Can These Reddit Penny Stocks Continue to Outperform Expectations?
Penny stocks are back. With higher than average volume and more interest than in the past few months, investors are once again looking for the best penny stocks to buy. Now, this is not to say that penny stocks left the scene, but rather if you trade stocks under $5, you have most likely seen the low trading volume of the past two to three months. While low volume is not necessarily a bad thing, volatility is what penny stock investors thrive on. This is where the opportunity to see large gains (and large losses), comes in.
Now, if we factor in the effect of Reddit on penny stocks, this volatility can become even higher. If you’re wondering what Reddit penny stocks are, let’s take a closer look. For those unfamiliar, Reddit is the popular social media website that sparked the Gamestop Corp. (NYSE: GME) fiasco a few months ago. This is where hundreds of traders came together to all buy shares of the failing video game corporation.
While this may seem like just a group of people buying shares of a company to get rich quickly, it was much more than that. Traders saw a vastly over-shorted stock and decided based on an emotional connection to the decades-old video game retailer, to help get it back on its feet.
[Read More] 3 Penny Stocks to Watch During the Last Week of AprilBecause this is a new phenomenon, it has resulted in a fundamental shift in trading both blue chips and penny stocks. While we don’t know the long-term effects of this yet, we are seeing similar trading occur with other companies.
Additionally, many investors have found comfort in buying penny stocks on Robinhood or other, highly accessible brokerage platforms. So when making a list of penny stocks to buy in 2021, ensuring your broker allows access to stocks under $5 can help to make this process even easier. So, with this in mind, let’s take a look at three Reddit penny stocks making big moves right now.
3 Reddit Penny Stocks to Watch
- Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
- Arcadia Biosciences Inc. (NASDAQ: RKDA)
- Gran Tierra Energy Inc. (NYSE: GTE)
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
If you’re looking for a way to capitalize on global trade, SHIP stock could be a solid penny stock to watch. Seanergy Maritime Holdings is an owner and operator of Capesize ships, working to deliver dry bulk cargo. It currently has a fleet of 15 vessels, which have an average operating age of 11.9 years. Additionally, its vessels have an aggregate cargo-carrying capacity of around 2.64 million dwt.
Only a few weeks ago, the company announced a loan facility of roughly $37.45 million from one of its existing lenders. Part of the proceeds will go toward refinancing its existing loan facility secured by its M/V Leadership vessel. The other part will go toward the financing of its recently announced vessel acquisitions.
“We are very pleased to announce the successful conclusion of the financing by one of our long-term lenders for the 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.”
CEO of the company, Stamatis Tsantanis
He goes on to state that the current rates for dry bulk shipping are very high, at around $26,000 per day. Additionally, the current freight futures are showing that there could be improved earnings throughout the rest of 2021. Tsantanis states that “Seanergy is well-positioned to benefit substantially from improving market conditions.” Considering all of this, is SHIP stock worth watching?
Arcadia Biosciences Inc. (NASDAQ: RKDA)
While Arcadia Biosciences may seem like an average biotech penny stock, it offers a different value point than others. For some context, Arcadia works on a science-based approach to enhancing the nutritional value of crops and food ingredients. It offers a product known as GoodHemp, which utilizes genetic breeding to produce superior hemp seeds, transplants, and extracts. In addition, it produces the GoodWheat brand of food ingredients, which offers the same benefits right to consumers.
[Read More] 4 Reddit Penny Stocks To Buy On Robinhood For Under $1 Right NowOnly a week ago , the company announced that GoodHemp has earned approval from Health Canada for its consistency and compliance. With this, it could soon begin selling these genetically modified hemp seeds across the Canadian landscape. The seeds will be distributed through Tritrium 3H (T3H). This is a company that specializes in the field of hemp seeding, certified seed production, and distribution.
“The Health Canada approval demonstrates the stability and compliance of our cultivars. We are happy to report we have already shipped the first GoodHemp seeds order to Tritium 3H to bring our CBD-dominant, short-day varieties to Canada’s industrial hemp growers for the 2021 planting season.”
Matt Plan, CEO of Arcadia
Only a few days before this, the company announced that it had acquired the assets of Agrasys SA. Agrasys works as a food and ingredient company based in Barcelona, Spain. With this, it should be able to commercialize its products in Europe. This is a largely untapped market for Arcadia and could help to grow its business in the future. Considering this, is RKDA stock worth viewing as a penny stock to buy?
Gran Tierra Energy Inc. (NYSE: GTE)
Gran Tierra is an international energy penny stock working on oil and gas production in South America. It’s worth noting that GTE offers a good amount of exposure to the energy sector. However, this exposure also comes with heightened volatility.
While Gran Tierra is focused on Colombia and Ecuador right now, it is also working on the exploration of other potentially valuable assets. In its operations and financials update posted a few weeks ago, the company managed to increase its average production by 12%. This is the highest level of production since February of last year.
[Read More] Tech Penny Stocks to Buy in 2021? Check These 3 OutGary Guidry, CEO of Gran Tierra stated that “at the beginning of the fourth quarter of 2020, we decided to hedge 15,000 bopd of first half 2021 production to resume development operations across all of our major assets. Throughout the first quarter of 2021, we have significantly and profitably restored Gran Tierra’s total production. Our ability to ramp up Gran Tierra’s production to the highest level in over a year clearly demonstrates our team’s success at optimizing our core oil fields.”
While the company has seen challenges stemming from the pandemic, its committed team has shown resiliency in the face of adversity. As Covid lessens in severity, many analysts expect the energy industry to bounce back substantially.
This has highlighted a large range of the best energy penny stocks to buy in 2021. Whether or not GTE deserves a place on your penny stocks list remains up to you. But, with its solid potential, it could be considered a penny stock to watch.
