The OTC is starting to heat up, even though the bearish pressure hasn’t gone away. We’ve been here before and will be here again no matter what happens. Markets go in cycles and OTC stocks aren’t immune. Matter of fact, the OTC probably sees more bull and bear markets in a year than any other market.
When markets come out of bear markets, we get powerful bull moves. We are on the verge of seeing many 10x moves and opportunities.
In this article, we look at 4 OTC stocks to own, including Good Hemp, Inc (OTCPK: GHMP), Sysorex, Inc (OTCQB: SYSX), Pacific Ventures Group, Inc (OTCPK: PACV), and International Star, Inc (OTCPK: ILST).
OTC STOCKS #1 GHMP
Good Hemp, Inc is one of the OTC stocks that have defied the general bearish mood. The Pink Current stock has doubled in price during the last five sessions, currently trading at five pennies. On Wednesday, the share price hit the $0.1 mark on record volumes.
GHMP used to trade above $2 last year, but it couldn’t consolidate there and has plunged to the recent record low near $0.01. Now there is hope for this stock as it’s in the process of a merger, and we usually have high expectations of OTC mergers.
The $1.4 million company has been exploiting niche markets in the hemp industry. By establishing a comprehensive distribution system, Good Hemp has secured listings for its products with regional and national grocery and convenience chain stores. The company’s mission is to be one of the market leaders in the development and marketing of natural and functional hemp-derived beverage products that provide real health benefits to a significant segment of the population and are convenient and appealing to consumers.
The list of GHMP’s products include Good Hemp 2oh! – a line-up of refreshing waters in six flavors, Good Hemp fizz – a line-up of carbonated beverages, and CannaHemp – a line-up of carbonated refreshing energy beverages in 3 flavors.
On Tuesday, GHMP announced in its 8-K report that it had completed the merger with Petro X Solutions Inc, which sells environmentally-friendly products. Petro X’s flagship product is EnviroXstreamTM – a plant-based, non-toxic cleaner/degreaser technology that expedites the natural biodegradation process of hydrocarbons and other compounds. According to the agreement, Petro X’s CEO Ron F. Sickels becomes the new CEO of the company.
Besides this, GHMP has been negotiating another merger with Restoration Artechs Inc, a restoration service company specializing in surface restoration, especially commercial and residential stainless-steel surfaces.
All in all, this merger has some great potential, especially given that almost half of the float has been shorted, making it a great short squeeze candidate.
$GHMP Agreed. That single 1.5M order on the ASK was 20% of the float and more than 5% of the total OS.
🤣The Dark Pool was used for Naked Shorting. Large orders (+5% of the company) were processed through retail. Nothing to see here ….. @SECGov
44% of volume was short.
— Traderman (@Traderman08) May 19, 2022
OTC STOCKS #2 SYSX
Sysorex, Inc has been a big winner for our readers. This OTCQB crypto play continues to recover from its record low at the end of last month. Now you can buy it for almost six pennies per share, up about 40% since last week, when we reported on it amid the rally that took off on May 12. Last year, SYSX was trading at over $9, but bears have wiped out the stock’s value to the point of it bottoming out at $0.005 at the end of April. Since then, the stock has exploded by more than 1,000%.
SYSX is the largest US-based, publicly-traded Ethereum mining and blockchain technology company. As we explained in our previous posts, the company has had decent fundamentals, but investors have probably lost confidence on expectations that Ethereum mining would become irrelevant given the network’s upgrade to adopt the Proof of Stake (PoS) algorithm, which doesn’t require mining at all. Nonetheless, the full upgrade has been delayed by a few months, and the so-called Merger (when PoS is adopted) will happen in the last quarter of 2022. Meanwhile, Ethereum miner revenue surged to a single-day all-time high of 95,000 ETH, driven by an expansion in decentralized finance (DeFi) activity.
The $30 million company started to gain traction after releasing a business update, reiterating the deal between its largest shareholders – Bigger Capital Fund, LP and District 2 Capital Fund LP – and Ostendo Technologies, Inc, on which we reported recently.
Ostendo is a technology company that designed a Quantum Photonic Imager platform, purpose-built, to create next-generation, light field semiconductor chips and augmented reality hardware for consumer, enterprise, and defense applications.
In anticipation of the completion of the Ostendo transaction, SYSX is in active discussions with several New York City-based investment banks to assist with its anticipated uplisting to a national stock exchange.
