US stock indexes continue to fluctuate near their all-time highs, as the economy continues to rebound amid the massive vaccination campaign.
At the beginning of the week, data showed US manufacturing activity rose last month, driven by pent-up demand in a reopening economy that boosted orders. Nevertheless, unfinished work still remains because of shortages of raw materials and labor.
All in all, stocks are increasing despite concerns that rising inflation would force the Fed to tighten the monetary policy.
Peter Tuz of Chase Investment Counsel explained:
“People came back from a holiday weekend convinced that the economy is recovering nicely and that any inflation that we might be seeing in labor and other costs is temporary.”
Minneapolis Fed President Neel Kashkari and Fed Vice Chair for Supervision Randal Quarles on Tuesday reiterated the opinion that higher prices would be transitory.
NOW IS A GREAT TIME TO BUY OTC STOCKS
All in all, 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.
Still, 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 share 4 OTC stocks to watch before they might surge in price. Here they are: AVVAA World Health Care Products, Inc (OTCPK: AVVH), High Tide Inc (TSXV: HITI, OTCQB: HITID, NASDAQ: HITI), Cybernetic Technologies Ltd (OTCPK: HPIL), and Sunshine Biopharma, Inc (OTCPK: SBFM).
OTC Stock to Watch #1 AVVH
AVVAA World Health Care Products, Inc. is one of the hottest OTC stocks right now. Its share price rose over 300% in May and over 4,000% since the beginning of the year. Most of the gains came at the end of May, and strong momentum is still there at the time of writing.
Investors are excited about AVVH, which used to be a biotech firm and now has zero debt, as they expect a big merger to happen soon, with the community assuming that Gold Quest Group is about to acquire it in an effort to go public. Gold Quest Group, LLC is a residential, commercial, and heavy industrial direct lender and financial brokerage firm based in Houston, Texas. It has been around two decades and lends over $500 million per year in Texas and across the US, becoming one of the largest lenders in the state.
While there is no official release about the merger, if Gold Quest acquires AVVH, its stock price would skyrocket to reflect the valuation of the resulting firm, probably exceeding the $1 mark. Interestingly, there is even a website created specifically for the merger, though we can’t know whether it’s official.
What we know today is that the controlling stake of AVVH reached to Krisa Management LLC at the beginning of the year, with the latter becoming the majority owner of AVVH with 60% of its total voting rights. Eventually, Krisa Management sold its single share of Special 2021 Series A Preferred Stock, which represents 60% of voting rights in AVVH, to Omnis Capital Management, LLC – a specialist investment company probably meant to facilitate the transition to Gold Quest.
Investors found out a link between Omnis Capital and Gold Quest. Specifically, Miguel Sanchez, President of Gold Quest, is also a key figure in Omnis Capital as per the SEC filing, with the investor community assuming that he created Omnis to conduct major deals.
$AVVH Omnis Public Capital Management will likely operate as a holding company/investment manager. Mr. Sanchez looks to be planning a massive expansion. GQG (his baby) will be at the center of it. He also has other GQ Subs he can bring in such as GQ Realty & GQ Mortgage Fin. pic.twitter.com/v2A750KM6v
— JA (@BinDaddys) May 30, 2021
To conclude, some big news is coming, and if or when AVVH’s merger with Gold Quest becomes official, be ready for a massive surge in its share price.
OTC Stock to Watch #2 HITID
Another hot OTC stock is High Tide Inc, which turns out to be a well-established cannabis firm with a market cap of about $500 million. The share price rose over 20% in the last 5 days to the current level of $9.45.
The sudden price surge in HITID is the result of a share consolidation process as part of its effort to reach the NASDAQ exchange and achieve the required price target.
In mid-May, HITID said that it was consolidating all of its issued and outstanding common shares on the basis of one post-consolidation Common Share for each fifteen pre-consolidation Common Shares.
High Tide CEO and president Raj Grover, commented:
“Today’s news represents a significant milestone towards High Tide becoming the first major cannabis retailer anywhere in the world to be listed on Nasdaq, making our shares more accessible to a larger audience of both retail and institutional investors, and increasing our appeal to potential M&A targets.”
The share consolidation reduced the Common Shares from 690,834,719 to approximately 46,055,653.
Canadian High Tide designs, manufactures and distributes smoking accessories and cannabis lifestyle products. It also operates and franchises licensed retail cannabis stores. Besides this, it offers data analysis services and runs Grasscity.com and CBDcity.com platforms. High Tide is the most profitable Canadian retailer of recreational cannabis, as per the adjusted EBIDTA figure, and has 85 locations across Canada.
