The stock market is on the rise again after a difficult month in September. Investors have high expectations of the earnings season that started recently, driving stock prices higher. The Dow has updated the all-time high and other major indexes are also doing great, which bodes well for OTC stocks, as they tend to follow the mood of blue chips.
Previously, the stock market corrected amid worries about supply chain bottlenecks, profit margin pressures, and increasing input costs. The risk of a US default was also consistent for a few days.
Despite supply chain problems and higher costs, it seems that companies have managed to maintain profit margins by passing on costs to consumers, as per Jack Janasiewicz, strategist and portfolio manager at Natixis Investment Managers Solutions. He told Reuters:
“Earnings are what matter and thus far what we’ve seen have actually been better than expected. Margins are actually holding up. The bar was set pretty low coming into (earnings season) so that makes things a little easier … Things are coming out, so far, better than expected. That’s putting upward pressure on stocks.”
While blue chips will likely benefit from upbeat financials, OTC stocks are the real deal as they can provide greater returns. Our job is to identify the best OTC stocks before they gain momentum.
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 Artificial Intelligence Technology Solutions, Inc (OTCPK: AITX), BOTS, Inc (OTCPK: BTZI), LIG Assets, Inc (OTCPK: LIGA), and NaturalShrimp, Inc (OTCQB: SHMP).
OTC STOCKS #1 AITX
Artificial Intelligence Technology Solutions, Inc has bounced back from the lowest level since January, gaining over 40% since last week, although it’s still where it was one month ago. On Wednesday, the share price touched a swing high at $0.0483, which is the highest since the end of August. Larger timeframes show that the OTC stock has been in a bearish mood since its February’s YTD high at a quarter dollar.
We first paid attention to AITX in December 2020, well before the rally that led to the YTD peak. While the long-term bearish trend may discourage investors, it’s a great opportunity to buy the dip, as the company has a great share structure and a healthy balance sheet.
AITX creates software, firmware, hardware, and processes that allow enterprise organizations to deploy AI-enabled devices to perform business services related to security and facility management. These services save organizations significant money while allowing them to improve and expand critical functions. The company mostly operates through its wholly-owned subsidiary Robotic Assistance Devices (RAD). It also operates RADM, which develops mobile workflow solutions, and RADG (RAD Group) – AITX’s newest subsidiary that provides software solutions.
AITX taps into the fourth industrial revolution, focusing on the top technologies like AI and robotics.
In our previous article analyzing AITX, we presented RAD’s flagship product called ROSA (Responsive Observation Security Agent), a security device that acts as a surveillance system that can also simulate security personnel actions with an autonomous response. RAD’s other similar products are SCOT (Security Control Observation Tower), which has a 360° field of view, and Wally, a wall-mounted version of the SCOT device.
Since then, the company has expanded the range of products, providing devices with better design and technology, as AITX recently hired a new designer and improved the team.
The uptick in the share price came after AITX released on Tuesday its financial report for the second quarter. The company announced that it got rid of almost all of its dilutive financial instruments as follows:
- Substantially all of the convertible debt has been paid or converted;
- The number of Series F convertible preferred Shares were reduced;
- An agreement was reached amongst all Series F shareholders not to convert their shares prior to August 2023, unless there is an uplisting of the company’s stock or an asset sale.
Speaking about the uplisting – AITX is ambitious and wants to progress from the Pink Current status, which is another reason to hold the stock.
As for the financials, device parts inventory (on hand) as of August 31 came in at $488,000, up 1,852%. Research and Development spending increased to $1.33 million, up 602%. The increase supports investments in new project development, increased engineering, programming resources, and other R&D initiatives. The company reported that device subscription revenues, referred to as Recurring Monthly Revenue (RMR), rose 69% year-on-year. Six-month total revenues, including all sales and subscriptions, surged 404% over the prior fiscal year’s period.
AITX President and CEO Steve Reinharz said:
“The first half of our fiscal year saw continued progress, development, plus exponential sales growth. Both subscription revenues and sales revenues saw dramatic increases year over year.”
Last week, the company announced its new lineup of RAD 3.0 devices. RAD 3.0 marks a complete design and re-engineering of nearly all RAD solutions.
