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Over-the-Counter (OTC) Stocks Dicussion Thread

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  • Mar 3rd, 2021 10:34 am
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[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto

Over-the-Counter (OTC) Stocks Dicussion Thread

Starting this thread because OTC stocks are running very hot and have been doing so for the past few months. There is significant interest in them. Yes, I know there is an awesome Penny Stocks thread but with so many tickers, OTC stocks deserves it's own.

A side of caution: OTC stocks can offer great potential rewards. You can easily bank a 5X, 10X, and even 100X or 1000X if you get in super early. However, there is also a lot of risk and volatility. It is not uncommon for these stocks to go up 100%+ one day and down 30-50% in another. Intraday swings can be wild here. However, with the massive amount of stimulus being pumped into the economy by the US government and significant interest from retail investors, if you can stomach the volatility, you can ride some nice uptrend and maybe find some hidden gems in the process (look at TSNP's 15000X run).

VISM and VDRM are my two biggest OTC swing holdings. I will write about why I chose these two in further posts but not in this OP. I am also going to start adding some FAQs and notes to the thread summary. Please feel free to contribute.

What are some tickers you are holding/watching?
Thread Summary
OTC Markets Official Website: https://www.otcmarkets.com/

FAQ

What brokerages allow you to trade OTC stocks? If so, online or by phone only? What types of orders can you place?

Scotia iTrade: Allows trading OTC stocks online using limit orders.
TD:
BMO:
RBC:
CIBC:
National Bank:
Wealthsimple: Can't trade OTC stocks
Interactive Brokers:
Questrade:

For brokerages that require placing OTC stock trades over the phone, are extra fees charged?
75 replies
Jr. Member
Jan 25, 2016
159 posts
137 upvotes
Ottawa DST
Cool, thanks for starting the OTC thread.

OTC in my short experience has been a whole other ballgame compared to NASDAQ/NYSE/TSX. The 15 minute delays in price reporting just adds to the drama.

I am currently sitting in OZSC and ATAO, wrote a bit about each in the Penny thread. Hoping they each hit $1.
Member
Dec 1, 2008
218 posts
65 upvotes
Windsor
Thanks for starting this! Sitting on LXG.V

NEW YORK, Jan. 13, 2021 /PRNewswire/ -- As the most at-risk people begin to receive COVID-19 vaccinations, we are all looking forward to a post-pandemic world. As we transition back to something closer to normal life, however, the importance of rapid detection of any pathogen that could be hazardous to human health will not be forgotten any time soon. This crisis spurred the development of virus and pathogen technologies that are not only invaluable for rapid detection and response to pandemic viruses but also for everyday use in the medical and food safety spaces and elsewhere. Developed by companies like Lexagene Hldgs Inc. (TSX-V: LXG) (OTC: LXXGF) (FRA:5XS2), Medmira Inc. (TSX-V: MIR) (OTC: MMIRF), Co-Diagnostics Inc. (NASDAQ:CODX), 3M Co. (NYSE: MMM), and Laboratories (NYSE: ABT), these technologies could continue to be game-changing in the post-pandemic world and possibly even help prevent future health crises.
LexaGene's MiQLab Makes Testing Quick and Simple
Massachusetts-based molecular diagnostics company Lexagene Hldgs Inc. (TSX-V: LXG) (OTCQB: LXXGF) (FRA:5XS2) has developed a fully automated system that makes the process of detecting pathogens quick and remarkably simple at the point-of-need where samples are collected. The technology can be used to detect viruses like COVID-19 or others, or for other purposes such as lab testing for food safety, veterinary diagnostics, and more. The company's founder and CEO Dr. Jack Regan developed the precursor to this technology while working for the Department of Homeland Security at Lawrence Livermore National Laboratory and LexaGene holds the exclusive license to sell the commercial version.
LexaGene is calling its flagship product the MiQLab automated pathogen detection system, and the company says that the system could transform the way both human clinical diagnostics and veterinary diagnostics are conducted. The system uses multiplex testing to detect up to 27 targets at once. MiQLab is the first commercially available open-access multiplex PCR system of its kind, allowing users to receive lab-quality test results in approximately an hour at the point-of-need, without having to send samples away for testing. The system is designed for ease of use, allowing for operation by non-technical users with relatively little training required.
MiQLab is designed for versatility. The system is ideal for use in a range of industries and tests can be onboarded quickly, allowing it to test for new pathogens as they emerge. This means that in addition to having a wide range of everyday uses, MiQLab is set up to be critical during this pandemic as new COVID variants appear, such as those identified in the United Kingdom (B.1.1.7) and South Africa (B.1.351), and in the event of any new health crises that may occur in the future.
On December 30th, LexaGene announced that the company has begun a series of studies required by the FDA for Emergency Use Authorization (EUA) testing for its COVID-19 assay in a point-of-care (POC) environment using the MiQLab system. This development is notable because the majority of other testing systems that have been submitted for this designation can only be used by highly trained personnel, whereas MiQLab, with its simple usability, would allow for far faster and more accessible testing.
"I'm excited we have progressed to the point where we have started our FDA study," Dr. Regan said in the company's release. "Our open-access technology is unlike any other on the market today, as it could be configured quickly to detect new variants, such as the recent UK variant (aka SARS-CoV-2 VUI 202012/01)."
Biotech Companies Look to Develop Rapid Testing Methods
Co-Diagnostics Inc. (NASDAQ: CODX) has developed the Logix Smart COVID-19 test kit. The test uses a single step real-time reverse transcriptase polymerase chain reaction process in lower and upper respiratory tract fluids to detect the ribonucleic acid from the form SARS-CoV-2 coronavirus in patients who meet the clinical criteria for COVID-19.
3M Co. (NYSE: MMM) has been in the spotlight since the start of the pandemic for several of its medical and personal protective equipment products. In July, the company announced that it was working with the Massachusetts Institute of Technology to create an antigen test for COVID-19. The company's priority was to improve the speed, accessibility, and affordability of testing for the virus.

