Inflation worries continue to put pressure on the stock markets, but OTC stock indexes still fluctuate close to their all-time high, following the bullish sentiment fueled by the optimism surrounding the vaccination programs and the reopening economy.
At the beginning of the week, official data showed that US manufacturing activity increased in May, driven by surging demand in a reopening economy that boosted orders. Also, the weekly unemployment report and private payrolls figures for last month were better than expected, and a gauge of service sector activity rose to a record high, suggesting a robust economic rebound.
Meanwhile, US President Joe Biden seems to be ready to make concessions regarding his proposed corporate tax hike, which bodes well for companies, including small caps.
All in all, stocks are solid despite concerns that rising inflation would force the Fed to tighten the monetary policy.
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, and the earnings season is only starting.
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.
For example, we first reported on Enzolytics Inc. (OTCPK: ENZC) when it was just $.014, which you can read here.
This particular OTC stock still has great potential, and we’re about to discuss it along with three other OTC stocks to buy, including LGBTQ Loyalty Holdings, Inc. (OTCPK: LFAP), Lightwave Logic, Inc. (OTCQX: LWLG), and Social Life Network, Inc. (OTC: WDLF).
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.
Here are the 4 OTC stocks to watch before they might surge in price:
OTC Stocks to Buy #1 ENZC
The share price of Biotech firm Enzolytics Inc. has been correcting for a while after reaching a year-to-date high at $0.83. We confidently shared our bullish sentiment on ENZC last October and November, well before the bull run that led to the highest level in over a decade. Now, the OTC stock might attempt another rally, as it has gained over 93% in the last five to trade at $0.228.
The company is working on some unique products that can support its value in the long term.
Enzolytics patented anti-HIV therapeutics and uses its proprietary methodology for producing human IgG1 monoclonal antibodies for treating infectious diseases with non-toxic passive immunotherapy. The company has trialed its anti-HIV therapeutics and has developed a proprietary cell line that generates human monoclonal antibodies that neutralize HIV.
A monoclonal antibody is a laboratory-made protein that mimics our immune system’s capability to fight off viruses and other pathogens. It is produced by cloning a unique white blood cell. Monoclonal antibodies represent a great innovation that can support the treatment of various diseases.
At the end of 2020, Enzolytics merged with BioClonetics Immunotherapeutics, Inc., which caused the share price to skyrocket. The latter is a biotech firm that also has its own technology for producing fully human monoclonal antibodies (mAbs) against infectious diseases, including HIV, influenza A, influenza B, rabies, tetanus, and diphtheria. Investors expected that the two would also work on a COVID-19 treatment, but no progress has been made.
While some investors voiced their skepticism surrounding ENZC’s development of monoclonal antibodies, the company has been recognized by tech giant Intel Corporation. In mid-May, ENZC and Intel have collaborated for a white paper titled “Optimizing Empathetic AI to Cure Deadly Diseases,” which is published on Intel’s official website. The paper discusses how Intel’s AI tools and Enzolytic’s innovative approach and technology can be used to create universal and broadly effective treatment against all virus variants.
So it seems ENZC is really onto something because otherwise, Intel wouldn’t put its name on the paper.
In a nutshell, viruses are known to mutate into new strains that may make the use of some monoclonal antibodies inefficient. For example, there are about 6,000 strains of HIV-1 and at least several strains of COVID-19. Thanks to AI, ENZC can identify specific sites on the virus that are neutralizable and most importantly immutable, which would enable it to create monoclonal antibodies targeting those sites and thus showing efficiency against all potential variants.
About two weeks after the white paper was released, ENZC announced that it conserved, expectedly immutable sites on the HTLV-1 virus against which it will produce targeted anti-HTLV-1 monoclonal antibodies. Today, there are no effective vaccines against HTLV-1 and no antiviral drugs available for treating infections caused by the virus, which causes a rare form of cancer.
The company can be a game-changer in the treatment of HIV, Covid, and many other viruses. If it succeeds with its trials, ENZC is one of the best OTC stocks to hold with a long-term target.
— fugazi whazy woozie (@hal_apeynyo) June 3, 2021
OTC Stocks to Buy #2 LFAP
LGBTQ Loyalty Holdings, Inc. has been bullish during the last few days after a correction period that lasted about one month. LFAP touched the highest level of the year at the beginning of May at 7 cents. The share price then corrected to $0.02 and has increased to $0.035.
LFAP is a diversity and inclusion-driven financial methodology and data company. It operates LGBTQ100 ESG Index, an environmental, social, and governance (ESG) index that offers an added perspective for those seeking to align with equality-driven and ESG-responsible corporations.
