There’s no question about it. It’s ugly out there. Large caps, crypto, bonds, tech. You name it and they’re all down. 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 watch, including CBD of Denver Inc (OTCPK: CBDD), Cyberlux Corporation (OTCPK: CYBL), CytoDyn Inc (OTCQB: CYDY), and StrikeForce Technologies, Inc (OTCQB: SFOR).
OTC STOCKS TO WATCH #1 CBDD
CBD of Denver Inc has had a great 3-week period after months of constant bearish pressure. The Pink Current stock has gained about 30% during the last five sessions and has tripled over the month to trade at $0.0074. On Wednesday, it broke above the $0.008 mark to hit the highest level since September last year.
Our subscribers are already familiar with CBDD, as we discovered it in November 2020, when it was trading near the penny mark. It eventually, hit three pennies at the beginning of 2021 but has continually declined since then, bottoming out in February of this year.
CBDD, with a market cap of $40 million, is a full-line CBD and Hemp oil company and a producer and distributor of Cannabis and CBD products in Switzerland, Europe, and the US. CBDD is focused on using equity to acquire profitable Swiss and European assets at attractive valuations to create value for shareholders and is driven by a passion to improve lives and strengthen communities by unleashing the full potential of cannabis. The company’s related social networking website can be accessed at: www.cbdsocialnetwork.com. The site will be connecting CBD enthusiasts from around the world.
Last month, CBDD released its Q1 results. It said that it had generated over $900k during the first three months of the year, recording a net loss of over $300k mainly on an inventory write down of $102,856.
Previously, the business was negatively impacted in the quarter by the reintroduction of COVID controls across Europe and pricing pressure on CBD flowers. These trends have already reversed, and the company’s April revenue nearly surpassed the entire first quarter’s revenue as prices began to stabilize.
CBDD completed a restructuring in March to reduce costs, putting itself in a stronger position for the next phase of growth in Europe. CEO Paul Gurney commented:
“On the surface, the numbers don’t tell the full story and should be viewed in context. While revenues at 3.5% margins don’t usually result in overall profitability, my mandate is to transform this business from a commodity trader into a higher-margin, multi-pronged, health and wellness powerhouse in Europe and Asia. With the acquisition of Mellow and further expansion into medical cannabis sales in Germany, we are well on our way toward achieving this goal.”
CBDD has big plans to become the first commercially viable cannabis company in Europe.
Earlier this year, CBDD announced the acquisition of Mellow, a CBD technology and marketplace. Mellow operates in Europe and Asia. At the end of May, Mellow signed an agreement with UK luxury CBD consumer brand OTO to act as its distribution partner in Asia.
OTO, headquartered in London, is a premium positioned consumer CBD wellness brand, specializing in offering sophisticated products at the luxury end of the industry price spectrum. Mellow aims to provide the OTO brand experience through its mellow Asia division, which is operated out of the Hong Kong market, and which already operates a multi-brand CBD and Heath & Wellness eCommerce site, as well as a network of physical retail stores under the mellow banner.
On Wednesday, Mellow signed an agreement with Botanic Wellness, an Australian CBD and Hemp Wellness brand, to act as its digital and performance marketing partner in the UK and EU markets. The journey of Botanic Wellness began in 2018 when it established a fully licensed hemp-growing facility in the US. It quickly expanded its agriculture business and today has operations throughout the US and Australia.
Botanic Wellness is listing on the Australia Stock Exchange last this year, which will allow the business to access increased funding to help support its expansion into the UK market.
With an ideal share structure, CBDD is finally ready to please investors after months of bleeding.
OTC investors are recognising the incredible work done by the team at CBD of Denver and our subsidiaries. Our growth plan for EU, UK & Asian markets is moving full steam ahead and we’re happy to see many new investors come along for the ride. https://t.co/lqkVHDfFc1
— Paul Gurney (@PGurney_) June 10, 2022
OTC STOCKS TO WATCH #2 CYBL
Cyberlux Corporation is an OTC stock that we think has strong fundamentals. We reported on CYBL in mid-April when it was trading near two pennies. The share price has declined since then, and that simply means that the current quotation of $0.016 is a good entry point. The stock has gained about 50% since the beginning of the month.
CYBL used to focus on advanced lighting systems that utilize white, infrared (IR), and other light-emitting diodes (LEDs) as illumination elements. Its product applications of solid-state LEDs are up to 70% more energy-efficient and require significantly less maintenance cost to operate than traditional lighting systems. While it maintains the current business, CYBL has completed several acquisitions during the last few months, diversifying its business to market itself as an advanced digital technology platform company leading the digital transformation evolution across industries with breakthrough Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) solutions, advanced unmanned aircraft solutions (UAS), and renewable energy and infrastructure technology solutions.
After reporting an exceptional quarter in the first three months, the company continues to exceed expectations. In April, it surpassed its own April Revenue Plan of $2 million by 23%, delivering almost $2.5 million in revenue. This is the first time when monthly revenue results exceeded $2 million for three consecutive months, marking the ninth consecutive month of sustained Cyberlux revenue growth.
Year-to-date, Cyberlux posted $8.7 million in revenue versus the Plan of $6.5 million, beating the YTD Plan by 34%. Cyberlux Corporation CEO Mark Schmidt commented:
“All four of our business units (Digital Platform Solutions, Unmanned Aircraft Solutions, Advanced Lighting Solutions, and Infrastructure Technology Solutions) are ahead of their Year-to-Date Plans by significant margins, and each is growing rapidly with revenue streams at record levels.”
