The OTC stock market is trading at the highest levels in years, with OTCQX US index updating its all-time high. There are more signs that the global economy is gradually reviving, even though the number of COVID cases continues to increase worldwide. In the US, the bullish sentiment is driven by the vaccination program and the massive government stimulus.
The current circumstances are ideal for penny stock traders. The economic mini-boom might drive blue-chip stocks, but their returns are capped due to their huge market capitalization, even though exceptions like Tesla might show up here and there. On the other side, OTC stocks can increase in value by several times in a relatively short period, as they have much room for growth.
Still, it’s imperative to rely on the 3 most important rules of investing:
- Buy Low;
- Sell High;
- Don’t hesitate too much with profit-taking.
Position trading might be an option for large-cap stocks, but holding penny stocks for months or years might be risky. Moreover, you’d lose the chance to reap the benefits from the short-term fluctuations. The ideal approach is to buy low and exit the market after a decent bullish move. Don’t be too greedy to wait for ongoing gains from holding the same stock – the market is always fluctuating up and down.
We always highlight the fact that the key to trading OTC stocks 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.
For example, we got our subscribers in early on DSCR – you can read our first article mentioning it here. The price of the stock has gained over 50% since then, and it still has room for growth. In fact, we’re about to discuss Discovery Minerals (OTC PINK: DSCR) in the present article, along with three other trending OTC stock, including Organicell Regenerative Medicine (OTCMKTS: BPSR), Endexx Corporation (OTC: EDXC), and Worksport Ltd (OTC: WKSP).
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 let’s dive into the 4 penny stock opportunities you should know about today:
OTC Stock to Watch BPSR
Miami-based biotech firm Organicell Regenerative Medicine has been correcting after an impressive surge at the end of April, when the OTC stock increased from $0.05 on April 27 to $0.60 two days later, generating a three-day return of 1,100%. We reported on the surge here.
At the time of writing, BPSR is about 50% down from the recent peak, which coincides with the highest level in years. Nevertheless, the penny stock can return to growth, as its flagship product known as Zofin™ is now trialed for the treatment of COVID-19.
The therapeutic is now tested in a phase I/II randomized, double-blinded, placebo-controlled study to assess its safety and potential efficiency for treating COVID-19 as well as SARS. While the global vaccination programs may contribute to a rapid return to normalization, there is still a huge demand for efficient COVID treatments to handle existing and upcoming cases, especially amid the emergence of new variants that might potentially be vaccine-resistant.
The company described its product:
“Zofin is a nanoparticle based therapeutic showing tremendous promise in the battle against COVID-19. Zofin is derived from perinatal sources and is manufactured to retain the naturally occurring microRNAs, without the addition or combination of any other substance or diluent. Proprietary processing of this therapeutic component aims to promote a synergistic diminishment in the fatal course of COVID-19 and other acute respiratory illnesses.”
On April 28, Organicell announced that it had recorded positive results for the first ten COVID patients treated with Zofin in India. The news drove BPSR’s price to its highest level in years. The initial trial is conducted in collaboration with Organicell’s Indian partner, CWI India.
The first ten study participants were COVID patients treated at Narayana Hrudayalaya Hospital in Bangalore, Lisa Hospital in Kozhikode, Kerala and Prime Indian Hospital in Chennai. All ten patients have successfully recovered. Organicell will expand the trial to an additional 65 patients with moderate to severe COVID symptoms. The treatments are expected to be completed by the end of next month.
At that point, BPSR’s price might experience another surge if the results are positive. In the case of similar success, Organicell and its Indian partner plan to file with the Indian Council for Medical Research for Emergency Use Approval to use its Zofin therapy.
While the results of the next phase of the trial are unpredictable, investors may allocate part of their penny stock portfolio to BPSR, as the fundamentals are robust so far. The only concern is that the company has registered negative operating cash flow during the last few quarters while the debt to assets ratio has been in the gray zone near 50%. Still, Organicell plans to up-list its stock on NASDAQ Capital Market, which means it has to meet all financial requirements.
OTC Stock to Watch DSCR
California-based Discovery Minerals is in uptrend mode right now, gaining 0.25% since Tuesday and maintaining its bullish stance. DSCR costs only 3 cents as of today, which is a bargain price for a penny stock with considerable growth potential.
