The US stock market tumbled on Wednesday as data from the Labor Department showed that annual inflation accelerated at the highest pace in more than three decades, adding to concerns that the Fed might be forced to start increasing the interest rates sooner than initially planned. The central bank is already starting reducing the bond-buying program this month at a pace of $15 billion per month.
All three major indices declined, adding to Tuesday’s selloff that halted the S&P 500 and Nasdaq’s runs of eight consecutive record closing highs. The OTCQX index, which tracks over 400 OTC stocks, tumbled over 2% on Wednesday alone.
Still, corrections like this are healthy and investors should not worry for now. Ross Mayfield, an investment strategy analyst at Baird in Louisville, told Reuters:
“It’s not surprising that after what was truly a historic run for the market to take a pause. But we do think there are enough tailwinds heading into year-end to move the market higher.”
The consumer price index (CPI) surged by 0.9% in October and 6.2% year-on-year, which is higher than expected and the fastest gain in 31 years.
The Fed said on multiple occasions that this year’s high inflation is temporary and it will fade out as the supply chain bottlenecks and labor shortages adjust, but investors are increasingly worried that inflation is here to stay in 2022.
Still, the OTC is currently a good refuge as there are many small companies showing impressive gains and providing great value to shareholders.
OTC STOCKS THE PLACE TO BE
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.
We alert our subscribers with our best ideas before our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here.
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. It also helps to own shares in the following 4 hot OTC stocks.
In this article, we look at 4 OTC stocks that will greatly reward patient investors. They are SunHydrogen, Inc (OTCPK: HYSR), American Lithium Corp (OTCQB: LIACF), Majic Wheels Corp (OTCPK: MJWL), and World Series of Golf, Inc (OTCPK: WSGF).
OTC STOCKS #1 HYSR
SunHydrogen, Inc is recovering after finding strong support near four pennies. The Pink Current OTC stock left the YTD low at $0.0385 at the end of October and saw its price more than doubling since then, currently trading at $0.088, which is the highest mid-June. The latest price spike was pushed by increasing volumes, which rose to the highest since March, suggesting that momentum is only getting traction.
We covered HYSR last year before the share price broke above $0.30, helping our subscribers secure generous profits.
SunHydrogen is working on a breakthrough, low-cost technology to make renewable hydrogen using sunlight and any source of water, including seawater and wastewater. Unlike hydrocarbon fuels, such as oil, coal, and natural gas, where carbon dioxide and other contaminants are released into the atmosphere when used, hydrogen fuel usage produces pure water as the only byproduct. By optimizing the science of water electrolysis at the nano-level, its low-cost nanoparticles mimic photosynthesis to efficiently use sunlight to separate hydrogen from water, to produce environmentally friendly renewable hydrogen.
With its method to produce renewable hydrogen, the company plans to empower a world of distributed hydrogen production for renewable electricity and hydrogen fuel cell vehicles.
Last Friday, the House approved a $1.2 trillion bipartisan infrastructure bill that includes $65 billion for grid infrastructure plus $50 billion for cyber and climate resilience over five years. Renewable energy executives say that the bill will accelerate the shift towards emissions-free electricity through more funding for transmission, hydrogen, and electric vehicles (EVs).
Meanwhile, 28 companies, including oil giants BP, Shell, and TotalEnergies, recently launched a new global initiative at COP26 to spur the replacement of highly polluting grey hydrogen with lower-carbon hydrogen.
HYSR is benefiting from the increasing attention on the hydrogen market, but its price has also been driven by internal factors as well.
On Tuesday, HYSR announced a partnership with MSC Co LTD, a South Korean company. In the first stage of the partnership, MSC will begin reproducing SunHydrogen’s electrolyte chemistry in an industrial setting to validate its capability for mass manufacturing. The manufactured electrolytes will then be sent to SunHydrogen’s lab in Iowa to validate MSC’s efficacy in electroplating the PAH components at the same quality achieved at the lab scale.
PAH, or photo-electro synthetically active heterostructures, are the foundation of SunHydrogen’s nanoparticle technology, in which billions of PAH nanoparticles split apart water at the molecular level.
“This validation process will provide an important database for manufacturing the PAH components in different locations while maintaining their high quality,” Dr. Lee of SunHydrogen said.
— Green Stock News (@greenstocknews) November 9, 2021
The second stage of the partnership will involve the electrodeposition of semiconductors on SunHydrogen’s proprietary substrate in an industrialized setup, where the results will be evaluated by SunHydrogen’s scientists to ensure that the PAH components are of the highest quality in this mass-scale electrodeposition setting.
Now, this is great news for HYSR, and the keyword is “mass production.” We think traders should hoard this stock as it has a great share structure, potentially disruptive technology, and great management. The already huge market cap of $350+ million can go even higher and result in the uplisting of HYSR to NASDAQ.
OTC STOCKS #2 LIACF
American Lithium Corp has exploded in price and hit the highest level in about five years. The share price has doubled during the last month, which is pretty significant for an OTCQB stock with a market cap of over $700 million.
We drew your attention to LIACF at the end of last month when the stock was trading at $2.64. Now you can buy for $4 per share.
As we pointed out, LIACF is well-positioned to play a key role in society’s shift to a secure, sustainable new energy paradigm in the Americas.
In the US, the Canadian company owns the TLC claystones lithium deposit, located close to Tesla’s giga-factory in Nevada.
