEGI only recently, and stockholders have high expectations of him, given his involvement with Xtreme brands. For instance, 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. Meanwhile, the company’s description on the OTC markets has been updated to reflect its specialization in sports and entertainment production and distribution. EEGI aims to grow through targeted, potential high net worth companies looking for professionals in their specific industry with both prime credentials and industry longevity. The company will cover a variety of media outlets ranging from live broadcasts, movies, PPV events, closed-circuit simulcasts, and streaming content.
As for X Stream Channels (XSC), the company promotes itself as an over-the-top (OTT) streaming provider and distributor of video content. XSC is a leading distributor and producer of independent entertainment. XSC operations in streaming media and OTT technology services have allowed the company to build a massive content catalog for exploitation on a global platform and across multiple verticals. XSC adds clients’ content to their huge database and platform, cross-promote it with its other channels across its massive global platform and monetize it for them.
Meanwhile, Egelston has also started 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.
Thanks to XSC, EEGI can experience rapid expansion, as the global OTT market is expected to reach $87 billion by 2026 with a CAGR of 14.3%. The pandemic is stimulating the market growth, according to Fortune Business Insights.
We think 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. By the end of this week, the company is expected to release a press release covering its filings and the upcoming OTCIQ access.
$EEGI we now have access to IQ and we are in the process of uploading filings for approval. I was told by OTC as long as we upload them by due date they will be accepted even if their approval process takes longer. Keep an eye out for offical PR next week. Almost there team!!! pic.twitter.com/PBhguCsOzq
— Josh Egelston (@JoshEgelston1) July 22, 2021
Investors should be ready for increased volatility and the continuation of the bullish trend.
OTC Stocks to Watch #2 ENMI
Energy Management International, Inc is another trending OTC stock. Its share price has increased by 30% during the last five days and has doubled since the end of June. ENMI is now trading at $0.15, which is the highest level year-to-date. The OTC stock has already surged over 1,500% since the beginning of the year, but we think it has more room for growth.
ENMI has been involved in oil and gas in the US and South America. Current plans are in renewable energy, with an emphasis on lithium-ion battery manufacture, distribution, and recycling.
The new direction of the business might culminate with a reverse merger. The rumors seem to make sense considering that Barbara McIntyre Bauman, former CEO and sole director of ENMI, sold 78.23% of common stock and 89.29% of the Series A Preferred Stock to Sally Lo and Daily Success Development Limited. After selling her more than 2 billion shares, Bauman resigned from all positions and Sally Lo has become ENMI’s executive officer, while Daily Success Development, which is wholly owned by Shing Lee, ended up as the largest shareholder.
Shing Lee is involved in mining as well as in the auto industry, being connected to several major companies, including Wuling Motors Holdings Ltd and Lincoln Gold Mining, Inc. The former is a $5 billion company based in Hong Kong.
Investors speculate that Wuling Motors, whose CEO is Shing Lee, is about to acquire ENMI through a reverse merger, which would drive the share price even higher.
$ENMI …….. tell me a CEO in OTC that runs a company with 10,700 employees
SHING Lee ows Daily Success that bought 56% $ENMI for $340,000, he’s the CEO/VP of Wuling Motors
Sales/Revenue Wulang – 17.28 B
•In honk kong dollars – 2.29 billion US https://t.co/zGJyCCsZHI
— SpacTraderInTraining (@SpacTraderinTra) July 26, 2021
While it’s early to say what’s really going on with this Pink current stock, we think ENMI is worthy of your attention and we’ll keep you updated on the potential merger with Wuling Motors or any other company controlled by Shing Lee.
OTC Stocks to Watch #3 FERN
Fernhill Corp is quickly turning into one of the hottest OTC stocks right now, gaining over 130% over the last month alone. The share price has surged over 2,100 since the beginning of the year, as FERN is transforming its business.
In mid-May, we were somewhat cautious about this OTC stock due to the fact that FERN had no website and social media presence. Still, the company has provided several major updates since then, becoming Pink current and focusing on fast-growing industries like blockchain and fintech.
