These Aren’t “Reddit Penny Stocks” But They Are Turning Heads Right Now

Reddit penny stocks are becoming a hot topic this week. Thanks to the massive breakouts we see in some names like GameStop or Koss Corp. (NASDAQ: KOSS), the group of “gamma squeeze” names from earlier this year grabbed attention on Wednesday. What was the catalyst?

Twitter was the catalyst or rather a tweet showing a picture of a McDonald’s soft serve in a cone with a frog emoji caption. Apparently, that’s all the Reddit squad needed to refuel their diamond hands. While that momentum helped fuel a late afternoon run on Wednesday, so far, Thursday’s session has been a bit more choppy.

Discussions around raising rates have given investors a caution sign. In particular, the 10-year U.S. Treasury yield hit the 1.494% level. This is the highest it’s been in over a year. We’ve seen a rotation out of growth industries for fear that inflation could be looming. We’ve also seen some economic data suggest the economy may not be painting the rosy picture that many had thought. U.S. initial jobless claims for February 19 came in at 730,000 compared to the 838,000 expected.

Needless to say, the focus is finding opportunities where many may haven’t been able to yet. In light of this, we’re not talking about the speculatively fueled “short squeeze” Reddit stocks. Rather, this article highlights several penny stocks that have begun heating up without social media hype.

Hot Penny Stocks To Watch Today

Allied Esports Entertainment

You might recognize a theme with this article. We’re not talking about major tech penny stocks developing new, game-changing products. But we are talking about companies involved in the gaming experience. In particular, Esports and iGaming. Those who’ve read long enough, many of these names have graced several lists of penny stocks over the last few months, and for a good reason.

[Read More] Reddit Penny Stocks Aren’t The Only Ones To Watch, 4 Names To Know

Allied Esports is one of the names hitting momentum screeners on Thursday, thanks to the attention brought by Citron Research of all groups. In particular, Citron brought up a thesis that GameStop should purchase Esports Entertainment Group (NASDAQ: GMBL).

“There is one way for GME to seamlessly both pivot from its secularly declining retail business and monetize its customer database, and that answer is to acquire Esports Entertainment Group,” the report stated. They pointed out that even board member and Chewy founder Ryan Cohen thinks GameStop’s biggest asset is its customer base. With this, sympathy sentiment has touched upon several Esports stocks.

When it comes to Allied, however, there’s more than just sector hype fueling momentum. AESE stock has been on the rise for the better part of the last several months. Thanks to reaching milestones like selling its WPT poker brand for over $78 million and focusing on strategic alternatives, traders have grown fond of the penny stock. The company also renewed its exclusive naming rights agreement for Allied Esports’ global flagship property, HyperX Esports Arena Las Vegas. Considering that the “reopening stocks” are a growing interest, AESE could be one to watch as Esports could be part of that niche.

hot reddit penny stocks to watch Allied Esports Entertainment AESE stock chart

Super League Gaming

Another Esports penny stock to watch is Super League Gaming. The company provides video-game-derived entertainment in addition to its esports community aggregator & media distribution.

Earlier this month, the company announced a new partnership with Harena Data Inc. to produce and distribute video gaming and esports entertainment. I would think of Super League as an ESPN for esports creating and distributing content centered around the industry. Via this partnership, the company will focus on expanding this model.

“Harena Data is one of the best kept secrets in video gaming and esports. They have an impressive set of initiatives dedicated to making esports and gameplay accessible to an ever-increasing global audience of players, fans, and viewers,” commented Matt Edelman, Chief Commercial Officer of Super League Gaming in the February press release.

Aside from this, there’ve been a few Form 13G’s filed showing institutional positions in the penny stock. These included Nomis Bay Ltd and 3i, LP.

hot reddit penny stocks to watch Super League Gaming SLGG stock chart

Hall of Fame Resort and Entertainment

Not so much an esports company as entertainment and iGaming, Hall Of Fame has also experienced a strong move during the last few months. In fact, since the end of 2020, HOFV stock has climbed as much as 168%. In particular, the company works in the professional sports industry, with a focus on pro football. It has a partnership with the Pro Football Hall of Fame and owns the Jonson Controls Hall of Fame Village. This property is an entertainment venue as well as a media hotspot.

But the real interest may be around the sports betting side of this coin. Traders continue flocking to names like DraftKings and Penn National Gaming in light of sports betting regulatory easing. However, HOFV could be one of the lesser-known names vying for position on this growing list of sports betting stocks. In particular, Hall of Fame previously closed a deal with StakeKings to launch a national fantasy league.

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While no additional details have come to light recently, CEO Michael Crawford said in an interview that the company is working toward gaming and sports betting partnerships right now. Furthermore, Crawford expressed that it is “absolutely” the intention to roll sports betting into its properties and platforms.

hot reddit penny stocks to watch Hall of Fame Resort & Entertainment HOFV stock chart

Are Esports Penny Stocks On Your Watch List Right Now?

Clearly, there is hype stemming from the Citron report on Esports Entertainment. Anytime we see bullish speculation from such a firm, there’s likely sympathy sentiment to consider. However, based on the fact that these 3 esports penny stocks were already moving before the report, could this latest development have been the last piece of the pie to reignite momentum? I’ll leave that up to you, but so far, this is one piece of the stock market today not experiencing strong bearish selling pressure.


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