It has been an interesting week and month for the US economy, with the Fed remaining vague on Wednesday, giving rather dovish signals to investors. Meanwhile, preliminary data on GDP growth fell short of expectations, but the economy was robust enough, returning to pre-pandemic levels.
Despite some concerns about the surging COVID-19 cases related to the new Delta variant and the skyrocketing inflation, the stock market is doing great, with stock indexes fluctuating near their all-time highs.
The surge in corporate profits and decline in bond yields are contributing to a moderation in US equity valuations, suggesting that it still makes sense to look into stocks despite the record-high figures.
Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, told Reuters:
“I think the stock market is still the place to be. Even though valuations are lofty, the fundamentals are good, most companies are having excellent quarters and the outlook is pretty good.”
While blue chips may help investors hedge against inflation and secure some profits, penny stocks with strong fundamentals can provide much higher returns.
FINDING OPPORTUNITIES IN PENNY STOCKS
There are plenty of opportunities for investors if they follow us here at Insider Financial.
The key to trading penny 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.
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.
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 penny stocks. 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, of which one is listed on NASDAQ. They are Adhera Therapeutics, Inc (OTCPK: ATRX), NanoVibronix Inc (NASDAQ: NAOV), Drone Guarder Inc (OTCPK: DRNG), and Net Savings Link, Inc (OTCPK: NSAV).
Penny Stocks to Watch #1 ATRX
Adhera Therapeutics, Inc is a tiny $2.7 million company worthy of your attention. The share price of this penny stock has been correcting after hitting $0.45 on Thursday, which is the highest level since 2019. If you wonder how a $3 million business can trade at half a dollar per share, it’s because it has only about 11.6 million outstanding shares. Thus, the share price can grow substantially if ATRX succeeds.
While ATRX is Pink Current, it has no operations at this point. Adhera is an emerging specialty biotech company that, to the extent that resources and opportunities become available, is strategically evolving focus in anticipation of a return to a drug discovery and development company, and a departure from active commercialization and promotion of hypertension treatment options in the US market.
At the beginning of June, ATRX announced its intention to acquire MLR-1019 (armesocarb) from Melior Pharmaceuticals II and develop it to treat Parkinson’s disease (PD). The drug is the active pharmaceutical ingredient in mesocarb, which has been used in Europe for 37 years.
ATRX says that MLR-1019 is being developed as a new class of therapeutic for PD and is currently the only drug candidate to address both movement and non-movement aspects of PD. Given that MLR-1019 has been used in other regions for years under mesocarb, it is a Phase 2-ready product. It could have significant benefits over today’s Parkinson’s drugs.
Armesocarb is the active ingredient of the racemic mixture mesocarb, a highly selective dopamine reuptake inhibitor first approved in the former Soviet Union in 1971 and marketed for select psychiatric and central nervous system indications until 2008. During the financial crisis, the Russian manufacturer discontinued operations for business reasons unrelated to the compound itself.
Melior discovered the unexpected benefits of MLR-1019 in PD, securing the intellectual property with numerous patents. Based upon Melior’s work, a clear understanding of MLR-1019’s mechanism of action, abundant pre-clinical research and decades of clinical data on mesocarb, which is chemically related to armesocarb, Melior and Adhera believe that MLR-1019 represents a significant opportunity to address a large gap in therapeutics for PD.
ATRX CEO Andrew Kucharchuk explained:
“Everyone recognizes the devastating symptoms of Parkinson’s Disease, but many don’t realize that today’s approved drugs are woefully inadequate at addressing the full spectrum of the disease, often times exacerbating non-motor aspects. Today, PD patients and neurologists are forced into quality of life trade-offs related to disease management, debilitating effects of PD-LID, gastrointestinal and CNS side effects of amantadine and more. We are optimistic that MLR-1019 could be a tremendous value add to the PD market and patients in need worldwide.”
On Thursday, the company announced that it had executed a definitive license agreement with Melior, defining the terms and conditions for which ATRX will license MLR-1019 from Melior for the initial purpose of developing a new therapeutic for Parkinson’s disease.
