The OTC market may have a shortage of hot runners compared to the November-February period, but there are still good opportunities, and we help our subscribers get the best out of it.
The economy is recovering amid the vaccination program and the stimulus implemented by the Biden administration.
On Tuesday, the Conference Board said that the US consumer confidence jumped to the highest level in nearly 1-1/2 years in June, driven by growing labor market optimism. The reopening economy is offsetting inflation worries. The survey also showed a healthy appetite for long-lasting manufactured, including motor vehicles and household appliances.
Consumers were also keen to buy houses, which further drives the house market boom.
Oren Klachkin, the lead US economist at Oxford Economics in New York, told Reuters:
“Consumers have plenty to be cheerful about after being cooped up at home for more than a year. Looking ahead, low COVID infections, rebounding employment, and elevated savings will buoy confidence and push consumers to spend at a breakneck pace over the summer.”
OTC stocks will also benefit from improving purchasing power of consumers. As of today, the OTCQX Composite index is fluctuating near its all-time high.
For investors, we preach the key to trading hot OTC stocks 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.
Take a look at the charts of today’s 4 hot OTC stocks – Green Globe International, Inc. (OTCPK: GGII), Hertz Global Holdings, Inc. (OTCPK: HTZGQ), Netlist, Inc (OTCMKTS: NLST), and ProBility Media Corp (OTCMKTS: PBYA).
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.
This is where the big money is made and why so many of our subscribers are not stressing the recent pullback in crypto and OTC stocks. Most took money off the table at higher prices.
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 hot OTC stocks gaining momentum:
OTC Stocks to Watch #1 GGII
Green Globe International, Inc. is one of the OTC stocks that we have very high expectations of, as the recent reverse merger with Hempacco Co., Inc has changed the course of the business and augmented the company’s capabilities. We presented our bull case scenario for GGII at the beginning of May before the big run and subsequent crash.
GGII has gained over 44% during the last five days to trade at $0.013, although larger timeframes suggest that the price has been correcting since its year-to-date peak hit in mid-May at 11 cents. It seems that the price has bottomed out at $0.010 and is ready to return to bullishness again.
Hempacco is the largest producer of hemp cigarettes in North America. It aims to be a leader in the tobacco industry by offering consumer goods in the form of hemp cigarettes and other plant-based smokables. GGII has a factory where it manufactures its products and has a number of brand lines. It also manufactures for other companies and runs over 600 vending machines with hemp cigarettes.
Hemp cigarettes are becoming increasingly more popular. They’re a great alternative to marijuana as they offer the non-psychoactive effects caused by THC with the added benefits of CBG.
On June 21, Hempacco announced its new initiative to license the technology to manufacture cannabis cigarettes with joint venture partnerships in the US, Canada, and Mexico. GGII will use its existing intellectual property to work with the leading companies in the North American market to manufacture machined made cannabis cigarettes. Thus, GGII will not operate with raw materials but instead train partners who’re already in the cannabis industry, thus scaling the business.
Hempacco CEO Sandro Piancone said:
“We’re now exploring high-speed cannabis cigarette manufacturing. Manufacturing herb, CBD, CBG and other cannabinoid hemp cigarettes was not easy. It took us two years to develop the technology to understand the blends, the process, and the machinery to run those blends through an automated process to produce millions of cigarettes per week. This manufacturing process developed a portfolio of intellectual property that we’re now turning into automated cannabis cigarette manufacturing.”
We think scaling a business is one of the most important upgrades, and it comes with great opportunities for investors.
GGII is now working on the research and development and licensing fees for the new Cannabis initiative. Hempacco will partner with the leading cannabis companies that want to manufacture, market, and sell machine-made cannabis cigarettes. GGII’s goal is to develop a portfolio of Herb, Hemp, and Cannabis cigarettes to further its mission of Disrupting Tobacco.
OTC Stocks to Watch #2 HTZGQ
Hertz Global Holdings, Inc. is a $1+ billion-dollar company that is performing quite well these days, gaining over 18% since last week and over 44% during the last month, to trade at $8.89. The OTC stock hit a YTD peak on June 29 at $9.69, which is the highest level since March 2020.
We first reported on HTZGQ at the beginning of May, when the share price was fluctuating below $3. At the time, the company had received a revised proposal from affiliates Knighthead Capital Management, Certares Opportunities, and Apollo Capital Management to get it out of bankruptcy.
Hertz used to be a leading global car rental and leasing service provider, but it filed for bankruptcy in May 2020 as it couldn’t deal with the damage caused by the COVID-19 pandemic, with demand for airport and off-airport car rental services dropping significantly.
Despite the bankruptcy filing, Hertz can benefit from a reorganization plan that is allowed under the Chapter 11 bankruptcy form. Usually, companies seeking to file for bankruptcy can choose from several forms, but the two most popular ones are Chapter 7 and Chapter 11. Under the former one, the company is forced to stop all operations and goes out of business. However, with Chapter 11 bankruptcy, the company can reorganize and hopefully return to normal business. While this form is the most expensive and complex of all bankruptcy proceedings, it keeps filing companies away from liquidation.
