US stocks slightly corrected on Tuesday after a bullish run that pushed the major indices higher to update their all-time highs. Nevertheless, the optimism surrounding the earnings season and the improving labor market is boosting sentiment.
The government is about to release inflation data today, and many investors took profits.
The OTCQX index, which tracks over 400 OTC stocks, has dropped 0.2% on Tuesday, after touching the highest level since the beginning of September.
The correction has been driven by investors’ profit-taking. Jay Hatfield, CEO and portfolio manager at InfraCap Advisors, told Reuters:
“It’s a risk-off day. After PPI today and with CPI tomorrow, it’s reasonable that we take a pause. Earnings season is nearly over and we’re at all-time highs. It makes sense that the market would stall and maybe test some support levels.”
Yesterday, the Labor Department presented the producer prices index (PPI), which showed that inflation continues to accumulate amid goods and labor supply issues.
While many blue chips have stagnated, there are many OTC stocks gaining traction. We recommend our subscribers build a portfolio of OTC stocks as they can generate greater returns compared to mega-caps.
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 Battery Technology Company (OTCQB: ABML), DMG Blockchain Solutions Inc (OTCQB: DMGGF), Rogue Station Companies, Inc (OTCPK: RGST), and Zion Oil & Gas, Inc (OTCQX: ZNOG).
OTC STOCKS #1 ABML
American Battery Technology Company, formerly known as American Battery Metals Corporation, has been on the rise recently, although larger timeframes suggest that there is still much room for growth.
Currently, you can buy the OTCQB stock for $1.40. A price consolidation above the key resistance at $1.6 would mean that ABML is reversing the long-term bearish trend and is ready to go higher.
ABML has already been a major success for our subscribers and readers. We first paid attention to ABML in mid-February 2020, when the share price was fluctuating near $0.05. You could have secured generous profits of over 3,000%, not to mention the potential profit of about 8,000% at the February peak. This demonstrates once again how subscribing to us can help you pick the best OTC stocks.
ABML is an advanced technology battery recycling and resource production company based in Nevada. It explores, mines, extracts, and recycles battery metals. The company is focused on its Railroad Valley battery metal project in Nevada with the goal of becoming a substantial domestic supplier of battery metals to the increasing electric vehicles and battery storage markets in America.
EV battery recycling is becoming a major trend due to the increasing demand for electric and plug-in hybrid vehicles, whose batteries will eventually have to be recycled to prevent an environmental catastrophe. According to recent research, the global battery recycling market is expected to grow from $9.97 billion last year to $11.04 billion in 2021 at a compound annual growth rate (CAGR) of 10.76%. The market is anticipated to reach $16.90 billion in 2025 at a CAGR of 11.23%.
Apart from the recycling, it also mines metals, which is another important revenue stream.
ABML is going through some major changes these days. It recently changed its name and appointed a new CEO.
On Monday, the company announced that it had received a competitively bid $2 million contract award from the United States Advanced Battery Consortium LLC (USABC), in collaboration with the US Department of Energy (DOE), for the commercial demonstration of its integrated lithium-ion battery recycling system and production of battery cathode grade metal products, the synthesis of high energy density active cathode material from these recycled battery metals by cathode producer and lithium-ion battery recycler BASF, and then the fabrication of large format automotive battery cells from these recycled materials and the testing of these cells against otherwise identical cells made from virgin sourced metals by cell technology developer C4V.
ABTC announces USABC and @ENERGY contract award funding demonstration project of an integrated lithium-ion battery metals recycling supply chain supporting US transition to electric vehicles with partners @BASF_Catalysts and @ChargeCCCV. #ABML $ABML https://t.co/mP3zSIZSRU
— American Battery Technology Company (@abt_company) November 8, 2021
The contract award, which includes a 75% cost share, funds a 30-month project that began in October 2021. The program’s focus is to demonstrate that battery grade metals can be manufactured from recycled materials at lower cost, with lower environmental impact, and with higher domestic US-sourced content than conventional virgin sourced metals.
The new CEO Ryan Melsert commented:
“While the domestic manufacturing capacities of electric vehicles and of lithium-ion battery cells have grown rapidly in the US in recent years, unfortunately the domestic production capacities of the battery metals that supply these operations have not kept pace. The establishment of a commercial scale domestic US battery recycling industry can address these challenges and produce each of the battery metals required to supply new manufacturing operations.”
Melsert provides more details about the project here:
This is the kind of news that demonstrates that ABML has a great future. If it manages to prove that its commercial demonstration works, then the sky is the limit for this OTC stock. It really can reach NASDAQ one day as it leverages fast-growing markets.
OTC STOCKS #2 DMGGF
DMG Blockchain Solutions Inc is another OTCQB stock performing well lately. The share price has gained about 40% during the last five days to trade at $1.13.
DMGGF is a blockchain and crypto play, and it’s likely that it had benefited from the general bullish mood in the crypto space, with Bitcoin and Ethereum trading at their all-time highs. Both currencies have surged over 6% during the last week.
The $160 million company manages, operates, and develops end-to-end digital solutions to monetize the blockchain ecosystem. Its businesses are segmented into three main divisions:
- Data center operations, which focus on earning revenues from block rewards and transaction fees by mining Bitcoin, as well as providing hosting services for industrial mining clients.
- Data analytics and forensics services provide technical expertise software products such as Blockseer Pool, Mine Manager, and Walletscore, as well as working with auditors, law firms, and law enforcement organizations.
- Developing enterprise blockchains – DMG’s permissioned blockchain technology is focused on developing enterprise software for the supply chain management of controlled products.
