If January is a sign of things to come for 2021, traders and investors are going to make a lot of money this year. 4 stocks on the move are Barrel Energy (OTCMKTS: BRLL), Barnwell Industries (NYSEMKT: BRN), Camber Energy (NYSEMKT: CEI), and Relief Therapeutics (OTCMKTS: RLFTF).
HOW TO TRADE PENNY STOCKS
First up, it’s important to understand that trading penny stocks is 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.
We got our subscribers in early on TSNP, which you can read our latest here, and ENZC, which you can read about here. It’s also best to own a portfolio of quality penny stocks. For some that can be as many as 10 to 20 or more penny stocks.
Now, when we say that we find momentum BEFORE it happens, we are investors 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 7750% in ENZC and over 36,150% in TSNP.
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.
Now we know many prefer to day trade, but we are not day traders here at Insider Financial. It 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.
If you want to day trade, Insider Financial is not the place for you. When it comes to day trading, and if that’s what you are after, we recommend the folks at True Trading Group, which you can check out their live streams here.
OTC PENNY STOCKS VS NASDAQ/NYSE PENNY STOCKS
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/NYSE penny stocks. There are always opportunities if you give yourself the flexibility to trade all markets.
Last year, for the first half of 2020, it was much more profitable to trade NASDAQ penny stocks than OTC. That is where we and our subscribers were positioned. We captured the runs in SRNE, NIO, INO, IBIO, WKHS, and many others. Then once the summer came, many of the COVID runners had failed to find momentum. We then pivoted to OTC and caught the runs in TSNP, ENZC, MMEDF, and many others.
So far this year, it’s best to play both OTC and NASDAQ/NYSE penny stocks. There is no shortage of multi-baggers in both markets at the moment. As we have said repeatedly, there’s no better time to be a penny stock trader and traders need to be aggressive. It’s like being at the casino. When you have a hot hand and the house keeps losing (hedge funds and institutions), take advantage of it while you can.
On the OTC, penny stocks that have the STOP sign are catching bids as traders bet on the stocks cleaning up their filings or doing a merger deal. With a STOP sign, the filings have not been filed on time so the company needs to catch up. Many of these aren’t good securities, but if there was a recent reinstatement (company updated profile checkmark) or filings are starting to pour in, a stop sign that has been asleep for years is one of the best buys you can make since the stop will become a YIELD and PINK current will be on the way. Examples right now include CYBL, ASTI, SHOM, and PLYZ.
On the NASDAQ and NYSE, we are seeing epic short squeezes that are being led by the army of day traders over at Wall Street Bets. The strategy is to simply squeeze the shorts and we love this. It’s a momentum strategy that any trader can implement. Simply go to finviz.com and screen for stocks. Use the Top Gainers signal and screen for stocks with a float short over 10%. The strategy is that once a heavily shorted name starts running. Momentum players jump on board and the shorts are forced to cover as the stock climbs.
This is what we are seeing in Gamestop, KOSS, Bed Bath & Beyond, BLNK, PLUG, WKHS, and even the dog shit stock Nikola. For those that are interested in this strategy, we wrote a detailed article with video analysis that explains how to do-it-yourself, which you can read here.
In this article, we take a look at 4 penny stocks on the move BRN, BRLL, CEI, and RLFTF to find out what’s behind the move and our outlook for each.
Penny Stock #1 BRLL
BRLL is running after updating the markets with the latest developments. As you can see from the chart below, the market liked what it heard and so do we.
The main reason for the run is that the team behind BRLL is a who’s who when it comes to penny stock investing. The CEO of Barrel Energy Mr. Craig Alford was also the founder of American Battery Metals Corp (OTCMKTS: ABML), which has been a big winner for Insider Financial subscribers.
The Chairman of Barrel Energy, Mr. Harp Sangha and Mr. Alford are also the founders of Lithium Now.
