The OTC stocks market indexes continue to fluctuate at their all-time highs, with OTCQX Composite maintaining above 1,630 points.
Elsewhere, major stock indexes are in wait-and-see mode as the US Bureau of Labor Statistics is releasing key inflation data on Thursday. During the last few weeks, stocks corrected on inflation worries, as consumer prices surged way more than expected in April. Investors expect that the Fed might be forced to tighten the monetary policy to control inflation.
Meanwhile, so-called “meme” stocks like GameStop have dominated trading volumes over the past days and weeks, as retail traders hype stocks shorted by hedge funds. Rob Sechan, managing partner and co-founder of NewEdge Wealth, told Reuters:
“It is going to be consistent and the participation is good, but there remains a risk of high speculation and market manipulation within these meme stocks.”
If you want to invest in undervalued companies with impressive growth potential that have not yet been hyped on social media, you may consider specific OTC stocks.
NOW IS A GREAT TIME TO BUY OTC STOCKS
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.
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 discuss 4 OTC stocks to watch before they might surge in price. Here they are: Green Globe International, Inc (OTCPK: GGII), Optec International, Inc. (OTCPK: OPTI), PHI Group, Inc. (OTCPK: PHIL), and Worksport Ltd. (OTC: WKSP).
OTC Stocks to Watch #1 GGII
Green Globe International, Inc. has been trading sideways during the last few days, but the OTC stock might become more volatile as the reverse merger with Hempacco Co., Inc. has been officially completed. At the time of writing, GGII trades at $0.028, down from $0.037 five days ago. GGII has surged by over 1,900% year-to-date (YTD) and over 10,000% to its YTD peak hit in mid-May at over 11 cents.
The major rally had to do with the reverse merger announcement, and GGII basically represents Hempacco from now on. We first paid attention to GGII before the OTC stock touched its YTD high. We always make sure to alert our subscribers ahead of our regular readers, and that’s why having a subscription to Insider Financial is so important.
Hempacco is the largest producer of hemp cigarettes in North America. It aims to lead the tobacco industry by offering consumer goods in the form of hemp cigarettes and other plant-based smokables. The company has a factory where it manufactures its products and a number of brand lines. It also manufactures for other companies and runs over 600 vending machines with hemp cigarettes.
Hemp cigarettes are becoming more popular as they’re a great alternative to marijuana by offering the non-psychoactive effects caused by THC with the added benefits of CBG.
Hemp cigarettes are one of the fastest-growing segments of the hemp industry. The emerging hemp industry is expected to become a $26+ billion market by 2025, also because people will move from tobacco to safer alternatives.
While the GGII price continues to correct, this is for the better, as investors can purchase a valuable OTC stock at a bargain price. We believe GGII is not a stock to speculate on but rather to hold for the long term. The OTC stock is very popular on social media, which may fuel a rally soon to update the recent peak.
However, not everyone is happy with GGII. Specifically, Hempacco issued over 70 billion shares for the reverse merger, increasing the total number of shares to 74 billion and thus causing dilution. It’s true that the newly issued 70+ billion shares are restricted securities, which will not be eligible for resale under Rule 144 for at least one year following the date that Green Globe files registration-statement disclosure information regarding Hempacco with the SEC. Still, the share structure clearly doesn’t benefit veteran investors holding GGII.
$GGII @hempacco @sandropiancone1 @JorgeOlson The only thing going against you is the share structure. Nobody absolutely nobody is doubting the legitimacy of the company. The investors who have supported @hempacco mission all along DO NOT deserve to lose their investments. 1/6
— Johnny Rose (@JohnnyR65744002) June 5, 2021
The best thing investors can do now is to wait for a few days until the price corrects to find a fair value with the dilution in mind, and then enter the market, as GGII has a well-established business.
Hempacco reportedly told investors that the share structure will be addressed and that investors should be ready for contracts with multi-billion dollar companies and an eventually NASDAQ listing – everything of which sounds great.
$GGII I just called investor relations… >>>
In the Conference Call today >>>
1. The share structure issue will be addressed.
2. Contracts with Multi-Billion Dollar companies
3. Absolutely NO REVERSE SPLIT
4. NASDAQ listing will be explained
— soupoftheday (@soupofthedayhub) June 9, 2021
OTC Stocks to Watch #2 OPTI
Optec International, Inc. has been bullish during the last few days, increasing from $0.072 last week to almost 10 cents at the time of writing.
OPTI is a $160 million company that sells fuel maximizers as well as UV and UV-C safety products using related advanced technologies specific to Personal Protection Equipment (PPE). The second category of products includes iWand – a portable disinfection device that kills 99.9% of bacteria, air sterilizers, biomasks, and a scanner with temperature detection and facial recognition. We called OPTI a smart COVID-19 bet, and for very good reasons – the company offers several products that are in high demand during the pandemic.
