Penny stocks have massive upside, especially after some of the pullbacks we’ve seen since February. However, we’ve got a lot of things concerning investors right now and many questions to answer.
First, what’s up with the Biden administration’s economic policy? The $1.9 trillion American Rescue Plan was passed at the very start of his administration. There’s also a $2+ trillion infrastructure plan in the equation, along with an American Families Plan that could carry a hefty $1.8 trillion bill. In actuality, though, the American Families Plan could cost taxpayers roughly $2.5 trillion.
How do you think Biden plans on paying for these?
He already proposed hiking the corporate tax rate from 21% to 28% to pay for the infrastructure plan with a 15% minimum tax applied to corporate book income. He also proposed hiking the long-term capital gains tax to 39.6% from 20% for households making more than $1 million. For the top federal marginal tax rate on capital gains and dividends, this could also rise to 43.4%. Biden also allegedly proposed expanding the IRS’ ability to verify individual incomes and taxing capital gains upon death.
According to MarketWatch, we could also be in the middle of our “biggest inflation scare in 40 years.” The GDP is surging, the economy is reopening, yet we’re still spending and spending and spending. When this happens, the dollar depreciates, consumer spending increases, and prices surge.
It’s not all talk. It’s already happening. We have a worldwide shortage of semiconductors, and part of that can be blamed on soaring costs for raw materials. Food prices are at their highest levels in a decade. Even diaper prices are projected to hike by next month.
But, while penny stocks and small caps have pulled back thanks to many of these fears, you must look at the big picture as an investor.
What type of companies do you think will benefit the most from a loose monetary policy and the government’s spending splurge?
It’s the micro-caps!
Out of all cap sizes, micro-caps have surged the most since November. But, because of recent pullbacks, we could be at a mouth-watering entry point right now.
But how about the iShares Microcap ETF (IWC) which is the largest ETF in the world tracking penny stocks? It outperformed the IWM in that same timeframe by almost 10%.
Want to take a real big picture approach? Not only did the iShares Microcap ETF outperform the iShares Russell 2000 ETF by nearly 10% over the last 200-days. It’s more than doubled the returns of larger index tracking ETFs in that same timeframe, such as the SPDR Dow Jones Industrial Average ETF Trust (DIA), SPDR S&P 500 ETF Trust (SPY), and the Nasdaq tracking Invesco QQQ ETF (QQQ).
FINDING OPPORTUNITIES IN PENNY STOCKS
There are still plenty of opportunities for investors if they follow us here at Insider Financial.
The key to trading penny stocks is finding the momentum BEFORE it happens and then being patient. When we say that we find momentum BEFORE it happens, here is what we mean. We are investors (just like you). But as a subscriber, we want to position you to capitalize BEFORE that big break-out move happens.
We got our subscribers in early on CBBT at roughly $0.0088, which you can read about here, GRST at about $0.0063, which you can read more about here, and SYSX right as the stock moved about 7x which you can read more on here.
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.
In this article, we take a look at 4 penny stocks to watch Cerebain Biotech Corp (OTCMKTS: CBBT), Ethema Health Corporation (OTCMKTS: GRST), Sysorex, Inc. (OTCMKTS: SYSX), and Winning Brands Corporation (OTCMKTS: WNBD).
PENNY STOCKS TO WATCH #1 CBBT
Cerebain Biotech Corp (OTCMKTS: CBBT) has been an enormous winner for Insider Financial subscribers. We started covering CBBT at roughly $0.0088, which you can read about here.
Our first alert on Cerebain Biotech (CBBT) was made in September. We then made another alert on Cerebain Biotech (CBBT) in October, which you can read about here because we couldn’t hide our excitement about this company. Saying that the stock performed like a champion may be conservative. Over the last year, the stock has moved an astronomical 8,000+%. However, if you were a subscriber and got our October alert, you may have booked yourself a potential 650% return.
The best part? This stock may have some more room to run.
Cerebain Biotech is a development-stage medical device company focused on the creation and clinical development of a minimally invasive implantable device and a synthetic drug solution.
In our October alert, we discussed their game-changing acquisition of PKG Inc. PKG specializes in the contract design, development, and manufacturing of system-level devices with expertise in human-machine interfaces.
With this acquisition, PKG became the key manufacturer for ClearMask, LLC, and Xometry. ClearMask is the world’s first FDA-cleared, fully transparent surgical mask suitable for hospitals, clinics, schools, retail, hospitality, and other settings. Xometry is the largest marketplace for on-demand manufacturing.
Days ago, Cerebrain provided an update on their share agreement with PKG.
