The US stock market had a great week, with major indexes surging back near their all-time highs, although small caps as tracked by Russell 2000 have corrected a bit.
Inflation data from the Labor Department added to the already heating debate on whether increasing prices would force the Fed to tighten the monetary policy. The consumer prices index (CPI) and Core CPI for May came in higher than expected. However, a close look suggests that much of the price surge came from items such as commodities and airfares, and the exaggerated inflation is likely to be temporary, leaving the Fed more room to continue with its near-zero interest rate and bond-buying program.
Ryan Detrick, a senior market strategist at LPL Financial, told Reuters:
“Earlier this week we had extremely boring market days as we all had our eyes on the bullseye of this CPI report. But once people looked under the surface, the majority of the higher inflation is due to the reopening, and stocks had a relief rally.”
Meanwhile, the OTCQX Composite, which has over 400 OTC constituents, updated its record high as well, consolidated above 1,640 points. This demonstrates that the OTC market is on fire, and you shouldn’t miss this opportunity.
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 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 stocks to watch before they might surge in price. Here they are: KYN Capital Group, Inc. (OTCPK: KYNC), Ozop Energy Solutions, Inc. (OTCPK: OZSC), Principal Solar, Inc (OTCPK: PSWW), and Regen BioPharma, Inc. (OTC: RGBP).
OTC Stocks to Watch #1 KYNC
KYN Capital Group, Inc. is one of those small companies trying to restructure their business and become Pink Current, and we like such occasions because this is when investors can hit the jackpot. KYNC has already advanced with its plans to a certain degree, as it has already decided on the new direction, though it still has to remove the “YIELD” sign associated with it on the OTC market by sharing more financial details.
The OTC stock has declined from $0.0205 on June 4, which is the highest level in years. Currently, the share price is fluctuating near $0.014.
Previously known as New Taohuayuan Culture Tourism Co, KYNC dumped its business related to capital finance leasing services for cars and trucks, construction equipment and tools, and earth moving equipment, and instead repositioned to be a holding company for acquisitions and development in the entertainment, blockchain, cryptocurrency, NFT (Non-Fungible Token), and touchless payment markets.
Blockchain, cryptos, and NFTs make the hottest industry this year, with NFTs, in particular, increasing last quarter by 20 times compared to the last three months of 2020.
KYNC’s fundamentals are starting to improve at all levels. In April, the company paid the application fee to OTC Markets and was waiting for approval to update the company profile and share the financials and disclosures for last year and Q1 2021.
One month later, KYNC announced the retirement of 400 million unrestricted shares to the company treasury.
At the beginning of June, investors found out that KYNC already had a working product in line with its new business strategy. The company launched Koinfold™, a future-forward crypto app suite. It lets you trade cryptocurrencies at low fees directly from your smartphone. It has all the tools to buy, sell, or store cryptocurrency securely.
On June 4, KYNC launched Koinfoldpay, a contactless crypto payment gateway for businesses. It allows businesses to receive Bitcoin, Ethereum, Bitcoin Cash, and Litecoin for online payments. Crypto payments may become the next big thing, especially with the adoption of stablecoins.
On June 7, KYNC presented its Koinfold Debit Card, which will be directly linked to the user’s Koinfold account.
KYNC CEO Rick Wilson said:
“As we assist with society’s transition toward the normalization of crypto payments, we understand that not all merchants will embrace this movement as quickly as some have. We see the Koinfold™ Debit Card as one more step in this evolution, allowing consumers the ability to use their crypto accounts for payment with merchants that are not yet equipped for touchless crypto payment systems such as Koinfoldpay.”
KYNC is tapping into a huge market and already has some great working products. This is some really great stuff for OTC investors. We alerted our subscribers about KYNC at the end of May, before the OTC stock’s YTD high, but you’re still not late.
OTC Stocks to Watch #2 OZSC
Compared to KYNC, Ozop Energy Solutions, Inc. is a well-established company that is Pink Current and is generating considerable revenue. The OTC stock has attempted to break above the $0.10 mark on June 9, but the resistance was too strong. OZSC hit the YTD peak in mid-February at over 37 cents and has corrected since then, though the company has some great potential. We first paid attention to OZSC in January, well before the price surge to the YTD high, which proves the value of subscribing with us.
OZSC, through its subsidiaries, designs, develops, manufactures, and distributes ultra-high-power chargers, inverters, and power supplies for a wide variety of applications in the defense, heavy industrial, aircraft ground support, maritime and other sectors. Its strategy focuses on capturing a significant share of the rapidly growing renewable energy market as a provider of assets and infrastructure needed to store energy. The company offers a broad portfolio of Renewable Energy products at competitive prices.
In the first quarter, OZSC had a negative net income of over $200 million, but the cash flow was improving and the debt to assets ratio dropped from the previous quarter.