SYSX seems to consolidate above $0.05, and the next resistance is $0.14. If it manages to break that level, the sky is the limit for this stock. Investors are even more optimistic after SYSX hired Laura Anthony to be its attorney. She specializes in helping companies uplist to NASDAQ and the NYSE.
$SYSX EVERYONE Laura Anthony just got signed to be the attorney for SYSX! She specializes in helping companies go NASDAQ, NYSE, and complete mergers. She has a big rep in building up small / mid cap stocks 🚀 #OTC to #NASDAQ https://t.co/81tpD8YdR3 pic.twitter.com/s2sSQ0MacZ
— The Deutsche Trader (@DeutscheTrader) May 18, 2022
We think SYSX is undervalued below $0.1. Don’t forget that it used to trade above $9 just last year. SYSX is a discount entry opportunity at current levels, especially given that the company is serious about uplisting.
OTC STOCKS #3 PACV
Pacific Ventures Group, Inc has been one of the best-performing stocks this week. The Pink Current stock has surged about 500% since May 13 to trade at $0.082. It peaked on Wednesday near $0.1 to hit the highest since mid-January. More importantly, the recent surge came amid record volume figures, pointing to strong momentum.
PACV is an investment group focused on consumer products, food, beverage, and alcohol-related industries.
At the beginning of May, the $4 million company released its financials, reporting record revenues for 2021 at over $42 million, versus $30.2 million in 2020. Q4 revenues rose 58% to a record $11.5 million. Gross profit last year surged 45% to a record $4.9 million.
While the $5 million profit should already send the share price higher to establish a fair market cap that currently doesn’t represent the true valuation, investors have been quite passive following the news. The price surge came only on Tuesday, when PACV released preliminary revenue for the three months to March. According to the unaudited figures for Q1, the company saw record revenue of $10.4 million. CEO Shannon Masjedi commented:
“The first quarter of 2022 was highlighted by strong organic growth across our business, with our Seaport Meat Company subsidiary contributing significantly to our performance. Notably, the quarter’s record sales were up 43% over the prior year’s quarter, primarily due to strong demand from our growing customer base. We are executing well on our strategy to continue this growth trajectory as we expand our sales channels and increase cross-selling opportunities across our businesses. I look forward to sharing our full first quarter results as we look ahead to the second half of the year.”
The quarterly revenue beats record after record, meaning that the business is doing great and it may continue to expand. However, the market cap has actually declined since May last year, which doesn’t reflect the actual picture and the real potential of PACV. PACV is extremely undervalued at these levels.
$PACV You compare these revenue figures together with the share structure and audited financials with any other OTC with the same features and you will see just how undervalued this is
— Deep Blue (@DeepBlueEquity) May 19, 2022
OTC STOCKS #4 ILST
International Star, Inc has had a great week, gaining over 30%. The Pink Current stock is still down over the month, and it tries to test the resistance at $0.01 again. ILST has been trading sideways since August last year, peaking in October at over two pennies.
The $12+ million company changed its business direction at the end of 2021 to focus on blockchain, decentralized finance (Defi), fintech, metaverse, non-fungible tokens (NFTs), cryptocurrencies, and gaming. These are some of the fastest-growing trends, with blockchain, Defi, and metaverse poised to dominate the fourth industrial revolution in the coming years.
While the company’s first merger has been finalized and waiting for rollout, the company is also moving ahead evaluating various acquisition candidates in the sector articulated above. The strategic objective is to build robust top-level finance, technology, and blockchain enterprise that consistently creates and builds stakeholders’ value.
We expect the share price to gain traction after the company reveals the cards and officially presents its first acquisition. Investors are also keeping an eye on ILST because it’s a Caren Currier play. Caren has a great reputation for being a reverse merger guru. Our subscribers know her contribution to companies like ILUS, AXTG, and OWUV.
@QTToesLA $ILST News could drop at any moment. If it posts aftermarket or premarket, you will definitely be chasing! This has been in the works for month’s. I feel something big is coming our way! pic.twitter.com/q1mznYVh7v
— Just Michelle (@MaryMichelleNay) May 19, 2022
With a great share structure and Currier managing acquisitions, ILST has a bright future, especially considering that it bets on innovative technologies.
THE FINAL NOTE
All of the 4 OTC stocks discussed today are good stocks to own. The upside is much greater than the downside at these levels.
It’s also very important to eye OTC stocks that 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.