Investors are in a good mood as stock market indices are at their record highs. Both S&P 500 and Nasdaq updated their all-time highs on Thursday, sending positive vibes to OTC stocks. Investors have ignored the Fed’s decision to start tapering its bond-buying program later this month, as the move has been already priced in. Instead, the focus has been on the earnings season that saw companies share better-than-expected results.
Shares of Qualcomm and Nvidia surged over 11% and almost 10%, respectively, on positive reports.
Randy Frederick, managing director of trading and derivatives for Charles Schwab, told Reuters:
“We have had a very strong earning season and the Fed has followed through on what it was preparing markets for and investors generally get happy if they get what they expect. The last time the Fed tapered, it took more than a year for it to hike rates and it looks like that’s what is going to happen going ahead too, with only one-third of the market factoring hikes next year.”
Meanwhile, government data showed that US citizens filing applications for unemployment benefits dropped to a 19-month low last week, which suggests a significant improvement in the job market. Nevertheless, the Nonfarm Payrolls report scheduled for Friday will set the tone.
OTC STOCKS THE PLACE TO BE
Smart investors know that if you want to make the big money off a small account, the place to be is the OTC Markets. There are many good OTC stocks that can boost your portfolio’s value in the long term. For investors, we preach the key to trading penny stocks is finding momentum BEFORE it happens and ahead of the crowd.
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.
If you watch the Insider Financial YouTube channel, you can get a sense of the ideal time to book profits. We warned our subscribers not to get greedy or get caught up in the diamond hands/paper hands BS.
We also recommend you own a portfolio of penny stocks. For some, that can be as many as 10 to 20 or more OTC stocks. This provides diversification and allows one to manage the market’s moods much easier. It also helps to own shares in the following 4 hot OTC stocks.
In this article, we look at 4 OTC stocks that will greatly reward patient investors, three of which are biotech companies. They are Innovation Pharmaceuticals Inc (OTCQB: IPIX), Northwest Biotherapeutics, Inc (OTCQB: NWBO), Regen BioPharma, Inc (OTCPK: RGBP), and Sysorex, Inc (OTCQB: SYSX).
OTC STOCK #1 IPIX
Innovation Pharmaceuticals Inc has been gaining traction lately, hitting the highest level since the summer of 2018. The share price has increased by over 130% to $0.52, and momentum is still there. The OTCQB stock has been bullish since bottoming out in May.
IPIX is an early-stage developmental biotech firm with six pharmaceutical compound candidates that are designed for the treatment of diseases that may be either existing or diseases identified in the future. The company will initially spend most of its efforts and resources on its anti-cancer compound, Kevetrin, for the treatment of head and neck cancers.
Another drug candidate is Brilacidin, a therapeutic for the treatment of oral mucositis, inflammatory bowel disease, acute bacterial skin and skin structure infection, and… COVID-19. Yes, IPIX is a COVID play, and we first paid attention to this OTC stock in October 2020, when its price traded below 20 cents.
In fact, the latest price surge is related specifically to Brilacidin. The company said last week that it was expecting results for its Phase 2 clinical trial of Brilacidin to be revealed on November 8. The study data is presently blinded at the data management vendor, with final checks and approvals in progress.
The company also reported Brilacidin has been shipped to two academic laboratories for planned in vitro testing of Brilacidin in over 20 acutely infectious viruses, including Ebola, Marburg, Nipah, West Nile, and Zika, through a collaboration with US government scientists. The goal of this testing is to further inform the spectrum of Brilacidin’s antiviral properties.
Brilacidin is the only non-peptidic defensin-mimetic drug candidate currently in a clinical trial as a treatment for SARS-CoV-2. IPIX is developing Brilacidin for the treatment of COVID-19 under the US FDA Fast Track designation. A dual-acting inhibitor able to target viral proteins and host factors, while also exhibiting robust anti-inflammatory and antibacterial properties, Brilacidin has shown potent and consistent inhibition in vitro against coronaviruses, alphaviruses, and bunyaviruses (with lab testing against other viruses also underway), supporting Brilacidin’s development as a broad-spectrum antiviral.
Two independent Machine Learning studies identified Brilacidin as one of the most promising inhibitors of SARS-CoV-2, based on Brilacidin’s molecular properties.
