The US stock market has been moving sideways for weeks, with all eyes now on the Fed’s interest rate decision to be announced on Wednesday. Most economists anticipate another hike, although only by 0.50% this time.
With the economy under pressure and the overall stock market bleeding, the OTC stock market can reveal great opportunities to boost your portfolio.
This article looks at 4 OTC stocks to watch. They are Barrel Energy Inc (OTCPK: BRLL), CGrowth Capital Inc (OTCPK: CGRA), Netlist, Inc (OTCQB: NLST), and Northwest Biotherapeutics, Inc (OTCQB: NWBO).
OTC STOCKS #1 BRLL
Barrel Energy Inc continues to gain momentum after rallying at the end of November. The share price of the Pink Current stock has surged more than 70% over the last five trading sessions to trade at $0.076, the highest in over a year.
BRLL is one of the main Lithium plays in the OTC market. The $25 million company is focused on several ventures within the green energy and batteries minerals sector and the rapid development of valuable production opportunities throughout North America and abroad.
BRLL CEO Craig Steven Alford was also the founder of American Battery Metals Corp (OTCPK: ABML), a big winner for Insider Financial subscribers last year. We first told our subscribers about ABML in 2020 when the stock was trading under $.06 a share, which you can read here. Eventually, the stock surged to about $4 in February 2021 during the stock market rally.
As for BRLL, it peaked at the beginning of last year near $0.8 and has been under bearish pressure since then.
Nevertheless, even though the company’s financials are not in good shape, BRLL has a great share structure and leverages one of the most important raw materials, which is Lithium. Recently, a report from KPMG concluded that Lithium demand would keep soaring.
National Mining and Metals Leader at KPMG Australia, Nick Harridge, reportedly said:
“Lithium investment is really just beginning to meaningfully increase. Mining investment is increasingly turning towards it and other critical minerals. Given that the price of lithium has surged in the last year, the incentive to invest further in lithium production and circularity remains very high.”
BRLL started to rally after Nevada-based China Dongsheng International Inc. (OTCPK: CDSG) updated the exploration program for its West End Lithium (WEL) project, announcing a partnership with BRLL. CDSG relies on BRLL’s highly innovative Lithium extraction methodologies for clay-hosted deposits.
The WEL claims are located in Nye county Nevada, just 6 miles northwest of Tonopah, and sit directly within the surrounding outer boundary of the TLC Project developed by American Lithium Corp. (LI.V) (OTCQB: LIACF).
CDSG and BRLL’s co-exploration program will start in 2023 after obtaining the federal green light.
BRLL is about to come with an official announcement soon, which could further support the bullish stance.
$BRLL terms of agreement in place. We are awaiting the signatures of all parties before official announcement. Any day now!
— Barrel Energy, Inc. (@barrelenergy) December 9, 2022
OTC STOCKS #2 CGRA
CGrowth Capital Inc has shown extreme volatility during the last few weeks, but the general trend is bullish. The Pink Current stock has almost doubled in price on Friday alone, trading near $0.08. It is down 18% over the week but up 160% since mid-November. On December 5, CGRA broke above $0.15 for the first time in over a decade. Volume figures surged to the highest in over a year.
CGRA has been a great stock this year, gaining almost 700%. It demonstrates that investors can still find great opportunities in the OTC markets.
We reported on CGRA several weeks ago when it was trading at $0.04.
Investors have been watching CGRA very closely as it’s been preparing for acquisition deals and a potential reverse merger that will be officially announced soon.
So far, we know that the company has changed its controlling shareholders and board and has two new businesses. On December 9, CGRA said it would release its PR, present the new roadmap and reveal the two new acquisitions, which have nothing to do with ILUS, as some investors had previously speculated.
$CGRA will be releasing PR’s over the coming days and weeks, laying out the company’s roadmap and announcing the first two acquisitions. $CGRA is not related to $ILUS or acquiring any of the $ILUS operating companies.
— CGRA (@CGRAOTC) December 9, 2022
Even though the number of authorized shares was increased from 500 million to 2 billion, CGRA hides some huge potential that will be revealed once we know more details about the new acquisitions and roadmap from new CEO Nick Link.
