OTC stocks continue to perform well in May, giving penny stock investors more opportunities to secure generous returns. So far, the OTCQX Composite index has outperformed Nasdaq Composite year-to-date.
Both the OTCQX Composite and OTCQX US indexes are currently at their all-time highs. While this might suggest that a potential correction might be just around the corner, which is true, the momentum is strong, and there are many penny stocks that are getting traction these days.
Today, investing in penny stocks is like leveraging the bullishness of the cryptocurrency market, whose impressive rally has surprised even the most optimistic holders.
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.
Wanna know when your stock will go up? AS SOON AS YOU SELL! 🤷♂️😡😂 #OTC$INCT $FTEG $UBQU $ADHC $HMBL $GVSI $IBRC $RETC pic.twitter.com/uC2AaKhg1S
— AzirStocks (@AzirStocks) May 4, 2021
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.
It’s also best 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 discuss four OTC stocks that have great potential in the following weeks and months, including Green Globe International (OTCMKTS: GGII), Labor Smart (OTCMKTS: LTNC), LGBTQ Loyalty Holdings Inc (OTCMKTS: LFAP), and Regen BioPharma (OTCMKTS: RGBP).
OTC STOCKS TO WATCH GGII
We first told our subscribers about Green Globe International last month when shares were under $.01, which you can read here.
Green Globe’s goal is to become a major player in wholesale CBD, hemp, and cannabis products, building a supply and production infrastructure that comprises multiple revenue points throughout the chain. GGII provides services to companies offering consumer products that include CBD compositions. It buys, sells, and brokers CBD oils, acting as a direct channel from industrial hemp growers and processors to manufacturers.
The recent surge is related to a potential reorganization of GGII, in which The Hempacco Co., becomes the new owner, though the merger hasn’t been confirmed yet. At the end of April, GGII announced that the company’s control had passed to Hempacco as a result of a private sale of 100 Series A Preferred Shares. GGII appointed a new board of directors under the leadership of Hempacco’s CEO, Sandro Piancone.
GGII said that it had applied to OTC Markets Group to be able to add info on the new ownership group and file missing reports. The process is expected to conclude next month. Once GGII is able to complete its OTC Markets filing obligations, it intends to initiate a merger with Hempacco. GGII has already made substantial progress in achieving this.
Hempacco’s goal is to disrupt the tobacco industry by providing consumer goods in the form of Hemp cigarettes, CBD, CBG, Hemp Cigarettes, and other plant-based smokables. Hempacco has a factory where it manufactures its products and a number of brand lines. It also manufactures for other companies and has over 600 vending machines with hemp cigarettes.
The emerging hemp industry is expected to become a $26+ billion market by 2025, also because people will move from tobacco to safer alternatives. Even Philip Morris is currently analyzing the cannabis market, realizing that the hemp trend is set to stay.
OTC STOCKS TO WATCH LTNC
Labor Smart has been correcting since the end of April, but the penny stock has the potential to grow thanks to the recent acquisition of Takeover Industries, which produces sports drinks, such as NXT LVL hydrogen water.
Previously, we were skeptical on LTNC, citing pump-and-dump concerns. Nevertheless, we can’t deny that despite the intense activity on social media, Labor Smart has no shortage of fundamentals to back its potential bullishness.
At the beginning of March, the company completed the acquisition of Takeover Industries in a move to diversify its business. The latter is an early-stage beverage venture that is now a wholly-owned subsidiary of Labor Smart.
Two weeks later, LTNC, though Takeover Industries, signed an MOU to create a joint venture with Faith Springs, LLC, doing business as H2ForLife. LTNC secured a minority stake in Faith Springs and will benefit from exclusive rights to sell and promote all hydrogen drinks powered by H2forLife® technology for a period of two years. The statement reads:
“H2ForLife® is the first and only ultra-concentrated hydrogen rich spring water, canned at the source and enhanced with proprietary technology, delivering the most powerful molecular and atomic hydrogen molecules that work at the cellular level to help rejuvenate the body’s cells while enhancing their functions.”
At the end of April, Takeover Industries signed an endorsement deal with boxing legend Manny Pacquiao and The Manny Pacquiao Foundation.
LTNC through its new subsidiary has become more active and visible. The company has an active social following centered around the #LTNCArmy hashtag. As we saw what can happen with DOGE, social is indeed driving asset prices these days. It’s foolish to bet against this trend and the #LTNCArmy.
OTC STOCKS TO WATCH LFAP
LFAP is in bullish mode at the beginning of May, surging from one cent on Tuesday to seven cents on Thursday. While the price has corrected to five cents, the general uptrend doesn’t seem to fade away.
The price surged after the company announced that its world-renowned board of directors would stay for two more years.
LFAP is a diversity and inclusion-driven financial methodology and data company. It is about to launch its LGBTQ+ ESG100 exchange-traded fund (ETF) on Nasdaq on May 18.
The fund will mimic the performance of the LGBTQ100 ESG Index, which outperformed the S&P 500 index by about 5% in 2020. The index includes the top 100 US large-cap companies that put an emphasis on inclusion. Currently, it includes giants like Tesla, Apple, Amazon, Microsoft, PayPal, Visa, Alphabet, and Facebook.
The LFAP price will become even more volatile closer to the launch of the ETF in mid-May. Investors should focus on dip buys rather than chasing.
OTC STOCKS TO WATCH RGBP
Regen BioPharma is a tiny biotech that we think will one day become a major pharma player.
The company focuses on translational medicine platforms for the commercialization of stem cell therapies. The stem cell industry is gaining traction and is expected to exceed $15 billion by 2027. Stem cells are special cells that can develop into any type of human cells.
RGBP is working on getting regulatory approval and executing clinical trials in cell therapy. The company produces medicines for diabetes, heart-related illness, circulatory issues, and Chronic Obstructive Pulmonary Disease.
Besides stem cells, the biotech firm is working on small molecules capable of targeting cancer and autoimmunity.
Recently, Regen signed two deals with Oncology Pharma, a $720 million company that is a leader in oncology treatments. One deal is between Oncology and Regen for treating pancreatic cancer, and the other one is between Regen’s subsidiary KCL Therapeutics, Inc, and Oncology for the treatment of colon cancer.
On Friday, May 7, Oncology Pharma entered into a licensing agreement with Regen to use its technology revolving around small molecules to activate immune checkpoints for the treatment of colon cancer. With the help of Regen’s technology, Oncology will identify small molecules that inhibit the NR2F6 nuclear receptor, which Regen considers to be a potentially critical immune cell inhibitor (an immune checkpoint) and cancer stem cell differentiator. In other words, by inhibiting the NR2F6 nuclear receptor, one can trigger the cancer-killing potential of a patient’s own immune system.
Regen has dozens of regulatory filings, over 20 patents, and several ongoing clinical trials. We think that the company has enormous potential and expect the company to start announcing more licensing deals like the ones with Oncology Pharma to drive RGBP stock to new highs.
The Final Note
Today, investors can benefit from the stock market’s bullishness and find great opportunities as the economy is reviving. Our job is to identify the best OTC stock with evident growth potential and let our subscribers pick the ones they like to build a well-diversified portfolio.
If you like any of these 4 OTC stocks, 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.
It’s very important to consider OTC stocks that have room for growth and don’t seem to be at their culmination. There are plenty of opportunities and we take our time to monitor hundreds of penny stocks 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 have a lucrative portfolio.
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.