US stocks have had a great week, extending the rally that started earlier in October. On Friday, NASDAQ corrected a bit on Fed Chairman Jerome Powell’s comments, but that hasn’t spoiled the party.
Everyone expects the central bank to start reducing the bond-buying program next month or nor later than December.
Randy Frederick, managing director of trading and derivatives for Charles Schwab, told Reuters:
“Every time he (Powell) has been talking about tapering so far, markets haven’t been bothered by it, but now at record highs investors tend to be just a little bit more sensitive to such news.”
NASDAQ has been dragged down by Facebook and Twitter, which fell over 4%, and Snap, which tumbled over 25%. The latter said privacy changes by Apple Inc on iOS devices hurt the company’s ability to target and measure its digital advertising.
Intel is another major NASDAQ that fell over 10% as it missed Q3 sales expectations, while its CEO said that shortages of chips were holding back sales of its flagship processors.
Even though some NASDAQ-listed blue chips are not enjoying their best days, there are many penny stocks doing great, and our job is to identify penny stocks with growth potential both on OTC markets and major exchanges.
FINDING OPPORTUNITIES IN TOP PENNY STOCKS
There are plenty of opportunities for investors if they follow us here at Insider Financial.
The key to trading stocks is finding the 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.
It’s also best to own a portfolio of penny stocks. For some that can be as many as 10 to 20 or more penny stocks that include both OTC stocks and NASDAQ penny stocks.
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.
The fact is that there is always a bull market somewhere. That’s why it’s important for penny stock investors to trade both OTC and NASDAQ stocks, and sometimes get exposure to larger companies that still seem to have massive growth potential. There are always opportunities if you give yourself the flexibility to trade all markets.
In this article, we take a look at 4 penny stocks worth watching, two of which are listed on NASDAQ. They are Ascent Solar Technologies, Inc (OTCPK: ASTI), The Metal Arts Company, Inc (OTCPK: MTRT), Phunware, Inc (NASDAQ: PHUN), and Waitr Holdings Inc (NASDAQ: WTRH).
PENNY STOCK #1 ASTI
Ascent Solar Technologies, Inc has bounced back from the lowest level since January and is trying to reverse the long-term downtrend that has slashed about 90% of its value since touching the YTD high in February near $0.1. Now you can buy this OTC stock for $0.0138, up 34% since Monday.
Even though the share price of this Pink Current stock hasn’t been showing clear signs of strength, ASTI’s fundamentals are actually decent, and this might be a great opportunity to buy the dip, as we regularly recommend.
Earlier this year, financial reports showed that the $270 million company was profitable last year for the first time in many years.
ASTI produces award-winning thin-film photovoltaic modules with substrate materials that are more flexible, versatile, and rugged than traditional solar panels. Ascent Solar modules can be directly integrated into consumer products and off-grid applications, as well as aerospace and building integrated applications.
The company’s technology is in line with the current trends of renewable energy, and we think there is great value in this OTC stock.
Investors are excited about ASTI’s latest news, according to which its PV solution specially designed for a flight experiment conducted by NASA’s Materials International Space Station Experiment (MISSE-X), exceeded performance and power retention expectations. The product demonstrated that ASTI is capable of creating solar power solutions custom-designed for the extreme conditions that are unique to the space industry. The results of the experiment were announced by NASA at its 26th Space Photovoltaic Research and Technology (SPRAT) conference held virtually on October 20, 2021.
The NASA MSFC data results correlated with the performance of the International Space Station (ISS) in relation to the MISSE-X flight experiment. This flight experiment resulted in Ascent’s PV retaining 92% of its beginning of life (BOL) power, exceeding the NASA MSFC ground data predictions for approximately one year in orbit. This data was summarized as part of the ongoing investigations conducted by the NASA MSFC, into the viability of lower-cost PV technologies and solutions, and the significant advantages they may have over the current ‘space power’ technologies.
Ascent’s flexible, ultra-lightweight, monolithically-integrated PVs are based on the copper-indium-gallium-selenium (CIGS) chemistry and will benefit various future missions, ranging from CubeSats, solar sails, and potentially missions to the moon and Mars. As with other space programs, NASA MSFC began investigating ASTI’s flexible monolithically-integrated CIGS several years ago for a wide range of applications.
