OTC stocks are doing great this week, even though the OTCQX Composite index, which tracks over 400 OTC stocks, is correcting below 1,600 points.
Investor sentiment improved after a measure of US factory activity surged to a record high in June, even though manufacturers are still struggling to secure qualified workers and raw materials, resulting in significant price increases for businesses and consumers.
IHS Markit said on June 23 that its preliminary manufacturing purchasing managers index (PMI) rose to 62.6 in June, higher than the expected reading of 61.5. A reading above the 50 mark suggests growth in manufacturing, which accounts for 12% of the US economy.
Elsewhere, the flash services sector PMI fell to 64.8 from 70.4 in May, although it was still the second-highest figure on record.
The upbeat manufacturing data suggests that the economy is rebounding and is likely to show double-digit growth in the second quarter.
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 to own a portfolio of small-cap 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 with growth potential. They are APT Systems Inc (OTCPK: APTY), 88 Energy Limited (OTCMKTS: EEENF), Good Gaming Inc (OTCPK: GMER), and PHI Group, Inc (OTCPK: PHIL).
OTC Stocks to Watch #1 APTY
APT Systems Inc has been correcting during the last few days, but the general trend is still bullish. The OTC stock is currently trading at $0.011, down 26% for the last five days, which is a normal correction as the share price is still up over 600% for the month. APTY touched 2 cents on June 16, which is the highest level since the end of 2018.
APTY had big plans up until 2019, but it eventually was forced to go dark, i.e., cease to report with the Securities and Exchange Commission (SEC). For about one year, the company hasn’t filed any reports, such as 8-K, 10-K, or 10-Q.
Recently, APTY announced that it planned to become Pink Current again, which comes out as a great opportunity for investors.
It seems that the company intends to continue what it planned several years ago but failed to comply with the roadmap. Specifically, APTY has been working to build a financial ecosystem that includes escrow, payments, and trading services.
The platform will be backed with a stablecoin known as Spera. The ERC-20 will be pegged to the USD with a 1:1 ratio and listed on external exchanges soon. Initially, the company announced Spera in 2018 but failed to advance with its development.
Spera will act as the main token on Verifundr, an escrow and payments platform that lets participants transfer dollars, store funds in escrow in order to bind contracts, and later pay others from the credited funds anywhere in the US. Verifundr is meant to be an ID checker to comply with the KYC and AML rules in the US and 75 other countries.
Spera is designed to be a fiat-to-digital cryptocurrency that is supported and monitored by members of the Verifundr platform to bring trust, safety, and instant payments to parties entering into transactions. The initial roadmap showed that Verifundr was only the initial step towards a wider ecosystem.
Stablecoins have become a big trend, and if APTY manages to expand its ecosystem, the share price will reflect this. Still, the competition is getting tougher, as USDC, a stablecoin launched by US-based Circle and Coinbase, is the fastest-growing USD-backed token right now.
Besides its stablecoin ecosystem, APTY also owns AUREX Trading and Recovery Inc and plans to launch a cryptocurrency backed by gold and silver.
All in all, as of June 2021, APTY said that it had three key areas of focus: Verifundr, Spera, and AUREX Trading and Recovery.
Earlier this week, the company said that it had completed the first unofficial phase of achieving compliance with the SEC’s amendments to Exchange Act Rule 15c2-11. Previously, APTY had submitted company information and application fees to the OTC. The final phase will be completed when the OTC registers APT Systems and provides access to the OTC Disclosure & News Service dashboard.
OTC Stocks to Watch #2 EEENF
88 Energy Limited has been correcting on June 23, down 14%, but has gained over 7% during the last five days, trading at $0.18. The OTC stock has been trading at two cents since the beginning of April, after declining from the year-to-date high at $0.08. Insider Financial shared its take on EEENF in mid-March, well before the YTD peak, which proves once again the great value of subscribing with us and accessing the best OTC stock picks.
The Pink Current company is focused on the exploration of oil and gas properties in the US, mainly in Alaska. It holds a 59% working interest in the Icewine project, which covers an area of about 231,000 acres, and a 100% working interest in the Yukon Gold leases with an area of 15,235 acres. It also has a 50% working interest in the Peregrine project, with an area of about 195,373 acres. All of the projects are located in Alaska.
In 2020, 88 Energy Limited announced that it would test the Merlin exploration well by drilling. In March of this year, it started operations eventually confirmed a great potential of hydrocarbon-bearing zones at the site, which is part of the Peregrine Project. At the beginning of April, EEENF announced the existence of multiple potentially hydrocarbon-bearing zones, which sent the OTC stock price higher.
While the EEENF price has been dormant since April, the OTC stock is a great long-term bet in the case the Merlin-1 site turns out to be full of oil or/and gas.
The company had to receive some concrete results at the end of May. In its latest update released on May 25, it confirmed that it had encouraging evidence of oil in downhole samples being investigated in the laboratory, and additional fluorescence was recorded at previously unidentified depths. However, this data was in raw format, and only verbal comments had been received by 88E, which indicated an increased fraction of resins and asphaltenes, which can only be associated with the presence of oil. Thus, further investigation is required to validate the actual percentage of hydrocarbon in the samples.