Following the acquisition of Plateau Energy Metals, American Lithium is advancing the large-scale Falchani hard rock lithium deposit, as well as one of Latin America’s most prolific uranium deposits, known as Macusani, both of which are located in Peru. In September, LIACF CEO Simon Clarke met in person with the President of Peru.
Recently, the price has been driven by the news that a Peruvian judicial ruling regarding the title to the 32 disputed concessions on the Falchani and Macusani projects in Peru has been issued in favor of LIACF’s subsidiary Macusani Yellowcake S.A.C. The ruling restores full title to these concessions.
In August, LIACF reported the largest lithium extraction results to date, achieving 97.4% extraction utilizing warm sulfuric acid leach on Tonopah Lithium Claims (TLC) claystone mineralization.
LIACF has also benefited from the price surge in Lithium and other commodities. Price reporting and research agency Benchmark Mineral Intelligence reportedly stated recently that EXW China lithium hydroxide was close to $30,000 per ton, up over 250% since the beginning of the year. The price will likely keep rising in 2022 on tight supply.
LIACF is a great OTC stock to hold for the long term.
OTC STOCKS #3 MJWL
Majic Wheels Corp has been one of our favorite crypto plays and we covered it on several occasions. After bottoming out in August near seven pennies, MJWL has recovered and is back on track to update the YTD high at over $0.25. Now you can buy the stock for $0.135 per share, up almost 50% since last week.
MJWL is promoting itself as a company that intends to position itself as a player in the disruptive industries of fintech and software development by means of multiple acquisitions.
As you may know, its first acquisition is the cryptocurrency exchange and custody services platform Calfin Global Crypto Exchange (CGCX), which generates about $150 million in revenue. In April, CGCX launched its first insured over-the-counter (OTC) crypto trading desk in India, offering traders a direct medium of exchange. Besides the India Crypto Exchange, it generates revenues from the Custody Solutions and the Crypto Mining business lines.
Last month, MJWL signed a letter of Intent (LOI) to acquire a majority interest in Bamboo Wellness Holdings Limited. Bamboo Blockchain and Analytics Competency Center aim to create a holistic healthcare ecosystem that will drive a data-driven decision-making model. Supported by artificial intelligence (AI) and machine learning, the Bamboo ecosystem aims to drastically bridge the health protection gap and bring insurance to everyone.
Later in October, MJWL came with another great piece of news when it said that it was acquiring a majority interest in PCEX, another cryptocurrency exchange & trading platform.
— Majic Corp (@MajicCorp) October 14, 2021
The recent price spike came amid a surge in the price of Bitcoin and Ethereum, both of which updated their all-time highs on Tuesday.
Meanwhile, investors expect MJWL to show its cards, as the company is scheduled to file its Q3 financials this week. Also, investors anticipate the price to surge when the $260 million company officially voices its plan and progress to uplist to NASDAQ.
— Just Michelle (@MaryMichelleNay) November 8, 2021
We think MJWL has much more to offer, and 13 cents for this stock is a bargain price.
OTC STOCKS #4 WSGF
World Series of Golf, Inc is a small company that goes with the Pink Current symbol on OTC Markets. The company is at the start of its roadmap and can provide some great opportunities for early investors. The share price has consistently declined since its YTD high in May at over 6 pennies and is now ready to start something new and provide great value to shareholders. The share price has gained about 40% since last week to trade at $0.016.
Last year, WSGF acquired Vaycaychella, LLC, a business facilitating financing for the purchase and renovation of real estate properties for the purpose of generating revenue from short-term vacation rentals. Vaycaychella’s mission is to serve short-term vacation rental owners and investors in the near term with a peer-to-peer (P2P) lending application (app) under development. Vaycaychella’s plans in the longer term are to introduce additional apps that provide ancillary services to short-term rental owners and investors.
On Tuesday, WSGF announced that it was changing its corporate name to Vaycaychella to reflect the new business direction as a technology company operating in the short-term vacation property rental market upstream from technology companies to include Airbnb, VRBO, and Booking.com.
CEO William “Bill” Justice stressed that the name change update with OTC Markets and the issuance of a new ticker symbol would not include a reverse split or a forward split of the company’s shares.
WSGF is also leveraging the fast-growing crypto trend. The company said that it was building a Vaycaychella cryptocurrency exchange where its short-term vacation property rental entrepreneurs will be able to list cryptocurrencies dedicated to raising funds for their purchase and/or renovation projections. The company also plans to provide tools that help entrepreneurs create a cryptocurrency.
The Vaycaychella App Version 2.0 includes functionality designed to complement the cryptocurrency tools.
Both the Vaycaychella App Version 2.0 and the cryptocurrency exchange are on track to launch before the end of 2021.
On top of that, WSGF said that it had an M&A target, which is a highly innovative travel industry tech startup with a proven proprietary software application to seamlessly integrate comprehensive travel booking functionality for any licensee the way Stripe provides any licensee the ability to process online payments.
The M&A target would enable Vaycaychella to give its short-term vacation property owner/operators the ability to add travel agent revenue, providing their clients with flight booking and car rental services.
Meanwhile, WSGF has engaged the interest of a notable investment fund that has expressed interest in backing a transaction with Vaycaychella and the target.
You can get exposure to WSGF at this early stage as few investors know about it at this point. The company has some great milestones, and the next few months will be really exciting. The authorized shares are maxed out, no dilution is possible at this point – so what are you waiting for?
— OTCMethod.com (@KickoStocks) November 9, 2021
THE FINAL NOTE
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 a penny stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye the best 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 penny 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.