Transcription
In this video, I'm going to be talking about an undervalued profitable $2 penny stock with a 1 million share float, no dilution, and a potential golden cross forming. So, last time this happened, this one ran all the way to $7 for just around a 400% plus gainer.
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But, this is a company that did $142 million in total revenue last year. They have never conducted a reverse stock split, and they have never diluted. It looks like they have pretty much had zero dilution since they went public in 2022. The top two stakeholders of this company both own around 16.7 million shares each, and they have never sold a single share even when the stock ran to $7 plus just over or just around a year ago. It was pretty clear to me that both of these insiders want a much bigger move before exiting, and these same insiders are the ones with performance bonuses tied to hitting new profitability and vendor milestones. So, this is another reason why I think this, you know, 2026 can be the biggest year for the company, and you can see that basically ever since they made this incentivized bonus for these insiders starting last year. And for 2026, they have been significantly increasing their profit margins.
So, that's just my opinion on this, you know, anything can happen with these high-risk penny stocks. You know, nothing is ever guaranteed, and I'm not a financial advisor, so just keep in mind that these are some of the riskiest plays you can find in the stock market, and you always need to go out and do your own research before even looking at these. But, this is a company that I do believe is severely undervalued, and make sure you watch this entire video all the way to the very end to see two other penny stocks that I have never discussed before on this channel that I am currently accumulating and adding dips on for a longer multi-year hold.
So, the stock I'm talking about for this video is Hour Loop Inc. which trades under ticker HOUR. So, just over 2 months ago, or just around 2 months ago, this one made a parabolic move all the way to $3.20. And you can see this one is forming a rounded bottom right here, and we are on the verge of forming a bullish golden cross right here. And you can see, like I said, last time this happened, this stock basically ran from just around, you know, $1, just around, just under $2, all the way to highs of $7, or just around that level for you can see basically a, you know, over a 400% move. This is one that I do think has a ton of potential for a parabolic move right here. You can see the MACD just switched positive on the daily time frame, which should ignite more positive bullish momentum. Average volume over the last 3 months is only sitting at 92,000 shares. Free float is sitting at 1.8 million shares. So, with volume, this one is capable of some massive moves. Market cap is sitting at $67 million. 52-week low is sitting at $1.24, and the total shares outstanding is sitting at 35 million.
Now, this is because this stock has extremely high insider ownership. Both of the top two insiders own just under 17 million shares each. And usually this can be negative, but considering these two insiders have never sold, I do believe it is positive because they, it seems like they want a much bigger move out of their company before exiting at all. Just considering they have never sold a single share, even when this one has made, you know, basically moves to $7 plus, okay? Next key resistance areas to watch out for are going to be sitting around these moving averages, the 50 and 200-day moving averages, just around $2 and then $2.20, then around $2.40, $2.75, just around $3.18, and then just around $3 and $3.56 are the biggest resistance areas to watch out for on the larger time frames.
Also, I do want to talk about how explosive their growth has been since they went public in 2022. So, keep in mind you always add three zeros to these numbers. But, in 2022, they did $96 million in total revenue. The next year it jumped to $132 million. Next year it jumped to $138.2 million. And then for the most recent year, for fiscal year 2025, they did $142.4 million in total revenue. But, I do want to talk about their profitability, which is even more impressive. So, in 2022, they lost $1.5 million in net profit. Next year, in 2023, they lost $2.4 million. And then you can see in 2024, they did basically $657,000 in net profit. And for the most recent year, they did $1.7 million in net profit, which is basically the most net profit I've seen since they had their IPO. So, So, right now they are performing at record high revenue as well as profitability, and the stock price hasn't reflected this. As of right now, there is absolutely zero dilution available for this stock. And you can see if we zoom out on the chart, this one historically does tend to run up from this area. So, I am expecting a bounce from this current level it's trading at.