ASTI President and CEO Victor Lee said:
“I want to congratulate and commend our team, along with those at NASA and our industry partner, NeXolve who have worked diligently on this project for many years. These test results certainly set the stage for the potential of Ascent’s future involvement with LISA-T and Solar Cruiser, as well as some internal projects, that are designed for Ascent to advance to TRL (Technology Readiness Level) 7 and eventually Level 8 (Space Qualified) in the near future.”
— penny_stock_man (@penny_student) October 21, 2021
So ASTI exceeded NASA’s expectations. Can it get any better for an OTC stock? And the share price is just one penny. This is a clear buy for us.
PENNY STOCK #2 MTRT
The Metal Arts Company, Inc is maintaining the bullish vibe after surging by about 5,000% in the span of a few days from August to mid-September. The Pink Current stock touched a record high on September 7 at over $5. The price has corrected and is now trading at $2.2 after surging 200% since last week.
MTRT used to engage in contract electroless and electroplated nickel, aluminum anodizing, and other surface coating and enhancement operations but today it’s a blockchain and crypto play. It has recently got the Pink Current status and went through a reverse merger.
At the end of August, MTRT said that as a result of a private sale of 7,665,000 shares of common stock of the company, control of MTRT passed to Medium, Inc., a company incorporated under the laws of South Korea. A new board of directors of MTRT, consisting of Pan Jong Kim, Kiwoon Biak, and Yunho Chung, was appointed.
Medium is one of the largest blockchain companies in South Korea – the hub of blockchain. The news was so impressive that many investors couldn’t believe it even though MTRT appointed Medium’s management.
Medium operates a blockchain platform called MDL (Medium Distributed Ledger). It’s based on Hyperledger Fabric and can process 2,000 transactions per second. At the beginning of the year, Medium and China’s Peersafe partnered to build ASEAN’s largest trade finance platform. They will build and expand the China Trade Finance Union blockchain platform (CTFU) of the China Banking Association (CBA) as a Korea-China trade finance trading platform.
Medium is also working to form a consortium of the Bank of Korea to link Korea-China trade transactions worth 243.4 billion dollars (about 265 trillion won) per year and improve the cost structure of thousands and trillions of dollars that are excessively consumed in international trade transactions.
While Medium’s blockchain platform is free to use, the company wants to implement a business model similar to Red Hat, one of the most popular open-source solutions companies. Red Hat used to offer free enterprise open source products, but it charged businesses for further development or maintenance. It started to generate massive revenues and was acquired by IBM for over $34 billion.
Even when MTRT updates the record high by breaking above $5, it’s still undervalued.
The Korean is also behind KOK Play, whose token has a market cap of over $300 million, as per Coinmarketcap data. Medium acquired KOK Play earlier this year.
KOK CEO, Jiwon Kang, explained that the project KOK PLAY was created to compete against Google, Apple, Netflix, and Youtube in the upcoming years, at least when it comes to the Asian region.
— JoeDTrader💰💰💰 (@JoeDTrader) October 20, 2021
The KOK Foundation is a company that aims to innovate the existing business model by integrating global content industry and blockchain technology with the mission of “Keystone of Opportunity and Knowledge.” KOK aims to improve the distorted systems of traditional digital media contents industry and create a platform with more enjoyable, distinguishing, powerful content where the media industry can co-develop both in qualitative and quantitative aspects.
We think this OTC stock is huge and may soon even get uplisted. Getting it at $2 is definitely a great entry price.
— Ars617 (@Muhamma79866297) October 22, 2021
PENNY STOCK #3 PHUN
Phunware, Inc has demonstrated why it’s important to pay attention to penny stocks listed on NASDAQ as well, as they can also show impressive performance. The $700 million company has surged by over 800% in only a few days, hitting the highest since 2019, even though it is not profitable as of today. PHUN used to trade near the $1 mark and hit a YTD high earlier on Friday at over $18 before correcting to the current level of $8.85.
The small software company has been linked with Donald Trump and was losing money.
PHUN went public via a special purpose acquisition company (SPAC) in 2018 and became popular for its work with the Trump reelection campaign. Phunware received a $3 million contract from Trump’s former campaign manager, and its stock surged from $10 a share in December 2018 to over $300 a share by Feb 1, 2019, although it then collapsed to $6.