Crypto mining has become one of the most profitable businesses, especially for companies operating outside China. The Asian country, which used to account for more than half of the global hashrate, cracked down on crypto miners earlier this year. On top of that, Bitcoin has surged in price to update its record high, which adds to the mining profitability.
We’re quite bullish on Bitcoin as of now, which makes us think that DMGGF can expand its rally and attempt to break above the YTD at $3.6. What we like about DMG is that it’s interested in “green mining.”
Last month, the company announced multiple successful transactions with Zodia Custody, a crypto asset custodian incubated by Standard Chartered, using DMG’s Blockseer platform “Petra” from its Core+ suite of services.
Using a testnet environment, DMG initiated a new function called Petra, which gives subscribers enhanced optionality when initiating crypto transactions. When fully completed and launched under the Blockseer brand, the function will provide subscribers a choice in how they want to proceed with transactions. The options provided by Petra will include the provision of KYC on wallets, AML checks on transactions, and routing transactions via carbon-neutral mining facilities. This is an important step in the development of DMG’s Regulatory & Compliance offerings under Blockseer’s platforms.
Once ready, Petra provides options focused on the Bitcoin network. As part of the tests conducted alongside Zodia Custody, transactions were routed using Petra and tagged as a “green” to prioritize carbon-neutral miners. Future options may include risk ratings of counterparties and geo-location. Petra’s subscriptions will be based on a percentage of the dollar-value equivalent that is transacted through the system.
DMG’s CEO Sheldon Bennett explained:
“Petra is a concept that DMG conceived many years ago. However, we did not have the technology to bring this concept to the market until now. Using core technologies in Blockseer’s Walletscore, Explorer and Helm, we have been able to create a new and very relevant product for companies and individuals who have particular interest in governance, regulatory issues, and ESG goals aligned with optionality that Petra permits. Our partnership with Zodia Custody is moving quickly and we look forward to completing all our testing and bringing this product to market.”
Bitcoin & other #Cryptocurrency are minting new millionaires and creating wealth but there's an ugly side that we need to address as they become more and more a part of our everyday world🏭
— Equity.Guru (@equitydotguru) November 8, 2021
OTC STOCKS #3 RGST
Rogue Station Companies, Inc is a Pink Current stock that has surged over 560% in the last month alone – all because of a reverse merger deal. The share price rose from about 17 cents last week to the current level of $0.40, after peaking on Monday at $0.53, which is the highest level in over a decade.
RGST was a shell that has turned into an interesting crypto play.
Last month, the company said that it had executed a business combination LOI with Everdime Technology, Inc, a multi-disciplinary cryptocurrency technology innovator, with a current emphasis on the use of digital assets and non-fungible tokens (NFTs) to monetize social networks for operators and participants. Its principals have developed technologies and a suite of applications that provide infrastructure for the generation of Fan Tokens and NFTs using the ERC20 blockchain, providing a safe, secure, and effective method for users to create, buy, and trade NFTs and cryptocurrencies.
On Monday, RGST said that it had entered into a comprehensive purchase/sale/exchange agreement with Everdime, which essentially tracks the terms of the LOI announced in October. According to the deal, Everdime’s shareholders and finance partners will purchase or be issued shares equivalent to 80% control of RGST in exchange for 100% of Everdime’s shares. As part of the agreement, Everdime and RGST will settle all of the company’s outstanding debt by a combination of stock and Everdime tokens, which it expects to create and post on the Ethereum blockchain in the next 180-days. The parties expect to close this agreement on or before December 15 of this year.
Everdime CEO Sandor Miklos said:
“For us, this is ‘go time’ and we’re excited about launching our Everdime token and related affinity-based and social media influencer ‘custom coins’ and NFTs. We’ve had incredible response to our initial proof of concept presentations; we can now devote our attention to meeting our expected customer needs. Everdime expects to bring social influencers, organizations and sports teams to its great platform, allowing them to monetize their success and us to participate in multiple income streams.”
Everdime is a great crypto and NFT company, and RGST has only 5 million shares in the float, which makes it a great match.
$RGST a 5 million float closed and fully agreed merger in a hot #cryptocurrency sector. Under .30 for now. I shared $HRAA under .20, they are both going way over 1.00 short term IMO get the core positions built. Outta here for the sunny day here, #SALUT #CryptocurrencyNews https://t.co/HyesiVE5YE
— Harv (@Harv09400583) November 8, 2021
RGST will break above the $1 mark very soon, as there is still much room for growth even though the OTC stock has jumped by about 2,000% YTD.
OTC STOCKS #4 ZNOG
Zion Oil & Gas, Inc is an OTCQX stock that bottomed out last week to touch the lowest level on record at 11 cents. The share price has more than doubled since then and currently trades at $0.25, the highest since the beginning of September.
ZNOG, together with its subsidiaries, operates as an oil and gas exploration company in Israel. It holds a petroleum exploration license onshore Israel, the New Megiddo License 428, comprising an area of approximately 99,000 acres.
The $60 million company is penny stock exempt and has independent directors. Still, it hasn’t performed quite well despite a major surge in the price of oil and gas.
Nevertheless, it seems that bulls are taking control right now after the price found solid support near 11 cents. ZNOG started the year near the $1 mark, and it can still break above that level in a few weeks or early next year if relevant fundamentals show up.
The recent price spike came amid unusually high volumes, but we still don’t know what has driven the price, except the increasing quotes of oil and gas. It may be that the company is about to release its Q3 results or is ready to reveal relevant results of its exploration soon. Anyway, getting exposure to ZNOG right now is still like buying the dip, as the company has much room for growth.
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.