The stock market has been doing great in October, although we haven’t seen anything like the rally in February. Still, there are many good penny stocks that are listed both on OTC markets as well as on NASDAQ providing opportunities.
Speaking about the tech index, it hit a record high on Thursday, driven by mega-cap stocks like Apple, Amazon.com, and Tesla. The earnings season has been good so far, with most companies exceeding expectations. The optimism surrounding blue chips is driving the bullishness in penny stocks as well.
James Gaul, portfolio manager at Knights of Columbus Asset Advisors, told Reuters:
“We are still favorable on US equities and don’t expect any near term reasons for the bullishness to fade which is led on by strong earnings. There are supply chain issues affecting short-term results but there is anticipation for strong demand and supply issues subsiding going ahead, and for all major sectors the long term is attractive.”
Earlier on Thursday, the US Commerce Department said that the GDP grew at a 2% annualized rate in Q3. Separately, labor market data showed that fewer US citizens filed new claims for unemployment benefits last week.
The stock market has managed to depart from the bearish mood from September and is ready to expand further, with penny stocks having more room for growth.
FINDING OPPORTUNITIES IN TOP PENNY 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 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.
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 worth watching, two of which are listed on NASDAQ. They are BIMI International Medical Inc (NASDAQ: BIMI), LIG Assets, Inc (OTCPK: LIGA), Meten Holding Group Ltd (NASDAQ: METX), and Petroteq Energy Inc (OTCPK: PQEFF).
PENNY STOCKS #1 BIMI
BIMI International Medical Inc has rallied almost 300% this week, although it remained with a 60% gain after correction, trading near $0.95. The share price peaked on Tuesday at over $2.50, hitting the highest since March. Now you can buy the stock for $0.94 per share.
The price exploded on Tuesday after touching the lowest level in years. It seems that BIMI was a good short squeeze candidate, as the percentage of shorts increased by 84%, as per data from shortsqueeze.com. So the impression is that bears have intensified their pressure for months, causing ideal conditions for a short squeeze that worked earlier this week.
The NASDAQ-listed company engages in the retail and wholesale distribution of medical devices and pharmaceutical and other healthcare products in China. It offers prescription and over-the-counter drugs, nutritional supplements, health foods, and sundry products, as well as traditional Chinese medicines, personal and family care products, and miscellaneous items under the Lijiantang Pharmacy brand name. The company also provides IT research and development services. It sells its medicine and other healthcare products to customers through its directly owned stores.
Last month, BIMI entered into a stock purchase agreement to acquire Chongqing Zhuoda Pharmaceutical Co., Ltd, a wholesale supplier of pharmaceuticals and medical equipment, including over 1,220 pharmaceutical products, thousands of Chinese herbal medicines, and more than 50 types of medical equipment. According to the agreement, BIMI will buy all the issued and outstanding equity interests in Zhuoda in consideration of $11.6 million. BIMI said it would issue 2.2 million shares of common stock valued at $3.00 per share.
BIMI CEO Tiewei Song said:
“We are encouraged and excited about the planned acquisition of Zhuoda, as we believe this transaction will be transformative for our Company and our shareholders. Zhuoda has established long-term strategic cooperation with 14 local hospitals, which account for most of the grade A tertiary hospitals in East Chongqing. It will greatly boost Company’s local market expansion.”
After months of bearishness, we think BIMI is onto something with this acquisition, and we see its stock price reversing the long-term downtrend once and for all.
PENNY STOCKS #2 LIGA
We covered LIG Assets, Inc exactly one week ago, and the OTC stock continues to expand, updating the YTD high on Tuesday when it rose to $0.0113. LIGA is ready to go even higher.
LIG Assets is an investment company that focuses on real estate, media, and the seafood industry. It has 3 subsidiaries:
- BGTV Direct LLC, which focuses on original content and brands that deliver results on their worldwide syndication and advertising platforms. BGTV Direct and its broadcast and syndication partners are powered by NTR advertiser supported content across television, radio, mobile, Internet and other electronic advertising platforms.
- Live Stor America, which focuses on seafood storage.
- LIG Development LLC.
Recently, LIGA obtained the Pink Current status and reported that it had no debt. The anti-dilutive share structure makes it a great OTC stock to hold in the long term.
The share price started to gain momentum after the company released its Q3 results, reporting $1 million cash versus $30k last year and total liabilities down from $3.6 million to $600k. LIGA also has several partnerships and acquisitions underway, which makes it a hot OTC stock.
– Cleaned up balance sheet by more than 400%
– Remaining debt is owned by BGTV, not LIGA
– BGTV going public, therefore $LIGA will benefit
– BGTV is owned by Marvin Baker
– Marvin Baker also owns $SMEV, which @CareyCooley got hired by.
– $SMEV connections with $LIGA https://t.co/a7eRAUJb0l pic.twitter.com/w04OrsTyFX
— Jodye Flacko (@DeviantImmortal) October 19, 2021
PENNY STOCKS #3 METX
Meten Holding Group Ltd is another China-based NASDAQ-listed stock that has had a great week, gaining over 50% during the last five trading days. The share price peaked on Tuesday at $0.67 before correcting to the current level of $0.48. Although METX has had a great month, the price has consistently declined since February’s YTD peak at over $3.00. Still, this is a great opportunity to buy the dip.