So, now I'm going to talk about the two other stocks that I believe have true long-term potential. Now, the first one is ticker NEOV, Neovolta. So, this one is sitting around a $132 million market cap. I'm going to talk about why I think this one is undervalued here. But guys, with the overall market starting to sell off, if this continues, this is a stock that I will continue to add on dips. And there's another one that's, you know, in a pretty similar situation, you know, taking a beating from the recent AI and market sell-off, you know, a lot of artificial intelligence stocks completely have been getting, you know, butchered the last few weeks. And there's another one that I do really like. But first, I want to talk about NeoVolta. So, in the future, I may do a more in-depth video on NeoVolta, but I just wanted to throw out, you know, these two other plays that I am currently accumulating, especially on big market pullbacks.
So, NeoVolta is transitioning from a residential and commercial best manufacturer into a utility-scale AI infrastructure-aligned, domestically-compliant energy storage supplier. The market hasn't really priced in this evolution that's taking place yet. So, they just recently received two major price targets. So, I believe just around 2 weeks ago, they received an $11 price target by Lake Street. So, they believe that this can hit $11 within the next year. And then recently, they received an $8 price target by Needham, which is another massive firm. Um they did recently have some massive news on May 28th, where Infinite Grid Capital signs a 1.1 gigawatt-hour best supply letter of intent with NeoVolta to power US AI infrastructure build-out. And just recently, they did, you know, not long ago, I believe a week or two before that press release, NeoVolta signed their first best supply letter of intent with Infinite Grid Capital for approximately $200 million in utility scale deployment. So, this one potential deal alone is worth way more than Neo Voltas current market cap. And Neo Volta does have a really clean balance sheet. And that's another reason I do think they're undervalued just with the potential and transitioning that's taken place just recently over the past 2 months. We have seen multiple different insiders load up on Neo Volta. So, that is another bullish indicator that this one is completely undervalued.
Um another stock that I'm really liking for a longer-term hold is Kill Kill Infrastructure trading around $4.40. Now, this one could continue to dip depending on the overall market sentiment and if AI names do continue to sell off. So, this is one I'm interested in right now and will accumulate on major pullbacks for a longer-term hold. So, Kill Infrastructure is undergoing one of the most dramatic pivots in the digital infrastructure sector from Bitcoin mining to a pure play AI {slash} HPC power infrastructure developer with a massive 2.2 gigawatt pipeline. Now, their pipeline is much bigger than some of these other similar plays in the sector that are trading, you know, three times their market cap. So, if they can capitalize on their lease deals, so this is kind of jumping forward, but the CEO does expect three leases to be announced this year. So, whenever this happens, if they do announce, you know, some leases with, you know, I've hearing some rumors about Amazon. Now, this isn't official, but, you know, there's are some rumors saying that it could be AWS. So, just any new deals that come out could easily push this one to $10 to $15 plus by the end of the year depending on how big they are and if those actually do come out. But, this is a company with strong liquidity, major permitting progress taking place and fresh executive talent from Digital Realty. The market still prices kill like a distressed minor, but the company now resembles an early stage AI infrastructure startup with hyperscaler demand and multi-billion-dollar power assets. Just a few weeks ago, this one did hit highs of $7.37. And this one has completely sold off, currently trading around $4.40. So, I do like this one right here. Like I said, there is more room for the downside, but with these long-term plays, you always need to, you know, leave room to average down when you do get the dip opportunities. So, if this one does break this $4 level, um it doesn't bounce and use this as support, you know, this one could see the mid-3s pretty quickly. Um but I really don't expect this one to go under 340. But, you know, this is one that I am accumulating and looking to add more if the market does give me opportunities, um more dip opportunities. So, currently this one does have a 2.65 billion-dollar market cap. And like I said, if they do capitalize on their deals and make advancements with their permits, this one could easily be a 10-billion-dollar plus market cap company within a year. These are two other long-term plays that I really do like. And let me know in the comments what other plays you're watching, what you think about these plays, and I will see you on the next video.