If the first trading days of 2021 are the sign of things to come, traders and investors are going to make a lot of money this year. 4 penny stocks on the move to start 2021 are CloudCommerce (OTCMKTS: CLWD), IQSTEL (OTCMKTS: IQST), Sunworks (NASDAQ: SUNW), and T2 Biosystems (NASDAQ: TTOO).
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.
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 18,650% 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 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, WHKS, 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. With Bitcoin running, we are seeing crypto plays making huge moves. With Joe Biden coming into the White House and Democrats taking control of the Senate, we are seeing cannabis and green energy plays catching bids.
In this article, we take a look at 4 penny stocks on the move CLWD, IQST, SUNW, and TTOO to find out what’s behind the move and our outlook for each.
Penny Stock #1: CLWD
As we said in our video, the news from CLWD was indeed big news as its SWARM solution can cut advertising costs by as much as 50% for online advertisers. As an online media company, we know the value of this. Just recently, Uber disclosed that Uber’s ads weren’t converting, and after further experimenting, the transport network found that a full two-thirds of its ad budget — $100 million — wasn’t needed.
This is where CloudCommerce’s SWARM solution comes into play. This is why the stock is running and can keep running. Even after the recent run, CLWD’s market cap is just $43 million.
Penny Stock #2: IQST
We first talked about IQST back in October when the stock was trading at just $.06 a share for our regular readers, which you can read here. We then said last week, which you can read here and watch here, that IQST was still incredibly cheap. Even if you missed the alert back in October and bought it last week based on our coverage, you’re up 100% in IQST.
IQST is firing on all cylinders. The company forecasts $60.5 million in revenue for FY-2021. The 40% revenue growth target is largely driven by the anticipated expansion of the company’s new Fintech and IoT (Internet of Things) divisions launched in 2020.
The best part is that IQST has a history of beating expectations. IQST reported $44.8 million in revenue that exceeded management’s $42 million revenue forecast for FY-2020 by 6.8% and represented a 148% increase over the $18 million in revenue reported in FY-2019.
Highlights of IQST’s revenue growth potential include a recently announced Visa Prepaid Debit Card Service (PDCS) expected to generate estimated revenue over five years of $45 million to $128 million with an approximate EBITDA margin of 30% to 40%.
IQST is also a blockchain play with itsBchain subsidiary, but what’s most exciting is the company eliminating debt and preparing to uplist.
“As we prepare for a potential up-list onto a major stock exchange, we recognize the importance of a strong balance sheet in order to maximize shareholder confidence. We look forward to further optimizing the company for the up-list process, and will continue reporting our corporate progress to shareholders,” commented Leandro Iglesias, iQSTEL’s CEO. “We anticipate the current elimination of the derivative liabilities to have a very positive impact on our Q1 financials. With the confidence of our shareholders, management intends to further reduce outstanding debt to a minimum over the next months.”
With a market cap of just $19 million and forecast to do $60 million in revenue this year, IQST remains incredibly cheap at current levels.
Penny Stock #3: SUNW
We can’t classify SUNW as a penny stock any longer now that it crossed the $10 mark, but it was just a penny stock when we first brought it to the attention of our subscribers and readers back in October, which you can read here.
SUNW was due to merge with Peck, but that deal fell apart in November. It’s for the best that the deal fell apart as there’s more value remaining independent, especially with the Democrats set to take charge come January 20th. Solar plays like SUNW are going to keep running.
For those that have been in SUNW for a long time know, SUNW needed better management. The most common word we heard when talking to folks about Chairman Chuck Cargile was “moron.” New CEO Gaylon Morris is an opportunity for a reset and a key reason why SUNW is running this week.
With a market cap of just $200 million and 6% of the float short (and rising), we expect SUNW to keep climbing as the shorts get squeezed. For those that got in below $3 on our alert, congrats!
Penny Stock #4: TTOO
We first covered TTOO last March for our subscribers and readers last March when the stock was under $.40 a share, which you can read here. We then said in June that TTOO was set to make a huge move, which you can read here. Each time TTOO spiked, it ran into major resistance at the $2.20 level. TTOO ran into the same resistance yesterday before closing back under $2.
TTOO touched resistance again after announcing that its T2SARS-CoV-2 Panel is capable of detecting multiple variants of the COVID-19 virus most recently identified in the U.K., South Africa, and the U.S. The company said an analysis showed its T2SARS-CoV-2 Panel should detect 99.99% of all SARS-CoV-2 viruses based on sequence alignments, and a specific analysis of sequences for the variants found in the U.K. and South Africa confirms the T2SARS-CoV-2 Panel should be able to detect these variants.
The Panel provides results in under two hours utilizing an upper respiratory swab sample. T2’s SARS-COVID-2 test could drive revenue for years if hospitals utilize its other capabilities once the device is installed.
If TTOO can close above $2.20, we will see a sustained move higher as the shorts scramble to cover. 5.73% of the float is short and this number will climb as shorts get more aggressive with TTOO trading at resistance. A close above $2.20 will fuel an epic short squeeze. It won’t take much in terms of dollar volume as TTOO has a current market cap of just $279 million.
These 4 penny stocks are hot right now. There are always opportunities in penny stocks and it’s our job to find the bull markets. Huge gains can be made in such a short amount of time.
For those that missed out on the recent run in these 4 penny 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 CLWD, IQST, SUNW, or TTOO and you’ve crushed the market indices for the year. Whoever said to avoid penny stocks has no clue what they’re doing.
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.