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4 OTC Stocks to Watch: AXAS AABB EEENF ILUS

The OTC bear market continues; however, this too shall pass. We’ve been here before and will be here again. 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.

OTC investors are failing to realize that there are still plenty of opportunities on the OTC Markets. Continuing to buy the dips in losers is not a winning strategy. We tell our subscribers to focus on what’s working and ignore the noise. Don’t get caught up in the diamond hands/paper hands BS. We talk about all of this in the video below.

In this article, we look at 4 OTC stocks that have defied the current bear market environment. The OTC stocks are Abraxas Petroleum Corporation (OTCQX: AXAS), Asia Broadband, Inc (OTCPK: AABB), 88 Energy Limited (OTCQB: EEENF), and ILUS International Inc (OTCPK: ILUS).

OTC stocks #1 AXAS

OTC stocks #2 AABB

OTC stocks #3 EEENF

OTC stocks #4 ILUS

OTC STOCKS #1 AXAS

Abraxas Petroleum Corporation has extended the pullback from the record low touched at the end of December. The OTCQX stock has increased by 40% during the last five sessions, following a horizontal channel that has been around since January 5. You can buy the stock for $1.51 per share.

Even though AXAS is an OTCQX member, its market cap is only $12 million after consistently declining since July 2018. AXAS is an independent energy company that engages in the acquisition, exploration, exploitation, development, and production of oil and gas properties. It operates oil and gas assets in the Permian/Delaware Basin and the Rocky Mountain regions. More than one year ago, it was estimated that its proved reserves were 16.8 million barrels of oil equivalent.

Earlier this year, AXAS announced a restructuring of its finances. It sold its Williston Basin assets to Lime Rock Resources for $87.2MM, repaid all of its revolving credit facility, and exchanged its entire Second Lien Term Loan held by Angelo Gordon Energy Funding, LLC into newly authorized Series A Preferred Stock.

CEO Bob Watson said:

“The transactions announced today pay off all of our bank debt and convert AG’s 2L Term Loan into preferred equity. Most importantly, the restructuring positions Abraxas as an unlevered, Delaware Basin pure play that can now access available capital sources to restart a drilling program in the Permian Basin. In short, we now have the opportunity to drill and complete wells in order to grow our production for the benefit of our common and preferred stockholders.”

On Monday, the company released an update about the reserve and operations in the Delaware Basin. It said that:

  • Total Proved PV-10 reserves grew 467% to $229 million on December 31, 2021 using SEC pricing;
  • Reserve Report doesn’t include additional geologic horizons being pursued by offset operators such as the Woodford/Meramec;
  • Company has approximately 11k net acres in the heart of the Southern Delaware Basin where it has successfully drilled 23 Wolfcamp/3rdBone Springs horizontals across 5 distinct geologic benches.

According to its recently received reserve report, Abraxas’ proved oil and natural gas reserves consisted of approximately 24.1MMBoe, a net increase of 8.5 MMBoe over 2020 year-end reserves of 15.6 MMBoe. December 31, 2021 reserves consisted of approximately 16.8 million barrels of oil, 2.5 million barrels of NGLs and 29.2 billion cubic feet of natural gas.

Considering the surging oil prices that have consolidated well above $100, it means AXAS has oil reserves worth about $1.6 billion, which is massive for a $12 million company. AXAS used to trade near $60 back in 2018, and returning to those levels doesn’t sound crazy at all.

OTC STOCKS #2 AABB

Asia Broadband, Inc is another OTC stock seeking to crush the bearish pressure. The company with the Pink Current designation is much larger than AXAS, with a market cap of $239 million. AABB has gained over 13% since last week to trade at $0.1. In November, we discussed AABB when it was trading at $0.17. It eventually peaked in mid-December at over $0.3 before correcting to the recent bottom at 0.08.

Asia Broadband Inc. is a resource company focused on the production, supply, and sale of precious and base metals, primarily to Asian markets. The company utilizes its specific geographic expertise, experience and extensive industry contacts to facilitate its innovative distribution process from the production and supply of precious and base metals in Mexico to client sales networks in Asia.

Last year, AABB acquired two high-potential gold property interests in Mexico: the Bonanza Gold Mine Project and the Tequila Gold Mine Joint Venture. Both properties are expected to have geological reports available in late February and gold production from the Tequila property is expected in March.

Still, investors are interested in this stock because of its connections with the crypto industry. AABB recently added a crypto segment and released its AABBG gold-backed cryptocurrency, its proprietary digital wallet, and a digital exchange known as AABB Exchange. The company expects its token to become a worldwide standard of exchange that is stable, secured and trusted with gold backing, while having the added benefit of demand-based price appreciation. These are unique and outstanding qualities relative to other cryptocurrencies.

According to a recent update, the exchange continues to add more features to support 200 cryptocurrencies and plans to launch an international marketing campaign.

Last week, AABB said that it had launched an initiative to enter the non-fungible token (NFT) market to advance the rapid expansion of its digital asset base. The company has been in discussions to create multiple NFT marketplaces for unique digital content categories. Using its existing digital technology platforms, the AABBG token, AABB Wallet and AABB Exchange can be integrated into the newly created NFT marketplace networks.

Crypto and NFTs are a fast-growing market, and AABB has some great products that help it stay competitive. Besides this, it has three precious metal mines in Mexico that are ready for exploration. This OTC stock has the potential to explode this year.

