The US economy is increasing at a robust pace, with most businesses reporting better-than-expected financial results for the first half of the year.
Meanwhile, inflation worries have eased after the Labor Department said on Wednesday that US consumer prices increase slowed last month despite maintaining at a 13-year high year-on-year.
The consumer price index (CPI) rose 0.5% in July after climbing 0.9% in June. In the 12 months to July, the CPI surged 5.4%. Economists expected the overall CPI to rise 0.5%.
The core CPI rose 4.3% year-on-year after advancing 4.5% in June. The Fed previously said that the surge in inflation was temporary. Lale Akoner, a strategist at BNY Mellon Investment Management, told the Financial Times:
“The market is reading it as inflationary pressures are slowing. The Fed will try to understand whether the transitory theme is playing out, [and] with this data we are actually seeing that it is.”
All in all, the economy is improving and this is a great time to invest in penny stocks, which can provide higher returns compared to blue chips.
FINDING OPPORTUNITIES IN HOT 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 hot stocks. For some that can be as many as 10 to 20 or more hot 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 on the rise, of which two are listed on NASDAQ. They are DarkPulse Inc (OTCPK: DPLS), Nexus Energy Services, Inc (OTCPK: IBGR), IMV Inc (NASDAQ: IMV), and NewAge, Inc (NASDAQ: NBEV).
Penny Stocks on the Rise #1 DPLS
DarkPulse Inc has gained 30% on Tuesday alone to trade at $0.096, recovering most of the losses incurred last week when the OTC stock pulled back from the monthly high at one cent to reach a low at $0.072. The larger timeframes are quite bullish, with DPLS surging by over 630% from June 9 to July 9, when it hit the highest level since August at $0.174.
We first told our subscribers about DPLS back on June 16 when the stock dipped to $.04 a share and which you can read here.
DPLS has turned into an almost $400 million company in only a few months, and it still has much room for growth.
DPLS is a tech company that produces, sells, installs, and monitors laser sensing systems based on its patented BOTDA dark-pulse sensor technology, which provides a data stream of critical metrics for assessing the health and security of infrastructure, including pipelines, oil and gas facilities, as well as mining operations.
After several dormant years, the company is now rapidly expanding, diversifying its business with mergers and acquisitions as well as strategic partnerships.
In June, DPLS announced its intention to buy controlling stakes of 60% in both Remote Intelligence, LLC and Wildlife Specialists LLC – two sister companies that focus on drone-based, geo-rectified, 3D modeled mapping for industrial applications for the energy sector.
Later that month, DPLS revealed that it intended to purchase TerraData Unmanned, PLLC, a drone-based company providing multiple platform capabilities, including underwater inspection services.
Another exciting piece of news came on August 10, when DPLS said that it had closed the acquisition of Optilan, a UK-based private company that provides security and communications systems together with associated integration services. Optilan’s services include design, installation, commissioning, support and maintenance services across a range of blue-chip customers. It offers a range of products, including but not limited to CCTV, access control, perimeter detection, networks, telephony, alarms, fibre installation, and satellite communications. Optilan has designed and installed a significant proportion of the world’s pipeline intrusion and leak detection systems using optical sensing technology.
DarkPulse Chairman and CEO Dennis O’Leary said:
“This acquisition completes a monumental leap forward of DarkPulse’s expansion into global critical infrastructure markets. As a recognized leader for more than 30 years, Optilan brings a highly experienced team and operational footprint with physical assets across key international markets including, South America, Europe, Africa, Middle East, Asia and the UK.”
In March of this year, Optilan was contracted to supply telecommunications and security services for the Seagreen Wind Farm project, which represents a 3 billion pound ($4.16 billion) offshore wind farm development owned by SSE Renewables (49%) and Total (51%).
Thanks to the recent acquisitions, DarkPulse is becoming a leader in infrastructure sensing and monitoring in all domains, air, land, and sea.
The acquisition of Optilan hasn’t been priced in, although this is a major move. We think DPLS is a good penny stock to hold in your portfolio.
Penny Stocks on the Rise #2 IBGR
Nexus Energy Services, Inc has had an incredible start of the month, surging a whopping 250% during the last five days to trade at $0.40, which is the highest level since 2015. However, the $65 million company seems to be ready to break above the $1 dollar mark sooner than later.
At the end of last year, Nexus was acquired by Canadian Dryworld Industries Inc through a reverse merger, and the IBGR stock is currently representing the Dryworld subsidiary in the first place. Since the first announcement of the reverse merger in August 2020, the penny stock has increased by over 3,800%.
Dryworld is a performance athletic brand offering innovative, superior quality apparel, footwear, and gear for athletes in all of the US. Previously, Nexus operated as an application development company.
The company is working to change its ticker from IBGR to DRYW.
Dryworld has become more active start with last year, and it is now beginning a huge marketing campaign. IBGR has one of the hottest stocks these days, especially after Dryworld posted a tweet that hints at something big to be announced.
Tickets Please ….
Everybody Grab Your TICKETS ….
Travel bags PACKED.
— DRYWORLD (@DRYWORLD_IND) August 10, 2021
At the end of July, IBGR announced that Russian long jump athlete Darya Klishina. She joins the Dryworld family as a Dryworld Athlete, Ambassador and shareholder. Darya has an impressive collection of titles to her credit. She won gold at the 2007 World Youth Championships and the 2009 European Championships. She made a 7.05 m jump on June 26, 2010, a record for Russian juniors and second-best junior score of all time. Competing as a neutral athlete at the 2017 World Championships in London, Darya won a silver medal with a jump of 7.00 m, finishing just two centimeters from the gold medal.
