Many investors in over-the-counter (OTC) stocks tend to look more at the behavior of a particular stock of a company rather than at sectors, and for good reason. However, it can make some sense to divide investments among several different market sectors (i.e. “tech,” or “energy” or “defense” and the like) in an attempt to reduce the level of risk, which is usually higher when investing in OTC, or penny, stocks.
Several stocks merit radar screen attention this week.
One way of spreading that risk when investing in different sectors of the broader market, if one has the patience and the skill to pull it off, is by taking a long-term strategy in one stock while playing a daily trading strategy in another, with each stock existing within a different sector. Additionally, adding a third stock — dependent on possible future news of a positive nature and then deciding on the stratagem (long-term or day trade) to employ once news breaks — can make sense for many investors.
Given the above, there are three stocks on our radar this week, each in a different sector and each for a different reason (they’re laid out above). All three, from the looks of each company and the behavior of their respective stock, could just make for a strong candidate for an investor’s portfolio.
– The first, Red Branch Technologies, Inc. (OTC: RBTI), is a company in the security and defense sector. A maker of mobile security systems, ordnance disposal and inspection equipment and UAVs, or unmanned aerial vehicles (a Predator drone is a type of UAV), RBTI opened today’s trading session at $0.012 per share. Given its share price, it should come as no surprise that the company’s stock trades at a relatively light average pace of about 245,000 shares daily.
RBTI, though, has a healthy market cap of over $2.1 million, with almost 193.5 million shares outstanding on an authorized share level of 200 million. In other words, the company’s stock may make for a decent longer-term investment rather than a daily trade vehicle. Its share float stands at almost 127 million. Given the attention paid to homeland security in the United States and around the world, any company that can demonstrate the kind of competencies ascribed to RBTI stands a good chance of growing vigorously over the course of time.
- The second company, AER Energy Resources, Inc. (OTC: AERN), is one we’ve highlighted in the past, sitting as it does in the lucrative energy sector. It acquired FTPM Resources, Inc., a company specializing in the recycling of used motor oil. Energy, and especially energy companies that can demonstrate a capability to be more “green,” stand a good chance of making a go of things in many parts of the world.
AERN also trades very briskly, with an average volume exceeding 7.2 million shares. Today (October, 24th, 2001), it’s already pushed well past 5.5 million shares and is looking like a strong candidate for a 10-plus million shares traded day. Shares in the company trade relatively dear, and they opened today’s session at $0.0213 per (though they’ve currently been taken down to $0.016 per share via brisk various low-bid strategies). The company has an exceedingly strong market cap for an OTC stock ($29.57 million), and with shares moving so swiftly AERN can make for a well-working daily trading opportunity for a smart and savvy investor.
The last stock on our radar sits in the finance and credit sector, though it’s one that we think may do something once a positive press release highlighting real news is released. Until then, it’s one to keep an eye on, though, with a good entry point of between $0.0351 and $0.0385 at present. It’s also trading relatively lightly, at only 21,000 shares today and an average volume barely exceeding 100,000. The stock we’re referring to is CFGX (Capital Financial Global, Inc.), which represents a diversified financial services company dealing in both exotic and standard financial instruments (everything from arbitrage to typical finance contracts moved to secondary markets, where they’re bought and sold at various discount rates).
CFGX shares have traded at a 52-week range of from $0.0001 up to $0.025, and there’s certainly room for upward movement, given the stock’s middling share price. With a market cap of about $2.2 million, the company’s also on sound financial footing as well. It could be a good idea to keep this stock, and the company supporting it, on the radar screen.