Also, the company has secured many orders for its products during the last few months, which will be positively reflected in the Q2 financials. On June 9, OZSC said that it had received an order for 38 electric vehicle charging stations to be installed in various locations in Brooklyn, NY, continuing its steps in developing a regional NeoGrid Modular Network (patent pending) that will spark a new generation of electrical supply, storage & distribution. The orders are valued at $2 million.
During the same day, the company said that it had entered into a Letter of Intent with an NYSE real estate investment fund to design and explore property for twelve locations in New York and one in New Jersey for the immediate development of Battery Storage and EV Charging Stations.
We think OZSC is turning into an important energy player, and the current trend revolving around renewable energy, especially with Biden’s victory, bodes well for the OTC stock.
OTC Stocks to Watch #3 PSWW
Principal Solar, Inc is another company that focuses on renewable energy. It also operates in the natural gas sector. The company strategically invests in organizations, people, properties, and technologies that create and deliver next-generation opportunities in the renewable energy sectors and natural gas.
PSWW performed well during the last five days, gaining 60% to $0.0713. Still, at the end of last year, it used to trade above 50 cents.
Last year, PSWW CEO was announcing that it had possessed the rights to a unique oil extraction technology called TORS™, which was licensed from Tokata Oil Recovery, Inc. The technology enables the recovery of commercial quantities of oil from waterlogged shallow and marginal wells. In March, the company’s Board approved a separate division to focus exclusively on oil extraction with the TORS technology. The new subsidiary is called Bayou Road Investments.
Meanwhile, PSWW continues to operate in the renewable energy sector. Three months ago, it had executed a Letter of Intent to create a subsidiary in partnership with electric vehicle conversion company eTruck Transportation. Through the subsidiary, PSWW intends to fund and support the successful, near-term roll-out of eTruck’s heavy electric vehicle offerings by providing the working capital necessary to deliver on expected customer orders, develop future platforms and technologies, to accelerate the growth of eTruck.
Last month, PSWW formed NexTeal Energy, Inc, a subsidiary created specifically to focus on the company’s electric vehicle investments.
Also in May, Principal Solar announced its intention to take part in the US Department of Energy’s SuperTruck 3 program by application, via its subsidiary partnership with vehicle conversion company eTruck. The program offers $162 million in opportunities aimed at electrifying freight trucking, along with efforts to expand infrastructure and lower emissions.
PSWW CEO K. Bryce “Rick” Toussaint, said:
“We see this as further validation of our decisions to create NexTeal, Principal’s EV-focused operating company, and to form our heavy vehicle electrification subsidiary partnership with eTruck Transportation. SuperTruck 3 is a funding opportunity that feels tailor-made for NexTeal and our new subsidiary partnership. We plan to apply to participate in the program.”
PSWW is only beginning its operations through its two divisions, and both sectors can be lucrative. This OTC stock is worthy of attention.
OTC Stocks to Watch #4 RGBP
We repeatedly suggested that Regen BioPharma, Inc. was a tiny biotech that would one day become a major pharma player. RGBP has performed well during the last five days, gaining 44%. Still, RGBP is not about investment with short-term target. This is an OTC stock to hold for months in order to benefit from the gradual price ascension as the company monetizes its patents and therapies.
The company focuses on translational medicine platforms for the commercialization of stem cell therapies. The stem cell industry is growing rapidly and is expected to exceed $15 billion by 2027. For those unfamiliar, stem cells are special cells that can develop into any type of human cells. RGBP has been working on getting regulatory approval and conduct clinical trials in cell therapy. The company produces stem-based medicines for diabetes, heart-related illness, circulatory issues, and Chronic Obstructive Pulmonary Disease.
Besides stem cells, the biotech firm is working on small molecules capable of targeting cancer and autoimmunity.
Recently, Regen signed two deals with Oncology Pharma, a $720 million company that is a leader in oncology treatments. One deal focuses on treating pancreatic cancer, and the other one is between Regen’s subsidiary KCL Therapeutics, Inc, and Oncology for the treatment of colon cancer.
On May 7, Oncology Pharma entered into a licensing agreement with Regen to use its technology revolving around small molecules to activate immune checkpoints for the treatment of colon cancer.
The community found out that Oncology updated its website to add Regen under its “Portfolio” page, hinting to a potential buyout. If that’s the case, expect RGBP to surge in price after the official announcement. However, it’s too early to speculate on that, since the page refers to Oncology’s partners for now.
New addition to the ONPH website
Looming acquisition? pic.twitter.com/1wfZp8BKaT
— Disrupt Applications (@turnkeyapps) June 12, 2021
Nevertheless, even without it, Regen has dozens of regulatory filings, over 20 patents, and several ongoing clinical trials. We think that the company has enormous 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.
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)!
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.
Images via Pixabay, Bloomberg, koinfold.com, Twitter