The news caused a spike in the share price and for very good reason – there is currently no perfect treatment for PD, which affects nearly 1 million US citizens.
We think you should definitely monitor ATRX and see whether the trials succeed. This can quickly become a fast-moving stock.
Penny Stocks to Watch #2 NAOV
NanoVibronix Inc has been correcting during the last five days, but it’s still trading close to $2.61 reached on July 23, which is the highest level since March 2020. Currently, the NASDAQ-listed penny stock is trading at $2.50, up over 190% since the beginning of July.
The company has some great potential thanks to its flagship healthcare products that show impressive results.
NAOV, through its subsidiary NanoVibronix Ltd, manufactures and sells non-invasive biological response-activating devices that target biofilm prevention, wound healing, and pain therapy. It has three main products that rely on ultrasound technology. They are:
- UroShield – an ultrasound-based product to prevent bacterial colonization and biofilm in urinary catheters, enhance antibiotic efficacy, and decrease pain and discomfort associated with urinary catheter use;
- PainShield – a patch-based therapeutic ultrasound technology to treat pain, muscle spasm, and joint contractures;
- WoundShield – a patch-based therapeutic ultrasound device, which facilitates tissue regeneration and wound healing.
The company sells its products directly to patients, as well as through distributor agreements in the US, Europe, Israel, India, and other regions.
Last week, NAOV announced that The Journal of Medical & Surgical Urology was publishing an article with “overwhelmingly positive findings” from a study of patients that used its UroShield in real-world settings.
NAOV CEO Brian Murphy said:
“This independent study is further proof of the effectiveness and applicability of our UroShield device in reducing the incidence of urinary tract infections and the pain and discomfort caused by urinary catheters. […] The patient experiences were so profoundly positive that 100% of the study’s participants are continuing to use the device following the conclusion of the study.”
For the study, 23 patients with reoccurring UTIs were offered to use UroShield for a minimum period of 12 weeks. In the findings, patients reported a significant decrease in the number of UTIs and antibiotic treatment, had fewer catheter blockages and catheter changes, and the pain was reduced significantly by the end of the study. The peer reviewed publication has been submitted to the National Institute for Clinical Excellence (NICE) as further clinical evidence towards UroShield achieving NICE Guidance.
On Thursday, Australia’s Therapeutic Goods Administration (TGA), which acts as the country’s regulatory body for therapeutic devices, has granted approval for NAOV’s UroShield to be used by patients in Australia. On top of that, NAOV had signed an agreement with DukeHill Healthcare Pty Ltd to distribute its UroShield and PainShield technologies in Australia.
Meanwhile, earlier this week, NAOV said that it had fulfilled the first order of its next generation pain management device, PainShield Plus, and expects to generate revenue for the sale in Q3 2021. PainShield Plus covers two times the surface area for pain therapy and is sold at a higher gross margin compared to the original PainShield.
We think NAOV is poised to grow as its products are recognized by scientists, regulators, and patients.
Penny Stocks to Watch #3 DRNG
Drone Guarder Inc has been making waves in July. The penny stock has gained 80% during the last five days to trade just above one cent. Since the beginning of the month, DRNG has surged by over 1,000%!
The biggest spike came in mid-July, when Video River Networks (OTC: NIHK), an Electric Vehicles and Battery Technology holding company, said that it had signed a deal to acquire DRNG, which is a security and surveillance company that focuses on commercializing a drone and artificial intelligence (AI) technology-enhanced home security system as a turnkey solution locally and internationally.
NIHK is about to run DRNG as an independent company. Adam Taylor will remain president and CEO, while Frank Igwealor will become Chairman and Co-CEO.
NIHK is buying 5.5 million DRNG Special 2021 series A preferred shares for $20,000. It will also pay the fees to take DRNG to the Pink Current status.
On top of that, NIHK hired a Northrop Grumman aerospace veteran to enhance DRNG and join its board as director.
