7 Reddit Penny Stocks With Interesting Plans

7 Reddit Penny Stocks With Interesting Plans

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Investor curiosity in Reddit penny shares (that’s, penny stocks well-liked on platforms like r/WallStreetBets) could have peaked a number of months again. Yet, whereas curiosity has light, the development itself has not disappeared. Speculators on-line proceed to chatter about which “scorching shares” are about to make huge strikes greater.

Admittedly, a lot of that is constructed extra on hype, than on precise “game-changing” developments simply across the nook. But, within the case of a few of these names well-liked with the Reddit set, they could be onto one thing.

How so? Between firms seizing alternative within the combat in opposition to Covid-19, to firms leaping into the brand new gold rush (crypto mining), many of those so-called “meme shares” have extra going for them than simply irrational enthusiasm. Their plans will not be assured to pan out. But, in the event that they do, it might end in huge returns for these shopping for these names (a lot of which have pulled again considerably) at this time.

So, which Reddit penny shares with formidable plans might repay down the street? Consider these seven high-risk, high-potential performs as ones the place danger/return leans in your favor:

  • American Resources (NASDAQ:AREC)
  • Cinedigm (NASDAQ:CIDM)
  • Ault Global Holdings (NYSEAMERICAN:DPW)
  • Jaguar Health (NASDAQ:JAGX)
  • Naked Brand Group (NASDAQ:NAKD)
  • Precipio Inc. (NASDAQ:PRPO)
  • Support.com (NASDAQ:SPRT)

Reddit Penny Stocks: American Resources (AREC)

Source: J.J. Gouin

At first look, AREC inventory is your run-of-the-mill small-cap primary supplies play. The company’s main businesses are concerned in metals recycling and metallurgical carbon. But, as InvestorPlace’s Tom Taulli mentioned final month, its publicity to the uncommon earth metals development may be the main attraction.

American Resources’ uncommon earth enterprise remains to be in its early levels. But, as demand for uncommon earth metals heats up, due to the usage of such supplies in electronics and electrical car (EV) batteries, this might scale up into a big phase for the corporate. On high of that is the projected long-term growth in the usage of metallurgical carbon.

Put all of it collectively, and it’s simple to see why Reddit buyers went wild for AREC inventory earlier this 12 months. During “meme inventory insanity,” the inventory went from $2.15 per share, to costs topping $8 per share. However, because the hype has light, shares have given again virtually all of their positive factors, and are presently altering palms for round $3 per share.

This sell-off could have been robust on those that purchased close to the highest. Yet, for those who’re simply discovering this inventory now, taking an opportunity on this high-risk play with huge plans might repay down the street.

Cinedigm (CIDM)

CIDM stock

Source: Pavel Kapysh / Shutterstock.com

Cinedigm will not be a family title. But, through M&A and partnership deals, it’s slowly turning into a significant title within the content material streaming house. Sure, this firm isn’t going to present “huge media” powerhouses like Disney (NYSE:DIS) and Viacom (NASDAQ:VIAC) a run for his or her cash anytime quickly.

But, by consolidating unbiased media libraries, and constructing out a network of ad-supported streaming channels, it nonetheless stands to finally grow to be a worthwhile participant on the fringes of the leisure business. At the very least, it might wind up being a fantastic bolt-on acquisition goal for a bigger unbiased media firm. Or, grow to be one thing private-equity snaps up, in an try to roll-up small and mid-sized streaming firms.

So far this 12 months, buyers have been extra overvalued about its exposure to the NFT (non-fungible token) trend. However, over the long-term, the enlargement of its streaming unit is what’s going to present the inventory probably the most runway.

As NFT mania takes a breather, shares have pulled again. The inventory trades for round $1.30 per share at this time. It could take years for this enterprise to interrupt out, however long-term buyers could discover this one interesting.

Ault Global Holdings (DPW)

DPW stock

Source: Mark Agnor / Shutterstock.com

What is Ault Global Holdings? It’s sophisticated. You could know of it primarily from its dabbling within the Bitcoin (CCC:BTC-USD) mining house, which it’s getting back into, after getting out of it previous to the current bubble. But, there’s much more occurring right here with this Reddit penny inventory than simply crypto mining.

The company’s main units embrace Gresham Worldwide (aerospace/protection know-how), and Coolysis Technologies (energy merchandise). Ault additionally holds a seize bag of fairness investments in privately-held and publicly-traded firms. One of notice is their funding in Brooklyn ImmunoTherapeutics (NYSEAMERICAN:BTX), previously referred to as NTN Buzztime.

Earlier this 12 months, Ault purchased 295,000 shares again earlier than NTN’s reverse merger with Brooklyn, at an average price of $3.42 per share. Unfortunately, the corporate sold off most of its stake in March, nicely earlier than BTX inventory became one of the hottest “meme stocks” around.

Only time will inform whether or not the fixed wheeling and dealing will repay for DPW inventory. This was a meme inventory itself final winter, when it rallied from beneath $2 per share, as much as as a lot as $10.94 per share. But, following its collapse, taking a bet on it now could also be a long-shot that winds up paying off.

Reddit Penny Stocks: Jaguar Health (JAGX)

Reddit Penny Stocks: JAGX stock

Source: Spyro the Dragon/Shutterstock.com

Even earlier than the height of meme/Reddit inventory mania, JAGX inventory was a reputation overvalued extensively on-line. The motive? The potential marketability of its Mytesi diarrhea therapy to these experiencing long-haul Covid-19 symptoms. Speculation over this despatched the inventory on a ten-fold run from mid-December to early-January.