FERN used to focus on the energy sector, but now it is a diversified technology holding company that has interests in businesses in multiple sectors, including mobile applications, blockchain and cryptocurrencies, fintech, Next Generation technologies (like artificial intelligence), alternative energy including solar and battery storage, as well as other technologies that address the world’s leading environmental concerns.
Earlier this month, FERN announced that it had signed a letter of intent (LOI) to acquire a SaaS-based algorithmic cryptocurrency mining operating system platform aimed at crypto mining pools and individual miners. The platform offers optimized algorithms to improve crypto mining yields and operating efficiencies with a mining rig or mining pool. The acquisition is scheduled to close no later than July 28, 2021.
We believe FERN has some great potential, as it taps into the crypto space and aims to reach Nasdaq. On top of that, the company recently hired Chris Kern, who has over two decades of experience and has facilitated more than $750 million in transactions.
– Acquiring a SaaS based algorithmic crypto mining operating system platform
– Acquisition closing no later than 7/28
– Green Crypto Mining
– Hired Chris Kern who has facilitated over $750M in transactions
– Nasdaq Goal 12-18 months
– No RS per Co
– Pink Current
— Stock Pop (@Stock_Pop) July 25, 2021
OTC Stocks to Watch #4 HDVY
Health Discovery Corporation has been correcting after surging to $0.42 on July 22, which is a record high. At the time of writing, the OTC stock is trading at $0.30 still up almost 400% since the end of June.
While there is very little information online about HDVY operations, including on its own website, we know that the company relies on machine learning and advanced mathematical techniques to process and analyze large amounts of data to detect certain patterns. HDVY’s technology is used in several fields, but it focuses on molecular diagnostics.
The company organized its annual shareholder meeting at the end of June, but the main reason why this Pink current is surging is because of the dispute with Intel. In July last year, HDVY filed an infringement lawsuit against Intel Corporation (NASDAQ: INTC), which pertains to Health Discovery’s Support Vector Machine-Recursive Feature Elimination methods (SVM-RFE) patents. Previously, the US Patent and Trade Office (USPTO) had declared an Interference between HDVY’s SVM-RFE patent application and Intel’s Patent No. 7,685,077, entitled “Recursive Feature Eliminating Method based on a Support Vector Machine”.
In February 2019, the USPTO ruled in favor of HDVY on the SVM-RFE patent application. The Patent Trial and Appeal Board of the USPTO found that HDVY is entitled to claim exclusive ownership rights to the SVM-RFE technology as set forth in the SVM-RFE patent application that was filed to provoke the Interference.
Thus, as a result of the issuance of the SVM-RFE Patent, HDVY now has the right to exclude others from developing, commercializing, or licensing this patented technology without the uncertainty of the Interference or concerns over the ownership of the SVM-RFE patents. In line with this, HDVY filed the patent infringement lawsuit last year, as mentioned. In response, Intel filed a motion to dismiss with the Court. HDVY filed a response in opposition of Intel’s motion to dismiss. At the end of last year, the Court approved a scheduling order for the Infringement Lawsuit. One of the items in the Scheduling Order was the Markman Hearing which was scheduled for June 3, 2021. For those unfamiliar, a Markman Hearing is a pretrial hearing in a United States District Court during which a judge examines evidence from all parties on the appropriate meanings of relevant keywords used in a patent claim.
During the Markman Hearing on June 3, 2021, the Court ruled in HDC’s favor on all the disputed claim terms and issued the Claim Construction Order. During the Markman Hearing, the Court also spoke regarding Intel’s pending motion to dismiss. The Court will review and determine if a hearing is needed on that motion or if it will rule on the previously filed pleadings. According to the Scheduling Order, the next step is fact discovery, which begins June 4, 2021.
In conclusion, HDVY is very close to obtaining the full and exclusive rights for its patent and will make Intel pay for its technology, which makes it a good OTC stock to hold for the long term.
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.
All of the 4 OTC 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 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 eye 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.