The US economic recovery is generally doing well, with GDP growth returning to pre-pandemic levels. However, the latest Nonfarm Payrolls data suggests that the Fed’s ultra-easy monetary policy will still go on, which means that stocks will continue their rally as the money supply increases.
On Friday, the Labor Department said that job growth slowed more than anticipated in August, as declining demand for services and ongoing worker shortages maintain amid the resurgence of COVID cases. Nonfarm payrolls rose 235,000 last month after jumping 1.053 million in July. The unemployment rate fell to 5.2% from 5.4%. Economists polled by Reuters had forecast nonfarm payrolls to go up by 728,000 jobs.
The disappointing data softened fears of the Fed reversing the stimulus measures earlier than expected. Thomas Hayes of Great Hill Capital told Reuters:
“The bad news is that it missed by two thirds basically of expectations and the good news is that it gives the Fed cover to push off tapering. It just means more Fed for longer. […] So bad news is good news, is the name of the game with this jobs report.”
The stock market is a winner in any case, and it continues to fluctuate near its all-time highs, including the penny stock index OTCQX Composite.
FINDING OPPORTUNITIES IN TOP PENNY STOCKS
There are plenty of opportunities for investors if they follow us here at Insider Financial.
The key to trading stocks is finding the 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 penny stocks. For some that can be as many as 10 to 20 or more penny stocks that include both OTC stocks and NASDAQ penny stocks.
We alert our subscribers with our best ideas before our regular readers. This is the value of having a subscription to Insider Financial, which you can sign up for here.
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 stocks, and sometimes get exposure to larger companies that still seem to have massive growth potential. There are always opportunities if you give yourself the flexibility to trade all markets.
In this article, we take a look at 4 stocks on our penny stock list, of which one is listed on NASDAQ and one is traded on the NYSE American. They are Sphere 3D Corp (NASDAQ: ANY), Globalstar, Inc (NYSE American: GSAT), MMA Global Inc (OTCPK: LUSI), and AppSwarm, Inc (OTCPK: SWRM).
Today’s Penny Stock List #1 ANY
Sphere 3D Corp has had an incredible three-month period. At the end of May, the penny stock bottomed out at $1.33, which is the lowest level year-to-date. Since then, ANY has continually ascended, and on September 2, it almost hit $12, touching the highest level since the first quarter of 2018. An 800% gain in only a few months is quite an achievement for a NASDAQ-listed stock with a $200+ million market cap.
We first reported on ANY at the beginning of August, when the share price was fluctuating below $5. While you still can buy ANY at over $6 after Friday’s pullback, ANY will no longer be a penny stock after it consolidates above $5.
The latest price surge came after Sphere 3D, a company delivering containerization, virtualization, and data management solutions, announced that it had entered into a securities purchase agreement with institutional investors to purchase $192.1 million of its common shares and warrants in a registered direct offering priced at-the-market under NASDAQ rules. The combined purchase price for one common share and one-half warrant to purchase one common share is $8.50. Under the terms of the agreement, ANY has agreed to sell a total of 22,600,000 common shares and warrants to purchase 11,300,000 common shares.
The offering is expected to close on or about September 8. Most of the proceeds will be utilized for the previously announced purchase of the initial 60,000 Bitcoin miners, which start shipping this November, out of the potential 220,000 miners available for purchase through its agreements with Hertford Advisors. The 60,000 miners, in combination with the Gryphon Digital Mining’s 7200 miners, will have a combined capacity of approximately 6.4 Exahash. Thus, Sphere is also a crypto and blockchain play. Its goal is to become one of the carbon-neutral leaders in the Bitcoin mining industry. Bitcoin mining is currently one of the most profitable businesses after China’s crackdown on local miners combined with the cryptocurrency’s surging price of $50,000.
The recent price surge has also been driven by ANY’s involvement with a SPAC IPO. On August 30, the company said that Minority Equality Opportunities Acquisition Inc, a SPAC that ANY has an indirect interest in, closed its upsized IPO. Minority Equality closed its IPO of 12,650,000 units at a price of $10.00 per unit, resulting in total gross proceeds of $126,500,000. The SPAC will focus on companies with 51%+ minority-owned and operated by individuals belonging to an ethnic minority group. Sphere 3D sponsored the SPAC.
