The US stock market recovered on Friday following a major correction earlier in the week, as the US saw the biggest annual gain in inflation in more than three decades. While the correction may have triggered many stop-losses, it was a normal occurrence following the record-breaking rally in the S&P 500 and Nasdaq indices. In fact, the inflationary pressure might help OTC stocks, so it’s a win-win for many small companies anyway.
Liz Young, head of investment strategy at SoFi, told Reuters:
“Going into the end of the year and early 2022, I definitely think the cyclical trade continues to show strength. I also really like small caps in this space, especially because of inflationary pressures.”
The small-cap Russell 2000 index rose 0.9% on Friday, while the OTCQX Composite, which tracks over 400 OTC stocks, added over 0.1%.
Even though many stocks have been influenced by the general bearishness fueled by inflation fears, some OTC stocks defied the negative sentiment and performed quite well. There are many OTC stocks with strong fundamentals that can provide great value for investors, and our job is to identify them before they surge in price.
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 American CryoStem Corporation (OTCPK: CRYO), DSG Global Inc (OTCQB: DSGT), NewHydrogen, Inc (OTCPK: NEWH), and Ozop Energy Solutions, Inc (OTCPK: OZSC).
OTC STOCKS #1 CRYO
American CryoStem Corporation has had an impressive run this week, gaining almost 400% since Monday to trade at almost $1, the highest since March. The OTC stock has surged by 40% on Friday alone, being an inch away from the $1 mark. The bullish run was accompanied by record volume figures that exceeded 1 million shares per day.
Is it too late to join the CRYO party? We usually recommend waiting for a correction but is CRYO a good long-term buy at all?
The $60 million company is promoting itself as a pioneer in the fields of Regenerative and Personalized Medicine. It develops and sells patented adipose tissue-based cellular technologies and related proprietary services with a focus on clinical processing, commercial bio-banking and application development for adipose (fat) tissue and autologous adipose-derived regenerative cells (ADRCs).
CRYO maintains a strategic portfolio of intellectual property and patent applications that form its Adipose Tissue Processing Platform, which supports and promotes a growing pipeline of biologic products and processes, clinical services, and international licensing opportunities. Through its ACS Laboratories division, the company operates an FDA-registered, cGMP compliant human tissue processing, cryo-storage, cell culture and differentiation laboratory facility in Monmouth Junction, New Jersey.
As for the bullish run, we still don’t know what has been driving it, although investors expect the company to release several major announcements. Earlier on Friday, CRYO said it had reached an agreement with ACS Global, Inc to exchange 20,000,000 million CRYO common shares currently held by ACS Global, Inc for 1,000,000 shares of preferred stock. Terms of the new preferred stock were not disclosed.
CRYO has room to go higher on major PRs if it could already rally without any fundamentals whatsoever. However, we don’t like the share structure that much, with only 61+ million outstanding shares out of 300 million authorized shares.
All in all, you should definitely keep an eye on CRYO, but be ready to exit whenever you see the stock is diluted or insiders sell.
OTC STOCKS #2 DSGT
DSG Global Inc is an OTCQB member, although its market cap is only $33 million. Its share price has performed really well at the end of this week, gaining over 30% since Monday to trade at the highest in over a month. DSGT is an EV play that can be purchased for $0.266 per share. Note that DSGT used to trade near the $1 mark at the beginning of 2021, so there is much room for growth.
We covered this OTC stock in October last year when it was trading at only $0.15 before surging to $1.50 a share.
DSGT is a Software-as-a-Service (SaaS) company operating in the IT industry as well as an electric vehicle distributor and brand management. Its wholly-owned subsidiary Vantage Tag Systems, Inc provides electronic tracking systems, fleet management solutions, mobile digital data, and a new lineup of Vantage Golf products. In fact, the company has historically focused on the golf industry, where golf course operators manage their fleet of golf carts, turf equipment, and utility vehicles remotely using DSGT’s SaaS technology. With the new look and technology change, Vantage Tag Systems has expanded into numerous other opportunities.
However, investors are more excited about DSGT’s second wholly-owned subsidiary known as Imperium Motor Corp – which distributes a wide variety of low-, mid-and high-speed electric vehicles including cars, trucks, vans, scooters, and more. The company has been leveraging its vast EV experience in golf, including the distribution of highly advanced carts.
In 2019, DSGT secured exclusive US distribution rights for Jonway (Zhejiang Jonway Automobile Co) EVs. Jonway began manufacturing vehicles in 2003 and today produces three and five-door electric SUVs. Jonway vehicles are exported to more than 80 countries and comply with all US safety and environmental standards. Besides this, another large distribution agreement was established with Skywell (Skywell New Energy Automobile Group Co. Ltd.), which produces electric passenger cars and buses.
At the end of October, the company said that Imperium had received about 400 refundable deposits for its SEV vehicles. The total retail value of these orders if all parties proceed to purchase the SEV is approximately $17 million. Imperium expects to offer definitive sales contracts to its SEV depositors following the completion of its ongoing homologation of the SEV for Canada and the US.
Earlier this week, the company announced at least two new dealerships in Canada. One of them is at the Quebec-based owner Luc Beaudoin of Ste-Foy Nissan and Beauport Nissan. Beaudoin owns and operates the largest Nissan dealership in Canada and one of the largest worldwide. The third new Imperium de Quebec dealership will consist of a 19,736 sq ft dealership sitting on a 5-acre site which will be re-imaged to the Imperium corporate identity.