DRNG’s solution is app-based and includes a drone, infrared camera, and an Android mobile app component: once an alarm is triggered, the DroneGuarder immediately takes off from a wireless charging pad. The camera within the drone then records video for a few seconds, processes it, and then sends an alert if a threat is found, which the DroneGuarder app sends in the form of a text, image, or short recorded video if supported by the GSM network. The DroneGuarder can fly for up to 20 minutes, using GPS to navigate in its preprogrammed areas and return back to its charging pad after completing surveillance.
Last week, DRNG reduced the number of authorized shares from 5 billion to 3.6 billion shares to prevent dilution.
Having reduced the number of common stock Authorized from 5 billion to 3.6 billion, $DRNG has no room to reserve 1.8 billion shares. With that rejection, conversions and dilutions have halted. $DRNG focus now shifts to building and delivering on our Drone and Ai products. pic.twitter.com/gpDGnMBeZ7
— Drone Guarder Inc (@DroneGuarder) July 26, 2021
The problem is that the company had old convertible notes, and by cutting authorized shares, it has to pay all debt notes in cash. Nevertheless, it said that NIHK made some progress on convertible notes buyout, while DRNG wants to avoid dilution at all costs. It also stated that it wouldn’t accept any reverse splits and no new toxic notes in the future.
$DRNG has made GREAT progress on convertible notes buyout with help of our parent company $NIHK, as much as we would like to announce exact details, this is as much as we can say based on attorney’s advice. We should announce amazing progress quite soon along with official PR.
— Drone Guarder Inc (@DroneGuarder) July 20, 2021
We believe DRNG is the real thing. The penny stock is working to get the Pink Current status and has some great products to offer. It’s definitely a worthy addition to your portfolio.
Penny Stocks to Watch #4 NSAV
Net Savings Link, Inc. has been extremely bullish this month, and our subscribers who got exposure to this penny stock after our several recommendations on NSAV are now reaping the benefits. In July alone, the OTC stock has surged by over 870%, with NSAV becoming a $576 million company!
NSAV is one of the most promising crypto runners on OTC markets. The hype surrounding this penny stock relates to its proprietary cryptocurrency exchange that is about to launch soon. Last week, NSAV broke above 5 cents, which was the year-to-date high hit in February and then has surged to the current level of $0.098, which is the highest since 2011. The recent Bitcoin rally has likely contributed to the general bullishness as well.
Back in March, we shared our bullish scenario for NSAV, anticipating the acquisition of the Swiss-based crypto platform VirtuaBroker. Today, NSAV is preparing to launch its proprietary crypto exchange platform.
On July 12, NSAV announced that it would launch its cryptocurrency exchange on August 9. It will own 100% of the exchange, which will carry the NSAV brand name. The company added a countdown timer to its website, https://nsavholdinginc.com/.
The exchange is led by NSAV Director, Yuen Wong, who is also the CEO of LABS Group Limited – the world’s first end-to-end blockchain-powered real estate investment ecosystem. He is also a managing partner at Bitmart, a crypto exchange with 2+ million users worldwide and ranked on CoinMarketCap. Wong shared more details about the platform in a video update released on July 26:
Meanwhile, VirtuaBroker, continues to run as a crypto investment platform powered by AI and offering a full range of trading services, including portfolio management and price search function.
NSAV is working to become a fully integrated technology company that offers turnkey technological solutions to the cryptocurrency, blockchain, and digital asset industries. Over time, the company intends to provide a wide range of services related to software solutions, e-commerce, financial services, and information technology.
NSAV is definitely a strong buy even with the recent surge. The company has an ideal share structure and is growing rapidly. On Friday, NSAV said that it would enter the North American blockchain market. At this point, the company has partnered with Silverbear Capital Inc and others.
THE FINAL NOTE
Today is a great opportunity to benefit from the stock market’s bullishness and invest in penny stocks with great potential during a reviving economy. Our job is to identify the best stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
All of the 4 penny stocks discussed today are on the rise and are good stocks to hold. Nevertheless, our best advice is to be patient and enter the market during corrections. Buying dips and selling rips as swing trades remains the best strategy in the penny stock market. Still, whenever a penny 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 succeed in order to crush the market averages.
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.