$IPIX #Brilacidin has been chosen by two AI systems to be a top compound to combat #COVID19. The drug was created and tested over 50k computing hours at UPENN. Let’s see if machine learning works!https://t.co/p7HptkUG5Z$PFE $JNJ $GILD $AZN $MRNA $INO $VIR $AMGN $GSK $NVAX https://t.co/oJAOxOokzj
— DrBones (@BoneyestSteak) October 29, 2021
The $200 million company has a great share structure and is really onto something. There is a great probability that IPIX will report promising results of its Phase 2 trial, and it would make sense to already hold the stock when it’s ready to move to the Phase 3 trial.
OTC STOCK #2 NWBO
Unlike IPIX, Northwest Biotherapeutics, Inc has been correcting since mid-May, when it hit a YTD high at almost $2. However, the $1 billion biotech company has some great value and solid fundamentals. We first covered Northwest Biotherapeutics in September 2020, well before the price surge that led to the highest level in years.
NWBO develops personalized immune therapies for cancer in the US and internationally. The company develops its products based on DCVax, a platform technology that uses activated dendritic cells to mobilize a patient’s own immune system to attack cancer. Its lead product, DCVax-L that is in Phase III clinical trials to treat Glioblastoma multiforme brain cancer. It also develops DCVax-Direct, which is in Phase I/II clinical trials to treat inoperable solid tumors.
At the end of October, the company said that it had completed two key milestones which are required for the production of DCVax products at its manufacturing facility in Sawston, UK, and which have been a major focus since the completion of initial construction last year.
First, a license to work with human tissues for medical products at Sawston has been issued by the UK Human Tissue Authority (HTA) to NWBO’s contract manufacturer and operator of the facility, Advent BioServices. Second, the comprehensive regulatory inspection of the facility has been conducted by the UK Medicines and Health Products Regulatory Authority (MHRA).
In the UK, an HTA license is required for the collection, processing, and storage of human tissues and cells for medical purposes. This includes the tumor tissues used to prepare the lysate for DCVax-L products, and the immune cells that comprise the active ingredient of DCVax-L.
The Sawston facility must also be certified and licensed by MHRA in order to be able to manufacture products such as DCVax-L. The process involves an extensive application process, comprehensive inspection of all aspects of the physical facility, its construction and equipment, and all aspects of the facility’s operations, including all operating systems, flow of materials and activities, sterility, quality control, staffing and other factors.
While the full results of NWBO’s Phase 3 trial are not available, the company wouldn’t have gone that far if it wasn’t confident about its treatment. As the company said in May, it has been in a quiet period while the trial is underway. NWBO appreciates shareholders’ patience, and their understanding that it cannot make partial disclosures during this process and cannot comment on the Phase III trial schedule or its data until the announcement of the results.
Investing in NWBO is not about chasing after quick returns. This can be a smart investment with long-term potential. The company can easily become a target of a pharma giant that would pay billions for it.
10% of successful stock picking is picking great stocks. The other 90% is not selling them.
— Ian Cassel (@iancassel) October 31, 2021
OTC STOCK #3 RGBP
Our subscribers are familiar with Regen BioPharma, Inc, as it’s one of the biotech stocks that we think can provide great value in the long term. The share price has increased by 30% during the last five trading days, which is a decent move for an OTC stock that hasn’t been showing wild fluctuations. You can buy the RGBP stock for $0.022, a bargain price for a company that sits on a pile of patents.
RGBP is focused on the immunology and immunotherapy space. At the moment, RGBP is focused on small molecule therapies for treating cancer and autoimmune disorders. On top of that, Regen is working on translational medicine platforms for the commercialization of stem cell therapies. The company produces stem-based medicines for diabetes, heart-related illness, circulatory issues, and Chronic Obstructive Pulmonary Disease. The stem cell industry is expected to exceed $15 billion by 2027.
Earlier this year, RGBP signed two deals with Oncology Pharma. One deal focuses on treating pancreatic cancer, and the other one is for the treatment of colon cancer.
Recently, the company revealed a new patent that it had received. Thus, it said that on October 12, the United States Patent and Trademark Office (USPTO) issued Patent Number 11,141,471 B2 to Regen Biopharma, Inc. for “UNIVERSAL DONOR CHECKPOINT INHIBITOR SILENCED/GENE EDITED CORD BLOOD KILLER CELLS.” The invention encompasses compositions of matters, cells, and treatment protocols useful for the induction of anticancer responses in a patient suffering from cancer.