Earlier this year, the Food and Drug Administration (FDA) approved OPTI’s rapid test kits to detect the COVID-19 virus. The company is providing two versions of the Nasal CoV-2 Antigen FDA EUA authorized 15-minute rapid test kits, which are clinically proven to be reliable and accurate.
Meanwhile, on June 8, OPTI announced that it had completed the acquisition of WeShield for $70 million in a combination of cash and preferred shares. WeShield is a New York-based AI-oriented MedTech firm operating in the PPE space. Its revenues exceeded $55 million last year, and it aims for $100+ revenues in 2021. The company supplies PPE safety products to giants like GAP, Defense Logistics Agency, Concordance, Henry Schein, Medline, and more.
Optec CEO Roger Pawson said:
“By adding an established AI driven sales and marketing platform to OPTEC, we are confident we will immediately reap the rewards from adding WeShield’s team and tech to market and sell OPTEC products. In addition to these synergies, we expect to add over $100 million in 2021 projected sales from WeShield.”
OPTI is future-oriented and we think it’s a good buy. In the first quarter, the company secured a total revenue figure of over $11.5 million, up over 4,300% compared to Q1 2020.
OTC Stocks to Watch #3 PHIL
PHI Group, Inc is a company with great value that doesn’t get much attention on social media. The OTC stock is currently trading at $0.0072, up 38% during the last five days and over 100% since mid-May. PHIL hit a year-to-date high at almost one cent on Wednesday, June 9. This OTC stock seems to be only at the beginning of its bullish journey.
The company runs PHILUX Global Funds, a group of Luxembourg bank funds organized as Reserved Alternative Investment Fund (RAIF), and operates the Asia Diamond Exchange (ADE) in Vietnam. It also engages in M&As and invests in select industries and special situations that may boost shareholder value. On top of that, PHIL’s wholly-owned subsidiary, PHILUX Capital Advisors, Inc provides M&A consulting services and helps companies go public.
The $150+ million company is now working on updating its financial situation and get its operation current by carrying out all the necessary filings.
PHIL CEO Henry D. Fahman is always late with the filings and everything, but investors are still confident in the company’s potential.
$PHIL Dear Valued Shareholders, our auditor is still working on the annual audit for FY ended Jun'20. It will be filed as soon as it is finished. Quarterly reports for 2021 will follow, and I look forward to holding a conference call to discuss many exciting things. God Bless!
— PHI GROUP INC (@PHIGROUP) June 4, 2021
You should closely watch PHIL when it provides the necessary updates.
OTC Stocks to Watch #4 WKSP
Worksport Ltd., formerly known as Franchise Holdings International, is a hot OTC stock these days. WKSP updated its YTD high on Tuesday at $0.65, up over 100% during the past month.
Worksport produces and distributes truck tonneau covers and solar-powered systems for light-duty trucks in Canada and the US. At the end of March, the company secured $3 million via a Private Investment in Public Equity (PIPE). The fundraising followed the closing of an oversubscribed Reg-A public offering, during which WKSP raised $4 million.
The company is using the funds to build inventory and increase its marketing efforts for the forthcoming TerraVis™ solar tonneau cover system and TerraVis COR™ mobile energy storage system.
At the end of April, WKSP announced that it was about to lease its brand-new manufacturing facility. This will provide the necessary infrastructure to sustain the company’s growth while mass-producing its two flagship products.
The company has major expansion plans. At the end of May, WKSP said that it was expanding its workforce and growing its research & development (R&D) unit. It hired two full-time industrial engineers, an industrial designer with specialties in 3D modeling and interactive preparation, as well as two advisory engineers – both of whom are seasoned professors from prestigious Canadian colleges who have successfully led product evolution cycles in their respective mechanical and electrical fields.
Besides this, the company is about to hire factory technicians, managers, and onsite office staff for its newly leased Canadian facility, along with marketing managers, and customer service representatives.
Earlier in May, the company said that it had completed the final designs for TerraVis COR™ mobile energy storage system. Given the overwhelming international demand, Worksport will soon be launching a new TerraVis™ specific website in the coming weeks to provide more information about its battery systems.
TerraVis COR™ has entered the production prototype phase with the first pre-production prototype expected to be ready by early Q3, 2021.
On June 1, WKSP said that it had partnered with the Ontario Tech University to access its world-class ACE Testing Facility. WKSP will be collaborating with the research team that is supervised by Professor Sheldon Williamson, Ph.D. He has extensive experience in Worksport’s industries, as he has worked with automotive companies like General Motors and Ford. The immediate goal of this collaboration is to complete prototyping Worksport’s TerraVis Solar Truck Bed Cover System by the end of Q3, 2021.
All in all, we think WKSP is a good stock to buy and hold, as it’s about to increase revenue thanks to its battery systems attachable to trucks.
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 take some money off the table and 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)!
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.