3 Underground Reddit Penny Stocks That You Should Know About
Finding penny stocks on Reddit can be a valuable way to begin making a watchlist. However, it’s worth noting that using Reddit is not the only aspect that should factor into your list of penny stocks. Rather, investors should consider a broad range of fundamentals including news, balance sheets, analyst recommendations, and any other information you can find on a company.
However, with the influx of traders on Reddit, using social media as a way to compile trending penny stocks is beneficial for all. When learning to invest in penny stocks, a few key pieces of information can save you from being in the red.
[Read More] 3 Penny Stocks To Buy On Robinhood Under $1 Right NowThe first is whether or not you have a trading education. This is something that can be found online, and an aspect of trading that is often overlooked. But, like anything else, making money with penny stocks is not an easy, or overnight process. It takes time and dedication. If you’re not familiar with Reddit, it is the popular social media platform with thousands of sub-Reddits or communities to talk about every topic imaginable.
In the past year or so, many investors have come together on sub-Reddits like r/WallStreetBets to talk about trading, potential penny stocks to invest in, and anything else relating to the stock market. Because of this, it can be easy to find companies that you otherwise would not be familiar with.
And, because news affects penny stocks so heavily, it could be a valuable tool to consider. With this in mind, let’s take a look at three Reddit penny stocks with big news today.
3 Reddit Penny Stocks to Watch
- Intec Pharma Inc. (NASDAQ: NTEC)
- Cinedigm Corp. (NASDAQ: CIDM)
- Ambev ADR (NYSE: ABEV)
Intec Pharma Inc. (NASDAQ: NTEC)
Up by around 50% on Monday, May 10th is Intec Pharma Ltd. For some context, Intec Pharma operates as a clinical-stage biopharmaceutical company. It develops drugs using its proprietary Accordion Pill platform, which is an oral drug delivery system.
This system allows compounds to be delivered to the body with improved safety and efficacy. It utilizes efficient gastric retention and release mechanisms to do so. Its leading product right now is known as Carbidopa/Levodopa, which has completed a Phase 3 trial for the treatment of Parkinson’s disease.
While no specific news came out of NTEC today, this gain is likely due to the announcement of its quarterly earnings during after hours. A month or so ago, Zacks stated that it expects the company to post an EPS of ($1.08). This would represent 32.5% in growth year over year.
[Read More] Trading Penny Stocks in 2021 Can Be Easy By Taking These 3 StepsSo, we have to consider that this gain right now is more speculative than anything else. And, this tends to be common with biotech stocks, as they are extremely volatile dependent on news. So, while no balance sheet has been released as of yet, investors are looking forward to it in the next few hours or so.
Additionally, we saw many biotech penny stocks climb significantly today, which could also be contributing to NTECs large gain. With all of this in mind, is Intec Pharma worth watching?
Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is a penny stock that we’ve been covering for quite some time. If you’re not familiar, Cinedigm is a provider of digital entertainment. The company states that hundreds of millions of users consume its content regularly and around the world. It provides everything from premium content to streaming channels and tech services. Its products are purchased by media, tech, and retail companies globally.
Recently, the company announced record ad revenue on the deployment of its Amagi’s Ad Solutions. This comes alongside the partnership with Amagi that it announced simultaneously. Amagi provides a software known as Thunderstorm 2.0 which allows for automated ad detection and OTT dynamic ad insertion.
This in turn creates massive monetization potential for the companies that utilize Cinedigm’s services. Cinedigm states that upon deploying this software, the company saw a 47% increase in ad revenue.
“As a longstanding partner of Amagi, we continue to work closely with Amagi in utilizing their technology across our portfolio of ad-supported streaming channels.
As the dominant technology platform in linear playback within the OTT space, Amagi has developed industry-leading technology but also remains receptive to the business needs of partners like Cinedigm who are looking to push the technology further to continue maximizing revenue potential in this rapidly growing segment of the entertainment business.”
Tony Huidor, SVP of Products and Technology at Cinedigm
Because of the massive emphasis on entertainment stocks during the pandemic, Cinedigm remains one of the leading penny stocks to watch. Because of this announcement, investors are showing heightened interest in CIDM stock. Whether it deserves a place on your watchlist, remains up to you.
Ambev SA (NYSE: ABEV)
Ambev SA is considered to be a reopening penny stock due to it benefitting from stay-at-home orders being lifted globally. Its also worth noting that the company did benefit from the pandemic, as a provider of alcoholic and non-alcoholic beverages. In its first-quarter earnings report posted a few days ago, the company posted better-than-expected numbers.
During the quarter, revenue shot up by a solid 27.8% to $3.15 billion. This is much higher than analyst forecasts of $2.55 billion. Additionally, the company’s adjusted EBITDA rose by almost 24% to $1.01 billion with EPS shooting to $0.03.
While its home country of Brazil is still facing challenges from the pandemic, it looks like Ambev is in a great spot as of mid-2021. As stated earlier, a lot of this is due to it being an alcohol producer. During both good and bad times, alcohol, cigarettes, and other ‘stress-relieving’ products tend to do well.
[Read More] Top Penny Stocks to Buy? Check These 4 Out For Your May WatchlistPeople drink when the times are hard, and they drink when there is a celebration to be had. Because of this, Ambev has managed to survive and thrive over the past year. The only issue that the company could face is a production shutdown, but this seems highly unlikely as of now.
So, to truly consider ABEV a penny stock to watch, investors need to watch the case numbers in Brazil, to determine what trajectory the country may be headed in. But for now, it deserves a place on your watchlist.
Reddit Penny Stocks Continue to Fly High
With DogeCoin going to the moon and Reddit continuing to tout new penny stocks to buy, the stock market is an interesting place right now. But with so much going on, it can be difficult to keep track of everything.
So, creating a strategy and sticking to it is the best way to feel confident in your penny stock watchlist. And with Reddit penny stocks flying high, the options are almost limitless. Considering all of this, are these penny stocks worth it?
