The OTC is starting to heat up. Now is the time to be putting money to work as this is when fortunes get made. 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 Sysorex Inc (OTCQB: SYSX), Phoenix Rising Companies (OTCQB: PRCX), Saddle Ranch Media, Inc (OTCPK: SRMX), and Golden Developing Solutions, Inc (OTCPK: DVLP).
OTC STOCKS TO OWN #1 SYSX
Sysorex Inc is an OTCQB stock that used to be ignored by many due to the bearish pressure that has been around for months, disappointing many shareholders who had high expectations of this Ethereum mining play. In May 2021, you could trade SYSX for over $9. Despite the decent fundamentals, bears have slashed the entire value of the stock, with SYSX breaking below $0.005 last Tuesday for the first time on record. Surprisingly for many, the stock has exploded by over 1,000% during the last five trading sessions alone, demonstrating that investors can secure huge profits trading on OTC markets. More importantly, the spike came amid record volume figures, supporting hopes that the rally is only starting.
The $37 million company is a data center owner and operator and is the largest US-based, publicly-traded Ethereum mining and blockchain technology company. Following the reverse triangular merger with TTM Digital Assets & Technologies, Inc, SYSX shifted its primary business focus to the mining of Ethereum and opportunities related to the Ethereum blockchain. Even though the company has generated revenue, investors have probably dumped SYSX 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.
Earlier this year, SYSX CEO Wayne Wasserberg said the company was preparing for a strategic transaction to save the situation. He said:
“Following Sysorex’s reverse merger with TTM Digital Assets & Technologies, Inc. last year, Sysorex has experienced a substantial increase in gross revenue, and its prospects for future revenue generation and growth are solid. The company has also increased its asset portfolio of GPUs, completed the acquisition of its data center, and closed a strategic investment in an NFT marketplace. Yet, our common stock continues to trade at prices well below the value the business actually holds. Therefore, we believe the best course of action is to advance this transaction, which is designed to unlock value for shareholders.”
At the beginning of May, SYSX’s largest shareholders, Bigger Capital Fund, LP and District 2 Capital Fund LP, which together own about 10% of the company, said that SYSX was about to close a strategic investment in Ostendo Technologies, Inc by purchasing 7.3 million of its preferred shares. Pursuant to the Heads of Terms, the Ostendo Preferred Shares are valued at $70 million.
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. With the financial backing of industry heavy-weights such as PayPal co-founder Peter Thiel and funding from government agencies including DARPA, Ostendo is the creator of what the funds backing SYSX believe is ground-breaking technology with a wide array of applicability in augmenting reality and enriching the metaverse.
This is a great investment opportunity, as Ostendo is working on innovative technologies for the AR and metaverse, while SYSX trades well below its value. Besides this, Ethereum won’t dump GPU mining until much later in 2022, as the so-called Ethereum Merge, which represents the actual adoption of PoS, was delayed.
It won't be June, but likely in the few months after. No firm date yet, but we're definitely in the final chapter of PoW on Ethereum
— Tim Beiko | timbeiko.eth 🔥🧱 (@TimBeiko) April 12, 2022
That means Ethereum mining is still profitable. In fact, on May 3, Ethereum miner revenue surged to a single-day all-time high of 95,000 ETH, driven by an expansion in decentralized finance (DeFi) activity.
SYSX is now getting bullish signals from everywhere, so it’s time to benefit from the start of an epic move.
OTC STOCKS TO OWN #2 PRCX
Another OTCQB member making waves is Phoenix Rising Companies, which has tripled in price since last week. Nevertheless, larger timeframes reveal a similar fate to SYSX, as PRCX has been declining for months to touch a record low near $0.002. The stock is now bouncing back, almost hitting the penny mark on Monday for the first time since February, before correcting to the current level of $0.005. Again, the surge was driven by record volume figures, suggesting strong momentum.
The $2 million company focuses on strategic acquisitions and the development of its businesses. It builds its asset base through targeted acquisitions of both operational companies and innovative technologies.
At the end of February, PRCX announced the completion of an MOU to buy 100% ownership of Emvera Technologies, LLC. Founded in 2012, Emvera is focused on distributing various lines of aesthetic medical devices, including state-of- the-art lasers and energy-based systems.
According to Grandview Research, the US market for aesthetic or “vanity” treatments was valued at $53.8 billion last year, with a predicted compound annual growth rate of 15.2% annually through at least 2030.
Emvera’s customers include doctors, medical professionals, and aesthetic practitioners who acquire the devices for use in a variety of treatments such as skin resurfacing, skin renewal, and hair removal.
The deal is about to complete this month, supporting the rally that took off on Monday.
Earlier this year, the CEO said that there were two more tech deals that may follow the Emvera acquisition.
The company is still about to release the official press release discussing the Emvera deal and probably providing an update on the upcoming acquisitions, so the bullish momentum will surely maintain for the upcoming days or weeks.
