Major stock indexes, including the S&P 500 and Nasdaq, updated their all-time highs on Thursday, and OTCQX Composite, which tracks over 400 OTC stocks, surged as well. The sentiment improved after a temporary correction earlier this week, as investors welcome US President Joe Biden’s infrastructure deal.
Earlier today, official data showed that the US gross domestic product (GDP) has increased by an annualized 6.4% in the first three months of the year, in line with expectations. While the economy is rebounding thanks to massive stimulus packages, the recovery will continue with the infrastructure agreement embraced by Biden.
Speaking about how the infrastructure deal could affect specific companies, Sal Bruno, chief investment officer at IndexIQ, told Reuters:
“In the short term, I think there will be some ‘buy the rumor and sell the news’ in materials and industrials, but as we start to see more details come out about how the money will be spent, I think we will get a continued benefit.”
Meanwhile, the US Labor Department said that initial application for unemployment benefits dropped last week by 7,000 to 411,000, though they were still higher than the 380,000 that economists had forecast.
Nevertheless, weekly unemployment claims have declined considerably since the beginning of the year, as many businesses return to full capacity.
NOW IS A GREAT TIME TO BUY OTC STOCKS
This is a great time to invest in OTC stocks, as the US and the global economy are gradually recovering from the devastating impact of the COVID-19 pandemic.
With blue chips, you can’t generate substantial returns given their massive market cap. One option would be to employ leverage, but it is risky, and there are few brokers and trading instruments that allow leverage on major stocks.
The good news is that there are OTC stocks with robust fundamentals that are trading at bargain prices, and we’re here to bring them to light.
Generally speaking, trading OTC stocks is much easier than getting exposure to blue chips. You don’t need a big account, and it’s technically extremely easy to make the first steps. All you need is a laptop and a brokerage account.
Nevertheless, you should keep in mind that small-cap stocks are subject to enormous volatility like what we have witnessed in the February-April period.
Also, remember these two important points when it comes to investing in small caps.
- Buy low and sell high.
- Don’t be afraid to book profits.
However, don’t rush to book profits too early.
Finding the right balance is not that difficult if you’re not getting too greedy and stay disciplined.
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.
The key to trading small caps is finding 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 recommend you to own a portfolio of small-cap stocks. For some, that can be as many as 10 to 20 or more OTC stocks. Obviously, our recommendation to build a portfolio means that day trading is not an option for us. Day trading 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.
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.
Today, we’ll share 4 OTC stocks with growth potential. They are Cybernetic Technologies Ltd (OTCPK: HPIL), Principal Solar, Inc (OTCPK: PSWW), Six Six Five Energy, Inc (OTCPK: SSOF), and Western Sierra Resource Corporation (OTCPK: WSRC).
OTC Stocks to Watch #1 HPIL
The share price of Cybernetic Technologies Ltd has been surging rapidly as the company is working to become Pink Current – an opportunity that can be converted by OTC stock investors. HPIL is currently trading at $0.0043, after almost getting to half a penny on June 22, which was the highest level year-to-date (YTD) and the highest since 2017. We first reported on HPIL at the beginning of the month, anticipating the current rally.
In fact, it doesn’t take a rocket scientist to see that HPIL is undervalued with such an ambitious CEO who has major goals and important connections. The OTC stock has gained over 1,300% YTD and is likely going to continue with its bullish stance.
Cybernetic Technologies is a diversified company focused on developing technology projects in Canada.
HPIL CEO Stephen Brown is turning this little firm into a well-established business through several partnerships and acquisitions. The company, which rebranded from HPIL Holding to Cybernetic Technologies only last month, is preparing its financial reports to become Pink Current.
Recently, HPIL has acquired 100% of NFT Procurement Ltd in two tranches. Through its new subsidiary, it has already partnered with Origin Protocol, a popular blockchain project focused on non-fungible tokens (NFTs) and decentralized finance (DeFi) – two of the fastest-growing trends within the cryptocurrency space.