For more details about each device from the RAD 3.0 product line, you can watch the presentation here:
Overall, we’re quite impressed with everything AITX does and consider this OTC stock undervalued. While the revenue figure might be small compared to the company’s market cap of $160 million, AITX is increasing its operations and is selling more and more of its products. This is definitely a buy.
$AITX The largest order of devices in the company's history announced today.💪2 orders for their mobile robot ROAMEO 2.0 too, that's the 1st orders for ROAMEO 2.0.🔥New client is a leading amusement park operator! 👀🎢🎡🏰🎆 Go @AITXRAD! Go @SteveReinharz!https://t.co/RSDtX4FGLG
— L4THInvesting (@L4THinvesting) October 20, 2021
OTC STOCKS #2 BTZI
BOTS, Inc is a crypto play that has surged by over 230% during the last five days alone, and there is more room for growth. The share price rose from five cents last week to the current level of $0.17, which is the highest since mid-February when the OTC stock hit its YTD peak at $0.37.
The Puerto Rico-based $120+ million company is developing and servicing blockchain solutions and robotics for its clients. The company is committed to driving the innovations needed to shape the future of digital robotic automation management through digital technology and decentralized blockchain solutions.
BTZI offers decentralized finance (DeFi) applications, cybersecurity solutions, and owns a portfolio of digital assets and crypto-related businesses such as BeadSwap, a decentralized crypto exchange, Bitcoin ATM machines, and Cyber Security Group LLC – an ISO/IEC 27001:2013 Information Security Management System certified company. The company also provides crypto mining consulting, optimization, and crypto mining equipment repair and insurance.
Interestingly, on Wednesday, BTZI announced that it had filed a blockchain-based provisional patent application with the United States Patent Office (USPTO). The application discusses a novel method for distributing crypto dividends to the shareholders of publicly traded companies that are designed to allow blockchain-based crypto-dividend distributions.
The BTZI Team expects that this newly developed system and method will open up the window to a brand-new way to reward shareholders. In addition, BTZI believes that this innovative method could revolutionize ways of distribution of profits by a corporation to its shareholders.
If you hold the BTZI stock, you may become eligible to obtain dividends in crypto, which is pretty exciting.
On Monday, the company said that its new subsidiary and an authorized miners repair facility, TekX Mining and Gaming PC Solutions LLC, have launched the TekX Training Academy (TTA) facility. The academy will be offering training courses in Bitcoin mining operations, maintenance, and repair with activities designed for individuals and employees of North American-based bitcoin mining farms. This is quite relevant considering that the US has replaced China as the country with the highest hashrate figure.
$BTZI – tremendous volume. Need to get financials out. BOTS Training academy will be offering training courses in bitcoin miner operations, maintenance, and repair with activities designed for individuals and employees of North American-based bitcoin mining farms.
— Bots, Inc. (@Bots_bz) October 19, 2021
Besides the company updates that have supported the share price, BTZI has also benefited from external factors, as Bitcoin just update the all-time high at over $67,000. Meanwhile, we saw the launch of the first SEC-approved Bitcoin futures exchange-traded fund (ETF).
BTZI is well-positioned to leverage the crypto industry’s expansion, which makes it a good OTC stock to hold.
OTC STOCKS #3 LIGA
LIG Assets, Inc has been on the rise, updating the year-to-date high by breaking above the one penny mark for the first time since April 2018. The share price has doubled since last week and may go even higher.
LIGA is a multi-faceted worldwide investment company that focuses on real estate, media, and the seafood industry. LIG Assets in association with Robert Plarr is the emerging “Leader in Green Assets” – focused on exclusive green, renewable energy and sustainable homes, living systems, technologies, and components to be utilized in residential and commercial real estate.
The company owns 60 acres of land in Brentwood, Tennessee, and plans to build a hurricane survivable model home in Panama City Beach, Florida. The company plans to enter the ‘green’ drywall business, which is a rapidly expanding market. Its wholly-owned subsidiary LIG Developments will concentrate specifically on the burgeoning light gauge steel framing industry.
LIGA got its Pink Current status a few weeks ago and is expanding rapidly. With almost no debt and a great share structure that prevents dilution, this $23 million company has some great potential.
