Major indexes tracking the US stock market were flat on Tuesday, and OTC indexes were mixed. The earnings season is only starting, with many blue chips expected to report upbeat financials, which would bode well for equities in general, including OTC stocks.
But businesses are now worried about higher taxes. Earlier today, former Fed chief and current US Treasury Secretary Janet Yellen called for business leaders to pay higher taxes to support President Joe Biden’s stimulus spending focused on infrastructure. She also supported stronger labor unions and backed lower barriers to foreign competition. While higher taxes are not good news for businesses, this is a primary concern for blue chips in the first place.
“With corporate taxes at a historical low of one percent of GDP, we believe the corporate sector can contribute to this effort by bearing its fair share: we propose simply to return the corporate tax toward historical norms,” Yellen said.
Nevertheless, Chamber President CEO Suzanne Clark said his organization doesn’t endorse Yellen’s position. He stated:
“The data and the evidence are clear: the proposed tax increases would greatly disadvantage US businesses and harm American workers, and now is certainly not the time to erect new barriers to economic recovery.”
Despite a flat week, this is still a great time to invest in OTC stocks, as the US and the global economy is gradually recovering from the devastating impact of the COVID-19 pandemic.
Nevertheless, even during a recovering economy, with blue chips, you can’t generate huge 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.
Elsewhere, there are penny 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.
For example, we reported on CBD Life Sciences Inc (OTCPK: CBDL) before the stock surged in mid-February.
Today, we’ll discuss CBDL along with three other OTC stocks, including Ascent Solar Technologies, Inc (OTCPK: ASTI), Nutranomics, Inc (OTCPK: NNRX), and Reflect Scientific, Inc (OTCPK: RSCF).
We recommend owning 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.
Here are the 4 OTC stocks on the move right now:
OTC Stocks to Watch #1 ASTI
US-based Ascent Solar Technologies, Inc. has been doing well during the last few days, increasing from $0.18 last Wednesday to the current level of $0.27 on Tuesday. The larger timeframe point to a correction, as ASTI has been declining from its year-to-date high at $0.70 touched in mid-February and then again on March 1.
Still, the $430 million company became profitable last year and has robust fundamentals that could propel prices to update the YTD peak.
Investors are somewhat bullish on ASTI these days because the stop sign label was removed from the stock on OTC markets. For those unfamiliar, the stop sign marker suggests that the related company doesn’t want or can’t provide relevant information to investors and should be treated with suspicion.
Last week, ASTI filed the 10-K report required by the US Securities and Exchange Commission (SEC), and on Saturday, the stop sign was removed.
— Dr PennyStock (@Dr_PennyStock) May 15, 2021
Ascent Solar produces and sells photovoltaic (PV) integrated consumer electronics and portable power applications for companies and military entities. It sells outdoor solar chargers, including XD-12 and XD-48 for individual soldiers and platoon power needs, high-voltage SuperLight thin-film CIGS (copper indium gallium selenide) PV blankets, and solar modules. The company’s 3-step manufacturing process is patented and ISO-certified.
Last year, ASTI appointed a new CFO and executives, which helped the company become profitable and move in the right direction.
Victor Lee, President and CEO of Ascent Solar Technologies, commented:
“Since September of 2020, we have been working tirelessly to restart our operations and get caught up with the required SEC filings.”
On Monday, the company announced that it had completed the delivery of a major contract for its HyperLight thin-film modules for high altitude airship applications. The shipment is the third and the largest order from the customer, which is the world’s most advanced unmanned, helium-filled airship operating in the stratosphere at an altitude greater than 60,000 feet above sea level.
“This contract is by far the single largest PV sales contract in the corporate history of Ascent Solar, which follows the success of multiple large shipments of such customized high-voltage superlight thin-film for high altitude applications.”
Now that the company has fixed the issues with its reporting and became profitable, we think it’s a good buy.
OTC Stocks to Watch #2 CBDL
CBD Life Sciences Inc. has been declining since its year-to-date high at one cent hit in mid-February. The OTC stock is now trading at $0.0008. My colleague at Insider Financial spotted the cannabis stock well before it rallied to its YTD high, and we still think it can be a good candidate for your penny stock portfolio despite the disappointing performance over the last few months.