Last month, the price surged after the company announced that its world-renowned board of directors would stay for two more years.
On May 18, it launched its LGBTQ+ ESG100 exchange-traded fund (ETF), which mimics the performance of the LGBTQ100 ESG Index, which outperformed the S&P 500 index by about 5% in 2020. The index includes the top 100 US large-cap companies that put an emphasis on inclusion. Currently, it includes giants like Tesla, Apple, Amazon, Microsoft, PayPal, Visa, Alphabet, and Facebook.
LFAP’s current uptrend has accelerated following the announcement that it had entered into a securities purchase agreement for the sale of up to $10 million of its common stock to GHS Investments, LLC, a New York-based private investment and management group based.
If the ETF will perform better than the S&P 500, LFAP is off and running to new highs.
OTC Stocks to Buy #3 LWLG
Lightwave Logic, Inc., is now trading at its YTD peak and the highest level in almost a decade after surging by over 300% during the last 5 days, to $2.45. Is there more room for growth? Potentially yes, but investors who missed out should wait for dips.
LWLG is a development stage company that develops photonic devices and non-linear optical polymer materials systems for fiber-optic data communications and optical computing markets in the US. The company designs and synthesizes organic chromophores for use in its electro-optic polymer systems and photonic device designs. It also offers electro-optic modulators, which convert data from electric signals to optical signals for transmission over fiber-optic cables, and polymer photonic integrated circuits, a photonic device, which integrates various photonic functions on a single chip.
Besides this, LWLG provides the ridge waveguide modulator, which fabricates the waveguide within a layer of its electro-optic polymer system.
LWLG promotes its products to electro-optic device manufacturers, including telecommunication component and systems manufacturers, semiconductor companies, computing companies, and government agencies.
While the earnings have been declining during the last few years, with the pandemic affecting the business in 2020, LWLG has a strong balance sheet.
The company has several patents for its materials, devices, and methodology. It has been around 30 years and has a long-term goal to power faster networks, reduce energy costs, and support flexible technologies. Still, its flagship products are only starting to be commercialized as a prototype.
The fact that LWLG holds patents for a unique technology puts it in a position to dominate the market and potentially benefit from a series of products with increasing demand, as datacom and telecom operators need better performance.
At the end of May, CEO Michael Lebby provided an update on the business, revealing his plans to advance the OTC stock to NASDAQ, which requires a higher price per share. This eventually caused the price surge during the last few days. OTC stocks that are about to uplist to NASDAQ are always great OTC stocks to buy.
OTC Stocks to Buy #4 WDLF
Social Life Network, Inc., has been correcting from its YTD high touched in mid-February when the OTC stock traded at 4 cents after announcing that it had retired its convertible debt. We first reported on WDLF at the end of last year, providing our subscribers with the chance to leverage the February rally. Today, the OTC stock is trading at less than one cent, losing 14% during the last five days.
Still, the company has the potential for new highs, as the company has great ambition and is aiming for some lucrative strategies and relevant partnerships, as presented in its latest podcast.
— Social Life Network, Inc. $WDLF (@sociallifenetwk) May 28, 2021
Social Life Network is a technology company that runs a Software as a Service (SaaS) platform aimed at the real estate market and various sports verticals. The platform is a cloud-based social network and e-commerce system that may be accessed by a web browser or mobile app, enabling enterprises to socially interact with one another and with their customers to market and advertise their products and services.
The company’s platform can be customized depending on the industry or subculture. For example, it can be designed for industries like real estate, hunting, fishing, tennis, health and fitness, and so on. Besides this, Social Life Network operates cannabis and hemp industry platforms to offer a social network for communicating between businesses and consumers.
As we mentioned in our previous posts, WDLF is seeking $45 million in total damages with its two ongoing lawsuits that go after toxic funders, who allegedly violated federal securities laws, which reflects the current CEO’s shareholder-oriented attitude and ambition.
At the end of May, WDLF shared its first-quarter 10-Q filing. On June 4, WDLF said that it had received a final review from the OTC Markets regarding its up-listing application to upgrade the company from trading on the OTC Pink to the OTCQB. CEO Ken Tapp said:
“The up listing from the OTC Pink to the OTCQB will bring greater visibility to our company and increase the accessibility of our shares to a much larger audience of retail shareholders. We have been notified this afternoon that our company has completed the application review by the OTC Markets, needed to up list to the OTCQB, however due to the minimum bid price test of $0.01 dropping below and posting a closing price of under $0.01 on June 2nd, the thirty-day requirement for closing above this amount will require a reset of that clock.”
At current levels, WDLF is a discount entry opportunity.
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 stocks with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio around penny stocks.
If you like any of these 4 OTC stocks to buy, 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.