The major OTC stock indexes are doing great amid the reopening economy, with OTCQX Composite fluctuating near its all-time high at over 1,630 points, up 0.65% on June 8.
Meanwhile, the main US stock indexes, including S&P 500, are flat or flashing red, as investors wait for some major economic news to move markets.
During the last few days, one of the main topics was the rapidly increasing inflation, which has already exceeded the Fed’s target and might force it to tighten the policy. If the central bank start to increase the interest rate, that doesn’t bode well for stocks, as investing in cash markets becomes more attractive. Nevertheless, that hasn’t affected OTC markets, which continue to provide many great opportunities as more small businesses enjoy the reopening economy.
NOW IS A GREAT TIME TO BUY OTC STOCKS
This is a great time to invest in OTC stocks, as the US and the global economy are gradually recovering from the devastating impact of the COVID-19 pandemic.
With blue chips, you can’t generate substantial returns given their massive market cap. One option would be to employ leverage, but it is risky, and there are few brokers and trading instruments that allow leverage on major stocks.
The good news is that there are OTC stocks with robust fundamentals that are trading at bargain prices, and we’re here to bring them to light.
Generally speaking, trading OTC stocks is much easier than getting exposure to blue chips. You don’t need a big account, and it’s technically extremely easy to make the first steps. All you need is a laptop and a brokerage account.
Nevertheless, you should keep in mind that small-cap stocks are subject to enormous volatility like what we have witnessed in the February-April period.
Also, remember these two important points when it comes to investing in small caps.
- Buy low and sell high.
- Don’t be afraid to book profits.
However, don’t rush to book profits too early.
Finding the right balance is not that difficult if you’re not getting too greedy and stay disciplined.
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.
The key to trading small caps is finding momentum BEFORE it happens and then be patient. Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens.
We recommend you own a portfolio of OTC stocks. For some, that can be as many as 10 to 20 or more OTC stocks. Obviously, our recommendation to build a portfolio means that day trading is not an option for us. Day trading doesn’t suit our personality, and we don’t like the intraday moves markets make. We have found we made more money being patient and ignoring the day-to-day noise of the markets.
We always alert our subscribers first before we publish for our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here. We alert our subscribers with our best ideas before our regular readers.
Today, we’ll share 4 OTC stocks to watch before they might surge in price. Here they are Artificial Intelligence Technology Solutions, Inc. (OTCPK: AITX), Ilustrato Pictures International Inc. (OTCPK: ILUS), Majic Wheels Corp. (OTCPK: MJWL), and RushNet, Inc. (OTCPK: RSHN).
OTC Stock to Watch #1 AITX
The share price of Artificial Intelligence Technology Solutions, Inc. is gaining momentum as the company is securing more deals and hires more talent. The OTC stock is trading at $0.075, up from five cents at the end of last week. Still, the price has corrected since February’s YTD peak at $0.26. We first paid attention to AITX last year, well before the rally that led to the YTD peak.
AITX provides artificial intelligence (AI) and robotic solutions for operational, security, and monitoring needs. It also offers front-end and back-end software solutions. AITX was formerly known as On The Move Systems Corp. and rebranded in August 2018. It mostly operates through its wholly-owned subsidiary Robotic Assistance Devices (RAD). It also operates RADM, which develops mobile workflow solutions, and RADG (RAD Group) – AITX’s newest subsidiary that provides software solutions.
AITX is a good stock to hold in the long term because it taps into the fourth industrial revolution, which is a huge trend revolving around the integration of innovative technologies, including AI and robotics. Besides this, AITX’s earnings have increased during the last years, as the company secures orders for its solutions. On top of that, RADG is only starting its operations, and it may expand rapidly.
One of RAD’s flagship products is ROSA (Responsive Observation Security Agent), a security device that acts as a surveillance system that can also simulate security personnel actions with an autonomous response. There are two versions of the device, with a 180° field of view and another one with a 270° field of view, which can be set at the corner of any building. The latter was launched in May and is available starting with this month.
RAD’s other similar products are SCOT (Security Control Observation Tower), which has a 360° field of view, and Wally, a wall-mounted version of the SCOT device.
AITX continues to receive orders for its devices. On May 19, RAD received a Wally order from a Fortune 250 ranked company. On May 24, it received orders for 7 ROSA units and 2 Wally units. Earlier this month, it obtained new orders for its ROSA units.
At the beginning of June, AITX filed its 10-K report with the SEC, which is important for investors looking to bet on compliant, transparent, and responsible companies.
On Monday, AITX announced that it hired Artur Tchoukanov as Industrial Designer. Previously, he had worked for Cisco, Philips Lighting, Schaefer Yachts, American Coach, and Electrolux.
$AITX to start RAD3.0. . . introducing our amazing Industrial Designer! Check out the big names and projects he's worked for and work he's done!!! Stretching our lead in every category! #pininfarina #phillips #cisco #electrolux @UmeaUniversity https://t.co/hEdMqKixNw pic.twitter.com/TXuacaSKNe
— Steve Reinharz (@SteveReinharz) June 7, 2021
AITX is expanding its business, has ambition, and it’s interesting what it can deliver with its new RADG subsidiary. All in all, it’s a decent long-term buy.
OTC Stock to Watch #2 ILUS
Ilustrato Pictures International Inc. is another company whose share price is trying to get out of the hibernation mode and potentially update the YTD high touched in February at $0.17. Currently, you can buy ILUS for $0.07 per share, up from 4 cents at the beginning of the month.
