If January and February are a sign of things to come in 2021, traders and investors are going to make a lot of money this year. 4 penny stocks to watch are Bantec (OTCMKTS: BANT), Cielo Waste Solutions (OTCMKTS: CWSFF), Ideanomics (NASDAQ: IDEX), and T2 Biosystems (NASDAQ: TTOO).
HOW TO TRADE PENNY STOCKS TO WATCH
First up, it’s important to understand that trading penny stocks are not the same as trading blue chips. Penny stocks are subject to enormous volatility.
As we have stressed repeatedly to our subscribers, 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.
We got our subscribers in early on HUMBL, which you can read our first article here, and ALPP, which you can read about here. This is where the big money is made and why so many of our subscribers are sitting on gains of over 8113% in ALPP and over 17,400% in TSNPD.
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.
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/NYSE 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 stocks, depending on the market conditions. 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 stocks than OTC. That is where we and our subscribers were positioned. We captured the runs in SRNE, NIO, INO, IBIO, WKHS, 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 TSNPD, ENZC, MMEDF, and many others.
Lately, it’s been best to play OTC penny stocks. There is no shortage of multi-baggers at the moment. As we have said repeatedly, there’s no better time to be a hot penny stock trader and traders need to be aggressive. It’s like being at the casino. When you have a hot hand and the house keeps losing (hedge funds and institutions), take advantage of it while you can.
In this article, we take a look at 4 penny stocks to watch BANT, CWSFF, IDEX, and TTOO find out what’s behind the move and our outlook for each.
Penny Stocks To Watch BANT
We recommended BANT to our readers and subscribers back in October as a play on the COVID-19 pandemic with its Bantec Sanitizing Division, which you can read here. Subscribers that bought in at $.0033 are now sitting on gains of over 1200%!!
BANT is running after launching its Exposure Response Mobile Service to combat COVID-19 flair-ups occurring in all work and residential settings.
Exposure Response will provide a mobile service that will sanitize a workplace using CleanSmart products and protocols and/or provide products and training which will allow employers to effectively sanitize their facilities post-exposure.
BANT is also launching Bantec Sanitizing (Exposure Response Mobile Service) as a franchise.
Michael Bannon, Bantec’s Chairman and CEO stated: “On February 1, 2021 we signed an agreement with Accurate Franchising to launch Bantec Sanitizing (Exposure Response Mobile Service) Franchise. Accurate will help us locate potential franchisees, assist with the franchise agreement, state registrations, franchise operating manual, franchise marketing plan, franchise landing page, franchise brochure, business planning for Bantec Sanitizing franchisees and many other franchising aspects. We anticipate selling our first franchise in the next three months. Meanwhile, we will perform all sanitizing services in house. Future Bantec Sanitizing franchisees will offer Bantec Sanitizing supplies, robots, UV lights and deep cleaning services. After we roll out the Bantec Sanitizing franchise, we will look to investigate other franchises. As drones and robots become more integral to our way of life, we will explore franchising Drone USA.”
BANT is in a hot sector and sports a market cap of just $69 million.
Penny Stocks To Watch CWSFF
CWSFF is a renewable energy play running up the charts. As you can see from the chart below, CWSFF started 2021 at just $.07 a share.
Cielo is a waste to renewable fuel company with a game-changing technology engineered to help solve the world’s garbage crisis. Cielo’s technology transforms landfill garbage into renewable high-grade diesel and kerosene (aviation jet and marine fuel). Cielo’s proven and patented technology is currently being deployed in the Company’s Aldersyde Facility, Alberta, where wood waste is currently being converted into renewable fuels.
Cielo is headquartered in Alberta, Canada with plans to build and operate green facilities across North America as well as globally.
Last month, CWSFF made its first significant sale of renewable fuels with a purchase commitment for 900,000 liters (238,000 gallons) of renewable diesel at CAD$1.67/liter for an aggregate purchase price of CAD $1,500,000.
Don Allan, President and CEO of Cielo, stated, “After several years of advancing our waste to high grade renewable fuel technology, we are finally in a position to start reaping the rewards of our efforts. These revenues are expected to put Cielo into immediate positive cash flow and may also open up additional non-dilutive financing opportunities for Cielo should they be required.” Mr. Allan continued, “We are very excited to share with the world our lucrative way to convert multiple waste streams, including all plastics, into high-grade renewable fuels, that we believe can command a premium price to both conventional diesel and biodiesel. Our anticipated cost of approximately $0.90 per litre would allow for healthy margins and we are confident that we can reduce costs even further as a result of our commitment to increasing production levels as we progress. This is truly a milestone in the long journey for Cielo and its shareholders and we are pleased to prove to the world that we are here to stay and make a serious effort to help with the world garbage crises.”
