If January is a sign of things to come for 2021, traders and investors are going to make a lot of money this year. 4 stocks on the move are Enzolytics (OTCMKTS: ENZC), Naked Brand Group (NASDAQ: NAKD), Tesoro Enterprises (OTCMKTS: TSNP), and Vaxart (NASDAQ: VXRT).
HOW TO TRADE PENNY STOCKS
First up, it’s important to understand that trading penny stocks is not the same as trading blue chips. As we have stressed repeatedly to our subscribers, the key to trading penny stocks is finding momentum BEFORE it happens and then be patient.
We got our subscribers in early on TSNP, which you can read our latest here, and ENZC, which you can read about here. It’s also best to own a portfolio of quality penny stocks. For some that can be as many as 10 to 20 or more penny stocks.
Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens. This is where the big money is made and why so many of our subscribers are sitting on gains of over 7750% in ENZC and over 36,150% in TSNP.
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 penny stocks. 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 penny 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 TSNP, ENZC, MMEDF, and many others.
So far this year, it’s best to play both OTC and NASDAQ/NYSE penny stocks. There is no shortage of multi-baggers in both markets at the moment. As we have said repeatedly, there’s no better time to be a 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.
On the OTC, penny stocks that have the STOP sign are catching bids as traders bet on the stocks cleaning up their filings or doing a merger deal. With a STOP sign, the filings have not been filed on time so the company needs to catch up. Many of these aren’t good securities, but if there was a recent reinstatement (company updated profile checkmark) or filings are starting to pour in, a stop sign that has been asleep for years is one of the best buys you can make since the stop will become a YIELD and PINK current will be on the way. Examples right now include CYBL, ASTI, SHOM, and PLYZ.
On the NASDAQ and NYSE, we are seeing epic short squeezes that are being led by the army of day traders over at Wall Street Bets. The strategy is to simply squeeze the shorts and we love this. It’s a momentum strategy that any trader can implement. Simply go to finviz.com and screen for stocks. Use the Top Gainers signal and screen for stocks with a float short over 10%. The strategy is that once a heavily shorted name starts running. Momentum players jump on board and the shorts are forced to cover as the stock climbs.
This is what we are seeing in Gamestop, KOSS, Bed Bath & Beyond, BLNK, PLUG, WKHS, and even the dog shit stock Nikola. For those that are interested in this strategy, we wrote a detailed article with video analysis that explains how to do-it-yourself, which you can read here.
In this article, we take a look at 4 penny stocks to watch ENZC, NAKD, TSNP, and VXRT to find out what’s behind the move and our outlook for each.
Penny Stocks To Watch #1 ENZC
ENZC has dropped from its recent highs after a Seeking Alpha hit piece came out, which you can read here.
The problem is that this hit piece was light on details and the author clearly has no idea what he’s talking about. The author fails to understand what a game-changer the Enzolytics/Bioclonetics merger is. The good news is that the sell-off has given investors a chance to load up before the next big run.
BioClonetics is in the final stage of development of a parent monoclonal antibody (“mAbs”) (designated as Clone 3), which is non-toxic and has shown in initial in vitro testing to be effective against more than 95% of all strains and viral subtypes of HIV-1 against which it has been tested.
With the merger completed, BioClonetics Clone 3 recombinant mAbs will be combined with the Enzolytics’ flagship compound ITV-1, a suspension of Inactivated Pepsin Fragment (IPF), which studies have shown is effective in the treatment of HIV. IPF is the active drug substance of ITV-1 and is a purified extract of porcine pepsin. ITV-1 has been shown to modulate the immune system.
IPF is a platform technology that can be used to facilitate a broad range of applications. It is free from major neurological, gastrointestinal, and hematological side effects seen in the antiretrovirals in use today. IPF has been shown to not be subject to viral resistance and is cost-effective.
ENZC has a number of upcoming catalysts that can keep the momentum in the stock.
- All filings current.
- Further updates from Texas A&M
- Update on GMP production
- IND submission
These are the near-term catalysts that we are expecting. Anything new from the company would be an added bonus.
The premise of the Seeking Alpha article is that ENZC’s current market cap of around $500 million is not justified. We beg to differ as we see ENZC as greatly undervalued considering the $37 billion market for its treatments. The bottom line is ENZC is massively undervalued at current levels.