$PRCX Is not just a $SYSX sympathy play like they say , it's a beaten down OTCQB stock that's UNDERVALUED with Emvera Technologies acquisition to close this month. Debts are being paid while it's being manipulated. This is at the bottom 🚀 https://t.co/XoXxXozRt1
— Iwillmakeit (@PMorival) May 4, 2022
OTC STOCKS TO OWN #3 SRMX
Saddle Ranch Media, Inc is a Pink Current stock that is in a slow process of reversing a multi-month downtrend after bottoming out in mid-February near $0.0004. Now the stock is trading at $0.0007 after gaining 40% during the last five sessions. On Monday, SRMX broke above $0.0012 for the first time since mid-November last year.
SRMX is a $9 million company whose subsidiary, Tri Cascade, Inc., is operating as an authorized T-Mobile Telecom Internet of Things (IoT) service provider based in Irvine, California, with a design team and manufacturing facilities in Taiwan. Tri Cascade provides leading-edge NB IoT to 5G solutions and innovations through its various IoT devices supported by its ONENET B2B IoT Onboarding platform – certified by Microsoft IoT Sphere under Microsoft’s Azure IoT Hub – for business and infrastructure IoT operations.
Tri Cascade’s management team has extensive years of innovation experience in Energy Efficiency Management, Home Automation, Wireless Networking, and Telecom IoT Connectivity, as well as Cloud management integration services.
The company has a development partnership with Microsoft’s Azure Sphere team to combine the Azure IoT Hub platform with Tri Cascade’s TRITOM Sphere Guardian device, certified by Microsoft.
On Monday, investors were excited to find out that Tri Cascade’s 5G New Radio (NR) module, the TRITOM SG500M2-X, had received T-Mobile Technical Acceptance (TA) and has been certified by T-Mobile for operation on T-Mobile’s 5G NR and LTE network in the US.
TRITOM SG500M2-X is a 5G module designed with M.2 form factor, which especially optimizes eMBB & IoT applications. Based on Qualcomm’s commercial 5G platform, TRITOM SG500M2-X supports both 5G Non-Standalone (NSA) or Standalone (SA) network architectures and has fully passed T-Mobile’s tests. Soon, it will be able to fully support Citizens Broadband Radio Service (CBRS) for Private Networks, coupled with integrated GNSS for location service as well.
Tri Cascade’s TRITOM SG500M2-X will support Linux and Windows operating systems. It also supports 5G network slicing functions, enabling customers to immediately deploy a wide range of 5G devices and applications that are latency-sensitive across North America, such as home CPE/gateway, Industry 4.0, VR/AR glass, commercial augmented and virtual reality, Industrial IoT, 8K TV/video camera and more.
Jerome Riordan, VP of Global Business Development and Sales of Tri Cascade, said:
“With 5G’s capability of driving AI and ML in Manufacturing, increasing Public Safety and expanding Supply Chain Management, we see Tri Cascade’s certification with T-Mobile introducing us to a broader base of clients. 5G facilitates higher data speeds with lower latency allowing connected IoT devices to communicate and share data at higher speeds. 5G enables an increase in connection density which allows more devices to connect with efficient signaling for IoT. This will enable us to address many of our clients’ needs. This is a major milestone accomplishment for the company.”
On a side note, Riordan himself was appointed to his current position only recently. Previously, he worked as Senior IoT Business Development Manager, Smart X, M2M at T-Mobile.
This is an inflection point for SRMX, and the company’s newly approved 5G module will bring more clients, including high-profile brands. With a decent share structure and possibly a short squeeze play, SRMX is the real deal for your portfolio.
— Traderman (@Traderman08) May 3, 2022
OTC STOCKS TO OWN #4 DVLP
Golden Developing Solutions, Inc is another Pink Current stock gaining traction amid a merger deal that should be officially announced soon. The stock has doubled in price during the last five trading days to the current level of $0.0056. On Monday, it peaked at $0.0066, the highest since the beginning of November last year.
DVLP is a development-stage company providing business services and products supporting Health, Wellness, and Technology. The company is also focused on acquisitions of synergistic companies.
With a market cap of only $3.7, any merger news is capable of driving the share price, which is happening right now.
Last month, DVLP announced the execution of an LOI with a merger candidate, although it didn’t provide many details. The acquisition target, which operates in the health and wellness industry, has a revenue of over $10 million per year and an EBITDA of $900,000.
DVLP said that it is one of several deals in pipeline and not even the largest one. This is great news for a $3.7 million business. The official announcement should be out this week, which will support the bullish rhetoric. We believe DVLP is a great stock to own.
Good morning $DVLP shareholders – we’re very close on many fronts.
Exciting developments happening.
Stay tuned for updates later this week.
— $DVLP (@OTC_DVLP) May 2, 2022
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.