Looks like Lexagene holding trying to built an automated Covid test machine, like Spartan test machine

Gov't directed Covid test use lab/institution automated machines with hardware and software to provide date integrity and reliability to support their tax funded Covid strategy, even thought it take longer to get results, but data are integrated and collect to support the Gov't program
Member
Nov 28, 2016
228 posts
278 upvotes
What would be the strategy for getting in and out of these? Set limit orders, or watch throughout the day and adjust?
[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto
leftygrove wrote: Cool, thanks for starting the OTC thread.

OTC in my short experience has been a whole other ballgame compared to NASDAQ/NYSE/TSX. The 15 minute delays in price reporting just adds to the drama.

I am currently sitting in OZSC and ATAO, wrote a bit about each in the Penny thread. Hoping they each hit $1.
Ya definitely high risk, high reward. The OTCs I am following traded +/- 15 to 20% so far today. What are you using to check the price? My iTrade doesn't provide bid/ask for OTCs but it does provide the real-time ticker price (I use another service for bid/ask and Level 2).
devmaster8 wrote: What would be the strategy for getting in and out of these? Set limit orders, or watch throughout the day and adjust?
Depends. Sometimes I discover a stock going up on some press release, take a small position, ride it and sell it same day or a few days after. For a stock that I feel really good about after doing DD, I will take a large position in it to allocate a portion of it to take profits at intermediate resistance points and add back at supports while also holding most for the longer-term uptrend. Sometimes I just don't bother and let them ride. VISM for example I could have sold close to $0.05 and rebought back at $0.03. But I haven't been doing much of that (only one dip buy and sell yesterday, one dip buy today) because I know they have a pending partnership that they are going to announce soon that is very likely going to rocket it much higher.
Deal Addict
Sep 2, 2009
1434 posts
1102 upvotes
Ottawa
EddySaver wrote: Ya definitely high risk, high reward. The OTCs I am following traded +/- 15 to 20% so far today. What are you using to check the price? My iTrade doesn't provide bid/ask for OTCs but it does provide the real-time ticker price (I use another service for bid/ask and Level 2).



Depends. Sometimes I discover a stock going up on some press release, take a small position, ride it and sell it same day or a few days after. For a stock that I feel really good about after doing DD, I will take a large position in it to allocate a portion of it to take profits at intermediate resistance points and add back at supports while also holding most for the longer-term uptrend. Sometimes I just don't bother and let them ride. VISM for example I could have sold close to $0.05 and rebought back at $0.03. But I haven't been doing much of that (only one dip buy and sell yesterday, one dip buy today) because I know they have a pending partnership that they are going to announce soon that is very likely going to rocket it much higher.
What do you consider a large position - as a portion of your portfolio or as a fixed $ amount? (ex of what I am asking: 5% of a portfolio can be a large portion -but 2k-, as well as 25k -but 0.5%-)
[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto
cloak wrote: What do you consider a large position - as a portion of your portfolio or as a fixed $ amount? (ex of what I am asking: 5% of a portfolio can be a large portion -but 2k-, as well as 25k -but 0.5%-)
For my speculative positions: small would be 1 to 2K, large would be around 10K.
Deal Fanatic
User avatar
Sep 21, 2007
6582 posts
2977 upvotes
Winnipeg
When you guys are trading OTC. Are you using OTC market level 2?
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Deal Addict
Jul 12, 2008
3019 posts
918 upvotes
GTA
Good thread, I have been ignoring the OTC ideas I have been seeing but this should help.
[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto
faken wrote: When you guys are trading OTC. Are you using OTC market level 2?
I'm finding it a lot easier to trade OTCs with Level 2 (and real-time bid/ask) data. All Scotia provides for OTC is the ticker price. I'm currently using a free 1-month trial of the Level 2 at Investor's Hub: https://ih.advfn.com/subscription/USA-R ... smlcap_ult.
Deal Fanatic
User avatar
Sep 21, 2007
6582 posts
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Winnipeg
EddySaver wrote: I'm finding it a lot easier to trade OTCs with Level 2 (and real-time bid/ask) data. All Scotia provides for OTC is the ticker price. I'm currently using a free 1-month trial of the Level 2 at Investor's Hub: https://ih.advfn.com/subscription/USA-R ... smlcap_ult.
That's the same price for L2 with Questrade. Man so many charts...
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto
Not sure how true this is (since you have to take people on Stocktwits with a grain of salt) but could explain why markets/OTCs went from green to red this morning (did mostly recover by the afternoon): https://stocktwits.com/message/287481660
[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto
Why I took a large position in VISM:

The cybersecurity sector is growing fast. Microsoft recently reported $10 billion revenue over the past year from their security products, 40% YoY growth: https://ca.finance.yahoo.com/news/micro ... 33356.html

Visium Technologies is a cybersecurity company and their main application is Cygraph: https://www.visiumtechnologies.com/solutions

Cygraph was first developed by The MITRE Corporation (Not-for profit) in collaboration with the US government. It is the predecessor to CMIT, the cybersecurity platform used by the US army: https://www.mitre.org/publications/proj ... arfighters

Visium obtained exclusive rights to develop and commercialize Cygraph in May 2020: https://www.sec.gov/Archives/edgar/data ... x_99-1.htm

I first started trading this stock on the day of this press release: https://finance.yahoo.com/news/visium-t ... 00501.html

Visium Technologies has three prominent partners Nutanix, a 7 billion market cap cloud computing company that trades on the Nasdaq, The George Mason Research Foundation, and MITRE: https://www.visiumtechnologies.com/partners

Visium Technologies indicates that a partnership with a multi-billion company is in the works through these two tweets:

https://twitter.com/VisiumAnalytics/sta ... 2168559617
The binary code translates to "Partnership, Billion $$ Company"

https://twitter.com/VisiumAnalytics/sta ... 4351127552
This tweet they are confirming that the press release is coming soon.

The stock had hit a high of 2.5 cents in January, retraced to 1 cent and made a run to become a nickle stock. Right now the stock is consolidating in the 3 to 5 cent range. I believe it has potential to go much higher. Part of the rally was due to the general OTC run and people buying after seeing the tweets. However, there are many others that haven't seen these tweets of this pending partnership. So when the official press release with the partnership deal comes out, there will likely be many more buyers coming in. Long term, it seems like a company with lots of backing and high growth potential in the cybersecurity sector.
[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto
Any suggestions for sub $0.005 plays?

Currently watching HBRM.
[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto
My post on VDRM (Note: This is my second largest OTC position after VISM):

Viaderma is a pharmaceutical company and their main product is Vitastem. It is sold on Amazon.com for $79.00 and has good reviews: https://www.amazon.com/Vitastem-Super-H ... B076V2RM46

So this stock rocketed from $0.002 to a high of $0.077 in the span of two days after this press release on January 13: https://finance.yahoo.com/news/viaderma ... 00907.html. The reason why is because there are many bullish forward looking statements in the PR. Based on the press release, they are in contract talks with a large US hospital chain, major health insurance company, university, and a non-profit for their Vitastem product. They anticipate sales to exceed 500,000 units this year.

There are two sizes of their Vitastem product (15ml and 55ml). The larger size is sold for $159 on their product website. They don't break down their sale projections in their PR based on size. To be conservative, let's use the price of their smaller size product for revenue projections. $79 x 500,000 = $39.5 Million. Per New York University's website, companies in the healthcare products sector trades at a 7x P/S ratio. Let's use 5x to be conservative. So based on these projections, this company could have a $200 million market cap based on revenues from their Vitastem product alone. It currently has a market cap of 23 million. So there is a lot of potential upside for this stock.

(Let me know what you think about the valuation calculations.)

Since this forward looking press release, they have announced a licensing agreement: https://finance.yahoo.com/news/viaderma ... 00902.html

Dr. Otiko added, “This is the first of several important milestones we expect to achieve in the coming months.”

Since the initial breakout on January 13, it has consolidated for a few weeks in the 1.5 to 2.5 cent range. On Tuesday, it broke out of this range on relatively high volume and has been testing the 3 cent range, closing above 2.5 cents for three days straight. Based on this price action, an announcement of a new contract and orders could be near.
[OP]
Member
Dec 20, 2010
366 posts
279 upvotes
Toronto
I'm starting to add some frequently asked questions to the thread summary, If you know the answers to the following questions for the brokerage you use, please contribute and add to the thread summary:

What brokerages allow you to trade OTC stocks? If so, online or by phone only? What types of orders can you place?

For brokerages that require placing OTC stock trades over the phone, are extra fees charged?

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