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4 OTC Stocks with Strong Fundaments: AXXA GFTX NLST SFOR

4 OTC Stocks with Strong Fundaments: AXXA GFTX NLST SFOR
Published on
January 28, 2022
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Smart investors know that if you want to make the big money off a small account, the place to be is the OTC Markets, especially since mainstream stocks are flashing red these days. There are many good OTC stocks that can boost your portfolio’s value in the long term irrespective of what happens in higher-tier markets. 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.[embed]https://www.youtube.com/watch?v=iecJfxsk82o[/embed]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.In this article, we look at 4 OTC stocks that can boost your portfolio. The OTC stocks are Exxe Group Inc (OTCPK: AXXA), Global Fiber Technologies, Inc (OTCPK: GFTX),Netlist, Inc (OTCQB: NLST), and StrikeForce Technologies, Inc (OTCQB: SFOR). OTC stocks #1 AXXA OTC stocks #2 GFTX OTC stocks #3 NLST OTC stocks #4 SFOR

OTC STOCKS #1 AXXA

Exxe Group Inc has corrected since the last time we reported on it last month, but this is even better for new investors. This metaverse play can provide great value in the years to come if it moves according to the recently outlined roadmap.AXXA is up about 2% during the last five trading sessions to trade at $0.037, but it is down over 30% over the month.AXXA is a diversified fintech company with assets in real estate, financing, agribusiness, digital media, and software-related technology platforms.While it has a new metaverse strategy that attracts many investors, the fact that it has multiple subsidiaries operating in a variety of tech areas makes it an even more solid bet.Today, AXXA is already expanding its reach in the two key segments: physical real estate and digital real estate assets, and it wants to leverage the metaverse trend.Recently, management unveiled its plans to acquire, in stages, commercial and residential assets whose values should approach an estimated $100 million. The first stage closed at the end of last year when AXXA conducted a $10 million transaction. As part of the deal, the company added three out of a (future) total of six buildings in Frankfurt with commercial, and mixed-use commercial/residential spaces in a highly sought-after section known as the Frankfurt Bornheim region, which is a popular area to live, work, and play.Next, with each closed stage, $25 million in assets should be added to the company’s real estate portfolio, per quarter. The portfolio includes approximately 250 residential units along with commercial property and land. The property is mostly dispersed throughout Germany’s largest cities and towns in European countries, including Berlin, Hamburg, Munich, Bern, Zurich, and Mallorca.AXXA expects its real estate portfolio to secure an immediate 25% increase in value, with a full audit scheduled at the beginning of this year.https://twitter.com/exxegroup/status/1471539412530040834Besides its physical properties, AXXA is betting on virtual real estate as part of its metaverse plan. It provides multiple styles of digital space designs and makes them attractive for people to work in and play including attending events. The company will leverage its 1Myle crypto exchange to enhance its financial transaction capabilities while attracting designers, programmers, and artists.On Wednesday, AXXA announced the launch of a new digital footprint as part of its metaverse initiative through its Seven Horn Films business. The new Entertainment focus will leverage AXXA’s experience in music, film, and fashion events, along with its digital communities, to simultaneously showcase interactive entertainment events via physical media and the virtual environment. The company anticipates a revenue increase of at least 15% from the sales in the content, fashion, music, and film market segments within 12-18 months.AXXA is a great OTC stock because it has a well-diversified business and bets on the metaverse trend and has a multi-level metaverse strategy. Besides this, the $24 million company has a great share structure. AXXA is undervalued at this price and will likely grow fast this year.https://twitter.com/exxegroup/status/1486339413168775172

OTC STOCKS #2 GFTX

Global Fiber Technologies, Inc is a small company that has been making waves. The OTC stock, which has the Pink Current status, has more than doubled in price since the beginning of the year, currently trading at $0.0061.GFTX is a holding company that specializes in fiber, textiles, and apparel technologies through its subsidiaries. One subsidiary, Fiberchain, Inc., is developing a digital-based fiber exchange platform to facilitate buy/sell transactions of textile fibers on a global basis. The company explained in a recent call:

“Fiberchain is a massive opportunity since when it is comp leted will resemble a virtual commodities exchange except for the trading of textile and industrial fibers amongst 187 countries. It will be driven by an AI program that will eliminate human error and cut down the time it takes to do a transaction from 24 weeks to just hours.”

https://twitter.com/GlobalFiber_/status/1484171070190104577In addition, the company is developing a portfolio of licensed as well as proprietary technologies and trade secrets that will bring cutting-edge attributes and value-added properties to the textile and apparel industries that will be branded as Eco Tek 360. GFTX plans to offer high-tech apparel to the corporate, hotel, hospital, and military markets.Besides its Eco Tek 360 and Fiberchain divisions, GFTX is operating Authentic Heroes, a unique brand whose idea is to share the original game- or stage-worn garment of a celebrity with a broader audience “allowing more fans to own a piece of history.” Authentic Heroes sources original game- or stage-worn items directly from athletes or musicians and reclaims the fiber from these authenticated garments. The fibers are then used to create unique, collectible clothing. Under US patent, the reclaimed fibers from the original garment are treated with a scientifically identifiable process and spun with new fiber to create a reclaimed fiber blended yarn, which is eventually knit or woven into fabric that is used to sew a unique collectible garment with original designs and individual serial number.https://twitter.com/GlobalFiber_/status/1482138042257362950Through its Authentic Heroes subsidiary, GFTX will leverage opportunities in NFTs, authenticated clothing, and the music industry. The company is already collaborating with several musicians and athletes.The $8 million company is only starting its journey and has much room for growth, as there will be no dilution, and GFTX is expecting profits in 2022.At the end of January, GFTX is about to acquire or develop a joint venture with Maestro Entertainment, which represents another great revenue stream in 2022.https://twitter.com/GlobalFiber_/status/1483883676563918853The venture will initially license Maestro's music catalog of 10,000+ masters recordings and also leverage Maestro's industry relationships to create additional opportunities for the combined venue. The transaction will bring synergy between the companies that will initially create and sell Non-fungible “Music Tokens” and Vinyl records to be marketed either individually or bundled together.All in all, the future looks bright for GFTX, so keep an eye on this OTC stock.

