3 OTC Stocks to Buy for a Massive Meme Rally

Stocks to buy

It’s unrealistic to expect to make millions from the markets in a quick time. Good business will create value and millionaires over the long term. Having said that, investors need to have a dynamic approach and grab opportunities that can deliver quick trading returns. The profits can be channeled to long-term bets.

A likely opportunity to make quick money is an impending broad-based meme euphoria. In the recent past, I have discussed stocks from the main exchanges that are likely to surge. This column focuses on the OTC stocks to buy that are likely to skyrocket during a meme rally.

Since the stocks are listed on the OTC exchange, these stories are under-the-radar. However, they represent companies with average to good fundamentals. I have avoided talking about purely speculative ideas that can witness a big rally that’s followed by an equally sharp meltdown.

Let’s discuss the business factors that are likely to support the meme-driven rally in these OTC stocks.

Curaleaf Holdings (CURLF)

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Curaleaf Holdings (OTCMKTS:CURLF) stock has been in a gradual uptrend with a relatively positive outlook for the cannabis industry. However, a sharp rally is impending and that’s likely during a meme euphoria.

One reason to like Curaleaf is the point that cannabis regulatory headwinds are gradually waning. With U.S. Presidential elections due later this year, it’s likely that federal-level legalization of cannabis will be in focus. Further, there is an impending reclassification of cannabis as a Schedule III drug. This is likely to be a big catalyst for CURLF stock upside. It’s worth noting that the cannabis company has a presence in 17 states in the U.S.

Further, Curaleaf has been aggressively expanding in the European medicinal cannabis segment. With presence in 15 countries globally, the cannabis player is poised for accelerated growth. At the same time, operating and free cash flowsare likely to swell. Therefore, with strong fundamentals and an accelerated growth outlook, CURLF stock seems positioned to skyrocket.

Lundin Gold (LUGDF)

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Gold has sustained above $2,300 an ounce and I believe that potential rate cuts will translate into further upside. It’s therefore a good time to remain invested in gold mining stocks and Lundin Gold (OTCMKTS:LUGDF) is undervaluedamong OTC stocks.

To put things into perspective, LUGDF stock trades at an attractive forward P/E of 20.9 and offers a dividend yield of 2.68%. While the stock has been trending higher, I expect a sharp rally in the coming quarters.

An obvious reason is visibility for higher realized gold prices. This is likely to translate into revenue growth and cash flow upside. An important point to note is that Lundin has guided for an all-in-sustaining cost of $820 to $890 an ounce for 2024. The low-cost gold miner is therefore positioned to deliver healthy EBITDA margin expansion. This is an importantcatalyst for LUGDF stock trending higher.

Further, with a debt-free status, there is high financial flexibility for aggressive exploration and potential acquisitions.  If gold trades above $2,500 an ounce, I would not be surprised with LUGDF doubling in quick time.

Aker Carbon Capture (AKCCF)

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Aker Carbon Capture (OTCMKTS:AKCCF) is another name among OTC stocks to buy that can deliver multibagger returns in a meme frenzy. It’s worth noting that AKCCF stock has corrected by 50% for year-to-date. The selling is overdone and a sharp reversal is on the cards.

As an overview, Aker Carbon Capture is a provider of products and solutions related to carbon capture technology. The company has already delivered seven carbon capture units with 60,000 operating hours. Therefore, the technology is proven and the addressable market is significant.

In terms of positives, Aker Carbon reported an order backlog of 2.3 billion Norwegian Krone as of Q1 2024. Thisprovides revenue visibility and I expect the order book to swell in the coming quarters.

In a big development, Aker Carbon has formed a partnership with Schlumberger (NYSE:SLB). Under this partnership, Schlumberger will combine its carbon capture business with Aker. With the backing of a blue-chip company, it’s likely that Aker Carbon will create value.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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