OTC STOCKS #3 EEENF

Our readers are already familiar with 88 Energy Limited, which we cover quite often because we believe that this oil play has a great future. The OTCQB stock has surged over 30% since last week to trade $0.035 before peaking at $0.037, the highest since February 8. Breaking and consolidating above this level is important because otherwise, the price will form a double top pattern, which may point to a reversal of the recent uptrend that took off at the end of December.

We shared our take on the OTC stock in March 2021, before the YTD high touched the following month at over 0.08.

88 Energy is a $500+ million Australian-based oil exploration and appraisal company across about 440,000 net acres on the Alaskan Central North Slope and NPR-A regions, with a diversified portfolio of four highly prospective project areas: Project Icewine, Yukon Leases, Project Peregrine, and the Umiat oil field. The company is the operator across all of its portfolio of exploration and appraisal assets.

Investors have been closely watching the Peregrine project after the company announced that it would test the Merlin exploration well by drilling. In 2021, it launched operations and confirmed the potential existence of hydrocarbon-bearing zones at the site. On June 24, the company said that geochemical analysis of fluid extracts from selected core samples definitively demonstrated the presence of hydrocarbons.

In December, 88 Energy announced some progress on the Merlin-2 exploration well, which should be drilled later this month. The Merlin-2 appraisal is targeting 652 million barrels of oil in the highly prospective N18, N19, and N20 targets that were encountered in the successful Merlin-1 well (drilled in March 2021 to a depth of 5,267 feet), which demonstrated the presence of oil in these multiple stacked sequences within the Brookian Nanushuk Formation.

The mobilization of the Arctic Fox rig to the Merlin-2 appraisal well drilling location is now ready. The spud date is scheduled for the week starting March 7, with the well permitted to a Total Depth of 8,000 feet.

The news was covered by the West Australian, which contributed to the company’s visibility on social media.

All in all, everything depends on the results. If they come positive, the stock will explode.

Last month, the company announced that it had acquired about 73% average net working interest in established conventional onshore oil and gas assets in Texas. The assets, known collectively as Project Longhorn, are located within the Permian Basin and contain net 2P reserves of 2.1 MMBOE.

2021, the company also acquired the Umiat oil field.

March will be a big month for EEENF, as everyone is waiting for the results.

OTC STOCKS #4 ILUS

The last few weeks have been quite intense for ILUS International Inc, which has completed an acquisition and is entering a new market. The share price of the $200 million Pink Current company has gained almost 60% during the last five days to trade at $0.19. On Wednesday, the price peaked at almost 20 cents, the highest since February 7. The stock may attempt to go back to November levels near $0.5.

In June 2021, we shared our bullish stance on ILUS when it traded at only $0.07, allowing our subscribers to secure generous profits. Last year, ILUS has surged over 24,000% to its peak, being one of the best-performing OTC stocks.

In 2021, ILUS restructured its business and secured the Pink Current status. Formerly known as Ilustrato Pictures International, Inc, the company used to produce feature theatrical films for international release. However, it dumped its previous business and turned into an M&A firm that acquires and grows companies operating in the technology, engineering, and manufacturing sectors globally.

ILUS has evolved out the industrial sector mainly from Emergency Services products, Emergency Response vehicles, Vehicle conversions, EVs, Wearable tech & Smart Tech. It looks to acquire companies that have strong management and potential to grow rapidly and benefit from cross-pollination of territories, products, and skills from other group companies. ILUS is usually acquiring businesses with revenue in the $1 million to $5 million range.

Last year, ILUS acquired FireBug, The Vehicle Converters, and BCD Fire, a fixed fire systems integrator headquartered in Dubai, UAE.

https://ilus-group.com

In mid-February, the company acquired Georgia Fire and Rescue Supply, which is its first distribution acquisition and is essential to the rollout of ILUS technology across North America. Georgia Fire and Rescue Supply, LLC is a renowned nationwide distributor of firefighting and emergency response equipment. It holds several exclusive Georgian distribution contracts for the sales and servicing of some of the world’s largest firefighting equipment brands, such as Holmatro, Innotex and Paratech.

The company also acquired Vira Drones, an Unmanned Aerial Vehicle (UAV) company based in Germany and Switzerland. Vira Drones develops and manufactures UAVs or Industrial Drones, which provide the unmanned capability of light helicopters. ILUS said in mid-February that Vira Drones was in pre-order discussions with a global company for one hundred Vira M500 rescue UAVs. The total order value being discussed is $60 million with a pre-order deposit of $6 million and delivery in the fourth quarter of 2023.

Also in February, ILUS acquired KurveXR from TakeLeap, a futuristic technology company that creates artificial intelligence and machine learning solutions. KurveXR is the profitable and valuable Virtual and Augmented Reality division of TakeLeap. The agreed acquisition develops and delivers training solutions for public safety including fire safety, emergency response, community safety, security, and corporate onboarding. Thanks to the acquisition, ILUS has become the first company to offer fire safety training in the Metaverse.

In its first year since the new management came in, ILUS has managed to build a strong foundation. It now has several patents, a vast amount of intellectual property, its own global manufacturing facilities, and the beginnings of its own distribution network. ILUS is now entering its scale-up phase and is expecting 300% growth in 2022, with hundreds of millions in revenue in the next two to three years.

ILUS already impressed investors last year, but it doesn’t stop here. Besides this, it is reducing its outstanding shares and recently secured $15 million in funding, improving its cash positions. ILUS is a strong bet.

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)!

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.

4 OTC Stocks to Watch: AXAS AABB EEENF ILUS
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