OTC STOCKS #3 NLST
Unlike the previous two OTC stocks, Netlist, Inc has been under massive pressure for more than a year, losing over 85% of its value since the summer of 2021. The OTCQB member suddenly gained about 30% on Friday, but we’re not sure what caused the move and whether it’s sustainable.
Previously, NLST was a great win for our subscribers, and it can provide some great opportunities thanks to some solid fundamentals. We paid attention to the OTCQB stock in March 2021, when it was trading below $2. Eventually, it broke above the $10 mark in July of the same year, hitting the highest level in over a decade.
The $280 million company provides high-performance SSDs and modular memory subsystems to enterprise customers in diverse industries. The NVMe SSD portfolio offers industry-leading performance in multiple capacities and form factors. Netlist holds a portfolio of patents in server memory, hybrid memory, storage class memory, rank multiplication, and load reduction.
The share price of NLST has been fluctuating over the last two years on the company’s ongoing legal fights with Google and Samsung over patent infringement allegations. Netlist alleged that Google’s computer servers infringed its patent for a memory module that increases capacity and improves energy efficiency. In 2020, the US Court of Appeals affirmed the company’s patent for DDR server memory modules, which may help the company monetize its product.
However, in October 2022, NLST lost its battle against Samsung over the same patent, causing a major decline in the share price.
NLST has been greatly oversold and is available at a great price, despite missing revenue and earnings forecasts in Q3.
The recent spike might have to do with leaked news that we still don’t know about. When an official reaction comes out, the recovery may continue.
OTC STOCKS #4 NWBO
Another OTCBQ stock deserving attention is Northwest Biotherapeutics, Inc, which has gained 27% over the month on fresh Phase III trial results and an ongoing OTC scandal.
NWBO is a $1+ billion biotech company that develops personalized immune therapies for cancer in the US and internationally. It develops its products based on DCVax, a platform technology that uses activated dendritic cells to mobilize a patient’s immune system to attack cancer. Its lead product is DCVax-L, which has completed Phase III clinical trials to treat Glioblastoma multiform brain cancer. The company also develops DCVax-Direct in Phase I/II clinical trials to treat inoperable solid tumors.
Last month, NWBO announced that median survival and the “long tail” of extended survival in its Phase III clinical trial increased in newly diagnosed and recurrent glioblastoma brain cancer patients treated with DCVax®-L. The trial has met both the primary and the secondary endpoints under the Statistical Analysis Plan for the trial.
The company believes this is the first time in nearly two decades that a Phase III trial of a systemic treatment has demonstrated such survival extension in newly diagnosed glioblastoma and the first time in nearly three decades that a Phase III trial of any treatment has shown such survival extension in recurrent glioblastoma.
NWBO CEO Linda Francis Powers said:
“We are excited to see the meaningful survival extensions in glioblastoma patients treated with DCVax®-L in this trial – particularly in the “long tail” of the survival curve, where we see more than double the survival rates as with existing standard of care. With well over 400 clinical trials for glioblastoma having failed over the last 15 years, it is gratifying to be able to offer new hope to patients who face this devastating disease.”
The results have been driving the current recovery in the share price, but there is more. At the beginning of December, NWBO made the headlines for suing eight of the US’s largest market-making traders, including Citadel Securities, Virtu, and Susquehanna. The OTC company alleges that they deliberately pushed its share price down by placing sell orders they had no plans of executing.
The mentioned marker makers “deliberately engaged in repeated spoofing that interfered with the natural forces of supply and demand,” NWBO said. The traders placed millions of fake orders between December 2017 and August 2022. They would eventually cancel those orders and purchase NWBO shares at an artificially lower price. The Financial Times and the Wall Street Journal reported the allegations.
With some solid Phase III results and turning into a short-squeeze candidate, NWBO has great potential to grow.
As we keep saying, there are always opportunities in the markets, and it’s our job to find winning penny stocks to buy. Huge gains can be made in such a short amount of time.
It’s important to look for penny stocks that have yet to run. There are plenty of opportunities, and we look at hundreds of penny stocks to buy each week to find the best alerts for our subscribers.
Remember, all it takes is one or two to become a winner, and you’ve crushed the market indices (and Jim Cramer) for the year.
Good luck to all (except the shorts and Cramer)!
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Disclosure: We have not been compensated for this article/video. Insider Financial is not an investment advisor; this video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This video is not a solicitation or recommendation to buy, sell, or hold securities. This video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.