CBD Life Sciences has several businesses, as it identifies, evaluates, and buys undervalued opportunities with the goal to increase shareholder value. The acquisition of LBC Bioscience Inc. is the first in the cannabis space.
Through LBC Bioscience, CBDL develops and sells a full line of cannabidiol-based organic products, including CBD drops, gumballs, honey sticks, pain relief creams, anxiety & sleep supplements, edibles, coffee, skincare line, pet line, tablets, and more.
At the beginning of the month, CBDL announced the opening of its Amazon Store at www.amazon.com/shops/lbcbioscienceinc. On Monday, May 17, the company launched two new products on Amazon: the 1200MG Pain Relief Cream, which has been on LBC’s e-commerce site for a long time, and the hemp gummy bears coming in either 150MG or 350MG.
CBDL is a cheap OTC stock that is worthy of attention. The company will benefit from the Prop 207 initiative that passed in November. It includes the legalization of recreational cannabis for adult use in CBDL’s home state of Arizona.
OTC Stocks to Watch #3 NNRX
Nutranomics, Inc is another OTC stock that has been on an uptrend this week. Earlier today, it touched its YTD high at $0.0032 but is currently trading at $0.0017 after finding some strong support at $0.0015.
NNRX produces and sells nutritional food products. It provides about 480 nutritional supplements, including formulating vitamin, mineral, herbal, and probiotic supplements. The company offers its proprietary tool called Nutritional Blood Analysis, which can examine a user’s blood cells on a video monitor in real-time. NNRX also patented the Assimilation Enhancing System, which improves the absorption of nutrients.
Nutranomics is now paying more attention to CBD products, aiming to leverage an emerging industry with huge upside potential.
The company was officially reinstated last week, with CEO Jonathan Bishop working for months to get NNRX back on track.
— Steve Hayes ▪▫▪ (@RealSteveHayes) May 15, 2021
So far, no major fundamentals are backing the OTC stock, but the company is starting to get traction. Investors show an increasing interest in NNRX, with trading volumes surging above $3 billion on Monday alone.
There are rumors of a potential merger, but no official update has been released. We will keep you notified about NNRX’s next major move, so make sure to subscribe.
OTC Stocks to Watch #4 RSCF
Reflect Scientific, Inc is an undervalued OTC stock that is now gaining momentum. The share price rose from 12 cents last week to 30 cents as of today.
What we like about RSCF is that it secured profits last year and has no debt. The company provides products and services for the biotechnology, pharmaceutical, and transportation industries and has several lines of products poised to bring revenue in the coming years.
At the end of last year, RSCF hit an all-time high at over $3.00, but we recommended our subscribers exit the market at the time. Indeed, the OTC stock eventually dropped below 40 cents.
Last year, RSCF was granted a patent by the United States Patent Office for an ultracold shipping and storage container for transportation by air that uses liquid nitrogen technology for cooling. The system could be used to carry thousands of doses of vaccines. For example, Pfizer’s COVID-19 vaccine has to be maintained at about -70 degrees Celsius.
At the end of March, RSCF announced that it ended 2020 with a 74% increase in total revenue. RSCF CEO Kim Boyce said:
“I am pleased to report that the 2020 end of year sales figures for Reflect Scientific Inc. were significantly higher than for 2019. Our team has worked hard to achieve those sales by providing market-driven low-temperature refrigeration solutions to our customers and maintaining a steady supplies business.”
On Monday, Boyce issued a letter to shareholders, announcing that the company had received several orders for its product lines. In the Storage arena, the company has recently received an inquiry from a major government agency looking for non-mechanical freezers to supplant many of their existing mechanical units. In the transportation/cold chain area, RSCF continues to receive orders for the following applications:
- Vaccine management;
- Air freight temperature-controlled containers;
- Use of our CB 40 system for TRU reefers – a recent message from CARB indicates we are the leading choice of technology for California markets.
At the end of March, Reflect Scientific filed a Form 10 Registration Statement with the SEC.
The $25 million company has a well-established business and an increasing demand for its products, which makes it a cheap OTC stock with 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 options 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 benefit from the growing momentum.
It’s very important to consider OTC stocks that have room for growth and don’t seem to be at their culmination. 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 have a lucrative portfolio.
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.