Thanks to the collaboration with Origin, HPIL will issue NFTs and offer them for sale to third party purchasers on a website created by Origin and displaying NFT Procurement’s IP on a dot.com subdomain that NFT Procurement (HPIL) owns.
By the way, Origin Protocol recently partnered with Google Cloud to set up a marketplace for users where they can create and sell NFTs.
Last month, HPIL announced that it had entered into a Letter of Intent to acquire 100% of Crank Virtual, a division of Crank Media Inc.
Earlier in June, Cybernetic Technologies said that it had acquired World Gaming Group Inc, which had been working on blockchain projects and had developed “GAMEZCASH” and “TUNEZCASH” – two tokens to be used as a new form of currency in the esports/gaming world and the online music industry.
Besides operating in the blockchain and NFT space, which is a fast-growing industry with tremendous potential, HPIL is also working on its own electric vehicle – yes, you read it right. Last week, it joined forces with a group led by L. Ferrox Tutinean to launch Apogee Dynamics Ltd – a company that Cybernetic Technologies is a majority owner. Last Tuesday, HPIL said it was developing its own electric vehicle called APOGEE D7, using the powertrain developed by Tutinean and Apogee Dynamics Ltd.
Stephen Brown said:
“The plan for the new Apogee D7 is a 4 seater vehicle that will not only use the new Apogee powertrain, it will have up to 10 partners all utilizing their DISRUPTIVE business models from Technology, Green, Materials and Media that will challenge the future of the auto industry as it is known today. All partners will have their imprint on the vehicle and will be an instrumental part of its functionality. We look to have the Apogee D7 website up within the next 45 days.”
We think HPIL has some great potential as it operates in blockchain and electric vehicles – two of the trendiest industries. There aren’t many OTC companies manufacturing their own electric automobile if any. HPIL is poised to surge and this might be the right moment to get this OTC stock at a bargain price.
OTC Stocks to Watch #2 PSWW
HPIL is working on its own electric vehicle, which may be huge. However, it’s not alone. Principal Solar, Inc – a Pink Current company that focuses on renewable energy and natural gas – is also playing a role in the electric vehicle industry.
PSWW strategically invests in organizations, people, and technologies that generate and deliver next-generation opportunities in the renewable energy sectors and natural gas. The OTC stock has been correcting since the end of last year when it peaked at $0.55. Nevertheless, it seems that it bottomed out in May, finding strong support at $0.035. At the time of writing, PSWW trades at 11 cents, down from $0.217 touched on June 23, which was the highest level since the end of March.
In 2020, PSWW CEO K. Bryce “Rick” Toussaint said that the company possessed the rights to a unique oil extraction technology called TORS™, which was licensed from Tokata Oil Recovery, Inc. The technology enables the recovery of commercial quantities of oil from waterlogged shallow and marginal wells. In March, the company’s Board approved a separate division to focus exclusively on oil extraction with the TORS technology. The new subsidiary is known as Bayou Road Investments.
In parallel, PSWW continues to operate in the renewable energy sector. Three months ago, it had executed a Letter of Intent to create a subsidiary in partnership with electric vehicle conversion company eTruck Transportation. Through the new subsidiary, Principal Solar plans to fund and support the roll-out of eTruck’s heavy electric vehicle offerings by providing the working capital necessary to deliver on expected customer orders, develop future platforms and technologies, and accelerate the growth of eTruck.
In May, PSWW formed NexTeal Energy, Inc, a subsidiary created specifically to work on the company’s electric vehicle investments.
Later that month, the company unveiled its intention to participate in the US Department of Energy’s SuperTruck 3 program by applying via its subsidiary partnership with vehicle conversion company eTruck. The program provides $162 million in opportunities aimed at electrifying freight trucking, along with efforts to expand infrastructure and lower emissions.
On Thursday, PSWW said that the first two Class 6 Vehicle EV conversions for customer demonstrations were underway. Toussaint explained:
“This marks a milestone as we bring eTruck to market. Through these demonstration conversions, we will show how our solution meets the needs of the market looking to move their fleet to EV now instead of 5 years from now.”
