U.S. OTC stocks are in standby mode so far this week. With the major indices hovering around all-time highs, investors have paused to consider where the markets go from here.
Recent economic data has been mostly favorable which along with a slipping 10-year Treasury yield is supporting equity prices. Oil prices have come down from their peak dragging energy stocks lower, a group that has been a strong leader in 2021.
However, absent big earnings reports or other major catalysts, investors seem to be waiting for others to make the next chess move.
The fact that several prominent websites went offline this morning has been also been caused for caution. From Amazon.com to the New York Times to Reddit, recent web outages are keeping many traders on the sidelines amid the swirling threat of cybersecurity breaches.
Yet with market volatility still very low, many are turning their attention to Reddit’s Wall Street Bets where meme stocks are making a reunion tour. This is once again driving names like Gamestop, AMC, and Bed Bath & Beyond higher.
The action is also heating up over in the OTC markets. The OTCQX Composite climbed to a fresh record high on Monday. This is where you’ll find many low-priced stocks that hold the potential for big gains.
Here at Insider Financial, we have our finger on the pulse of the social media chatter to discover promising penny stocks that are building momentum. Our OTC feature on June 4th highlighted some interesting OTC stocks that are off to a great start this week. This includes LWLG which is climbing fast. You can find that article here.
We found four similar stocks that are generating significant buzz on Wall Street Bets, Stocktwits, iHub, and other popular social media platforms— GAXY, IQST, TAWNF, and SIRC.
Let’s dive in…
OTC STOCKS TO WATCH #1 GAXY
GAXY is no stranger to going on big runs and it looks to be gearing up for another.
In August 2020 we wrote about the education technology company as a compelling back-to-school play. At the time the stock was on a run from less than a penny to more than $0.06. You can read about that here.
After that rally, we called GAXY a great ‘buy the dip’ opportunity on several occasions. The stock went on a nice Santa Claus rally to end the year and then in February 2021 ran above $0.08.
GAXY then went on an extended Spring Break. But with school in recess for the summer, social media is again buzzing about the company’s growth potential as students return to the classroom this fall.
The company offers interactive learning solutions such as touch screen panels, communication devices, and related peripherals. Backed by federal stimulus programs, schools have money to spend to get schools up and running after COVID-19 disruptions forced many to operate remotely. Much of the funding is expected to go towards technology infrastructure and learning solutions.
The contract wins have been piling up the last few weeks. This has come on the heels of GAXY’s announced partnership with Aisys Consulting to scale its business in Texas. Texas is home to some of the country’s largest K-12 school districts, so the move is a logical one.
Last month GAXY was awarded a catalog discount bid by the Northwest Independent School District located in the Dallas/Fort Worth area. The bid entails multiple annual contracts for the district’s 29 schools representing more than 25,000 students.
This week GAXY announced that it won three more discount bids in Texas. Together the three additional independent school districts encompass more than 100 schools in various parts of the state. The company also shared a plan to have a full-time sales rep focused on Texas starting next month. Everything is bigger in Texas and that includes education spending.
Late last month GAXY reported a bid from the High School for Health Professions in South Carolina. This was for GAXY’s 75-inch interactive panels, accessories, and software. Although it was just for one school, it could lead to further inroads in the district and state.
In addition to the recent awards, social media is buzzing about the potential launch of a new product. That’s because GAXY received a U.S. patent for its Assistive Listening System. The system uses device pairing technology that can be integrated with the company’s classroom audio solutions. It allows students with hearing disabilities to connect to classroom audio as they move from classroom to classroom.
According to the Centers for Disease Control and Prevention, approximately 3 of every 1,000 U.S. children are born with hearing loss. Fifteen percent of school-age children suffer from some degree of hearing loss. The new GAXY offering, therefore, could be a valuable resource for schools that are looking to provide support to hearing-disabled students.
From an investment perspective, it demonstrates that GAXY is developing innovative new products to build out its portfolio. The Assistive Listening System patent is the company’s second patent. It had three additional patents pending to protect its technology and expand into other sectors.
There is a nationwide push to get students safely back into the classroom. Armed with bigger budgets, many schools are looking for technology solutions that support teacher-student interaction.
GAXY’s growing presence in this space should make it a significant beneficiary. It won’t be long before the broader market learns about this company.
OTC STOCKS TO WATCH #2 IQST
IQST has been one of our favorite OTC penny stocks. We took an interest in the telecom technology provider in February 2020 after it reported record sales.
Social media investors were also excited about the company’s entry into the blockchain telecom market through the acquisition of itsBchain. We said there could be more where that February 2021 run came from. You can read that story here.
Indeed there was. February must be iQSTEL’s lucky month because a year later, the stock went on one the most incredible OTC runs of 2021. It started the year around $0.20 and climbed as high as $2.00 on February 22nd. Insider Financial subscribers that jumped on our January 4th IQST article enjoyed a 10-bagger to kick off the new year. That can be found here.
We’ve continued to follow IQST as it has trended back under $1.00. In recent days, investors have had more interest in the stock.
The comments on iHub have been increasingly bullish since the company confirmed the launch of Visa Money One (VIMO) later this month. The debit card service will go beyond debit card processing in providing “one-stop-shopping fintech services”. Customers will be able to open a U.S. bank account and use a mobile wallet that includes a Visa debit card. VIMO will also be connected to a cryptocurrency exchange that will allow users to buy and sell digital coins.