Discovery Minerals is an acquisition and development company that focuses on natural resource properties and top-notch technology opportunities via its subsidiaries.
In mid-April, the company completed the acquisition of the Ruby Mine from Sierra Gold LLC. Discovery’s geologists have already started to work on a 3-D model of the property and assess all known existing resource targets. The Ruby is regarded by many as one of the largest producing river channel mines of modern times. It hosts a system of gold-bearing Tertiary channels which have already produced over 250,000 ounces of gold. As of today, it is estimated that at least 134,844 ounces of gold are available for near-term recovery from identified channels using the existing Ruby infrastructure.
We can’t be bearish on a company hunting for gold and succeeding in doing so. The Ruby is definitely an exciting mine, but Discovery Minerals wants to benefit from the ongoing crypto hype as well. At the end of last month, it announced that it picked Alt 5 Sigma Inc., for the development of its proprietary digital token called Discovery Coin (DSG), along with a payment gateway. The Ethereum-based, gold-backed token will be used for revenue diversification to create liquidity and assist in monetizing gold resources.
Alt 5 Sigma is about to mint a total of 210 million of DSG. The coin is intended to be backed by 2,100 Bitcoin, 2,100 Ether, 2,100 ounces of physical gold and 2,100 ounces of physical silver.
Besides minting the token, Alt 5 Sigma will help DSCR to create payment gateway, enabling merchants worldwide to accept DGC as payments.
While the tie to the crypto market means additional volatility risk, it is more likely a bullish signal given Bitcoin and altcoins’ bull run.
OTC Stock to Watch EDXC
CBD Unlimited, formerly known as Endexx Corporation (though it still uses this brand name of the parent company), is another trending OTC stock, though it is in correction mode and has declined from $0.18 to $0.15 during the last five days. Nevertheless, the long-term potential is there, as the company operates in the CBD industry. At the beginning of the year, you could buy EDXC for 10 cents per share.
Endexx produces several cannabidiol-based products, including CBD oils, CBD delayed release veggie-caps, CBD drinks, CBD for pets, and CBD topicals.
Aside from the fact that EDXC operates in an emerging market with huge growth potential, the company also benefits from the joint venture with DJ Khaled’s new CBD firm Khode LLC, which bodes well for CBD Unlimited. On Tuesday, May 4, Khode announced that it had formed its Board of Directors, which includes DJ Khaled, his friend and music executive Lenny S, as well as Todd Davis, who is the CEO of EDXC, along with Stephen Herron and Ron Cotting of CBD Unlimited. Todd Davis is the new chairman of Khode.
We are somewhat bullish on EDXC in the long term, as the company has expansion plans. It has cannabis licenses in Jamaica, distribution deals into over 200,000 convenience stores, and has recently filed Form 10 registration statement with the US Securities and Exchange Commission (SEC).
OTC Stock to Watch WKSP
Canadian Worksport Ltd., formerly known as Franchise Holdings International, is an interesting company that might expand as soon as the pandemic pressure fades away. The WKSP’s price has been wobbling since the beginning of April and has been in correction mode since mid-February, when it hit the highest level since March 2019 at $0.61. At the time of writing, the OTC stock is trading at $0.33, inching up during the last five days.
Worksport produces and distributes truck tonneau covers and solar-powered systems for light-duty trucks in Canada and the US.
At the end of March, Worksport raised $3 million via a Private Investment in Public Equity (PIPE). The fundraising came after $4 million raised from the closing of an oversubscribed Reg-A public offering. The company will use the funds to build inventory and boost its marketing and branding efforts for the forthcoming TerraVis™ solar tonneau cover system and TerraVis COR™ mobile energy storage system.
Last week, WKSP announced that it was about to lease its brand-new manufacturing facility. This will provide the necessary infrastructure to sustain the company’s growth while mass-producing its two flagship products.
The company has major expansion plans. If it succeeds, it will reflect in the stock price. Also, Worksport plans to be eventually listed on NASDAQ Capital Markets Exchange.
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 options with evident growth potential and let our subscribers pick the ones they like to build a well-diversified portfolio oriented at penny stocks.
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 to buy 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.
Images via Pixabay, BigCharts, Worksport