The company’s heavy-duty vehicle EV conversion technology is designed to enable transportation and logistics companies of all sizes to quickly and easily transition their existing fleets from diesel to almost fully electric vehicles without the long development timelines normally required to engineer completely new platforms.
PSWW is only beginning its operations through its two new divisions, and both sectors provide great opportunities.
OTC Stocks to Watch #3 SSOF
Six Six Five Energy, Inc. is a riskier bet compared to previous OTC stocks, but you should keep an eye on it because there are some interesting rumors that, if materialized, can propel the share price to much higher levels. At the time of writing, SSOF is trading at $0.0038, down from $0.012 on June 22, which coincides with the highest level since mid-February, when the price hit its YTD peak at $0.0129.
The company promotes itself as an energy and resource holding company. It was formerly known as Sixty Six Oilfield Services, and changed its name in October 2018 to better reflect its focus as a holding company in the oilfield industry.
665 Energy is looking to acquire and develop oil and gas operating, exploration, and service companies by offering consulting, financial and operational support in exchange for ownership interest in subsidiary firms.
Currently, the company goes with the dark sign on the OTC market, but investors believe that a reverse merger with BiologX might bring to the Pink Current state and turn it into a well-established business. So far, no official announcement has been released, but if it’s true, expect SSOF to surge because BiologX is a biotech firm that has a product line with considerable demand worldwide. Specifically, it creates and sells affordable medicines for serious medical conditions. One of its main products is insulin, which BiologX sells at a lower price compared to competitors, which together have monopolized the market and sell it at exorbitant prices in the US.
The global insulin market is expected to exceed $27.5 billion by 2025 with a CAGR of 3.4%.
BiologX has a range of products in various stages of development:
BiologX and SSOF share the same main executives. Specifically, David Wood is CEO and Ron Zimmerman is CSO of both companies. Also, SSOF has changed its address, and investors say that everything points to a reverse merger.
— Westcoastcloser (@MattRiv2) June 21, 2021
BiologX invites investors to buy its stock at a price of $4 per share and a minimum investment of $320. If the merger takes place and the resulting firm becomes Pink Current with the SSOF ticker, the share price will explode.
OTC Stocks to Watch #4 WSRC
Western Sierra Resource Corporation has been trending during the last few days, peaking on June 24 at $0.33, which is the highest level YTD and since 2004. Our subscribers were alerted last week that something big was brewing in WSRC.
Currently, WSRC is a multifaceted natural resource company focused on applying its $40+ million in water assets to “beneficial use” for irrigation and cultivation of high-value industrial hemp with which to manufacture “green” building products for the construction of affordable homes. This explains the company’s involvement in, and acquisition of associated “green” technologies for construction, energy, and water conservation, as well as alternative and renewable off-grid power sources.
While these and other eco-friendly, high-yield projects are its focus, WSRC remains actively engaged in its gold, silver, and other precious mineral reserve projects as a hedge against global currency fluctuation.
In fact, the latest price surge might be related particularly to its gold and silver business. On June 22, WSRC announced that it entered into negotiations with Silver State Mining Group, Inc (SSMG) to buy 70% of its common stock. SSMG owns 49% of the Sage Hen Mining claims in Nevada totaling 640 acres. The Sage Hen claims are located adjacent to the Relief Canyon Mine in the Oreana Tend. In addition to gold and silver, the enhanced recovery system assays have indicated platinum, palladium, and rhodium.
WSRC and SSMG intend to build a 100 ton/day plan and then increase that to 1,100 tons/day. The estimated annual net income from the 100 ton/day and 1,100 ton/day operation is $269 million and $3.2 billion, respectively.
If those income figures materialize, we can easily see how the share price of WSRC hit several dollars.
THE FINAL NOTE
Today is a great opportunity to benefit from the stock market’s bullishness and invest in OTC stocks with great potential during a reviving economy. Our job is to identify the best OTC stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
All of the 4 OTC stocks discussed today 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 an OTC stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye 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 OTC 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.