We think that the stock price won’t remain this cheap for much longer, so now is the time to get exposure to this well-diversified company.
Today’s Penny Stock List #2 GSAT
Globalstar, Inc is another penny stock that is trading near its year-to-date high after surging at the end of August. The stock listed on NYSE American has gained over 70% during the last month, peaking on August 30 at $2.37, which is the highest since mid-February, when the price touched $2.57.
GSAT offers satellite services worldwide, providing duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications; fixed voice and data satellite communications services and equipment at industrial, commercial, and residential sites, as well as rural villages and ships; and data modem services and equipment.
It also provides SPOT consumer retail products, such as SPOT satellite GPS messenger for personal tracking, emergency location, and messaging solutions; and SPOT Trace, an anti-theft and asset tracking device.
In addition, the company offers commercial Internet of Things (IoT) one-way transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets.
GSAT has a strategic alliance with XCOM Labs to jointly commercialize XCOM’s capacity-multiplying technology with Globalstar’s Band n53 for 5G deployments in the US and other countries where Globalstar has terrestrial rights.
On Monday, GSAT surged on rumors that Apple’s upcoming iPhone will include satellite communications technology, which will enable owners to make calls and send SMS even when they’re in areas with weak 4G or 5G signals. The rumors came from analyst Ming-Chi Kuo of TF International Securities, who said that the iPhone 13 feature a Qualcomm chip that supports satellite communications. Globalstar operates a network of 24 satellites in low Earth orbit. However, no official announcement came neither from GSAT nor Apple.
Top Apple supply chain analyst Kuo predicts iPhone 13 "will likely" connect to satellites, through a custom Qualcomm chip and partnership with Globalstar — and referenced SpaceX's Starlink as an influence in the move. $AAPL $QCOM $GSAT $IRDM
— Michael Sheetz (@thesheetztweetz) August 30, 2021
Another positive news came at the end of the week when GSAT said that it had received an additional advance payment of $37.5 million from a customer. The funds will be used to repay a portion of the amount outstanding under its first lien credit facility.
GSAT has a healthy balance sheet and is a good penny stock already, but if the connection with Apple is confirmed, be ready for a major bull run.
Today’s Penny Stock List #3 LUSI
MMA Global Inc is a small company seeking to become Pink Current. This blockchain and NFT play has already surged over 472% in the last month alone. At the beginning of August, the share price traded below $.08 and then it peaked on September 2 at $0.88 before correcting to the current level of $0.51.
We like businesses that are starting their operations from scratch and seeking to become Pink Current as they provide many opportunities for early investors. MMA used to be a development stage company focused on food-related businesses in the US. Now it’s working on launching a blockchain-powered game engine offering both pay-to-play and free-to-play mobile and browser-based games, and related social offerings focused on, but not limited to the sports and entertainment sector.
It is anticipated that the game engine will deploy fungible and non-fungible token (NFT) technologies, support ‘own brand’ and ‘white label’ gamification of both synchronous and asynchronous sporting and entertainment events, and provide a powerful tool to content owners, celebrities, social influencers, and others to engage fans and followers.
The company holds a royalty-free, perpetual license to use and to further develop and/or sublicense any and all of Shout TV Inc.’s free-to-play technology, including any gaming, educational, social, mobile, fan engagement, or other technologies. These include Shout, The Challenge, Shout Live, Flashvote, and others which have been used in conjunction with fan engagement of live sporting events by companies such as Real Madrid Football Club and the World Series of Fighting. The company also acquired Shout TV Inc.’s IP and technology assets in development related to pay-to-play (P2P) style games, such as Daily Millionaire, Millionize, and Trivia Train.
Currently, the company goes with the Pink Limited symbol, although you can still trade it on Fidelity. The company has recently released its quarterly and annual reports and also shared the Attorney Letter, so it will likely get the Pink Current status very soon.