Last month, the share structure improved after the company slashed 700 million ‘ghost’ restricted common stock shares from its balance, reducing the current Outstanding Shares by 12% overall, from 5.8 billion shares to 5.1 billion shares.
With a beautiful share structure and great financial results, CYBL is a great stock to buy at this point, especially as the price had been oversold. The $80+ million company will soon update its Pink Limited Information designation.
CYBL has just officially announced a $19.5 million buyback program, which demonstrates the management’s confidence in the stock, and that is a good sign for investors.
Business update: Earlier today, the CYBL Board of Directors approved a Share Buyback Program of up to $19.5M! More specifics in a coming press release but here are the detail from the announcement at the Emerging Growth Conference.#ShareholderValue #OperationAlpha #LetsGo $CYBL pic.twitter.com/a3Cv7kN1P8
— Official Account of Cyberlux Corporation – CYBL (@CyberluxC) June 8, 2022
OTC STOCKS TO WATCH #3 CYDY
CytoDyn Inc is a biotech OTC stock that is trying to reverse a long-term downtrend. The OTCQB stock has been oversold and might be undervalued at the current level of 0.42%. While CYDY has gained about 30% during the last five trading sessions, it has lost almost 60% since the beginning of the year.
The $300 million company develops innovative treatments for multiple therapeutic indications based on leronlimab, a novel humanized monoclonal antibody targeting the CCR5 receptor. Leronlimab is in a class of therapeutic monoclonal antibodies designed to address unmet medical needs in the areas of Human Immunodeficiency Virus (HIV), Cancer, and Immunology, and COVID-19.
The company has completed a Phase 2b pivotal trial using leronlimab in combination with antiretroviral therapies in HIV-infected treatment-experienced patients, as well as completed a Phase 2b/3 investigative trial with leronlimab as a once-weekly monotherapy for HIV-infected patients. It is also conducting a Phase 1b/2 clinical trial with leronlimab in metastatic triple-negative breast cancer.
Back in January, we reported that CYDY was replacing its CEO and updating its Board. Last month, the company solidified its team with the addition of:
- Paul Edison, a Senior Clinical Lecturer in Neuroscience in the Department of Brain Sciences at Imperial College London and an honorary Professor at Cardiff University. He is also the Editor-in-Chief of the journal Brain Connectivity.
- Kabir Mody, a Medical Director at IMV, Inc. and a board-certified medical oncologist with previous experience at Mayo Clinic.
- Otto Yang was added to the Company’s Scientific Board of Advisors. He is a Professor of Medicine, Infectious Diseases, Microbiology, Immunology & Molecular Genetics at UCLA and has a background in clinical infectious diseases.
- Jay Lalezari has agreed to serve as an outside Scientific Advisor to the Company.
CYDY did some bad moves under the previous management, and we expect this time to be different. The company has a great therapy that can be monetized in the coming years. This is a good stock to hold in the long term, especially given that managers increase their stake, as per insider buying filings with the SEC.
Insider Buy Filings from Scott Kelly, Nitya Ray, Chris Recknor, and Antonio Migliaresehttps://t.co/9qo41o0xdk
— Truthorfiction (@Truthorfiction3) June 8, 2022
OTC STOCKS TO WATCH #4 SFOR
Another OTCQB member on our list is StrikeForce Technologies, Inc, although it’s about nine times smaller than CYDY. The stock has doubled in price since the end of May to trade at four pennies. On Thursday, it broke above $0.045 to hit the highest level since March.
Despite the bearish pressure during the last few months, SFOR was a big winner for our readers more than a year ago. We reported on this stock in October 2020, when it was trading at only $0.005. In only a few months, SFOR gained over 5,800% to its February peak, helping our subscribers secure generous profits.
We think SFOR still has great potential to reverse the downtrend and expand its valuation.
SFOR provides online products that help clients prevent cyber theft and data breaches by protecting customers, employees and partners in real-time at every vulnerable point. Its main products are:
- ProtectID(R) – it offers 2-factor ‘Out-of-Band’ authentication across many methods and devices for protection. Methods that is preferable and low cost for delivering One Time Passwords (OTP). This approach leverages a 2nd network for entering or receiving passwords, which locks out hackers even if they have your username and password. The service, which is patented, is available for in-house, Cloud Service or hybrid.
- GuardedID(R) – a keyboard encryption and anti-keylogger that functions at the keyboard level, preventing keyloggers (viruses like Zeus, etc.) from stealing login and confidential information.
- MobileTrust (R) – an iPhone/iPad and Android all devices password vault that includes a strong password generator. MobileTrust also includes a Mobile Multi-Factor OTP authenticator and keystroke encryption between its virtual keyboard and secured browser, which is critical to all confidential online transactions and other features.
A more recent product is SafeVchat – a video conferencing solution. In fact, the company is shifting its focus on this app in 2022. The new business strategy is mainly about building SafeVchat as the new privacy and security standardization in the video conferencing and collaboration industry.
SFOR has caught investors’ attention with its latest tweet according to which it would release a major announcement on June 14.
Only Seven Days to our Major News Announcement on 6-14-2022 at 12:00pm (EST). We will live stream the event, stay tuned for details! pic.twitter.com/23AtvmwwCG
— StrikeForce Tech (@StrikeForceTech) June 7, 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.