Penny Stocks To Watch IDEX
In our opinion, IDEX remains the most-undervalued EV player on the planet with a market cap of only $1.34 billion.
Here are 10 reasons to be bullish on IDEX:
- IDEX acquired WAVE. WAVE is a provider of inductive charging solutions for medium and heavy-duty electric vehicles. The company’s customers include the largest EV bus system in the U.S., the Antelope Valley Transit Authority, and its partnerships include Kenworth, Gillig, BYD, Complete Coach Works. All the EVs on the road are going to need charging. With WAVE doing about $7 million in revenues last year, there is a long runway for growth.
- IDEX acquired 100% of privately held Timios Holdings Corp. in an all-cash deal. Timios currently has 285 employees and operations in 44 states and has booked over $60 million in YTD revenues, including over $8 million in October 2020.
- Ideanomics increased its stake in California-based Solectrac thereby taking total ownership to 24%; post-money once the additional third-party investment is finalized stake will reduce to ~22% With this investment in Solectrac, Ideanomics expands its global footprint in the electric vehicle (EV) industry, specifically in the category of specialty commercial vehicles.
- Ideanomics’ Mobile Energy Global (MEG) division and its contracting entity Qingdao Chengyang Medici have signed an agreement with Meihao Chuxing, a JV between BYD and Didi, for purchasing an initial 2K units of model BYD D1. BYD D1 is the world’s first custom-built, all-electric car specifically for ride-hailing with smart technology, safety, and comfort features for both drivers and passengers.
- Mobile Energy Global (MEG) delivered a total of 439 units in December vs. 151 units in November.
- Ideanomics owns 51% of Treeletrik, a Malaysian-based EV manufacturer whose business is primarily in logistic vans, mopeds, and scooters. As the China EV market matures, its manufacturers will face oversupply issues. This is where Treeletrik comes in.
- The company’s Medici Motor Works division is set to unveil 6 new electric vehicles.
- With the Timios and WAVE acquisitions and momentum in MEG growth, revenues should be on the low-end $140 million to as high as $200 million in 2021.
- 13% of the float is short. The shorts have bet $140 million that IDEX stock is going to drop. Just like how Elon Musk squeezed the shorts in Tesla, we expect CEO Alf Poor to do the same to IDEX shorts.
- We see IDEX taking one or more of its EV divisions public via IPO or SPAC. This makes a lot of sense as there are two divisions – electric vehicles and fintech. At current levels, both divisions are tremendously undervalued.
We don’t see IDEX remaining a penny stock much longer. We are just one PR away from an epic short squeeze.
Penny Stocks To Watch 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.
T2 Biosystems confirmed this month that its T2SARS-CoV-2 Panel can detect many different coronavirus strains, including the variants first identified in the U.K., South Africa, and Brazil. A recent evaluation of more than 42,000 genome sequences for the novel coronavirus showed that T2 Biosystems’ panel should detect 99.99% of all currently identified SARS-CoV-2 viruses.
T2 Biosystems CEO John Sperzel said, “We continue to actively monitor new variants of the COVID-19 virus to confirm that our technology remains a useful and reliable diagnostic tool for the many healthcare systems and people that need it during this time.”
The T2SARS-CoV-2 Panel has demonstrated clinical sensitivity — essentially, the ability of the test to correctly identify the people who have the disease — of 95%. Additionally, the panel has demonstrated specificity — the ability of the test to correctly identify those who do not have the disease — of 100%. Better still, test results can be obtained in less than two hours using nasal swab samples.
T2’s SARS-COVID-2 test could drive revenue for years if hospitals utilize its other capabilities once the device is installed. With a market cap of just $334 million, TTOO has a lot more room to run.
As we keep saying, there are always opportunities in the markets and it’s our job to find winning stocks. Huge gains can be made in such a short amount of time.
If you like any of these 4 penny stocks to watch and have missed the move, our best advice in these tough times 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.
It’s also important to look for penny stocks that have yet to run. There are plenty of opportunities out there and we look at hundreds of penny stocks each week trying to find the best alerts for our subscribers.
Remember, all it takes is one or two to become a winner and you’ve crushed the market indices for the year.
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.