Worried About a Market Correction: Here’s Some Unique OTC Stocks that have Tremendous Potential
It’s been a tough start to 2022 for most investors, with both the NASDAQ and the S&P 500 hitting correction territory. The benchmark S&P 500 is down 8.8% this year, the NASDAQ has fallen by 13.2%, and the blue-chip Dow Jones has lost nearly 2,700 basis points. So far, 2022 has not been as kind to investors as the great bull run of 2020 into the first half of 2021. We can look towards a number of reasons for this, specifically the ongoing geopolitical tensions in Eastern Europe, as well as the imminent interest rate hikes that are coming from the Federal Reserve.
Over the Counter stocks are an interesting case study, as these markets are not as impacted by macroeconomic events. In fact, the OTC market often acts independently from the major indices and even seem like they are immune to any major pullbacks or corrections. Now, this isn’t a blanket statement as there have been times where the OTC market has its own corrections, and there are also occasions when the OTC market will drop in a bear market.
But wait, aren’t the OTC markets risky and volatile? Absolutely, but like any type of investing, you are most at risk when you do not know what you are doing. Those that educate themselves and do the research into OTC companies know that there are plenty of hidden gems on this market, and not everything is a manipulated pump and dump scam. There are tons of legitimate companies on the OTC market that are working towards uplisting to the NASDAQ or New York Stock Exchange in the future.
So what kind of companies trade on the OTC markets? Not every company is as large as Apple or Microsoft or Tesla. A lot of emerging companies need to start somewhere to raise public capital, and the OTC markets offer these companies a stepping stone to the big leagues. There are also plenty of companies that have uplisted to the major indices each year. Two companies that have recently done so that come to mind are Novavax and Axsome, two biotech companies that have grown to have multi billion dollar market caps.
If you’re worried about the ongoing market correction you’re not alone. In times like this, I like to tell myself that this is just an opportunity to buy low. Warren Buffett told us to be greedy when others are fearful, and I can’t remember a time since the COVID-19 flash crash in March of 2020 where the market has been as fearful as it is now. None of this is financial advice, but there are some tremendous opportunities on the OTC market right now to check out.
iQSTEL (OTCQX:IQST)
iQSTEL is a OTCQX traded global company that is based out of Coral Gables, Florida, with additional offices spread out across fourteen different countries in Europe, Latin America, and Asia. The company has several different business segments that lead to a well-diversified portfolio of products and services. Business to Business or B2B segments include telecommunications, the Internet of Things (IoT), and blockchain platform services. iQSTEL also has a Business to Consumer or B2C segment which offers electric vehicles with its new EVoss division as well as fintech solutions for Latin America with Global Money One.
It sounds like iQSTEL has taken a lot on but it is operating with some strong business efficiency. First, the balance sheet is clean, which is something that is quite rare for an emerging company. As of February of 2021, the company is completely debt free, which includes long-term debt like convertible notes, warrants, promissory notes, or settlement agreements. For a micro-cap company, this is a worthy accomplishment and means that iQSTEL can focus on being free cash flow positive, and using that income to rapidly expand its existing business.
At the heart of iQSTEL’s business is system integration. Whether this is through its blockchain-based settlement and payment marketplace, fintech and crypto exchange services, or the electric vehicle battery management system. All of these services define the core of the technology that iQSTEL is involved in, and are at the cutting edge of the broader technology shift that is happening in our world.
It’s also not often that an OTC company is able to boast a portfolio of Fortune 500 companies as its direct customers. iQSTEL has partnerships with the following companies: IBM, Verizon, Tata Motors, Bell, China Telecom, and China Mobile just to name a few. Some investors prefer a more focused portfolio of products and services, rather than having the business spread itself thin. Investors need to think of iQSTEL as a technology services platform, rather than a company that has its hands in multiple cookie jars. Its technology has transcended different industries, and it has established relationships with global partners to prove this.
So what about iQSTEL’s stock? It’s definitely struggling at times with fluctuations both up and down. However, If you zoom out, the stock has been trading in its current range for the better part of the last year. Earlier this year, the company confirmed a $90M revenue projection. As well, in a recent update from the company CEO Leandro Iglesias, he has provided an update on a potential application for NASDAQ uplisting at the end of March. If this goes ahead, shareholders can anticipate an immediate boost in trading volume, some stability, and increased buying due to being included in index funds. The future looks bright for iQSTEL, but will the stock follow suit? That remains to be seen, although value investors will see all of the potential catalysts ahead and note that the stock is trading at a low compared to what the intrinsic value of the business really is.
