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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 that include both OTC stocks and NASDAQ penny stocks.
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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 worth watching right now. They are Camber Energy Inc (NYSE American: CEI), Ideanomics Inc (NASDAQ: IDEX), Newage Inc (NASDAQ: NBEV), and ContextLogic Inc (NASDAQ: WISH).
PENNY STOCKS #1 CEI
Camber Energy Inc has had a difficult two-month period after surging by about ten times from the year-to-date (YTD) low at the end of August to the YTD high one month later when it broke above $4.5. We covered CEI’s bullish attempt in September, explaining that its share price had been driven by internal and external factors. However, things have changed since then in an unexpected direction, and we’re not sure whether it’s a good time to get exposure to CEI at this point, given the negative press related to the NYSE American-listed stock.
Recently, the company failed to file one 10-K and two 10-Q reports by deadline, which doesn’t bode well for shareholders, although NYSE American extended the period until mid-December.
While CEI hasn’t explained why it failed to report its financials, investment management firm Kerrisdale said in a report that the company is trying to hide its highly dilutive class of preferred shares that had gone underreported. The short report claims that the diluted share count is about three times the reported number. What makes this is even more worrying is that Camber Energy couldn’t provide a clear and convincing reaction. For the sake of impartiality, it’s worth mentioning that Kerrisdale has the lowest possible rating from clients, who claim that it is unprofessional on social media and its investment advice is of poor quality.
CEI finally shared its financials at the beginning of the week, discussing the current merger with Viking more in detail.
Nevertheless, even without Kerrisdale’s report, CEI is already in trouble, as several law firms initiated a class action against the company. The complaint alleges that CEI made materially false and/or misleading statements and/or failed to disclose that:
- Camber overstated the financial and business prospects of Viking as well as the combined company post merger;
- Camber failed to apprise investors of, and/or downplayed, the fact that its acquisition of a controlling interest in Viking would exacerbate the Company’s delinquent financial statements and listing obligations with the NYSE;
- An institutional investor was diluting Camber’s shares at a significant rate following the company’s July 12, 2021 update regarding the number of its shares of common stock issued and outstanding;
- As a result, the company’s public statements were materially false and misleading at all relevant times.
The class action was announced by several law firms, including Rosen, The Gross Law Firm, Glancy Prongay & Murray LLP, The Schall Law, and others.
CEI is engaged in the acquisition, development, and sale of crude oil, natural gas, and natural gas liquids (NGL) in the Cline shale and upper Wolfberry shale in Glasscock County, Texas. Shareholders used to be happy about its meme stock status, but that is not the case anymore. Anyway, CEI’s reaction to all allegations will be reflected in the price action, so make sure to watch it. Maybe the share price can benefit from the merger with Viking. CEI might end up as a trap for shorts, so make sure to watch it closely.
PENNY STOCKS #2 IDEX
Like CEI, NASDAQ-listed Ideanomics Inc is another stock that hasn’t been performing quite well but has the potential to do much better. The last time we covered IDEX was in mid-August when the stock was trading at $2.40. The share price is currently fluctuating near $1.50, breaking below it for the first time since October 2020. We introduced our readers to IDEX in July 2020, when the share price was also trading below $1.50. After a major rally that pushed the price to over $5 and the following correction that has been lasting for months, we still believe IDEX is a good stock to hold. This is a great time to buy the dip.
IDEX is focused on facilitating the adoption of commercial electric vehicles (EVs) and developing next-generation financial services and fintech products. Its EV division incudes:
- Mobile Energy Global (MEG), which provides group purchasing discounts on commercial electric vehicles, EV batteries, and electricity as well as financing and charging solutions.
- Energica, a leading manufacturer of high-performance electric motorcycles.
- Medici Motor Works – it works with strategic partners to develop a line of medium- and heavy-duty buses.
- Solectrac – it produces battery-powered tractors.
- Treeletrik – this Malaysian EV maker focuses on electric scooters and motorbikes. It has been a key leader in promoting electric mobility in the ASEAN region.
- US Hybrid – it specializes in the design, manufacturing, and distribution of zero-emission powertrain components for electric, hybrid, and fuel cell transportation applications.
- WAVE – the company’s high power wireless charging systems offer a modular solution (125kW to 500kW) across a broad range of commercial applications, including mass transit, ports, and warehouse and distribution centers. The largest electric mass transit bus fleet in the U.S. is powered by WAVE.
The other major division is related to fintech solutions. Ideanomics Capital includes DBOT to provide innovative financial services solutions powered by AI and blockchain. Another subsidiary working with blockchain is Liquefy, which provides a tokenization and investor onboarding SaaS platform for institutional asset owners.
Thus, IDEX has multiple revenue streams. Unfortunately, the latest financial report that came on Tuesday showed that the company lost $0.07 per share in Q3, compared to analysts’ expectations of a loss of $0.01, following a loss of $0.03 per share in Q3 2020. Revenue was $27.05 million for the quarter, missing the Zacks Consensus Estimate by 16.78%. This compares to Q3 2020 revenues of $10.62 million.
Despite the disappointing results, the company can do better. IDEX CEO Alf Poor said:
“This quarter was highlighted by two very important strategic planned acquisitions of VIA Motors and Energica both scheduled to close in the first quarter. The integration of these two companies provides Ideanomics with full OEM capabilities across vehicle types, and positions Ideanomics as one of the only full-service, turnkey, offerings in the market today.”