Earlier this year, the share price used to fluctuate below the $1 mark, which is not accepted by NASDA rules. It managed to break above $1 in due time, but it could risk going back at any time, as it traded near $0.90 as recently as last week.
However, PHUN suddenly became attractive to retail investors, who pushed the share price higher. PHUN’s prior relationship with Trump came to light again as Trump is involved with another deal with SPAC company Digital World Acquisition Corp, which was used by Trump Media & Technology Group to get public through a reverse merger.
Investors on Reddit started to drive PHUN as well, encouraging each other to buy shares and reminding the company’s impressive rally from 2019. One post said:
“This stock ran to $500 per in 2019. With that being said we all know even higher is possible now.”
Trump Media & Technology Group is planning to launch a new social network called TRUTH Social.
A USA Today article hinted that PHUN could be involved with the development of the social network.
$PHUN Trump News: Donald Trump reelection app gets boost with Phunware partnership
Remarks : $PHUN “Yuge” News:
— Radio Silent (@RadioSilentplay) October 21, 2021
PHUN has surged on record volumes, and momentum is still there even though it found resistance at $20. This is a stock you should pay attention to but be aware of its speculative nature right now. Retail investors have become a major force lately, with the GameStop rally symbolizing their power.
Phunware operates a software platform for mobile that offers companies the products, solutions and data and services necessary to engage, manage and monetize their mobile application audiences.
Most mentioned tickers on Twitter (Last Hour):
— Stock Quant (@Stock_Quant) October 21, 2021
PENNY STOCK #4 WTRH
Waitr Holdings Inc is another NASDAQ-listed company, but it’s not even close to PHUN in terms of price performance. However, the great thing about WTRH is that it has solid fundamentals, and it’s actually undervalued. The share price, currently at $1.46, has gained 50% since mid-September, but larger timeframes show that it had consistently declined since July 2020, which peaked at over $5.
Waitr Holdings Inc, through its subsidiaries, operates an online ordering technology platform in the US. Its Waitr and Bite Squad mobile applications provide delivery, carryout, and dine-in options, connecting restaurants, drivers, and diners. As of December 31, 2020, the company had approximately 20,000 restaurants, in 700 cities, on the platforms. The business has been struggling with the pandemic, but it can redirect to online interactions with consumers.
Last week, the stock bounced back from the lowest level since March 2020 after Morgan Stanley disclosed a 10.3% stake in the company. Trading volume surged to a record 170 million shares, which made it the most actively traded on major US exchanges, and well above the average of 5 million shares.
In a filing with the SEC, Morgan Stanley said it owned 12.13 million shares of Waitr stock, which would be enough to make it the largest shareholder. The shares have been acquired recently since Morgan Stanley’s latest 13-F filing with the SEC in August showed that it had owned only 807,195 shares as of June 30.
On Monday, WTRH said that it had broadened its partnership with Olo Inc (NYSE: OLO), a leading on-demand commerce platform powering the restaurant industry’s digital transformation, by joining Olo’s Dispatch network. Thanks to the agreement, Waitr, Bite Squad, and Delivery Dudes will receive delivery requests from restaurant orders generated through their own websites and apps. The solution seamlessly manages each restaurant’s delivery options and selects service providers, including a restaurant’s own couriers, based on optimal price, timing, availability, and other criteria. As a result, Waitr will have increased accessibility to new restaurant brands, as well as the ability to reach guests.
The consolidated partnership may help WTRH improve its financials as it reported losses in the second quarter, missing estimates.
WTRH is a great company with a healthy balance sheet and providing great value. The share price has been declining for over a year, but it’s time to reverse the bearish trend.
I don’t usually share my DD on companies, but this company is too good not to share. A bargain! Hope it helps. As always, not financial advice. Do your own DD. Best of luck! $WTRH pic.twitter.com/4V8kWO2gAI
— Jer Johns (@jer_johns) October 17, 2021
THE FINAL NOTE
Now is a great opportunity to invest in top penny stocks with great potential. Our job is to identify the best penny stocks with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio.
Buying dips and selling rips as swing trades remains the best strategy in the stock market. Still, whenever a hot stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye penny 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 run 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.