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 stocks on the move are Healthier Choices Management (OTCMKTS: HCMC), Greene Concepts (OTCMKTS: INKW), Comstock Mining (NYSEMKT: LODE), and Sundial Growers (NASDAQ: SNDL).
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.Now, when we say that we find momentum BEFORE it happens, we are investors looking to position our subscribers BEFORE the move happens. We got our subscribers in early on TSNP, which you can read our first article here, and ENZC, which you can read about here. 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.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.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. There is no shortage of multi-baggers in both markets at the moment. As we have said repeatedly, there’s no better time to be a penny stock trader and traders need to be aggressive. It’s like being at the casino. When you have a hot hand and the house keeps losing (hedge funds and institutions), take advantage of it while you can.In this article, we take a look at 4 penny stocks on the move, HCMC, INKW, LODE, and SNDL to find out what’s behind the move and our outlook for each.[embed]https://www.youtube.com/watch?v=7VA_c-FuZFE[/embed]
Penny Stock On The Move #1 HCMC
HCMC is running as more traders and investors discover the company's patent infringement lawsuit against Philip Morris USA, Inc. and Philip Morris Products S.A. in connection with their product known and marketed as “IQOS®.” The lawsuit was filed in the United States District Court For the Northern District Of Georgia. Penny Stock On The Move HCMC Daily ChartHCMC’s lawsuit includes claims that Phillip Morris is infringing HCMC’s patent rights in connection with IQOS®, an alternative tobacco product marketed and sold by Phillip Morris. Philip Morris claims that it is currently approaching 14 million users of its IQOS® product and has reportedly invested over $3 billion in its smokeless tobacco products. Philip Morris has been very open about their ongoing transition from traditional fully combustible cigarettes to their modified risk tobacco products, including IQOS®.The Philip Morris IQOS® product is currently the subject of two other patent infringement proceedings filed by RJ Reynolds Tobacco Company. One proceeding is before the International Trade Commission and seeks to stop the importation of the IQOS® product into the United States; the other is a patent infringement action currently pending in the Eastern District of Virginia. RJ Reynolds’ patents are unrelated and not affiliated with the patents asserted in the HCMC case.This lawsuit has serious merit as HCMC is being represented by Cozen O'Connor, one of the top IP litigation firms in the world, which you can read about here. You can also read the lawsuit here and notice that the Attorney filing the lawsuit is Barry Golub, the Co-Chair of Cozen O'Connor's IP Litigation Department. He would not be attaching his name to such a high-profile lawsuit against a Fortune 500 company if he didn't think he could win. Lawyers like Barry Golub only go for the high-profile cases that will get headlines and big-dollar verdicts.In our opinion, HCMC is a lotto pick depending on the outcome of the case. It could be a home run (multi-billion-dollar judgment) or a dud. Investors need to keep in mind that there are 194,780,848,017 shares outstanding.For those that have been trading pennies as long as I, HCMC was the old Vapor Corp (OTCMKTS: VPOR) before the name and symbol change. HCMC also has $11.1 million in debt on the books. However, HCMC does have a real business and generates $3 million-plus in revenues every quarter. I am just trying to point out the pros and cons for investors.
Penny Stock On The Move #2 INKW
INKW is running after its BE WATERTM sold out after its first day of listing on Amazon.com. Penny Stock On The Move INKW Daily ChartOn Friday, January 29, the company issued a press release announcing the availability of its BE WATER product line on Amazon.com. With the page going live for the first time early that morning before the afternoon came, all product inventories of BE WATER had been sold. This includes all inventory sent to three different Amazon distribution centers around the country.
Lenny Greene, CEO of Greene Concepts states, "Due to the overwhelming response and positive demand for our BE WATER product, we sold out the same day that our online listing debuted. In fact, it sold out within a couple of hours after the day's press release. While I am happy with our January 29 product sales, I am most happy knowing that we have the capacity to meet this demand. We are working diligently with Amazon to replenish the inventories as quickly as possible."
INKW has a current market cap of $47 million on 1,394,667,515 shares outstanding. The company has $2,381,000 in liabilities. We are waiting for the company to report the sales numbers from Amazon before we get too excited about the recent developments.
Penny Stock On The Move #3 LODE
LODE is a silver miner running as the Wall Street Bets crowd tries to moon the price of silver. Penny Stock On The Move LODE Daily ChartFor those not familiar with LODE, Comstock Mining Inc. is a Nevada-based, precious and strategic metal-based exploration, economic resource development, mineral production, and metal processing business. The Company has extensive, contiguous property in the historic Comstock and Silver City mining districts.What we like most about LODE is that the company has been actively working to boost shareholder value.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “Our successful sale of Lucerne has eliminated substantially all of our debt and recorded an $18 plus million gain and expectations of full-year profit for 2020, all while reducing our operating expenses and positioning our balance sheet for growth. We believe that our resource-based technology, properties, plant and equipment, and existing gold and silver mineral properties are undervalued. Our strategic plan includes establishing and growing the value of our existing mineral and royalty properties, commercializing and growing a global, ESG-compliant, profitable mercury remediation business, while still monetizing over $25 million in assets over the next fifteen months, for funding that growth.”
He further added.
“The realignment enables partnerships and transactions that increase value-creating opportunities and accelerate our precious and strategic-metal-based products and process growth. Our goal is to deliver over $500 million of value, or at least $12 per share, from our existing assets and the commercialization of these environmentally friendly metal processing and mining technologies, partnerships, and ventures.”
LODE has a current market cap of just $92 million. If you want to own silver and you can't go wrong owning silver as a hedge against inflation, the best play is to own LODE.
Penny Stock On The Move #4 SNDL
We said in January that there was a lot more room for SNDL to run. Shares were trading at just $.64 at the time. Penny Stock On The Move SNDL Daily ChartSince then, SNDL has been making big moves.
- SNDL raising $100 million. This gives the company the ammo to acquire other cannabis plays.
- 15% of the float is short as Wall Street Bets crowd look for more plays to squeeze the shorts.
- SNDL has NO debt, making it also a takeover target with a market cap of just $1.36 billion.
- Driven by rising consumer demands for solventless cannabis extracts, SNDL launched high-quality cannabis derivative products under the Top Leaf brand.
- Sundial plans on providing additional offerings in 1Q21, including Top Leaf's Oregon Golden Goat bubble hash and Grasslands' Sativa & Indica hash.
- Sundial has a partnership with Chokolat to launch a cannabis-infused confectionary brand. This expanded Sundial into the edibles segment. The companies have announced they expect to scale the collaboration across Canada, beginning in the Alberta market.
These 4 penny stocks are hot right now. There are always opportunities in the markets and it’s our job to find winning stocks. Huge gains can be made in such a short amount of time.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 HCMC, INKW, LODE, or SNDL and you’ve crushed the market indices for the year. Whoever said to avoid small-cap stocks has no clue what they’re doing.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.Image by Mabel Amber from Pixabay