$RGBP 8-K Out
On October 12, 2021 the United States Patent and Trademark Office ( “USPTO”) issued Patent Number 11,141,471 B2 to Regen Biopharma, Inc. for “UNIVERSAL DONOR CHECKPOINT INHIBITOR SILENCED/GENE EDITED CORD BLOOD KILLER CELLS” pic.twitter.com/ZQ77BIPGR1
— Stock Pop (@Stock_Pop) November 4, 2021
In another 8-k published at the end of October, Regen said it had provided a Scope of Work (SOW) order to Biotech Research Group directing it to perform an independent assessment of work conducted to date on behalf of RGBP by the company’s Contract Research Organization in order to assist RGBP in determining what would be the most efficient actions to undertake in order to commercialize its NR2F6 intellectual property as well as assist it with regulatory strategy with regard to its NR2F6 intellectual property.
@Rgbpharma $RGBP $RGBPP hired Biotech Research Group in Oct to provide a valuation of their patents. $RGBP ALSO hired BGG last may to revive an inactive Investigational New Drug application. 6 months of this process is November 12. Only takes 30 days for an application with FDA pic.twitter.com/xw48oMoEEH
— Chris P. Tendies (@Chris_P_Tendies) November 4, 2021
Things are moving at Regen, and we expect more and more updates to come soon. Eventually, RGBP can be acquired by a larger company, like Oncology or Precigen, but even on its own Regen is a great OTC stock to hold.
OTC STOCK #4 SYSX
Sysorex, Inc is yet another OTCQB stock, although it’s not a biotech company. Its share price has gained almost 60% since last week to trade at $0.47. On Tuesday, SYSX bounced back to a monthly high at $0.54. Larger timeframes show that the stock has been correcting from a YTD high at over $14 reached in April. It means that the price has lost over 96% of its value in a matter of months, but it also means that you can buy the dip, especially when the recent price spike was accompanied by record volumes.
SYSX is a data center owner and operator and is the largest US-based, publicly-traded Ethereum mining and blockchain technology company. Following the company’s reverse triangular merger with TTM Digital Assets & Technologies, Inc. (TTM), SYSX shifted its primary business focus to the mining of Ethereum and opportunities related to the Ethereum blockchain.
The company currently owns and operates thousands of NVIDIA Graphics Processing Units (GPUs) generating approximately 500 Gigahash of computing power, as well as a large number of specialized crypto-mining processors. These GPUs are currently online and securing the Ethereum blockchain and generating ETH around the clock with industry-leading efficiency.
In addition to the mining of Ethereum, SYSX continues to operate its wholly-owned subsidiary, Sysorex Government Services, Inc, a business that provides information technology products, solutions, and services to federal, state, and local government, including system integrators. Recently, the company had been awarded multiple government contracts totaling more than $16 million during Q3. These new orders are from the US Department of Justice, Bureau of Prisons (BOP), and the US Department of Agriculture (USDA).
In the future, the company plans to explore potential strategies to leverage the Ethereum blockchain and distributed ledger technology to SGS’s business opportunities.
On Thursday, SYSX announced that it had completed the acquisition of the remaining 50% of the upstate New York data center that houses the majority of its approximately 500 Gigahash of compute capacity.
Up North Hosting LLC, a data center owner and operator in upstate New York, was previously jointly owned by businesses controlled by Sysorex’s recently appointed CTO, cryptocurrency industry veteran Brian Raymond, and Sysorex. Sysorex now owns 100% of the data center, which offers the company immediate access to additional capacity to expand its mining operations. The purchase also included approximately 1000 GPUs, which presently increases mining capacity by approximately 10%.
Brian Raymond, CTO of Sysorex, said:
“With a consolidated facility, Sysorex is well positioned to grow its Ethereum mining business with a better than industry average cost to support operations.”
Ethereum mining has suddenly become profitable thanks to a surge in the price of ETH itself, which just hit a record high at over $4,600. It also trades not far from a YTD high versus Bitcoin, surging in value by about 300% versus the largest cryptocurrency by market cap. In fact, Ethereum mining outpaced Bitcoin mining this year, and the upgrade that will make Ethereum mining unprofitable has been delayed.
We’re quite bullish on SYSX. SYSX used to trade above $10. Current prices make SYSX a discount entry opportunity.
THE FINAL NOTE
All of the 4 OTC 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 penny stock market. Still, whenever a penny stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye the best OTC 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 succeed 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.