Besides preparing for the launch of its blockchain-based gaming platform, LUSI is also working to change its name to ZUKI.APP and update its ticker accordingly.
3/3 … We have filed a trademark application and an application with FINRA seeking approval of a company name change and ticker symbol change consistent with https://t.co/nRpeOqhVZP.
— Zuki.App (@Zukisphere) September 3, 2021
The interest for NFTs has suddenly surged, with sales on OpenSea jumping to $3.4 billion in August, which is ten times more than in July. Meanwhile, while crypto art dominates the NFT space, gaming and fan NFTs are gaining traction as well. For example, NFTs related to online game Axie Infinity reached almost $800 million in sales in the last 30 days alone, which makes Axie the most popular collection. Elsewhere, the price and sales of PSG fan tokens have surged after the French football club snatched Lionel Messi from Barcelona in a shocking move.
LUSI will leverage one of the fastest-growing trends right now, with blockchain and NFTs expected to expand rapidly in the years to come.
The only issue is that the number of LUSI’s authorized shares is too big versus outstanding shares, but the company said that it would cut it by half.
2/3 … We have also been working to make the share structure more inviting, reducing the AS by ±50%. Outstanding convertibles have an exercise price of $5/share, giving us plenty of room to run on a low float.
— Zuki.App (@Zukisphere) September 3, 2021
LUSI is certainly a great penny stock to own. We don’t see shares being under $1 for much longer.
Today’s Penny Stock List #4 SWRM
AppSwarm, Inc has had a great start to the month, although it has pulled back from the swing high reached on September 2 at $0.0192, which is the highest level since May. Now you can buy the penny stock for $0.0108 per share.
SWRM is an application developer that creates, tests, and programs apps for computers and almost every type of device, from desktops to mobile devices. The Pink Current company also partners with application developers to help market their apps and it also seeks to acquire dynamic applications and technologies developed by others.
The share price surged on Thursday after SWRM announced its intention to deploy and host Dogecoin nodes at its TulsaLabs facilities. The main goal of a blockchain node is to check the validity of each block containing transaction data. Nodes store the full copy of the distributed ledger and are used by developers for building blockchain-based applications.
A full node is a program that fully validates transactions and blocks. According to the block explorer, Blockchair, Dogecoin only has around 1,090 nodes worldwide.
SWRM has recently launched a new division called DogeLabs, which is led by Tom Bustamante. He said in a statement:
“As a firm focused on supporting the commercial possibilities around the Doge project, we plan to expand opportunities from applications, product integration, and potential mining operations if regulatory feasible.”
While the price surge came after investors found out about the connection with Dogecoin, the eighth largest cryptocurrency, SWRM quickly corrected after everyone realized there are no incentives for running full nodes. Still, SWRM can easily choose to mine DOGE, but that can’t bring much profit.
Anyway, SWRM may be a good investment as it got the Pink Current status only recently and plans to expand its business. In mid-August, the company appointed a new CEO, who pledged to review core business segments to provide a clearer focus on operations and shelve non-performing assets for the time being.
On Friday, SWRM’s TulsaLabs introduced its newest client GTX Corp as the two collaborate on wearable AI to potentially extend human life span.
TulsaLabs $SWRM would like to introduce our newest client GTX Corp $GTXO as we collaborate on wearable AI to potentially extend human life span#wearables #AI #health #heart #diabetes #futurism #TulsaLabs pic.twitter.com/rWkLXwpfRy
— AppSwarm (@appswarm) September 3, 2021
SWRM is going through some major changes in terms of business direction, so be sure to keep it on your penny stock list.
THE FINAL NOTE
Now is a great opportunity to invest in top penny stocks with great potential. Our job is to identify the best stock alerts with strong fundamentals and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
The 4 top penny stocks discussed today are on the rise and 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 stock market. Still, whenever a hot stock is in the middle of a bull run, we recommend our subscribers to book profits.
It’s very important to eye penny 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 penny stocks to run in order to crush the market averages.
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.