CEO of iQSTEL Leandro Igleasias stated, “Cryptocurrencies are here to stay. Including a cryptocurrency platform function with our new VIMO branded banking ecosystem we feel is vital to making VIMO a relevant leading-edge service into today’s Fintech market.”
Mr. Iglesias went on to say that VIMO is expected to generate $128 million in revenue over the next five years.
IQST’s push into the banking industry has good growth potential considering consumers increasingly want cryptocurrency as a key component of their banking and shopping experience. It also helps diversify the company’s revenue sources which include exposure to the telecom, electric vehicle (EV), energy, and materials sectors.
In the telecom side of the business, IQST is rolling out its Mobile Number Portability Application (MPNA) blockchain platform. It lets cell phone users change from one mobile network to another in a matter of three clicks. The product has the potential to be a gamechanger in an industry where telecom carriers engage in intense competition to attain and retain customers based on the quality of their networks.
The company initially estimated the mobile number portability market to be a $260 million opportunity. This week, the estimate more than doubled to $530 million. IQST is hoping to capture 10% of the market over the next three years. Longer-term, it is looking to get the platform in the hands of more than 1 billion users.
IQST has found good support around the $0.50 level. The bottom appears to be in one this one. This time around, investors may not have to wait for another Valentine’s Day rally to feel the IQST love.
OTC STOCKS TO WATCH #3 TAWNF
Last month we alerted investors that Thai Airways International (TAWNF) was getting ready for takeoff. With the stock riding a 6-day winning streak through Tuesday, the cabin doors are now closing.
The diverse airliner provides the usual passenger, freight, and mail travel as well as ground transportation, cargo, catering, dispatch, and technical services.
TAWNF used to be a state-owned enterprise but the Thai government now owns a roughly 48% stake. This should be viewed as a risk factor, but one that is outweighed by the growth opportunities.
Like other airlines, TAWNF is still reeling from the impact of the pandemic on global travel. It was already in a precarious position heading into the crisis saddled with a huge debt burden.
After losing more than $4.5 billion last year, the company was granted approval for debt rehabilitation from a bankruptcy court. As it has gone about negotiating new debt terms with its creditors, TAWNF has become a debt restructuring story more than a reopening play.
As we learned in March 2021, any debt-related headline can cause a spike in this stock. The huge jump from earlier in the year was sparked by news that Thailand’s finance ministry supported a restructuring plan that would return the company to profitability. Unfortunately, shareholders couldn’t come to terms on the specifics and the stock made a quick landing.
TAWNF investors have since been eagerly anticipating word that shareholders and creditors have reached an agreement. Some on social media are speculating that a deal is imminent.
That magic headline has yet to materialize, but social media (and the stock) has been re-energized this week for a different reason. On Monday, the Bangkok Post ran a story that said starting July 2nd, TAWNF will offer direct flights from five European cities to the city of Phuket, Thailand’s colorful tourist destination. The company disclosed the information along with plans to restart Hong Kong to Phuket flights via its Facebook page.
The reopening of international travel to Phuket Airport does come with one stipulation. Tourists must remain on the island for at least 14 days. We’d imagine some arms can be twisted on that front.
With TAWNF and other airlines resuming overseas travel to Phuket, that’s all some investors needed to hear to say “F-it, I’m taking a chance on this penny stock.”
Between the return of international travel and pent-up hopes for restructuring news, there is a lot of powder in this keg. TAWNF looks primed for blastoff.
OTC STOCKS TO WATCH #4 SIRC
Insider Financial subscribers will recall our pre-New Year’s eve story on Solar Integrated Roofing (SIRC). The dual-threat green energy/EV battery play had just reported record Q3 revenue. With the wind at its back, the stock went from less than $0.30 to $3.00 by February 5th. You can read that article here.
Last month SIRC was once again on our minds as we highlighted it as one of the “Stocks Set to Explode” along with AMC stock. The company had announced the acquisition of Future Home Power. The residential solar panel specialist was forecast to bring over $1 million in incremental weekly sales. It got Reddit and iHub buzzing about SIRC being the next OTC runner—and us thinking the same.
SIRC appears to be at the starting line stretching out for that run after two strong advances to start the week.
On June 4th, the company made its second appearance in less than a month on MoneyTV with Donald Baillargeon, a program that is popular with social media investors and has a global reach of more than 200 million households. First, it was subsidiary PLEMCo CEO Tim Hatamian who talked about the EV charging industry. Last week, it was COO Troy Clymer who expressed his enthusiasm for the company.
The media appearances energized social media over the weekend about SIRC’s growth prospects in solar energy and EV charging stations. It also has other businesses in roofing, HVAC, and electrical contracting. Two days into the trading week, SIRC was up nearly 40%.
The momentum could very well continue SIRC making the rounds at the LD Micro Invitational XI investor conference this week. Management is presenting at the virtual event on June 9th at 1:30 pm EST. The webcast can be accessed here.
SIRC’s exposure to two of the biggest growth themes of this decade (in solar and EV infrastructure) along with its astute media campaign, makes this one powerful OTC penny stock.
As we keep saying, there are always opportunities in the markets and it’s our job to find winning stocks before they run for our subscribers.
If you like any of these 4 OTC stocks, 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.
It’s also important to look for stocks that have yet to run. There are plenty of opportunities out there and we screen hundreds of penny stocks each week looking for 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)!
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.