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 penny stocks on the move to start 2021 are American Battery Metals (OTCMKTS: ABML), CBD of Denver (OTCMKTS: CBDD), Greater Cannabis Company (OTCMKTS: GCAN), and KushCo Holdings (OTCMKTS: KSHB).
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. With Bitcoin running, we are seeing crypto plays making huge moves. With Joe Biden coming into the White House and Democrats taking control of the Senate, we are seeing cannabis and green energy plays catching bids.
In this article, we take a look at 4 penny stocks on the move ABML, CBDD, GCAN, and KSHB to find out what’s behind the move and our outlook for each.
Penny Stock #1 ABML
ABML is a smart play on the electric vehicle (EV) boom with its pilot lithium-ion battery recycling plant in Fernley, Nevada. Elon Musk has said repeatedly that his biggest obstacle is ensuring that Tesla has enough raw materials to meet the demand for the lithium-ion batteries it needs.
Over the past three months, ABML has achieved three critical milestones that enable the Company to move ahead in permitting, constructing, and commissioning its pilot lithium-ion battery recycling plant in Fernley, Nevada:
- Purchased the Pilot Factory Land – ABML purchased 12.44 acres of undeveloped land located at 345 Winston Lane, Fernley, Lyon County, Nevada. ABML will be constructing five separate building areas on this property to create a Pilot Plant campus that includes: Production Process Areas, Feedstock Sorting Area, Analytical Laboratory Spaces & Process Development Bays, a Storage Warehouse, and general Office Space.
- Secured Water Rights – ABML has secured multiple water allocations from the Fernley Area Basin 76 (Lyon, Washoe, Storey, and Churchill Counties) of Nevada’s West Central Region (Hydrographic Region 5). By securing these water rights, ABML ensures it can operate its pilot facility at full throughput with adequate water capacity for many years to come.
- Hired Design/Build Construction Firm – ABML has selected Miles Construction as the design-build contractor for its Fernley pilot plant campus. ABML is finalizing its permitting processes with the City and NDEP and will announce updated permitting and construction timelines in early 2021.
Furthermore, former Tesla executive Ryan Melsert and his team at ABML have been awarded $4.5 million in gov funding for field demonstration of selective leaching, targeted purification, and electrochemical production of battery-grade lithium hydroxide precursor from domestic claystone resources.
Our only concern is that ABML now has a $975 million market cap. Shorts are bound to get aggressive.
Penny Stock #2 CBDD
We told our subscribers about CBDD back in November that CBDD was an extremely undervalued CBD play. The stock at the time was trading under $.0015 a share and which you can read here. After yesterday’s move, subscribers that held are now up 1,433%!!
CBDD remains an undervalued CBD play after reporting total revenue of USD $8,651,240.00 for the fourth quarter ended December 31, 2020, compared to revenue of USD $5,963,820.00 during the third quarter ended September 30, 2020, an increase of more than 40%.
With a market cap of just $108 million, we see CBDD as having more room to run when you consider the revenues the company is reporting.
Penny Stock #3 GCAN
GCAN is a low-float runner that just retired its remaining convertible debt. For those that know pennies, retiring convertible debt is always huge news and leads to huge moves.
“The elimination of variable rate convertible notes has strengthened our position and simplified our capital structure as we look towards the future for the Company’s growth,” commented Aitan Zacharin, CEO of Greater Cannabis. “We are focused on continuing to expand our product portfolio, distribution both domestically and abroad, as well as advancement of clinical research opportunities in cannabinoid therapeutics. The retirement of our debt is an important step for the Company as we continue to position ourselves as an innovator in a rebounding sector that has quickly become center stage once again.”
We expect GCAN to uplist to QB and continue running as there are only 478 million shares outstanding. With a current market cap of $5.5 million, the GCAN run looks to just be getting started.
Penny Stock #4 KSHB
We recommended KSHB back in October when the stock was under $.80 a share and which you can read here. We said that KSHB had been badly beaten up over the last year and it was time to build exposure. As you can see from the chart below, there’s a lot of room for KSHB to run.
KSHB is running after announcing:
- Company Achieves Revenue of $26.8 Million and Second Consecutive Quarter of Positive Adjusted EBITDA
- Record December Sales of $14.7 Million Due to Strong MSO and LP Purchasing Activity and November COVID-19 Shipping-Related Delays
- Company Increases Fiscal 2021 Net Revenue Guidance to Between $130 Million and $160 Million
KSHB has a current market cap of $236 million and is forecast to do $130 million to $160 million in sales this year. With the bullish enthusiasm surrounding Democrat’s control of the House, Senate, and White House, KSHB is a must-own in 2021.
These 4 penny stocks are hot right now. There are always opportunities in penny stocks and it’s our job to find the bull markets. Huge gains can be made in such a short amount of time.
For those that missed out on the recent run in these 4 penny 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 in these markets.
Remember, all it takes is one or two to become an ABML, CBDD, GCAN, or KSHB and you’ve crushed the market indices for the year. Whoever said to avoid penny stocks has no clue what they’re doing.
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.