Wall Street continues to recover, while the OTCQX Index, which tracks over 400 OTC stocks, touched the highest in over a month after bouncing back from the lowest level since June.
Investors are now more confident than last month as the risk of default has faded away while the earnings season looks promising so far. Speaking about blue chips, which give the tone to the rest of the market, analysts now expect S&P 500 earnings to increase by 32.4% from a year earlier.
Eric Marshall, portfolio manager at Hodges Funds, told Reuters:
“The key for the market to going up from here will not be higher multiples, it will have to be higher earnings. That’s why it’s so important to pay attention to what those profit margins do going forward and what the trajectory of GDP looks like.”
Meanwhile, investors will pay close attention to how companies are handling labor shortages and inflationary cost pressures within their business.
This is a great time to invest in OTC stocks, which have more room for growth compared to blue chips. Companies operating in cryptocurrency and commodity markets are especially relevant these days.
OTC STOCKS THE PLACE TO BE
Smart investors know that if you want to make 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 Beyond Commerce, Inc (OTCPK: BYOC), Green Globe International, Inc (OTCPK: GGII), American Lithium Corp (OTCQB: LIACF), and Oroco Resource Corp (OTCPK: ORRCF).
OTC STOCKS TO WATCH #1 BYOC
Beyond Commerce, Inc has exploded in October to rise from the triple zero territory. The share price surged over 100% over the month to a swing high at $0.0021 on October 18, which is the highest since mid-May. Now you can buy the stock for $0.0015. Earlier this month, we shared an extensive analysis on BYOC to stress our high expectations of this Pink Current stock. The current bullish run comes amid record volumes, which suggests the trend is sustainable and the price is ready to go even higher.
BYOC is a holding company focusing on the acquisition of big data businesses in the B2B Internet Marketing Technology and Services (IMT&S) space. Its goal is to develop, acquire, and deploy disruptive strategic software technology and market-changing business models through acquisitions or organic growth. BYOC plans to offer a cohesive global digital product and services platform to provide clients with a single point of contact for all of their IMT&S initiatives. The all-inclusive platform will result in substantial organic growth potential generated through cross-selling opportunities and future expansion possibilities for the company and its investors.
Earlier this year, the company admitted that it was closely monitoring businesses operating in Psychedelics, Cryptocurrency, ESports, and Logistics sectors.
BYOC has lost its OTCQB status recently, but the stock price continues to expand. In fact, there is no major news or social media activity driving the share price, but apparently, investors start to pay attention to this stock either because something big is about to be announced or simply because they’ve realized the potential of BYOC current operations.
BYOC has some well-established businesses, including Service 800, a Customer Satisfaction Survey management company, and Customer Centered Strategies. In Q2 of this year, BYOC revenue increased 43% to $1.1 million year-on-year, gross profit rose 46% to $0.8 million, and gross margin increased to 69.5%.
It’s interesting to see what happens with this OTC stock, but we think there is much room for growth for this $12 million company that generated almost $1 million in profits in only three months.
OTC STOCKS TO WATCH #2 GGII
Green Globe International, Inc. is one of the OTC stocks that we covered several times, having high expectations after the reverse merger with Hempacco Co., Inc. The share price of this Pink Current stock surged in mid-May to a YTD high at over $0.11, after which it has consistently declined. We presented our bull case scenario for GGII at the beginning of May right before the rally and subsequent crash.
GGII has more than doubled in the last five days alone to trade at $0.012, peaking on Monday at $0.015, which is the highest since the end of June.
Even though GGII goes with the Shell symbol on OTC Markets, Hempacco is actually the largest producer of hemp cigarettes in North America. It aims to be a leader in the tobacco industry by offering consumer goods in the form of hemp cigarettes and other plant-based smokables. GGII has a factory where it manufactures its products and has a number of brand lines. It also manufactures for other companies and runs over 600 vending machines with hemp cigarettes.
Hemp cigarettes are becoming increasingly more popular. They’re a great alternative to marijuana as they offer the non-psychoactive effects caused by THC with the added benefits of CBG.
The share price has surged since last week after the company announced that it had partnered with hip hop icon Rick Ross and Rap Snacks founder and CEO James Lindsay to develop and manufacture Hemp Hop, a line of hemp smokables with different cannabinoids, Delta 8 products, plus a hemp blunt smoking paper brand. Rick Ross and James Lindsay will bring their varied talents and relationships to the partnership.