Pursuant to the Share Exchange Agreement, signed on February 12, the purchase price for PKG is approximately $2.34 Million payable in shares of Cerebain’s common stock at a price of $0.07 per share or an aggregate of approximately 33.47 Million shares. Cerebain has agreed to file a registration statement within 6 months of the closing to register the resale of the common stock issued to the PKG equity holders and to use its reasonable best efforts to have the registration statement declared effective, as soon thereafter as practicable.
The stock may have some room to run and be at a mouth-watering entry point. It’s down about 85% from its February peak of about $0.47.
PENNY STOCKS TO WATCH #2 GRST
Ethema Health Corporation (GRST) has been another massive winner for Insider Financial subscribers. We started covering it roughly at about $0.0063, which you can read more about here.
Over the last year, it’s been smooth sailing for GRST as it rocketed over 6,000%. However, if you subscribed with us and got our October alert here, you may have booked yourself a 75+% return if you sold at its peak on March 1.
Addiction treatment is a sector that does not get a lot of attention. However, do you realize what a big market this is? According to Reportlinker, the global market for Substance Abuse Treatment could explode thanks to the pandemic. This was estimated to be a $16.5 Billion market in 2020. However, it’s now projected to reach $27 Billion by 2027, growing at a CAGR of 7.3%.
Many of us know someone that has dealt with addiction issues. Even if not, you know how expensive treatment can be. Ethema Health (GRST) may be the only pure-play in this space for investors and has ground floor potential as it’s down about 35% from its March 1 peaks.
Ethema Health (GRST) has positioned itself as a market leader for treating addiction and substance abuse issues. This company owned and operated a first-class residential addiction treatment center in Canada under the Greenestone brand. However, after it sold this operation in February 2017, it retained ownership of the real estate in which the treatment center operated. Currently, it is leasing the property to new owners of the treatment business. The company shifted its focus to Florida, and purchased a treatment center business in Delray Beach in February 2017. This Florida-based business is currently doing business as the Addiction Recovery Institute of America or ARIA.
Just 6-days ago, GRST announced that it was upping its stake in the ARIA treatment center by executing a revised purchase option. GRST plans to up its stake from 51% to 75%, and the deal is expected to close in late May 2021.
Months ago, ARIA became an in-network provider to Blue Cross and Blue Shield of Florida, Inc. (“Florida Blue”). Since then, it’s become profitable and cash-flow positive.
The construction buildout of the first floor of the treatment center is also underway. It will soon allow for an increase in the number of beds the treatment center can provide on its second and third floors. Capacity will also increase from 40 to 52 beds out of necessity, as ARIA has recently hit a high occupancy of 36 beds.
“We have seen first hand the effectiveness of the use of hypochlorous acid in protecting our workspace and we are excited to be part of an effort to bring this solution to other workplaces in North America,” said Ethema CEO Shawn Leon. “Restructuring the Company and creating a tremendous treatment center asset during the Pandemic has been a challenge. We have succeeded and are now poised to make even more significant strides as the Company and the economy start to get back to work safely.”
PENNY STOCKS TO WATCH #3 SYSX
Right about as we reported on SYSX back in mid-April, the stock moved upwards about 7x, which you can read more on here.
Sysorex (SYSX) has moved and moved explosively. In the last year, it gained almost 2,100%.
However, after we tipped readers off here on April 15 based on two big pieces of news, the stock exploded. Between April 13 and April 17, the stock exploded over 720%.
So what happened to make the stock soar?
The first piece of news was Inpixon (NASDAQ: INPX) converting a note receivable due from Sysorex into shares of Sysorex common stock. This was valued at approximately $17 million based on the closing price of Sysorex’s common stock as of April 13, 2021.
The second piece of news was that Sysorex closed a reverse triangular merger with TTM Digital Assets & Technologies. TTM is a data center owner and operator primarily engaged in mining Ethereum and additional cryptocurrencies.
Since our alert, we have a few exciting new updates to report on the company.
First and foremost, SYSX disclosed not yet audited financial data for April when discussing the merger with TTM.
The company reported the following:
- TTM has mined 572 ETH at a mined value of $1,266,563. The approximate current value of this ETH is $1,498,640.
- SGS (Sysorex Government Services) has recognized revenue of $5,232,773 from payments made by U.S. Government Agencies.
Sysorex Government Services (SGS) and TTM Digital Assets & Technologies are the two main operating companies of SYSX. While TTM focuses on crypto mining, SGS provides cybersecurity and network engineering to U.S. Government agencies and the U.S. Armed Forces.
Furthermore, while government contracts are famously sticky, stable, and lucrative, ETH is trading around all-time highs and has surged by over 660% year-to-date.
