Reddit Penny Stocks Continue to See Momentum
Reddit penny stocks have continued to be a trending topic in the market. For those who are not familiar, let’s take a deep dive into what this means. Reddit is a popular social sharing site that contains everything from news to memes and all types of content.
On Reddit, users can publish any information they want in what is known as a ‘subreddit’. These are essentially discussion boards for every topic imaginable. In the past few months, you may have heard of stock market and penny stock-related subreddits like r/WallStreetBets, r/PennyStocks, and r/Investing.
These are communities of both novice and expert traders working to share ideas on different aspects of the market. A few months ago, users on the subreddit Wall Street Bets, came together to tout Gamestop Inc. (NYSE: GME). Quickly, shares went from under $20 to over $483. This was the first instance of retail traders joining forces to engage in collective action. While this was mostly symbolic at the time, it has since become a lasting trend.
In April 2021, we continue to see Reddit penny stocks result in higher than average volume. This trend is also likely to continue as retail traders have discovered the large effect that can result in using social media to find trending stocks.[Read More] Reddit Penny Stocks & The Risks Of Social Media Trading In 2021
While there are not usually any consistent categories to these stock picks, they are the result of community discussion boards and the members within them. Considering this, let’s take a look at 4 Reddit penny stocks to watch before the end of the month.
4 Reddit Penny Stocks to Watch
- Borr Drilling Ltd. (NYSE: BORR)
- Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
- Allied Esports Entertainment Inc. (NASDAQ: AESE)
- Quotient Ltd. (NASDAQ: QTNT)
1. Borr Drilling Ltd.
Borr Drilling is an offshore drilling contractor for the oil and gas industry. It operates through the ownership, contracting, and operation of jack-up rigs for shallow-water drilling. Additionally, it provides equipment and services for crews that are conducting offshore oil and gas operations.
Because of this, BORR offers some exposure to the energy industry, without the exposure that would come with a more pure-play oil and gas producer. In its latest financial report, the company posted preliminary data for the fourth quarter and full 2020 year. During this period, it posted operating revenue of $60.2 million, with a net loss of $46.7 million. This totals to an adjusted EBITDA of $6.6 million for the fourth quarter.
Additionally, it managed to raise roughly $32 million through two offerings completed on October 5th and November 30th respectively. More recently, Borr entered into an agreement to divest its three non-core drilling rigs for over $17.5 million in gross proceeds.
Moving into 2021, Borr Drilling finalized an agreement to improve its liquidity with several of its creditors, raising another $46 million in gross proceeds. Lastly, since the start of Q4 2020, it has received eight new contracts or contract extensions which is encouraging for investors to consider. So if you’re looking for exposure to the energy industry, BORR stock looks like it could have a lot to offer.
2. Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings is a Capesize ship-owner, providing bulk transportation services through its modern fleet of vessels. It claims to be the only pure-play Capesize ship owner listed on a public U.S. exchange. It has an average fleet age of around 12 years, with an average carrying capacity of 2.64 million dwt.
During the pandemic, the demand for retail products has increased greatly. This means that shipping companies are busy moving products from one area to another. On Wednesday, April 14th, big news broke when Seanergy announced a loan facility worth $37.45 million. The proceeds will be used to refinance an existing $24.45 million facility secured by three of its owned ships.
“We are very pleased to announce the successful conclusion of the financing by one of our long-term lenders for an upsizing and extension of one of our existing facilities. The new facility in combination with our advanced discussions with other current lenders of Seanergy represents a strong vote of confidence to our Company.”Stamatis Tsantanis, CEO of Seanergy
He went on to state that the current market allows for 5-TC shipping routes to be worth over $26,000 per day. This means that the rest of 2021 could be financially beneficial to the company and investors alike. Considering the high demand for its shipping services, is SHIP stock worth watching?
3. Allied Esports Entertainment Inc.
AESE is a penny stock that we’ve been discussing for quite some time. It is involved in the Esports industry, which has become extremely prominent in the past year or so. It operates through everything from live experiences to interactive services and more. The company has two strategic brands that it utilizes as the backbone of its business.
This includes Allied Esports, and the World Poker Tour (WPT). While there is an agreement worth $105 million from Element Partners to purchase the WPT, it is not scheduled to close until the end of April. As an online gaming company, AESE has become extremely popular among Reddit penny stock traders.[Read More] 3 Penny Stocks that Are Benefitting From the Pandemic
At the end of March, Allied Esports announced its preliminary fourth-quarter and full-year 2020 financial results. To better understand the company, let’s take a closer look. While the results are preliminary, it’s worth noting that the full results should be out any day now. Recently, it filed an extension or Form 12b-25 to extend the deadline to April 15th.
While we wait for the release of this data, we can use the preliminary results to see where AESE is at. In the fourth quarter, AESE brought in $0.9 million in revenue, which is a 52% decrease over the year prior. Additionally, it pulled in an almost $20 million loss, up from $5.8 in Q4 2019.
These results may seem disheartening, but it’s worth noting that AESE makes the majority of its revenue from in-person events. Because of the pandemic, it has had to change its business substantially and in a short period of time.
CEO Frank Ng, stated that “despite the unprecedented operating challenges and macro-economic uncertainty encountered throughout most of 2020 resulting from the Covid-19 pandemic, Allied Esports finished the year with a solid performance in the fourth quarter.”
While the CEO is slightly over-optimistic about the fourth-quarter results, we have to take into consideration the $105 million it will receive from selling the WPT. Once this deal goes through, AESE could be worth watching.
4. Quotient Ltd.
If you’re not familiar with QTNT, you’re probably not alone. But the commercial-stage biotech company has become very popular among Reddit penny stock traders. Quotient aims to completely change the way that commercial diagnostics in a clinical setting are conducted. It offers a proprietary multiplex microarray technology known as MosaiQ. This allows for multiple tests across different modalities.
Some investors believe that this could be a game-changer in the medical testing industry. This is because it could greatly improve efficiency and lower costs substantially over the current methods. Also, the company recently developed a version of this known as the MosaiQ Covid-19 Antibody Microarray. It is CE marked and has already received EUA or Emergency Use Authorization from the FDA. Earlier in the week, the company announced that MosaiQ won the prestigious Red Dot Design Award.
Dr. Peter Zec, the founder and CEO of Red Dot, stated that “the international jury only awards this sought-after seal of quality to products that feature an outstanding design. Your product, MosaiQ by Quotient, was able to convince our jurors and receives an award in the Red Dot Award Product Design 2021 category.”[Read More] Top 10 Penny Stocks Under $0.10 Turn Heads, Small-Cap Surge Extends
In response to this, the CEO of Quotient, Manuel Mendez, stated that “this stands as a testament to our partners and our team’s creativity and design efforts throughout the years. Our system was specifically designed to address the challenges of today’s resource-constrained diagnostic environments to help improve clinical decision making.” Given this exciting award and the underlying potential of this technology, is QTNT stock worth watching?