The US stock market has tumbled at the end of September amid growing fears of slowing economic growth and a possible government shutdown. The Fed admitted that it is in a difficult situation given the tension between inflation and employment.
Dennis Dick, a trader at Bright Trading LLC, told Reuters:
“You got Powell talking with more concern on inflation as well. So it does look like eventually they’re going to have to start to taper. It’s just a trading environment where people are locking in short-term day-trading profits … because a lot of money managers are concerned that the next big move could actually be down.”
The major indices saw their worst month since the beginning of the COVID pandemic, dropping to the lowest level since mid-June.
Even though this is not a great time to invest in blue chips since most of them are flashing red, there are still many opportunities among OTC stocks.
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 Ethema Health Corporation (OTCPK: GRST), Industrial Nanotech, Inc (OTCPK: INTK), Komo Plant Based Foods Inc (OTCQB KOMOF) (CSE: YUM) (FRA: 9HB), and Verde Bio Holdings, Inc (OTCPK: VBHI).
OTC STOCKS #1 GRST
Ethema Health Corporation has managed to bounce back from the lowest level in over a year that was touched on September 20 at $0.0016. The share price doubled to a swing high at $0.0036 and then has corrected to the current level of $0.0024. This is a bargain price to pay for a small company with great potential. We got our subscribers in on GRST last year near $0.005, which you can read here. The share price eventually surged to a YTD high at about $0.015.
Ethema Health Corporation developed and operated a first-class residential addiction treatment center in Canada under the Greenestone brand. The company sold this operation in February 2017 but retained the real estate in which the treatment center operated and it is leased to the new owners of the treatment business. GRST subsequently purchased the assets of a treatment center business in Delray Beach, Florida, in February 2017, and is now in the process of growing the Florida business.
Back in July, GRST announced the acquisition of the majority interest in the multi-million dollar Evernia Health Center LLC (ARIA), which operates the ARIA addiction treatment center in West Palm Beach, Florida.
Last week, GRST said the Department of Children and Family Services of Florida had issued the full licenses for all five levels of care for ARIA after completing its audit. Aria has been operating with probationary licenses since Ethema closed on the acquisition of ARIA on July 1. ARIA scored very high on the DCF grading scale. The licenses are effective for one year from June 30, 2021, when the probationary licenses were issued, to June 30, 2022, at which time a further audit will be conducted to maintain licensing. Thereafter an audit will be conducted every three years.
GRST CEO Shawn Leon stated:
“We are extremely pleased with all of the success our team has had in Florida. We faced challenges and have met them all head on with success each time. We are in the middle of an extremely exciting development in West Palm Beach and well-positioned to continue our efforts to eliminate debt while building shareholder value. We look forward to our future quarterly reports showing vast improvements to the balance sheet and income statement.”
The share price of GRST has consistently declined from its YTD in mid-February, but with ARIA, investors can get be ready for an increase in value, as the addiction treatment is operational and can expand in the future.
OTC STOCKS #2 INTK
Industrial Nanotech, Inc has been on the rise since the end of September, although the share price has been extremely volatile. Last week, you could buy INTK for half of a penny, and the price has more than doubled to trade at $0.0125, peaking on Monday at $0.014, which is the highest level since 2014.
INTK specializes in developing sustainable nanotechnology-based solutions designed to save energy, protect assets, and reduce carbon footprints. Its technologies help the world save energy, protect assets, and live and work more sustainably. The company’s products are sold through a global network of distributors. INTK has been offering the following products (although we’re not sure if all of them are available today):
- Nansulate Translucent PT and Nansulate Translucent High Heat – these are protective thermal insulation and corrosion prevention coatings;
- EPX4 – it is used for total asset protection;
- Nansulate Translucent GP-NSF – an insulation and mold resistant coating for food sensitive environments;
- Home Protect ClearCoat – a protective insulation and mold prevention coating;
- Nansulate Energy Protect – an industrial and commercial insulation and protective coating;
- Nansulate Crystal Roof Coating – it is used for clear energy-saving and mold resistant protection;
- Intelligent Shield – it offers cool color choices for exterior painting projects;
- Nansulate LDX Clear Lead Encapsulation Coating – it is used for lead abatement;
- NANOBOOST – an automotive coating;
- Bee Protect is formulated to protect bees in their hives;
- Nansulate Insulation for solar panels, solar water heaters, and solar thermal equipment.
INTK goes with the Pink Limited Information symbol on OTC Markets, and it is currently updating its financials to become Pink Current. On Monday, the company released a shareholder update. CEO and CTO Stuart Burchill confirmed that INTK had successfully met the requirements of the new SEC 15c2-11 rules, and was quickly taking the necessary steps to provide become Pink Current. He said:
“We are also beginning the process of having our financials for 2020 and 2021 audited by an independent PCAOB auditor so that we can finish in the first months of 2022 and make application to a higher listing status.”