Recently, the company increased its presence in the US by acquiring several firms, including FABCBD.
Earlier this year, HITID applied to get listed on the NASDAQ exchange, and on May 28, the exchange operator gave its nod. The shares start trading on NASDAQ with the ticker HITI on June 2.
Despite the ongoing bullish trend that may lead to overbought concerns, HITI is a big buy and a great long-term target, as the company taps into an emerging industry that is about to expand in the coming years.
15% up since Wednesday’s alert 👀
We’re only just getting started here..
Next week institutions and the other 80% of retail investors will finally have access the most undervalued #WeedStock.
🎯 $20 Short Term
🎯 $40 Long Term https://t.co/ZLWUpxHvfd
— The Human Bull (@buIIman) May 28, 2021
OTC Stock to Watch #3 HPIL
Cybernetic Technologies Ltd. is an emerging OTC stock that can still be purchased for a bargain price of $0.0034, up over 1,400% year-to-date.
The company is expanding rapidly and has an ambitious CEO with great connections.
Cybernetic Technologies is a diversified company that engages in developing technology projects in Canada. Formerly known as HPIL Holding, it changed its name to Cybernetic Technologies Ltd. last month.
CEO Stephen Brown is getting the company back on track, securing several partnerships, and conducting acquisitions. On May 28, he held a Q&A session with investors, impressing most of the audience and inducing a bullish sentiment.
— Coleton (@ColetonM_) May 28, 2021
Last month, HPIL announced that it had entered into a Letter of Intent to acquire 100% of Crank Virtual, a division of Crank Media Inc.
HPIL also acquired 100% of NFT Procurement Ltd in two tranches and through it partnered with Origin Protocol, a blockchain firm focused on non-fungible tokens (NFTs) and decentralized finance (DeFi) – the two fastest-growing sectors of the cryptocurrency industry.
NFTs are blockchain-based tokens. Unlike regular tokens, which are fungible and thus are exchangeable and interchangeable with each other, each NFT has individual value and represents something unique, such as artwork, collectible, real estate, or in-game items. Crypto art has been one of the most successful applications of NFTs, demonstrating a massive growth in 2021.
Thanks to the collaboration with Origin, HPIL will issue NFTs and offer them for sale to third party purchasers on a website created by Origin and displaying NFT Procurement’s IP on a subdomain dot.com that NFT Procurement (HPIL) owns.
HPIL CEO Stephen Brown said:
“This partnership with Origin is truly an accomplishment for NFT Procurement that will enable the assets being built by NFT procurement to be available on “ORIGIN”, the premier distribution platform in the NFT market.”
On a side note, Origin Protocol recently partnered with Google Cloud to set up a marketplace for users where they can create and sell NFTs.
HPIL has some great potential as it taps into one of the fastest-growing markets. Meanwhile, the company filed the necessary documents to reduce the authorized shares from 200 billion to 60 billion, which is another bullish sign for investors.
OTC Stock to Watch #4 SBFM
Another Canadian firm with great potential is Sunshine Biopharma, Inc. The stock price rose over 60% in May and is currently trading at 20 cents. SBFM started 2021 trading at just under $.02 a share.
At the beginning of the year, Sunshine Biopharma’s share price started to ascend after it filed for patent applications for a new COVID-19 treatment. Previously, RB Capital Partners Inc. agreed to invest $2 million in the coronavirus treatment, with the last tranche being paid in January. In April, RB Capital Partners injected an additional $500,000 in SBFM.
Besides the COVID treatment, SBFM has also filed a patent application for a cancer drug. At the end of May, the company revealed the mechanism of action of its anticancer drug called Adva-27a. The drug has two activities: evasion of P-glycoprotein and inhibition of Topoisomerase II. P-glycoprotein is the most common protein responsible for multidrug resistance in over 50% of all cancer types. By escaping the efflux pump of P-glycoprotein, SBFM’s drug is capable of accumulating inside cancer cells and destroy them by inhibiting Topoisomerase II, a DNA unwinding enzyme preferentially used by cancer cells to multiply.
Sunshine Biopharma CEO Dr. Steve Slilaty said:
“The implications of this development are vast in the context of cancer therapy as a whole. We are excited to soon have a new drug available for cancer sufferers around the world.”
We think SBFM’s anticancer drug is a big deal, which makes the OTC a good buy with a long-term target.
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)!
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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.