Welcome to the family @DaryaKlishina !!
“Very rarely do you come across an athlete so strong in their convictions and dedicated to their sport they will endure challenges that would break most just to compete." pic.twitter.com/p1BiS69aWb
— DRYWORLD (@DRYWORLD_IND) July 21, 2021
The collaboration starts with two initial projects: HauteD by Dasha, a collection of athletic pieces for women, and DRYWORLD “Take Flight” collection of t-shirts, tank tops, hoodies, hats, and more for her fans.
IBGR has plenty of potential and is making all the right moves.
Penny Stocks on the Rise #3 IMV
IMV Inc has been quite volatile these days. On Tuesday, the NASDAQ-listed stock surged from $1.68 to $2.20, which is the highest level since mid-July.
IMV Inc is a clinical-stage biotech firm. The company is engaged in making immunotherapies more effective, broadly applicable, and widely available to people facing cancer and other serious diseases. Its proprietary drug development platform, called DPX, provides a patented delivery formulation that enables controlled and prolonged exposure of antigens to the immune system.
The company’s lead drug candidate includes Maveropepimut-S (formerly known as DPX-Survivac), a T cell therapy, which is in three Phase II clinical trials across 6 different cancer indications with and without Merck’s Keytruda; and Phase II clinical trials for the treatment of ovarian cancer, and recurrent and refractory diffuse large B cell lymphoma.
It is also developing DPX-COVID-19, a second-generation vaccine against COVID-19, as well as DPX-RSV, a vaccine candidate, which has completed Phase I clinical trials for the treatment of respiratory syncytial virus strain A, and DPX-SurMAGE for the treatment of bladder cancer and DPX-BRAF to treat melanoma patients.
On August 10, investors reacted positively to the news that the company had released the final results of the DeCidE1 Phase 2 clinical trial evaluating maveropepimut-S in subjects with advanced recurrent ovarian cancer.
Dr. Oliver Dorigo, Principal Investigator of the DeCidE1 study and Director of the Gynecologic Oncology Service at Stanford University, commented:
“The overall results obtained from the DeCidE1 trial are very promising. Treatment was well-tolerated with an overall survival rate of 44.9% at 23.8 months of follow up and a median overall survival of 19.9 months. These results are particularly encouraging because many subjects in the trial had been heavily pre-treated and 57.9% were platinum resistant. We believe that these results support the further clinical study of maveropepimut-S in ovarian cancer.”
The details of these translational analyses have been submitted to upcoming scientific meetings for presentation.
— TheStreet (@TheStreet) August 10, 2021
However, the share price correcting on August 11, losing 16% so far to trade at $1.73, after the company released its financials for the second quarter. The Q2 net loss and comprehensive loss of $7.4 million ($0.11 per share) for the three months to June was $2.6 million higher than the net loss and comprehensive loss of $4.8 million ($0.08 per share) for the three months ended June 30, 2020.
While the company is not profitable today and might report losses in the next few quarters, it has some great products that it can monetize. Investors should look into IMV as a long-term opportunity. This might be a good entry point, as the stock is trading close to the lowest level since 2016 despite the recent spike.
Penny Stocks on the Rise #4 NBEV
NewAge, Inc has gained over 7% during the last five days, although the NASDAQ-listed stock is trading close to its lowest level in about a year, which might be a good entry point for buy and hold investors.
NBEV produces, markets, sells, and distributes healthy products in the US, Japan, China, and internationally. The company has two main segments: Direct/Social Selling and Direct Store. It provides several groups of products, including:
- Health and wellness, energy drink, essential oil and anti-aging skincare, cosmetic, beverage, snacks, water and air filtration, and personal care products, as well as weight management, nutritional supplement, nutraceutical, and slenderize products;
- Diagnostic products, such as DNA testing and diagnostic kits and products;
- CBD products.
The $290 million company offers its products under multiple brands, including Tahitian Noni, LIMU, Zennoa, LIMU Blue Frog, Hiro Natural, TeMana, Lucim, Reviive, Puritii, and MaVie brands. It sells its products directly to customers, as well as through distributors, e-commerce sites, and direct-store-delivery systems.
The recent uptrend has been driven by NBEV’s financial report for the second quarter. The company’s net revenue came in at $124 million, up 98% compared to the same period in 2020. Gross profit for the quarter was $84 million, up $46 million or 120%, resulting in a gross margin of 67.6%. Net income was $17.4 million, compared to a net loss of $9.6 million in Q2 2020.
NewAge CEO Brent Willis said:
“The second quarter saw accelerated top and bottom-line results and continued income statement improvement. In the quarter, we completed the Aliven acquisition, had a very successful annual meeting, further integrated ARIIX capturing additional cost and revenue synergies, and continued expansion of our social selling initiatives worldwide. We strengthened our team and positioned NewAge for even further transformative performance as our strategy unfolds.”
We think NBEV is on the right track and might be a good stock pick. The company has reported positive adjusted EBITDA figures for the third quarter in a row, after years of negative earnings. Also, the company continues to expand. Last month, NBEV said that it had formed a manufacturing partnership with and agreed to sell its US manufacturing operations to Taiwan-based TCI Co., Ltd, which is listed on the Taiwan stock exchange listed TCI and generates about $300 million in annual revenue.
As part of the MoU, NewAge will sell its US manufacturing operations and US office based in American Fork, Utah to TCI. TCI will be providing a combination of $3.5 million in cash and a share of revenues over the next five years as consideration and is expected to take over production over the next 90 days.
THE FINAL NOTE
All of the 4 hot 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 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 hot 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 hot stocks to find the best alerts for our subscribers.
Remember, all you need is one or two hot stocks to succeed 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.