At the beginning of May, Hertz had received a renewed proposal from Knighthead Capital Management, Certares Management, and Apollo Global to fund the rental car company. The three companies would handle Hertz’s bankruptcy exit through direct common stock investments of $2.9 billion, direct preferred stock investments of $1.5 billion, and a right to raise $1.36 billion.
On June 10, Hertz said that the Bankruptcy Court confirmed its plan of reorganization, which unimpairs all classes of creditors (who are legally deemed to have accepted it) and was approved by more than 97% of voting shareholders. The Court’s approval clears the way for Hertz to emerge from Chapter 11 by the end of June 2021.
Thus, Hertz will emerge from Chapter 11 with a stronger balance sheet and greater financial flexibility than it had prior to the pandemic. Hertz’s plan will eliminate over $5 billion of debt, including all of Hertz Europe’s corporate debt, and will provide more than $2.2 billion of global liquidity to the reorganized company. Hertz also will emerge with a new $2.8 billion exit credit facility consisting of at least $1.3 billion of term loans and a revolving loan facility, and an approximately $7 billion of asset-backed vehicle financing facility, each on favorable terms.
The fact the company chooses to stay alive while paying all its debt proves that it future-oriented and has big goals.
OTC Stocks to Watch #3 NLST
Netlist, Inc is another larger company that is in bullish mode these days. The share price has increased almost 11% on June 30 and has gained 60% during the last month, currently trading at $3.26, which is the highest level in almost a decade. At the beginning of the year, NLST was trading at about 70 cents.
We have shared our bullish stance on NLST since no later than March when the stock was trading below $2.
Netlist provides solutions that accelerate turning raw data into business insight. The $700+ million company provides high-performance SSDs and modular memory subsystems to enterprise customers in diverse industries.
HybriDIMM, Netlist’s next-generation storage class memory product, addresses the growing need for real-time analytics in Big Data applications, in-memory databases, high-performance computing, and advanced data storage solutions.
Netlist also produces specialty and legacy memory products to storage customers, appliance customers, system builders and cloud and datacenter customers. The company holds a portfolio of patents in the areas of server memory, hybrid memory, storage class memory, rank multiplication, and load reduction.
In fact, the patents are the keyword for Netlist’s success. In 2009, the company filed a patent infringement suit in federal court in San Francisco against Google. Netlist alleged that Google’s computer servers infringe its patent for a memory module that increases capacity and improves energy efficiency. After about 12 years of battles in the legal system, Netlist finally can proceed with its patent litigation against the search engine giant. Last year, the US Court of Appeals for the Federal Circuit affirmed the US Patent Trial and Appeal Board’s decision upholding the validity of Netlist’s US 7,619,912 (‘912) patent that applies to DDR server memory modules. The decision is final and binding on future cases, which may help the company monetize its product.
The share price is gradually increasing amid expectations that NLST will reach settlement with Google, though no one knows how much Alphabet will pay.
Earlier this year, Netlist also sued SK Hynix for patent infringement, and received $40 million to settle all litigations.
Netlist becomes a gatekeeper for the DDR5 memory standard, the same as QCOM is in the cellular field today. We think this a great stock to buy before it surges on Google settlement news.
OTC Stocks to Watch #4 PBYA
ProBility Media Corp is a riskier bet but can turn out to be the most lucrative since the penny stock can be purchased for less than a cent and the company is planning to become Pink Current. You can buy the OTC stock for $0.0057 as of June 30.
Through its subsidiaries, the company serves the educational and training needs of vocational trades worldwide. PBYA offers paper and digital codes, standards, and training materials, and eLearning courses to train tradespeople and help them retain their certifications. PBYA offers full-service training and career advancement tools for the skilled trade industry.
In 2019, PBYA became an alternative reporting company after a series of unfortunate events that prevented it from completing an audit required to raise $10 million.
As of today, the company intends to become Pink current with its filing obligations pursuant to Securities Exchange Act Rule 15c-211 and OTC Markets Group, Inc Reporting Guidelines prior to September 28, 2021.
PBYA wants to reduce reliance on third-party vendors and focus on developing its own self-published online and classroom-based training products.
On June 28, North American Crane Bureau Group (NACB), a subsidiary of PBYA, had launched new training programs for Tesla, Marathon, and BAE Systems. The news propelled the share price to $0.0079, which is still the highest level since 2018.
NACB’s programs consist of onsite training for crane operators, inspectors, rigging personnel and signal personnel, and lift equipment trainers within these organizations. It’s worth noting that these engagements are long term training arrangements that are expected to be replicated throughout their corporate footprint.
Dana Jackson, SVP of Sales and Marketing at NACB, stated:
“We are one of the few remaining companies in the crane training industry with the ability to provide high quality onsite training with large and small corporations. Our ability to certify crane operators and offer an ANSI accreditation certification program with our partners, NCCER gives us an industry edge. We are on track to have some of our best months in the company’s history and well positioned for growth. NACB is currently pursuing some large opportunities with additional Fortune 500 companies.”
All in all, we think that companies seeking to become Pink Current have some great potential.
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)!
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.