Rick Ross has over 27 million followers on social media, including 13 million on Instagram, 4 million on Twitter, 8 million on Facebook, and 2.8 million on YouTube. Elsewhere, James Lindsay has a wholesale distribution network selling to convenience stores.
GGII and Rick Ross will manufacture and market herb, spice, and hemp smokables and rolling paper. The new product line has its own website that will be updated with additional info.
Rick Ross, who is co-founder of Hemp Hop Smokables, LLC, said:
“I truly believe in the health benefits of Hemp derived products. Having had my own health scares and through my healing process, I decided I would develop a line of smokables to help others with the benefits of Hemp cannabinoids. Working with James Lindsay and Hempacco’s team, including Lue, Jorge, and Sandro, has been fantastic. We’ve already started developing the flavors as well as the look and feel of all the products.”
We think the partnership with Rick Ross is a big deal that will allow the stock to fully recover.
OTC STOCKS TO WATCH #3 LIACF
American Lithium Corp has been slowly but steadily expanding its market cap, gaining over 50% since last month. What’s great about LIACF’s share price performance is that it’s clearly headed towards bullishness and it may not look back. The OTCQB stock bottomed out in mid-August at $1.25 and has more than doubled since then, currently trading at $2.64, which is the highest since February and not very far from the YTD at $3.16. The last time when we drew your attention to LIACF in September, the stock was trading at about $2.30.
The $480 million company is well-positioned to play a leading role in society’s shift to a secure, sustainable new energy paradigm in the Americas. In the US, LIACF owns the TLC claystones lithium deposit, located close to Tesla’s giga-factory in Nevada.
Following the acquisition of Plateau Energy Metals, American Lithium is advancing the large-scale Falchani hard rock lithium deposit, as well as one of Latin America’s most prolific uranium deposits, known as Macusani, both of which are located in Peru. Last month, LIACF CEO Simon Clarke met in person with the President of Peru.
LIACF will focus on these mining-friendly jurisdictions for now, and the company has the advantage of both geographic and geological diversity in developing these world-class, scalable projects.
In August, LIACF reported the largest lithium extraction results to date, achieving 97.4% extraction utilizing warm sulfuric acid leach on Tonopah Lithium Claims (TLC) claystone mineralization.
The share price of LIACF is benefiting from the price surge in Lithium and other commodities. Price reporting and research agency Benchmark Mineral Intelligence reportedly stated recently that EXW China lithium hydroxide was close to $30,000 per ton, breaking above the 2018 peak of $25,000, up over 250% since the beginning of the year.
On top of that, the share price is supported by internal factors. On October 14, the company said that it had entered into an amended agreement with Eight Capital, on behalf of a syndicate of agents including Echelon Wealth Partners Inc and TD Securities Inc, as co-lead agents and joint bookrunners pursuant to which the LIACF has increased the size of the previously announced private placement to up to 13,208,000 units at an offering price of $2.65 per unit for aggregate gross proceeds of up to $35,001,200.
— Canadian Green Trader (@CDNGreenTrader) October 14, 2021
Earlier this month, LIACF provided an update on its project, and the CEO said:
“The company continues to move its projects through the development cycle as expeditiously as possible and, in the months ahead, expects to achieve numerous milestones in both Nevada and Peru.”
The company has a healthy balance sheet and we have high expectations for LIACF.
OTC STOCKS TO WATCH #4 ORRCF
Oroco Resource Corp is another OTCQB commodity stock. The share price of ORRCF has increased by over 20%, which is pretty significant for a $437 million business. Now you can buy the stock for $2.28. The share price almost hit $3 in mid-May, which is a record high.
Oroco is a mineral exploration company with a history of and expertise in the development of resource opportunities in Mexico. It is led by a management team with extensive experience in exploration, discovery, development, and operations in the mineral sector. The company’s focus is the assembly and exploration of the Santo Tomas porphyry copper deposit in Mexico.
The company started drilling at its Santo Tomas copper project only recently and is poised to benefit from the increasing demand for copper.
Like Lithium and other commodities, copper has recently updated the record high, which moved the share price of ORRCF.
Whether it continues to expand its project or decides to sell it at some point, ORRCF is a good stock to hold, given the surging demand for copper and other key components of EV technology.
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.