Black Bird Biotech Inc. (OTC:BBBT)
From cutting edge technology to a biotech company that is revolutionizing the cannabis and agricultural industries. Black Bird Biotech is based out of Flower Mound, Texas, and is a true penny stock in every sense of the word. Black Bird’s stock is currently trading at just over $0.01 per share, which is significantly off of its 52-week high price of $0.08 per share. Black Bird primarily operates within the US and has several subsidiaries providing natural and healthy cannabis and hemp products.
The Cannabis industry has been slower to develop than first anticipated. It has yet to receive federal legislation, although multiple states have legalized it for recreational, adult use. One issue that cannabis producers have come across is mass infestation of crops as well as pesticide residue that shows up during regulatory product testing. Black Bird Biotech is working towards solving these issues.
Spider mites are the main threat to cannabis crops as well as others like coffee, grapes, hops, and strawberries amongst others. Black Bird has developed a non-poisonous pesticide called MiteXstream that eradicates crops of these pesky critters but leaves the underlying vegetation unharmed and clean in terms of pesticide residue. In case you were wondering, this is kind of a big deal.
Just this week, Black Bird Biotech published a report from Botanical Research in Motion that found the hatching of Spider mite eggs completely stopped when two doses of MiteXstream were given to cannabis plants just 48 hours apart. The report was overwhelmingly positive and supports Black Bird Biotech’s recent EPA approval around the country for use on various crops. This provides Black Bird Biotech with a stellar selling platform for MiteXstream, and will likely lead to wider adoption not just nationally, but internationally as well.
Black Bird Biotech also owns subsidiaries like Grizzly Creek Naturals which is a consumer-facing brand that provides CBD products like topical creams, oils, and CBD-infused snacks. Since these products do not contain THC, they are legally allowed to be sold in more markets than if they contained THC. It’s a small legality, but this only broadens the market where Grizzly Creek can sell its products.
The most exciting part of Black Bird’s business is the MiteXstream non-poisonous pesticide treatment. This could potentially significantly alter the supply chain of cannabis and hemp crops around the country, while saving more plants that would otherwise not make it through regulatory checks. If you are bullish on the future of the cannabis industry, you also need to be bullish on the health and maintenance of the raw product and crops. Add to that the fact that MiteXstream can also treat crops and plants of all types in the billion dollar agriculture bio-pesticide industry and you have a strong player for tremendous growth.
Clean Vision Corporation (OTCQB:CLNV)
Clean Vision is a Manhattan Beach, California-based company that was established back in 2006. No matter where you stand on the issue of global warming, you cannot ignore the global secular shift to clean energy sources like wind, solar, hydro, and electricity. Electric vehicles receive most of the headlines, but there are countries all over the world implementing clean energy resources in an aim to reach global carbon neutrality.
Clean Vision is a provider of services for the clean energy sector. Rather than developing technology which can often take years or decades, Clean Vision looks to acquire emerging companies in the clean energy sector that have the potential to make an immediate impact on the world.
Recently, Clean Vision has delivered a Clean-Seas Pilot Pyrolysis Plant to Mumbai, India, with plans to have it up and running in March. This process heats ocean waste and melts plastics in an environmentally friendly way to create usable byproducts. The proposed pilot project is a demonstration for governments in Asia and the Middle East as well, providing the potential for future global expansion.
Finally, perhaps Clean Vision’s most promising segment is its hydrogen fuel-cell technology. This is a major trend amongst renewable energy companies, and is a technology that is able to provide continuous power regardless of weather or power supply. Clean Vision has an exclusive license for global distribution and sales, and provides the opportunity for customers to have either fuel-cell on the go power, or a static supply of power that can be drawn upon at any time.
CLNV has just been uplisted to the OTCQB, which is the second highest quality tier of OTC stocks. Not only does this separate CLNV from other potentially less-trusted stocks, but it takes it one step closer to a potential uplisting to the NASDAQ or NYSE. The renewable energy projects that CLNV is taking on can thrust the company into the growing sector of companies, and creates incredible potential down the road for its stock, especially on the OTCQB exchange.
ClickStream Corp (OTC:CLIS)
ClickStream Corp is a mobile app developer that is looking to disrupt existing industries that lack innovation. ClickStream already has three mobile applications that you might have already heard of: WinQuik which is a mobile gaming app, HeyPal which is social language learning, and Nifter which is an all in one NFT minting and marketplace platform.