Meanwhile, IDEX said on Wednesday that its subsidiary Soletrac, which manufactures electric tractors, will be honored with the WINnovation Award at this year’s WIN Expo, which will take place at the Sonoma County Fairgrounds in Santa Rosa, California , on Thursday, December 2. The award is the top honor by Wine Industry Network (WIN) and is given to five winners each year. Solectrac was selected for the groundbreaking technology in its e70N electric tractor, which is specially designed for vineyard operations that require navigating through narrow rows of vines and is a real-life example of AgTech innovation at work in the world today.
The acquisitions of VIA Motors and Energica are big milestones for IDEX, and we expect its share price to bounce back sooner than later.
$IDEX Surging on updated coverage from @ROTHCapital a BUY with a minimum 3x. These revenue numbers haven’t even started yet. Can’t wait for the next updated coverage after @VIAMotorsInc and a few more Qs of subsidiaries fully loaded! 😏 pic.twitter.com/uxdcg8DCMQ
— The__Wolf💭 (@The_WolfofStonk) November 24, 2021
PENNY STOCKS #3 NBEV
Another penny stock that we covered in August is Newage Inc, which has declined more than 40% since then to trade at $1.3. On Monday, the share price broke below $1.18 for the first time in years. It spiked to $1.7 the same day amid huge volumes but couldn’t withstand the bearish pressure.
The NASDAQ-listed company 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 offers several types 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.
Earlier this month, NBEV announced the discovery of a new method of action to fight the effects of aging and the filing of a new patent to protect the uniqueness of the discovery. Following publication in the Journal of Biosciences and Medicine of the recent discovery on how to block spike proteins from binding to human cells, NewAge scientists have filed for a patent that contains multiple unique claims, and a new discovery that supports cardiovascular health and anti-aging. The new discovery encapsulated in the patent includes a powerful new way to unblock the secretion signal from the hypothalamus, thereby stimulating the anterior pituitary gland to naturally secrete human growth hormone (HGH).
$NBEV scientists have filed for a patent that contains multiple unique claims, and a new discovery that supports cardiovascular health and anti-aging…the patent includes a powerful new way to unblock the secretion signal from the hypothalamus, thereby… https://t.co/wfzVddJOIb
— Michael Ventura (@mike1v) November 23, 2021
One of the major contributors to aging and the decline in cardiovascular health is the increase in the production of dipeptidyl-peptidase 4 (DPP4). DPP4 acts as a signal to the anterior pituitary, and it degrades over time as humans biologically age. With a new combination of natural ingredients, including Tahitian NONI fruit and pterostilbene, NewAge scientists have developed a method of action to unblock the DPP4 signal by 99.1% and allow the secretion from the hypothalamus to the anterior pituitary, thereby triggering the body to naturally regulate itself and secrete growth hormone, as it did when the body was in growth and development mode versus in the aging process.
The company’s senior director of research, Brett West, explained:
“This is the first product to simultaneously address specific multiple pathways by which Human Growth Hormone declines in the body. The results from our laboratory studies and trials represent real scientific breakthrough with globally relevant applications, and we are incredibly proud of the team that contributed to the discovery.”
Meanwhile, NBEV reported its Q3 financials at the beginning of the month, with revenue increasing by 59% to $100 million and gross profit almost doubling to $66 million.
With a potentially groundbreaking discovery and a healthy balance sheet, we don’t understand how NBEV is trading at its YTD low. This is a great time to buy the dip before NBEV runs in 2022.
PENNY STOCKS #4 WISH
ContextLogic Inc used to be a favorite meme stock that made waves on Reddit, but it’s not the case anymore. The NASDAQ-listed company has been public only since the end of last year and has experienced an ongoing bearish trend since then, bottoming out on Tuesday at $3.68, down 28% over the month. Volume surged to record levels when the price tumbled to its recent bottom. While the short percent of float at 16% doesn’t necessarily make WISH a short squeeze candidate, it’s still something to be aware of.
WISH operates as a mobile eCommerce company in Europe, North America, South America, and internationally. The Wish platform connects users to merchants and provides marketplace and logistics services to merchants.
On Wednesday, France required search engines and online platforms Wednesday to strip Wish from their listings amid concerns about product safety. WISH said it would take legal action to challenge the move. The French government stated that its regulator had found that many products listed on the Wish site were not safe and that ContextLogic had failed to recall them in a satisfactory manner.
Out of a sample of 140 products, 45% of the toys, 90% of electrical goods, and 62% of the jewelry items were dangerous, according to the French watchdog. Elsewhere, Wish said that while it does not have a legal obligation to test the 150 million products listed on its platform, it has invested in a number of measures to promote higher-quality products.
While WISH is experiencing some difficult moments, as it failed to report robust Q3 financials, the company is making big changes to bring value to shareholders. Earlier this month, CEO Piotr Szulczewski stepped down, and WISH seems to be ready for some big changes. We think this stock is undervalued at this price and should recover very soon.
THE FINAL NOTE
Now is a great opportunity to invest in top penny stocks with great potential. Our job is to identify the best penny stocks with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio.
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 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 run 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.