LIGA has three subsidiaries:
- BGTV Direct LLC, which focuses on original content and brands that deliver results on their worldwide syndication and advertising platforms. BGTV Direct and its broadcast and syndication partners are powered by NTR advertiser supported content across television, radio, mobile, Internet and other electronic advertising platforms.
- Live Stor America, which focuses on seafood storage.
- LIG Development LLC.
The current revenues are provided by digital media and advertising. LIGA said that it was selling its 60 acres of land in Brentwood to provide capital to re-invest in new ventures after debt paydown.
The share price surged after the company released its Q3 results, reporting $1 million cash compared to $30k last year and total liabilities down from $3.6 million to $600k.
With a net profit of about $4 million so far this year and several partnerships and acquisitions underway, LIGA is definitely undervalued at this point despite the price increase.
$LIGA New position
– Q3 filings out yesterday
– 3.9M in net PROFIT (470% increase)
– Total assets 3.3M
– Liabilities decreased by more than 400% (644k)
– Has deals and partnerships ready
– Connection w/ $SMEV
– OTCQB uplist in 2021
– Share Structure is TIGHT. No room for dilution pic.twitter.com/FbWD838Ftg
— Jodye Flacko (@DeviantImmortal) October 19, 2021
OTC STOCKS #4 SHMP
NaturalShrimp, Inc is the largest company on our list today, and it’s an OTCQB member. The share price has gained about 50% since last week, which is pretty significant for a $334 million business. You can buy SHMP stock for $0.52 per share, the highest price since mid-June. The last time when we covered SHMP in August, it was trading below 40 cents after bottoming out at a YTD low of $0.22 on August 17.
In May 2020, we presented our bullish case for the penny stock when it was trading at $0.06. Eventually, the share price peaked in February 2021 at over $0.80, exceeding our previous estimates.
The aqua-tech company has developed the first commercially viable system for growing shrimp in enclosed, salt-water systems, using patented technology to produce fresh, never frozen, naturally grown shrimp without the use of antibiotics or toxic chemicals. NaturalShrimp systems can be located anywhere in the world to produce gourmet-grade Pacific white shrimp.
In July, SHMP filed a new patent application with the USPTO to expand its electrocoagulation technology as applied to aquaculture both domestically and internationally. Last month, SHMP announced initial trial results of its short-term validation study at the Marineholmen RASLab, located in Norway, to evaluate the effects of hyper-antioxidant technologies on oxidation and fish health in Recirculating Aquaculture Systems (RAS).
The technologies being tested create antioxidant environments that reduce the redox reaction in fish gills and counteract fish susceptibility to the harmful effects of ammonia. NaturalShrimp funded the RASLab research through its market development partnership with Hydrenesis, Inc. In August 2021, NaturalShrimp acquired the aquaculture assets of Hydrenesis Aquaculture.
The share price accelerated its bullish trend on Monday, when the company released a shareholder update. CEO Gerald Easterling announced the start of the commercialization phase of its disruptive RAS technology, calling 2021 a pivotal year.
The company is projecting sales for the December 2021 quarter of up to $500k.
Meanwhile, CFO William Delgado met with Florida state and local government officials in late September regarding an approximately $25 million grant for an expansion plant in Northern Florida. The meetings went well, and any agreement should be expected until the second quarter.
Also, SHMP is working to uplist its stock on NASDAQ, expecting to be uplisted within the next 90 days.
The company currently has approximately $17 million in assets, not including the value of the Intellectual Property (IP).
On Tuesday, SHMP announced that it had entered into a purchase agreement with Gulf Seafood Inc. (GSI), a distributor in the Tampa/St. Petersburg, Florida region for a three-month trial and delivery of 25,000 pounds of live shrimp, which GSI will purchase, distribute, and market. Easterling stated:
“This agreement is a major milestone in the commercialization of our land-based gourmet-grade shrimp and the commencement of weekly production at our shrimp facilities.”
With no major debt, patented technology, and NASDAQ plans, we expect SHMP to go even higher. This is only the beginning of the commercialization phase.
— RedditBot5 (@RedditBot5) October 19, 2021
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)!
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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.