METX provides English language training (ELT) services in China. It operates through four segments: General Adult English Training, Overseas Training Services, Online English Training, and Junior English Training. The company delivers English language and future skills training for Chinese students and professionals. It offers adult and junior ELT services under the Meten brand name, junior ELT services under the ABC brand name, and online ELT services under the Likeshuo brand name through a digital platform and network of learning centers.
At the end of last year, the company had a network of 105 self-operated learning centers covering 28 cities in 15 provinces, autonomous regions, and municipalities, as well as 13 franchised learning centers covering 12 cities in 11 provinces and municipalities.
Investors are excited about METX mainly because of its plans to tap into the crypto and blockchain space, which is the fastest-growing industry right now.
On October 28, the company announced that it had partnered with AGM Group Holdings Inc. (NASDAQ: AGMH), an integrated technology company focusing on fintech software services and high-performance hardware and computing equipment manufacturing, to accelerate the development of Meten’s blockchain and cryptocurrency mining business.
The parties agreed to cooperate on the research and development of blockchain applications and the establishment of a supply chain for crypto mining business. The agreement contains an initial order of AGMH’s cryptocurrency mining machines from Meten and an option for Meten to purchase additional machines later.
METX’s executive director Jason Zhao said:
“AGMH, through its strategic partnership with HighSharp (Shenzhen Gaorui) Electronic Technology Co., Ltd., has upgraded its R&D capabilities and built a team of engineers with expertise in blockchain and related technologies. Leveraging AGMH’s advanced technology, experienced team and superior quality miners, we believe our partnership will accelerate Meten’s development in the field of blockchain and cryptocurrency and further unlock the full potential of our new business initiatives, putting us on the best path to success.”
METX has bottomed out recently and we don’t think it will return to former highs sooner than later. Crypto mining is a profitable business, especially as the price of digital currencies like Bitcoin and Ethereum continue to aim higher.
➡️$AGMH announces Strategic Partnership with Meten
➡️1500 Bitcoin mining machine order for $12M with option to purchase more
➡️METX market cap 54M and trading at $.40 PPS vs $AGMH @ 226M MC, $10.60 PPS, zero rev
➡️Only 130M OS
➡️Undervalued,1+ target achievable IMO pic.twitter.com/cwVoHQ3UiW
— Shawn 007 OTC BANGER! (@shawonsarker84) October 28, 2021
PENNY STOCKS #4 PQEFF
Like LIGA, Petroteq Energy Inc is an OTC stock that is currently trading near its YTD high. PQEFF has gained 60% since last week and 80% since the beginning of October. The share price peaked on Tuesday close to $0.30, and now you can buy it for $0.22. PQEFF has managed to break above a strong resistance level near $0.20, which couldn’t be challenged for months. The last time we reported on PQEFF was at the end of May when we reiterated our confidence that the company provides great value.
Petroteq is a Canadian holding company, publicly trading on the TSX Venture Exchange as well as on OTC Markets. It has offices both in Canada and the US, and its initial oil sands processing plant is in Vernal, Utah. The company is engaged in the development and implementation of its proprietary environmentally friendly heavy oil processing and extraction technologies. The proprietary process produces zero greenhouse gas, zero waste, and requires no high temperatures. PQEFF is currently focused on developing its oil sands resources and expanding production capacity at its Facility at Asphalt Ridge, Utah.
Last week, PQEFF’s interim CEO R. G. Bailey shared in an update to shareholders several accomplishments during the last two years. He said that despite the negative impact of the pandemic, the company:
- Successfully completed construction of a 500 bpd oil extraction plant;
- Sold its first commercial license to Greenfield Energy LLC for $2,000,000 plus a 5% continuing royalty;
- Has tested samples of heavy sweet oil produced by Greenfield Energy LLC using our CORT process at Quadrise Fuels International plc’s research facility in Essex, England, confirming that the samples are amenable for use in the production of a low viscosity oil-in-water emulsified synthetic heavy fuel oil utilizing Quadrise Fuels’ MSAR® and bioMSAR™ technologies;
- Analyzed and tested the clean sands produced as a byproduct of the CORT process, and have determined they can be sold as a resource to different industries, including for use as a potential frac sand;
- Received a FEED (Front End Engineering Design) study for a 5,000 bpd oil extraction plant. This study was prepared by Crosstrails Engineering LLC;
- Received a third-party technical evaluation for a 5,000 bpd oil extraction plant. This evaluation was prepared by the engineering firm Kahuna Ventures.
He reiterated that the company’s CORT process is unique and stands alone as the most eco-friendly and cost-effective oil sands oil extraction method. Kahuna Ventures’ third-party technical evaluation report showed that the cost of production of one bb of oil based on PQEFF’s proposed 5,000 bpd plant would be less than $25, which would be highly competitive compared to conventional methods of oil sands extraction.
Investors are even more on PQEFF after it responded to an unsolicited takeover on Thursday, October 28. The company said that 2869889 Ontario Inc., an indirect, wholly-owned subsidiary of Viston United Swiss AG, has started a conditional, unsolicited takeover bid to acquire all of the issued and outstanding common shares of the company. PQEFF shareholders were advised to take no action in respect of the offer until the Board has made a formal recommendation to shareholders.
The hostile takeover attempt proves that PQEFF has a great extraction technology that could potentially put it in a leading position.
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)!
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.