The dealership will initially be carrying multiple models of the SEV and TradePro Cargo and Passenger Vans beginning next quarter. Additional Imperium models will be added throughout the next year.
Luc Beaudoin owner of Imperium de Quebec, said:
“To achieve the vehicle electrification targets that governments have set over the next few years, electric vehicles must be made even more accessible and affordable. We are all committed to this change, and we are honored that Imperium Motors has placed their trust in us to begin this new era here in Quebec.”
DSGT has a bright future as Imperium is only starting to generate significant revenue and profits. There is already $17 million at stake only for the SEV model, which is over 50% of the current market cap, so there is definitely much room for growth in 2022.
And by the way, Imperium is about to showcase its vehicles at the LA Auto Show taking place from November 19 – 28, which is big news for DSGT.
— Rick Curtis (@Rick_ImperiumEV) November 11, 2021
OTC STOCKS #3 NEWH
NewHydrogen, Inc, formerly known as BioSolar Inc, has managed to break above the resistance of a long-term horizontal channel that followed a major correction from February’s YTD high at $0.17. The share price of the $30 million Pink Current company has more than doubled over the last month alone, gaining 50% since Monday to trade at $0.044, which is the highest since the beginning of May.
NEWH is developing breakthrough technologies to increase the storage capacity, lower the cost and extend the life of lithium-ion batteries for electric vehicles. The need for such breakthroughs is critical to meet the expected demand of the rapidly growing global electric vehicle battery market, which is forecast to exceed $90 billion by 2025.
A lithium-ion battery contains two major parts, a lithium-filled cathode, and a lithium-receiving anode, that function together as the positive and negative sides of the battery. The company is developing innovative technologies that will enable the use of inexpensive silicon as the anode material to create next-generation high energy and high-power lithium-ion batteries for electric vehicles. Founded with the vision of developing breakthrough energy technologies, NEWH’s previous successes include the world’s first UL-approved bio-based back sheet for use in solar panels.
On top of that, NEWH is a hydrogen play. Last month the company said that its sponsored research program at UCLA, which is focused on lowering the cost of producing green hydrogen, showed positive results. Specifically, it found a highly effective method of reducing the cost of green hydrogen by replacing iridium with much more stable non-precious metal-based oxygen evolution reaction (OER) catalysts that not only cost less but also last much longer in proton exchange membrane (PEM) electrolyzers.
Earlier this week, NEWH filed its 10-Q report, according to which its cash balance has surged from last year from $60k to over $7 million, which the net income in the nine months to September jumped to over $44 million from a net loss of almost $17 million in the same period last year.
The hydrogen and lithium-ion battery markets will be huge, especially with so much funding from the US government.
Pleased to see significant investment in clean energy in the recent US bipartisan infrastructure deal. https://t.co/bT31JKC8t0
— NewHydrogen (@newhydrogen) November 9, 2021
The good news is that NEWH is leveraging both of these industries by offering innovative technologies that provide clear benefits. This is a confident buy and it seems that NEWH is a hidden gem.
OTC STOCKS #4 OZSC
Ozop Energy Solutions, Inc. is by far the largest company on this list, although it still goes with the Pink Current symbol. The company has been generating significant revenue, but the share price has corrected since its mid-February YTD high near 40 cents. Last week, the company has increased by almost 37%, but that might still not be enough to consider a reversal of the long-term bearish trend. Today, you can buy OZSC for five pennies per share, which is a good price for this well-established business.
Despite the correction, the OTC stock is still up over 400% since the beginning of the year. We first covered OZSC in January, well before the price surge to the YTD high, which proves the value of subscribing.
OZSC designs, develops, manufactures, and distributes ultra-high-power chargers, inverters, and power supplies for a wide variety of applications in the defense, heavy industrial, aircraft ground support, maritime, and other sectors. Its strategy focuses on capturing a significant share of the rapidly growing renewable energy market as a provider of assets and infrastructure needed to store energy. The company offers a broad portfolio of Renewable Energy products at competitive prices.
— 11:11 CAPITAL FUND (@ThomasMarchett9) November 9, 2021
OZSC has secured many orders for its products this year.
Investors are now excited about the $1 trillion bipartisan infrastructure deal that puts an emphasis on clean energy. The company said that it believed the bill will see the American power infrastructure modernized to support new renewables projects, which will also benefit its business plans and objectives.
OZOP CEO Brian Conway said:
“OZOP continues to develop new designs and engineer new solutions for all available markets. With the passing of the Trillion Dollar Bill, OZOP couldn’t be more excited for the opportunities opening to us.”
Meanwhile, all OZSC’s most important subsidiaries are doing great progress. Last month, Power Conversion Technologies, Inc (PCTI) completed the modifications and commissioning of the 1 MW power supply that will be used in a classified nuclear propulsion application of the US Navy. The same subsidiary received an order from an electric commercial aircraft company for a solid-state 100KW power supply and a large 100KW load bank.
OZSC is slowly but steadily growing into an important energy player, and using unique products from giants like Tesla tells you about the potential of this OTC stock.
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.