However, since then, shares have taken a large dive, and now commerce at round $1.27 per share. The total decline of “meme shares” could have been the principle driver. Yet, some current scorching water the corporate has gotten into probably hasn’t helped.

Congresswoman Carolyn Maloney has accused the company of price gouging with Mytesi, which for now could be bought as a therapy for HIV/AIDS sufferers on antivirals. After failing to safe emergency use authorization (EUA) for Covid-related use of Mytesi, Jaguar greater than tripled its per-bottle worth. The product remains to be within the working for normal FDA (Food and Drug Administration) approval. But, unhealthy optics like this will likely harm its prospects of getting such approval.

In brief, proper now issues appear to be they’re taking a flip for the more severe. The inventory could also be quick headed again to sub-$1 per share worth ranges. But, if it manages to beat the unhealthy press, might Mytesi be accepted for long-haul Covid use? Such a change in occasions might gas an incredible rebound.

Naked Brand Group (NAKD)

NAKD stock

Source: NazarBazar/Shutterstock.com

Naked Brand Group isn’t going into crypto. Nor is it, rapidly, turning into a biotech firm creating remedies/vaccines for Covid-19. But, this purveyor of intimate attire is leaping on one other megatrend, e-commerce.

As you probably know, NAKD inventory grew to become one of many hottest of the Reddit penny shares again in January, when the corporate introduced plans to (*7*), and double-down on its on-line retail unit. Sure, the hype round this information wound as much as be unprofitable for many who purchased the inventory too late.

Briefly hitting costs above $3 per share, Naked inventory has since cratered again to literal pennies (round 55 cents per share). The hype has since left the room. But, these getting in at this time could also be doing so at a good entry level. Why? For starters, when its inventory was buying and selling at inflated ranges, the corporate well raised cash via direct offerings.

As a end result, it’s now sitting on as much as $270 million. Not unhealthy, contemplating it now has zero debt, and a $282 million market capitalization. Now, it’s probably going to burn by a lot of its money hoard, given its plans to scale into a significant e-commerce attire retailer. But, with heavy pessimism priced-in, draw back if its ambitions fail to pan out could also be minimal, in comparison with the potential positive factors in its inventory worth if the digital transformation succeeds.

Precipio (PRPO)

PRPO stock

Source: Cryptographer / Shutterstock.com

Less than a month in the past, PRPO inventory was buying and selling for lower than $2 per share. Yet, with current information of its rapid Covid-19 test turning into out there to be used, shares on this medical merchandise firm have zoomed to close what’s thought-about the highest vary for penny shares ($5 per share).

Sure, this can be a “one and completed” catalyst. That is, now that extra Americans have obtained the vaccine, the nation is probably inching nearer to herd immunity. If we see a dramatic lower in instances, and the trail again to the “outdated regular” accelerates, demand for this product could shortly evaporate.

Yet, even short-lived success with the product might repay within the long-run for Precipio. If its makes a good revenue through the temporary window fast Covid-19 antibody checks are in demand, it might use the money to assist gas the additional improvement of the remainder of its diagnostic merchandise pipeline.

After spiking on the primary buying and selling day of May, PRPO might pull again farther from right here. But, after it settles down a bit, this under-the-radar title within the healthcare house with fascinating plans might nonetheless make for a good alternative for extra risk-hungry buyers.

Reddit Penny Stocks: Support.com (SPRT)

Reddit Penny Stocks: SPRT stock

Source: Shutterstock

Last month, I made the case why this firm, presently a supplier of outsourced buyer help providers, might find yourself being one of the best crypto mining plays out there.

How so? The firm is within the means of merging with privately-held Bitcoin miner Greenidge Generation Holdings. You could not have heard of Greenidge. But, with possession of its personal electrical energy supply, it might have an edge over the better-known crypto mining performs similar to Marathon Digital (NASDAQ:MARA) and Riot Blockchain (NASDAQ:RIOT).

Not solely that, with Support.com’s legacy internet working losses (NOL), the mixed firm could possibly shelter a lot of its potential Bitcoin mining earnings from taxation. To high all of it off, this reverse merger deal could also be priced in favor of present homeowners of SPRT inventory.

Sure, though it went parabolic on information of the deal, buyers have since taken the cash and run. This could point out that this deal gained’t play out in addition to it appears on paper. Also, if Bitcoin crashes, the bull case for this inventory, together with the opposite crypto mining performs, will take a severe hit. Yet, for these in search of shares with publicity to this different asset class, a reputation like Support.com could also be the easiest way to play it.

On Penny Stocks and Low-Volume Stocks: With solely the rarest exceptions, InvestorPlace doesn’t publish commentary about firms which have a market cap of lower than $100 million or commerce lower than 100,000 shares every day. That’s as a result of these “penny shares” are steadily the playground for rip-off artists and market manipulators. If we ever do publish commentary on a low-volume inventory which may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this truth and warn readers of the dangers.

Read More: Penny Stocks — How to Profit Without Getting Scammed 

On the date of publication, Thomas Niel held an extended place in Bitcoin. He didn’t (both straight or not directly) maintain any positions within the securities talked about on this article.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock evaluation for web-based publications since 2016.

The publish 7 Reddit Penny Stocks With Interesting Plans appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.

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