As the company says,
“An investment in SYSX common stock allows our shareholders the opportunity to benefit from the profits that we generate mining ETH. TTM has been profitable since its inception in 2017, and with access to cost-effective hydro power at our primary data center, TTM’s historical net profit margin has been greater than 75%. We are the largest U.S.-based, publicly traded Ethereum mining and blockchain technology company, but we have been mining ETH in large quantities for the last four years. With our recent acquisition of thousands of NVIDIA’s Cryptocurrency Mining Processors (CMPs), and our plans to continue to grow our mining operations, we intend to protect and advance our leadership in transparent ETH mining.”
In addition, while big corporations are getting uneasy about these spending bills and inflation, based on another recent press release, this company may actually benefit.
The company can leverage both its government connections and ethereum expertise to vastly benefit from the $2+ trillion infrastructure bill.
“Along with our advisors, we are exploring elements of the $2.25 trillion infrastructure plan where the Ethereum blockchain could vastly improve transactions and costs, including:
- Citizen and Government Transactions
- Business and Government Transactions
- Banking and Finance (Decentralized Finance “DeFi”)
- Securities Trading
- Patents and Trademarks
- Supply Chain
- Public Records, Titles and Registries
- Cloud Computing
PENNY STOCKS TO WATCH #4 WNBD
With climate change now a climate emergency, and a renewed focus on eco-friendly everything, Winning Brands Corporation (WNBD) has positioned itself at the forefront of the movement. Albeit in a unique niche-focused way. This company, a manufacturer of independent cleaning product brands with an environmental focus, has done nothing but soar roughly 5,700% in the last year.
Winning Brands’ current products are found in various respected retailers around the world. In the United States, its primary product, 1000+, can be purchased online at HomeDepot.com and Walmart.com, amongst others. Hardware retailer Do-it-Best, with more than 3,000 store locations across America, also provides the brand with a brick and mortar/physical footprint.
Furthermore, U.S. Navy personnel can pick up 1000+ at NEX facilities in Japan, Spain, Italy, and the Middle East.
In Canada, select independent retailers and Home Hardware and Lowe’s Home Improvement carry its products.
However, with the stock about 50+% off its 52-week high of $0.0062, it could be at a mouth-watering entry point. Especially with some of the things it has going on in its pipeline.
Winning Brands is especially gaining visibility in consumer product and waste management circles for 1000+. 1000+ is a spray cleaner concentrate for consumer use that slashes spray cleaner bottle garbage by 95% and dramatically reduces consumer costs.
If this product catches on more than it already has, the results could be unprecedented.
Beyond this sector, Winning Brands’ 2020 Annual Report also describes ambitious plans to increase shareholder value by reaching into different business sectors. These plans, called VISION 21, set out a bolder interpretation of Winning Brands’ future through inspiration, innovation, and invention.
Winning Brands’ plan also delivers a carbon footprint reduction, cuts truck traffic congestion, lessens cardboard packaging waste, slashes warehousing space duplication, and saves heat and electricity use.
As CEO, Eric Lehner, says
“Consumers operate in their lived reality. They can’t act for the social good unless practical options are put in front of them. We have barely scratched the surface of the potential to reduce such waste because creative alternatives are marginalized by retailers as “non-standard”. Innovation needs to start with manufacturers, be supported by retailers and then embraced by consumers. That’s the realistic sequence to create a positive feedback loop of consumers rewarding innovation. Winning Brands has implemented a “concentrate only” policy for spray cleaning. That’s impactful because our consumers will throw away 20 fewer regular spray bottles in the future, for every purchase of a single concentrated bottle now. Plastic itself is not the problem – it has tremendous properties when used appropriately and we can support its best applications while at the same time stop turning it into garbage where it’s unnecessary. That’s the key – eliminating mindless waste and ridiculous environmental accumulation. Spray cleaner bottle garbage waste can plummet through this method. I’d love to hear from open-minded organizations who are willing to help make this happen. Let’s all be part of the solution.”
Winning Brands was also recently approved for DWAC/DRS services to its common shares as a way to improve its shareholders’ investor experience. This approval allows Winning Brands stock to be transferred electronically between investment and clearing industry organizations.
There are concerns in this market, but there are opportunities everywhere. Our job is to dig through the clutter, block out the noise, and find explosive penny stocks for our subscribers.
Penny stocks, while risky, provide the potential for immediate massive gains.
If you like any of these 4 penny stocks, be patient, do some due diligence, and find enticing entry points. Buying dips and selling rips as swing trades remains the best strategy.
It’s also essential to look for penny stocks that have yet to run. There are plenty of opportunities out there, and we look at hundreds of these types of stocks a week, trying to find the best alerts for our subscribers.
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.