The London-based firm used to develop feature theatrical films for international release, but it turned out into an M&A firm focused on acquiring and growing technology-oriented companies.
ILUS has already completed three acquisitions during the first quarter of 2021 and is currently in various stages of negotiation regarding several more acquisitions. Due to the nature of its business, each piece of news related to a major acquisition or deal can have an immediate or long-term impact on the share price, which makes ILUS an interesting stock to hold.
$ILUS We are moving forward rapidly,hiring key people,appointing key distributors,closing strategic deals & Acquisitions. Our vision is clear & we are on a mission! The future is bright even when we go through dark tunnels. We know exactly where we are going, we trust the plan!
— ILUS International Inc (@OTC_ILUS) June 7, 2021
At the end of May, ILUS said that its first acquisition, FireBug – a UK-based firefighting equipment and emergency services vehicle manufacturer which holds its own patented technology – had started the global rollout plan for its Mongoose external firefighting lance, with sales already rapidly on the increase.
Earlier this month, FireBug secured an exclusive distribution agreement with India’s Vijay Fire Vehicles (Vijay), which will resale all FireBug technology in India. Vijay maintains strong relationships with the Indian government and the local private sector. Besides this, the two reached an OEM (original equipment manufacturer) partnership in which Vijay will integrate components of FireBug’s core patented water mist technology into its own solutions for large projects and high-volume orders.
FireBug and Vijay are also collaborating on the development of an all-electric rapid response firefighting vehicle for the Indian market. This vehicle is based on ILUS’ ERaptor Electric Utility Vehicle Platform.
Vijay is listed as a recommended supplier to the Indian government and is in the process of adding all FireBug products to the Indian government’s purchasing portal, which will allow all government authorities and municipalities to buy FireBug products with a few clicks.
India is a huge market, and the latest partnership with Vijay is a major milestone for ILUS. Meanwhile, the company is also in the process of negotiating several acquisitions, including in the USA.
We think ILUS is an OTC stock worthy of attention. Its subsidiaries provide actual products in demand.
OTC Stock to Watch #3 MJWL
Majic Wheels Corp. has been performed well since the end of May, and this still might be the best entry point for the OTC stock, as it is only at the beginning of its journey. You can buy MJWL for $0.054 per share, down from 7 cents as of May 15, which is the highest level YTD.
Majic Wheels used to operate in the waste management sector, but it discontinued its operations in that space and instead turned to fintech and software markets.
On May 12, MJWL appointed new CEO and director, and it also applied for OTCIQ to become OTC Pink Current. The refreshed business will focus on fintech and software through M&As. Now David Chong is the new CEO and director of the Board. He has over 3 decades of experience working with publicly traded companies in the US, China, Europe, and Singapore.
In only a few days, the new management started to look for potential candidates for M&As. At the end of May, MJWL announced its intention to acquire CGCX Ltd, a cryptocurrency exchange and custody service platform generating $150 million in revenue.
Earlier this month, Majic said that it had been granted OTCIQ Access after completing the required verifications.
The company is transparent and ambitious – it holds online presentations, Q&A sessions, and it updated its website.
While MJWL is only at the beginning, it has the potential to turn into something big. We presented our bull case for MJWL in a recent post.
OTC Stock to Watch #4 RSHN
RushNet, Inc. is another company that is restructuring its business, and that could mean major opportunities for the first wave of investors. The penny stock hit a YTD high at $0.0075 on June 7, surging by over 650% in several days.
RushNet used to provide beverage products in the US and Canada. It offered cane-sugar sweetened and natural soda beverages. Nevertheless, the company now focuses on biotech solutions thanks to a recent reverse merger.
RushNet was recently acquired by Chattahoochee Labs through a reverse merger. Chattahoochee Labs is rebranding into heliosDX, though it currently uses both names. The new company retains the RushNet name and symbol on the OTC markets. It is working to become Pink current.
Chattahoochee Labs/heliosDX provides laboratory testing solutions. It has been operating since 2015 and has experienced profit and rapid growth every year. It is now expecting over $6 million in revenue in 2021.
With the procurement of a new QuantStudio 12x, the company can test 1500 Covid19 patients per day.
Meanwhile, the company intends to acquire a privately held laboratory with substantial revenues to join heliosDX. The new laboratory would triple RSHN’s revenues and quadruple its throughput. It can process more than 5,000 tests monthly with a capacity of 12,000 monthly UDS tests. This is only the first major step to positioning heliosDX as a presence on the national stage.
Here is the roadmap of key events to expect in the near term:
- Filing Disclosures – Imminent
- Filing Financials – Imminent
- Attorney Letter – Coming
- Mid Quarter Financial update and Highlights – Released
- Pink Current – Coming
- Audit Financials – In Process
- Website transition chattahoocheelabs.com to heliosDX.com – Near Completion
- Professional Sales and Marketing Video – In Progress
- Spin Off RushNet, Inc Subsidiaries
- Acquisition(s) and/or LOI Update
- Complete the Reverse Merger
- R/S Reassessment
- Reengage FINRA
- SEC Reporting
RSHN is turning into something big thanks to the reverse merger and this is a good stock to hold with a long-term target.
— Bond, OTC Bond (@DenisIgal) June 1, 2021
THE FINAL NOTE
Today is a great opportunity to benefit from the stock market’s bullishness and invest in OTC stocks with great potential during a reviving economy. Our job is to identify the best OTC stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
If you like any of these 4 OTC stocks, 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 an OTC stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to consider 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 OTC 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.