It’s worth noting that the company’s largest shareholders include subsidiaries of Merrill Lynch, Citigroup, BNP Paribas, and JPMorgan. These giants wouldn’t hold EEENF if there was no potential. The top 20 shareholders increased their stake from 36% to 64%. Meanwhile, the company’s managing director, Dave Wall, has doubled his position from 120 million shares to 240 million shares.
$EEENF Capital Structure updated May 21st & Compared to Feb 23rd
David Wall DOUBLED his position since his departure (120M to 240M)
ML, Citibank, BNP, JPM: This is HIGH NETWORTH buying. Not Joe Shmoe's like you and me
Top 20 went from 36% of OS to 64% of OS.
Follow the money. pic.twitter.com/ecPCTXoOtM
— PokeStonksTrainer (@HarisRad88) June 20, 2021
Earlier this month, 88E said that it had entered into an agreement with Alaska Peregrine Development Company, LLC (APDC) that will facilitate the continuation of the exploration program at Project Peregrine next winter. Under the agreement, 88 Energy will buy a 50% working interest from APDC in Project Peregrine, increasing its stake to 100%.
Meanwhile, the company fully repaid all its debt.
The investor community is bullish on EEENF, which may also support the bullish stance. We think EEENF is an undervalued OTC stock that can easily surge in price.
OTC Stocks to Watch #3 GMER
Good Gaming Inc has been performing well lately, hitting $0.24 on June 22, which is the highest level since July 2017. The share price has corrected to trade at $0.19. At the beginning of the year, you could buy this OTC stock for only 4 cents per share. We shared our bullish stance on GMER at the end of May, a few weeks before the YTD peak.
GMER is a $14 million gaming company that operates a leading tournament gaming platform and online destination targeting the over 250 million amateur eSports players worldwide that want to compete at the high school or college level.
While it’s Pink Current, GMER has the Shell Risk symbol on its OTC Market page, which means that company displays characteristics common to shell companies based on an analysis of the company’s annual financial data. In other words, it has minimal assets and operations. Still, this symbol can be automatically removed as the company updates its financials.
GMER has been benefiting from the NFT (non-fungible token) craze at the beginning of 2021.
Its newest game MicroBuddies, will enable players to adopt “lovable, self-replicating microbes” – which come in the form of NFTs – that passively produce the company’s own cryptocurrency called GOO. This can then be used to create new MicroBuddies. “Well-bred” MicroBuddies that have a high rate of GOO production can generate profits for players. GOO will eventually trade on third-party cryptocurrency exchanges. The game is expected to go live in July.
The first 2,500 MicroBuddies, collectively known as generation 0, are expected to be the rarest and most scarce set of MicroBuddies and what the rest of the game will propagate from. Thus, when the game launches, we expect a lot of activity that will likely reflect in the share price.
GMER CEO David B. Dorwart explained:
“Through careful analysis, our team has determined the fastest way for Good Gaming to stake its claim in the multi-billion dollar online gaming market will be through the strategic creation of first-of-its-kind games, with the implementation of first to market gaming that will benefit and capture the attention of Gamers. At the same time, it will increase our audience base exponentially as we cross-market two explosive industries that are currently garnishing a significant amount of attention in today’s market.”
Indeed, the fact that GMER operates both in the gaming and crypto/NFT industries creates a lot of opportunities for the company.
Earlier this week, Dorwart shared his vision of the company in an interview.
— Good Gaming Investors (GMER) (@GOODGMER) June 21, 2021
All in all, GMER is a good OTC stock to hold, as the company is focused on the fast-growing NFT space and looks for new opportunities.
OTC Stocks to Watch #4 PHIL
PHI Group, Inc has been performing really well during the last few days, updating the YTD high. The OTC stock has gained 10% on June 23 and over 80% during the last five days. During the last month alone, PHIL surged over 550%, becoming one of the best-performing OTC stocks. PHI Group is one of those companies with great value that don’t get the deserved attention on social media. At the time of writing, it is trading at $0.019, which is the highest level since the beginning of the year. Still, PHIL seems to be only at the start of its bullish run.
The company runs PHILUX Global Funds, a group of Luxembourg bank funds organized as Reserved Alternative Investment Fund (RAIF), and operates the Asia Diamond Exchange (ADE) in Vietnam. It also engages in M&As and invests in select industries and special situations that may boost shareholder value. On top of that, PHIL’s wholly-owned subsidiary, PHILUX Capital Advisors, Inc provides M&A consulting services and helps companies go public.
The $500 million company is now working on updating its financial situation and getting its operation current by carrying out all the necessary filings. PHIL CEO Henry D. Fahman has been late with the filings, but he said he would file the 10-K for the financial year ended June 30, 2020 by the end of June 23.
$PHIL Dear Valued current shareholders and potential shareholders, we hope you can join the EGC conference https://t.co/eLpAnDmuM9 on Wed, 6/23/21 at 12:30 pm EST. We will file the 10-K for FY ended June 30, 2020 after market close tomorrow (6/23/21). God bless!
— PHI GROUP INC (@PHIGROUP) June 22, 2021
PHIL has been the most searched OTC stocks, and we think you should keep an eye on it.
— timez1000 (@Timez1000) June 23, 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.
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 an OTC stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye 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.