Global demand for Lithium and other battery raw materials is expected to rise dramatically over this decade. The outlook for Lithium will outstrip production with global demand for Lithium expected to increase 650% by 2027. Market demand for Lithium has been predicted to be a staggering 470,000mt by 2025. Each 1% increase in new global Electric Vehicle sales could further increase Lithium demand by 70,000mt, nearly representing the total of last year’s annual production of Lithium.
BRLL has recently been in discussions with St-Georges Eco-Mining Corp (OTCMKTS: SXOOF) regarding several sites for their Lithium processing technology centers within the southwest U.S.
BRLL is considering location sites with a specific eye toward cost efficiency and process permitting. Access to infrastructure, sufficient power, transport, and nearby source material and demand are all factors for project viability. BRLL’s lead development site is situated on a roughly 30-acre property that is now zoned for industrial activities located in Nevada just 18.5 miles from the Tesla Gigafactory 1.
What’s most exciting about BRLL is that OTC Markets still has the STOP sign placed on the company. As BRLL cleans up its filings, gets the YIELD sign, and goes PINK current, OTC QB, and then possible NASDAQ uplisting, more and more investors will pile into the stock.
We see BRLL as a ground floor opportunity with a current market cap of only $17 million.
Penny Stock #2 BRN
BRN is a low-float sympathy play running on the back of the explosive moves happening in other oil & gas plays. There are just 3.69 million shares in the float and we love low float Big Board penny stocks like BRN.
BRN is running after announcing that a proxy contest will not happen. A group of shareholders has reached an agreement to boost shareholder value.
Mr. Grossman, Chairman of the Board, said, “As a significant Barnwell stockholder, I’m gratified that the Board of Directors will be unchanged from last year and be able to continue its efforts to move the Company forward. I’m pleased that Barnwell’s share price rose 370% from $.56 on April 3, 2020, to $2.06 per share as of the close on January 25, 2021. We are hopeful that the momentum builds in 2021 given the current appreciation in the price of oil, the increased velocity in Hawaiian land sales, and the stability of the water drilling business. The agreement that we have forged with the Company should avoid distraction and unnecessary expense allowing our Board to continue to position Barnwell for long term positive cash generation and further share price appreciation.”
With a current market cap of just $50 million, BRN is a smart turnaround play in 2021.
Penny Stock #3 CEI
We told our subscribers about CEI back in September when the stock was around $.64 a share and which you can read here. As you can see, the patience that we preach paid off.
CEI is running along with the other oil & gas names like BRN. Energy is considered a top sector in 2021 as investors bank on higher energy prices and an economic recovery from the COVID-19 pandemic.
Last month, CEI completed the first phase of its merger with Viking Energy Group by acquiring 51%. We like this deal and see the combination adding significant value for CEI shareholders. Earlier this month, the two companies extinguished $18.9 million in debt and improved shareholder equity.
With a current market cap of just $51 million, CEI is another smart turnaround play in 2021.
Penny Stock #4 RLFTF
We have covered RLFTF extensively here at Insider Financial with our last coverage being when we said to buy the dip at $.25 a share back in November. As you can see from the chart below, we called the bottom on RLFTF.
Since then, every dip has been a buying opportunity, and rightfully so.
Since November, RLFTF has completed enrollment in the phase 2b/3 trial of ZYESAMI™ (previously RLF-100TM: aviptadil) for the treatment of Respiratory Failure in Patients with Critical COVID-19 (www.clinicaltrials.gov NCT04311697).
No drug-related serious adverse events have been reported as of today. Enrollment was increased from 165 patients in order to amass as large a safety database as possible. Topline data expected any day now!!
We are expecting positive topline data to propel RLFTF to new highs.
These 4 stocks are hot right now. There are always opportunities in the markets and it’s our job to find winning stocks. Huge gains can be made in such a short amount of time.
For those that missed out on the recent run in these 4 stocks, 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 BRN, BRLL, CEI, or RLFTF and you’ve crushed the market indices for the year. Whoever said to avoid small-cap stocks has no clue what they’re doing.
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.