HeyPal in particular surpassed 1 million downloads in its first eight months, and the company recently introduced a premium membership model which should bring in additional revenues. It is currently beating legacy language platforms like Rosetta Stone in terms of mobile downloads. HeyPal has revolutionized social learning as you can interact with fellow users and post content that helps everyone learn different languages. By combining a social media platform with a language education app, HeyPal is completely reimagining how we learn, and is creating a global community of users.
Nifter is focused on creating music-based NFTs that is capturing the attention of artists and positioning the company for an entry into the Metaverse and Web3.0. It is preparing to launch Season 1 of its Ethos NFT program which features ten up and coming artists debuting unreleased and exclusive tracks to the Nifter platform. Becoming a member of the Ethos community provides exclusive NFT air drops and giveaways, as well as early access to new music NFTs.
SFLMaven Corp (OTC:SFLM)
SFLMaven is not your usual investment idea, but it is an intriguing one with its recent developments. The company is a high-end jewelry retailer that targets a global luxury clientele. Its primary consumer-facing marketplace is on eBay, where it made famous it’s Thursday night Auction events. The SFLMaven eBay store is a true best seller with over 22,000 followers, a 99.9% positive feedback rating, and over 228,000 items sold. As of the end of 2021, SFLMaven has driven a staggering $130 million in global sales, and is moving towards a digital future.
The company recently joined the digital revolution by purchasing land inside of the Metaverse. Not only does this mean SFLMaven is ready for the next iteration of digital services and the online eCommerce experience, but it is embracing the investment and innovation of the NFT Market. The land in question is based in the virtual world called Decentraland, and exposes the brand to an all new market. The NFT marketplace is positioning SFLMaven to reach its goal of becoming an “Amazon of Collectibles” creating its dominant place in the world of digital eCommerce.
Other OTC Stocks to Add to your Watchlist
Metrospaces, Inc (OTC:MSPC)
Metrospaces is a PropTech or Property Technology company that is utilizing artificial intelligence and blockchain technology to provide streamlined turnkey services for its tenants. Whether users need independent living, group or co-living spaces, or a space for a party or event, Metrospaces is the platform that can help. By using AI-based tenant vetting Metrospaces is able to democratize capital markets which leads to more investment and property ownership opportunities to smaller investors who are looking to get exposure to real estate investments.
WINNERS Inc. (OTC:WNRS)
Vegaswinners.com is a site that is used by sports bettors for information, analysis, and paid services. The sports betting industry is anticipated to grow at a CAGR of over 13% through 2026 in the US, as states continue to legalize sports gambling. Recently, states like New York, Arizona, and Louisiana have all legalized online and mobile sports betting, with New York shattering single day records. Vegaswinners.com offers advice from real handicappers in Las Vegas, as well as user-performance analytics, and a rewards system that provides free betting picks and other premium services.
Investing in OTC Stocks During a Market Correction
As you can see, OTC stocks vary across many competing industries. They are companies that are involved in the largest global trends like blockchain technology, electric vehicles, sports betting, and clean energy infrastructure. During a market correction, savvy investors look for buying opportunities and every stock listed above is trading at recent lows.
But aren’t OTC stocks risky? It’s no secret that the OTC markets see a higher level of volatility and are even subject to market manipulation. But there are thousands of stocks that trade on the OTC market, and doing your research and choosing the right companies is important to investing in any market. There is always a chance for the stock to go to zero, but if you follow your conviction, OTC stocks can also return incredible gains.
Remember, none of this is financial advice. It is merely a look into a market that is often misunderstood by novice investors. None of these companies are guaranteed to do well, but each of them provides real products and services that are intended to improve the world we live in. Whether it is technology, agriculture, or real estate solutions, OTC companies are not just ticker symbols, they are viable businesses with real people employed and true visions for the future.
*Legal Disclaimer
This industry article was published for information purposes and paid for by Strategic Innovations Inc. Although the Companies mentioned have not endorsed or paid directly for this article, Strategic Innovations is paid by these companies for social media management; the management includes such articles for informational purposes. And at no time is this endorsement to buy or sell any stock.
This industry article was published for information purposes and paid for by Strategic Innovations Inc. Although the Companies mentioned have not endorsed or paid directly for this article, Strategic Innovations is paid by these companies for social media management; the management includes such articles for informational purposes. And at no time is this endorsement to buy or sell any stock.
