While the days between Christmas and New Year’s are typically the slowest of every year, there was some excitement on the OTC Markets. 4 penny stocks that really caught fire are Artificial Intelligence Technology Solutions (OTCMKTS: AITX), Corporate Universe (OTCMKTS: COUV), SunHydrogen (OTCMKTS: HYSR), and Solar Integrated Roofing (OTCMKTS: SIRC).
In this article, we take a look at what’s happening with AITX, COUV, HYSR, and SIRC. We also give some insight on how to trade penny stocks and what investors should look for when it comes to the OTC Markets.
HOW TO TRADE PENNY STOCKS
First up, it’s important to understand that trading penny stocks are not the same as trading blue chips. As we have stressed repeatedly to our subscribers, the key to trading penny stocks is finding momentum BEFORE it happens and then be patient.
Now, when we say that we find momentum BEFORE it happens, we are swing traders looking to position our subscribers BEFORE the move happens. This is where the big money is made and why so many of our subscribers are sitting on gains of over 7250% in ENZC and over 24,525% in TSNP.
If you want to day trade, this is not the place for you. If you want to make a few hundred bucks and then lose a thousand dollars the next day, we hear Tim Sykes has plenty of openings.
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.
Penny Stock #1 AITX
AITX has been on the move after restructuring its convertible debt and signaling to the market that big developments are in the works. For those new to the OTC Markets, whenever a company can stop dilution that’s always a big deal. What kills most penny stocks and creates a ton of bagholders is the printing press of endless share certificates from toxic financing.
On December 15, AITX restructured over 85% of its convertible debentures into non-convertible notes and warrants. The remaining noteholders have not made any conversions in over two years and the company does not anticipate any further conversions prior to restructuring the remaining balance of the debentures.
AITX restructured a total of $7,141,110 of convertible debt into $7,141,110 of non-convertible promissory notes with a 36-month maturity and 12% annual compounded interest and 780M warrants with a 36-month maturity and $0.002 exercise price. The exercise price was calculated by taking the average closing price of the last ten trading days ended December 10 and adding an approximately 25% premium.
Moving forward AITX said that it will seek debt and low dilutive types of financing as it continues to grow and reach its objectives.
Last week, AITX announced that a major dealer of AITX’s wholly-owned subsidiary Robotic Assistance Devices (RAD) has received a greatly anticipated order for a 5-unit RAD solution. This integrated autonomous remote security and access solution will be deployed to a Fortune 500 end-user client with over 10 distribution centers and over 7,500 retail locations in the U.S. and Puerto Rico.
Overall, we like the recent moves AITX has made; however, there are still a ton of liabilities on the balance sheet. At the end of August, AITX reported just $508,000 in total assets compared to $24,859,000 in total liabilities. This makes its current market cap of $57 million, a little too rich in our opinion.
Penny Stock #2 COUV
COUV is an M&A play on the OTC Markets. This is where a lot of money is to be made when a shell starts making M&A moves. A shell is basically a SPAC looking for deals. This is what TSNP was when OTC Markets specialist George Sharp got involved and facilitated the merger with HUMBL.
The deal that has excited the market about COUV is its deal to acquire Carbon Ion Energy Storage Ltd (or Carbon-Ion Energy Storage, Inc, fka ZapGo, a high technology electric battery development company, building the next generation of energy storage devices.
The company’s technology provides:
- Improved energy storage allows the cell to be used as the principal method of energy storage in a far wider range of technologies than conventional batteries or supercapacitors
- High specific power allows very fast charging (oftentimes only seconds) through Carbon Ion’s “Instant-charge” technology
- High specific power enables the extension of Li-ion battery lifetimes and reduction in battery size through peak shaving in hybrid applications
- Improved safety protects customers, allows easy shipping, and opens up applications in hazardous areas
- Long cycle life allows energy storage to be installed for the entire lifetime of the device, reducing design complexity, eliminating service intervals, and saving money
- Recyclable at the end of life.
COUV is moving along with other EV battery plays like ABML, which we are bullish on and last talked about here.
Penny Stock #3 HYSR
HYSR is a green energy play running on the back of $9 million in new financing. Earlier this month, HYSR sold 120,000,000 shares of the Company’s common stock at $0.075 per share for gross proceeds of $9,000,000.
HYSR intends to use the net proceeds primarily to accelerate the development of its breakthrough nanoparticle hydrogen generation technology, as well as for working capital and general corporate purposes.
In November, HYSR announced an adjustment to the manufacturing process that will extend the lifetime of the hydrogen-producing solar cell assembly by using a new combination of polymers to protect the device from photo corrosion of the solar cells. While the upgrade has caused a delay in production, the outcome has been a considerably improved product and process. The 100 demonstration panels are now back in full manufacturing mode.
A new combination of materials and methods were identified through the engineering of the manufacturing process. Previously, in August, the company disclosed that there would be a minor design change in the housing to better accommodate the fittings for hydrogen release. A minor design change was made and the fittings suitable for thin devices were identified and ordered.
Currently, the solar cells are processed using a custom-built system for punching silicon solar cells without shorting them, which is one of the most difficult parts of manufacturing the demonstration devices. The application of protective coatings and catalysts then protect the solar cells from corrosion.
The improvement of the manufacturing process has been invaluable to the Company as additional investment and focus is applied to the accelerated development of its breakthrough nanotechnology hydrogen generation technology.
Obviously, the improvements are significant as the company would not have been able to get investment bank H.C. Wainwright & Co. onboard to raise $9 million from its clients for HYSR.
Penny Stock #4 SIRC
SIRC impressed the market when it announced Q3 revenues of $5.2 million. This is impressive when you consider that SIRC has just a $42 million market cap.
The record revenue in the third quarter of fiscal 2021 represents over 130% year-over-year growth from $2.3 million in the third quarter of fiscal 2020, driven by continued operational execution and cross-selling synergies across the Company’s core business lines.
SIRC is another green energy play that will benefit from the incoming Biden/Harris administration. SIRC is an integrated, single-source solar power and roofing systems installation company specializing in commercial and residential properties in the Southern California market. Vice President-elect Harris was a Senator from California.
SIRC also now has a dedicated EV charging division to address growing installation and service opportunities on the West Coast, making SIRC an EV battery play as well. SIRC CEO David Massey said:
“We continue to see exciting acquisition opportunities in markets we operate in, as well as in complementary adjacent markets, at attractive multiples. With services now spanning solar, battery backup, EV charging, roofing installation, HVAC work, and electrical contracting, we are well-positioned to tackle increasingly large opportunities – such as entire new residential developments with our builder partners throughout California. I look forward to continued aggressive growth going into the fourth quarter and beyond.”
These four penny stocks are bucking the trend right now. There are always opportunities on the OTC and it’s our job to find the bull markets. Huge gains can be made in such a short amount of time.
COUV, HYSR, and SIRC are emerging green energy plays and the momentum looks set to continue in those names as Joe Biden enters the White House.
For those that missed out on the recent run, our best advice is to be patient and throw bids in below the market. Buying dips and selling rips as swing trades remains the best strategy in these markets.
Remember, all it takes is one or two to become a TSNP or an ENZC and you’re set to buy a new house and not just make a rent or mortgage payment.
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.