OTC STOCKS #3 NLST

Netlist, Inc is a great OTC stock and we have reported on this OTCQB member on several occasions, as it was confronting Google itself in court. On Tuesday, the share price bottomed out at $3.3, the lowest since the end of June. The price then broke above $5 on Thursday.We presented our bullish case for the company as early as March when NLST was trading below $2. The price eventually hit a record high in July at over $10.The $1+ billion company provides high-performance SSDs and modular memory subsystems to enterprise customers in diverse industries. The company's NVMe SSD portfolio provides industry-leading performance offered in multiple capacities and form factors. HybriDIMM is Netlist's next-generation storage class memory product, which addresses the growing need for real-time analytics in Big Data applications, in-memory databases, high-performance computing, and advanced data storage solutions.Netlist also manufactures a line of specialty and legacy memory products to storage customers, appliance customers, system builders and cloud and datacenter customers. Netlist holds a portfolio of patents in the areas of server memory, hybrid memory, storage class memory, rank multiplication and load reduction.Speaking about patents, the company has been fighting with Google over a patent infringement allegation. Netlist alleged that Google’s computer servers infringe its patent for a memory module that increases capacity and improves energy efficiency. Last year, the US Court of Appeals affirmed the company’s patent that applies to DDR server memory modules, which may help the company monetize its product.NLST is also in an ongoing legal battle with Samsung, the largest manufacturer of NVMe SSDs. Last month, the jury declined to award direct damages of $2.5 million, the amount sought by Netlist. Nevertheless, before that, the Court for the Central District of California issued summary judgment in favor of Netlist and against Samsung for material breach of various obligations under the Joint Development and License Agreement (JDLA), which the parties executed in November 2015. In the summary judgment Order, the Court also held that Netlist properly terminated the JDLA, a remedy that leaves Samsung without a license to Netlist's patents. NLST Patent Counsel Tobin Hobbs said:

“While we are disappointed with the jury's decision on this narrow issue, we're very pleased with the overall outcome of the case as it confirmed that Samsung no longer has a valid license to Netlist patents and therefore requires a licensing agreement.”

NLST’s patents can help the company gradually expand. Meanwhile, earlier this week, the company presented its new PCIe Gen4 NVMe™ N1563 Series of SSDs, expanding Netlist's Gen4 NVMe portfolio. This new line of SSDs brings exceptional performance, new NVMe and TCG Opal security features, and short lead times necessary to meet enterprise and cloud design requirements. https://netlist.com/products/enterprise-ssd/data-center-nvme-ssd/The N1563 delivers a significant performance boost compared to prior generation solutions with up to 2X sequential and higher than 67% random read and write workload performance improvements, and offers on average 30% lower latency. Available in two form factors: 2.5-inch U.2 and HHHL AIC with capacities ranging from 1.6TB to 7.68TB, the N1563 provides the required fit and scale for mainstream and high-performance applications.Despite the multi-month correction from the ATH, we have high expectations of this OTC stock and anticipate an uplist to NASDAQ.

OTC STOCKS #4 SFOR

Another OTCQB stock is StrikeForce Technologies, Inc, but its market cap is only $35+ million. Unlike NLST, SFOR has been consistently declining for years. It showed an impressive rally in February when it surged from five pennies to 30, but it eventually lost momentum and has corrected to Tuesday’s $0.031 bottom, which is the lowest in more than a year.Despite the poor performance 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.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.In its latest update for 2022, which was released last week, CEO Mark L. Kay said:

“To say that StrikeForce is undergoing a business transformation that will reshape our future and propel sales and increase shareholder value is an understatement. We have a killer strategy for 2022, we have products, exploding market opportunity, and the monies to promote our products & services to achieve our revenue projections and then some. This coming year is going to be epic for StrikeForce.”

The strategy is mainly about building SafeVchat as the new privacy and security standardization in the video conferencing and collaboration industry. Kay said:

“In addition to the unique features of SafeVchat, our PrivacyLok Endpoint Security solution also positions us in a very distinctive spot. PrivacyLok is the only cyber security solution in the market that protects your camera, microphone, speakers, keyboard, clipboard and prevents screen scraping malware from stealing screen shots. It therefore protects YOU.”

The solution can be used with other video conference apps, such as Zoom.This market segment will continue to explode in the next years, and SFOR is looking to leverage this trend. It has increased its marketing efforts, shooting TV commercials that will air on CNN, CNBC, Bloomberg TV, and FOX.While SFOR has been bleeding all these months, we think the company is experiencing a major transformation that will help it expand the market cap. Three pennies is a bargain price for SFOR.https://twitter.com/StockDayPodcast/status/1483972258301317121

THE FINAL NOTE

All of the 4 OTC stocks discussed today are good stocks to hold. 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)!

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.

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