Penny Stocks To Watch #2 NAKD
NAKD is running as a beneficiary of the Wall Street Bets crowd. 75% of the float in NAKD is short.
NAKD is similar to Gamestop in that it is also a brick-and-mortar retailer. Naked Brand Group Limited designs, distributes, wholesales, and retails women’s and men’s intimate apparel, and women’s swimwear.
The company offers its products under the Pleasure State, Davenport, Lovable, Bendon, Fayreform, Naked, VaVoom, Evollove, and Hickory brands, as well as through licensed brands, including Heidi Klum and Fredericks of Hollywood.
It sells its products through company-owned retail stores in Australia and New Zealand; online channels; and wholesale partners in Australia, New Zealand, the United States, and Europe.
NAKD has taken advantage of the recent price spike and raised $50 million, which will allow the company to shed its brick-and-mortar operations in order to focus exclusively on the planned rapid acceleration of its e-commerce business. Naked will seek to leverage its brand, platform and build out proprietary technology to capitalize on the e-commerce boom.
“In the current environment, our capital-intensive brick-and-mortar legacy business has proven challenging to sustain. This divesture will allow us to remove all group debt and transition to a pure-play, technology-rich e-commerce platform focused on intimate apparel with our existing digital business, FOH Online. FOH Online currently generates annualized revenue of approximately $20 million in the USA.”
The recent pullback looks to be setting up for another short squeeze.
Penny Stocks To Watch #3 TSNP
TSNP is another penny stock that has backed off the highs as short-sellers have gotten aggressive. We have covered TSNP extensively here at Insider Financial since $.0008 and we have said to those that missed the move to buy on red days. This is another opportunity to load up before the next move higher.
TSNP HUMBL had a great investor call, which we covered here in this video.
Just this week, HUMBL launched their new financial division and their HUMBL X Shops.
HUMBL Financial will soon offer trusted, third-party financial services in areas like investments, credit card services, and lending. HUMBL Financial is focused first on the digital asset trading markets, which are a new global trading market for blockchain technologies.
The HUMBL Financial division will launch first from its Singapore offices to a number of countries, by providing blockchain indexes, proprietary trading algorithms, and financial services for the new digital asset trading markets. The first services offered by HUMBL Financial will be the BLOCK Indexes and the BLOCK Exchange Traded Indexes (ETXs).
HUMBL X Shop will offer affordable HUMBL clothing and merchandise for supporters of the HUMBL brand, as well as further memorabilia and collectibles.
HUMBL Studios will also be launching limited quantity HUMBL x Collections that will be recorded on the blockchain, through the use of a new technology called: Origin Assurance™. This will include memorabilia and collectible items that will be some of the world’s first such items to be cataloged and tracked on the blockchain – such as skateboards, motorcycles, artworks, posters, and more.
The last Seeking Alpha hit piece on TSNP was December 14th when the stock closed at $.17 a share, which you can read here. All we can say is ignore the shorts as short-selling is a losing strategy as evidenced by what has happened in GameStop, NAKD, TSNP, ENZC, AMC, and countless other stocks.
Penny Stocks To Watch #4 VXRT
We first covered VXRT last June when it was still a penny stock and which you can read here.
What’s exciting about VXRT is that it is the ONLY company in Operation Warp Speed with an oral, room-temperature-stable tablet. On Monday, Vaxart is anticipated to release data from its Phase I COVID-19 trial. This release will set the tone for the trading week. Last week, VXRT said:
“The latest data from the SARS-CoV-2 Hamster Challenge Study reinforces our belief that our oral COVID-19 vaccine candidate shows great promise.” said Andrei Floroiu, chief executive officer of Vaxart. “Our oral vaccine could help fight the COVID-19 epidemic globally because it is stable at room-temperature making it easier to transport, store, and administer than injectables. It may also appeal to those uncomfortable with injections.”
VXRT is another name that shorts are betting against heavily. 33% of the float is short, so we can see a HUGE move if the data is positive.
These 4 penny stocks need to be on your radar. 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.
Our best advice 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.
Remember, all it takes is one or two to become an ENZC, NAKD, TSNP, or VXRT and you’ve crushed the market indices for the year. Whoever said to avoid small-cap stocks has no clue what they’re doing.
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.