Optec International Inc (OPTI)

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OTC PENNY STOCKS TO WATCH #3 OPTI

OPTI has been a regular feature here at Insider Financial dating back to when we first highlighted the stock as a smart COVID play in September 2020. That story can be found here.

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OTC PENNY STOCKS TO WATCH #3 OPTI

Last month, we provided an update on OPTI discussing the med-tech company’s rapid Antigen test kit that has been approved for home use by the FDA. Soon thereafter, OPTI announced that it had received the first shipment of the test kits which consumers and businesses will be able to buy online and over the counter. We also covered OPTI’s recent acquisition of WeShield to strengthen its AI-based PPE platform. That article can be found here.
As usual, the news flow has remained strong for OPTI. This has helped keep the stock on penny stock investors’ minds—never a bad PR strategy.
On May 4th, OPTI reported fiscal 2021 third-quarter results which were excellent as anticipated. Revenue of $11.58 million was astronomically higher than the prior-year quarter and grew 4.5% sequentially. The company swung to a $1.85 million net profit. Both figures reflected the huge demand environment for PPE. This was indeed good news but since it was widely expected, it did little to move the stock.
But this past week, a possible inflection point was reached as investor sentiment turned bullish. OPTI nearly returned to the $0.10 level after dipping below $0.06 earlier in the week.
Although much of the attention around OPTI has been focused on its PPE products, there is much more to the business. At its core, it is a green technology company that pivoted to PPE to capitalize on the pandemic opportunity. Its Fuel Maximizer products are designed to reduce carbon emissions and increase engine performance. They have a widespread application in the clean energy and transportation industries.
Like many February 2021 OTC winners, OPTI gave up most of its gains since then. It’s worth noting though, that the volume on the way down has been remarkably low. This suggests that most investors are in it for the long haul and appreciate OPTI as both COVID-19 and clean energy play.
As one catalyst fades, the other has the potential to take over and keep the OPTI run alive.