All good. INTK meets the new SEC 15c2-11 requirements as now indicated on Company’s published OTCMarkets listing. Next step “Current Information“ status coming soon. Audited financials and application to upgrade exchange Q1 2022. $INTK #goforit
— Industrial Nanotech Inc (@indnanotech) September 24, 2021
Burchill said that larger sales were affected by the pandemic, especially given that large order customers had a complete ban on outsiders coming into the factories or restricted it to only the most essential outside personnel. The restrictions are now lifted and the company has high expectations of the upcoming quarters and years.
So do we – INTK is getting traction and starting again to offer the full range of products, planning to launch new product lines. The company will benefit from increasing demand. Think about the companies it served – they include Walmart, Nestle, Caterpillar, Yamaha, and Koch. With a great share structure and dilution-free history, we think INTK is a good OTC stock pick for your portfolio.
— Julia 👩🏻💻👩🏻✈️ (@JulsWesterfield) September 30, 2021
OTC STOCKS #3 KOMOF
Komo Plant Based Foods Inc has gained over 130% since the start of September, and this might be the beginning of a long-term uptrend. The $16 million company rose from less than 8 cents on September 1 to $0.30 on Monday, after which it corrected to the current level of $0.186.
The Canadian plant-based food company develops, manufactures, markets, and sells a variety of plant-based frozen meals. Komo’s products are sold direct-to-consumer through its eCommerce website and a distribution network of online and brick-and-mortar grocery, convenience, and natural retailer channels.
Last week, the company announced its successful uplisting from the OTC Pink Sheets to the OTCQB Venture Market. Komo CEO William White said:
“Listing on the OTCQB Venture is another important milestone and part of our long-term strategy to introduce Komo’s compelling story to the US audience. The OTCQB listing expands our reach into the institutional and retail investment community within the United States, which promotes enhancing both visibility and liquidity with the access to both U.S. institutional and retail investors as we look to grow our global shareholder base.”
Komo’s retail launch in Canada occurred in April, and since then, it has rapidly expanded its retail distribution network, adding dozens of independent and specialty grocers to sell Komo products. In mid-September, the company announced that it had received a Safe Food for Canadians License from the Canadian Food Inspection Agency (CFIA) to export Komo Foods to other countries, including the US.
Last week, Komo said that it was working on prototypes for a plant-based desserts line. The company is developing the new desserts in its research and development kitchen using 100% plant-based and wholesome ingredients to create premium comfort favorites designed to make plant-based eating easy, yet ultimately satisfying. Komo plans to launch the new sweets line through its direct-to-consumer platform in November 2021. Meanwhile, on Thursday, the company said that it was launching new packaging created for large-scale distribution and enhanced shelf appeal.
On Tuesday, Komo announced that it had signed an agreement with an established food manufacturer in Metro Vancouver to produce two lines of its plant-based products, thus being able to increase manufacturing of six of its products.
So far, we like how this company is expanding, and we think it will continue to grow especially during the pandemic. What we like about Komo is that within 6 months of the launch of its direct-to-consumer eCommerce platform, it has received over 100 reviews from verified purchasers through the Yotpo app, of which over 90 reviews included 5-star ratings. There is no better marketing than the word of mouth. We’re quite bullish on KOMOF, which has a great share structure as well and is expanding on record volumes.
OTC STOCKS #4 VBHI
Verde Bio Holdings, Inc is another OTC on the rise. It has doubled in price since the beginning of September, peaking on Tuesday at $0.022, which is the highest since mid-March.
The $23 million company operates a growing US energy business in Frisco, Texas, which is engaged in the acquisition and development of high-growth mineral rights and select non-operated working interests in premier US basins. Verde currently owns producing mineral, royalty, and overriding royalty interests in the DJ Basin of Colorado and Wyoming, the Haynesville Shale of Louisiana, the Anadarko Basin of Oklahoma, the Delaware and Permian Basin of Texas, and the Marcellus and Utica shales in West Virginia. The Company is focused on providing strong shareholder returns through asset growth generated by acquisitions and opportunistic divestiture of revenue-producing assets.
VBHI goes with the Pink Limited Information status on OTC Markets and has the “Delinquent SEC Reporting” symbol, but it is currently updating its financials and will soon become Pink Current.
In mid-September, the company issued a shareholder letter, saying that it had encountered an unforeseen delay in the filing of our 10-K this year. This was due to accounting level changes it was not prepared for.
The company reiterated that oil and gas remained the main focus. It said that it had raised $10 million in five months through a successful Reg A+ Offering, and much of that capital into revenue-producing assets.
To date, VBHI has closed 15 acquisitions and now expects significant revenues based on current oil and gas prices. These acquisitions allowed it to post positive cash flow for the first time as a company.
VBHI cleaned up its balance sheet by eliminating more than $1.5 million (including penalties and interest) in convertible debt, most of which we inherited when the management took over the company in late 2019.
“We are very proud to announce we are now debt-free,” the letter said.
The company added that it was looking for more acquisition candidates and was targeting uplisting on OTCQB or OTCQX. We’re bullish on VBHI considering its expansion plans and more importantly, the surging prices of natural gas and oil.
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.