Are These Reddit Penny Stocks Worth It or Not?
When it comes to Reddit penny stocks, WallStreetBets usually reigns supreme. For those unfamiliar, this is a subreddit or community on Reddit, that discusses all types of securities and not just penny stocks.
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However, stocks under $5, cryptocurrency, and blue chips are can be found within the community. While this didn’t have a major effect on the price of bitcoin, penny stocks, DogeCoin or any other talked about investment in the past, something major changed a few months ago.
Earlier in the year, traders on the subreddit came together to invest in the ultra-shorted GameStop Corp. (NYSE: GME) stock. Rather than for its fundamentals or lack thereof, this was due to an emotional connection to the video game retailer and a distaste for the institution betting against it. This resulted in the price of GME stock pushing up from a few dollars to hundreds in only a couple of days.
And thus, the stock market changed fundamentally. So, now this has become commonplace, and we see both penny stocks and blue chips swing because of the influence of Reddit. And while this is not something that affects all stocks, it can be indiscriminate as to which ones it does.
Considering this, it’s worth looking into Reddit to build a list of penny stocks that may be discussed on the platform. And while this shouldn’t be the only tool in your belt, it can be in use as another strategy in your portfolio. With this in mind, let’s look at three penny stocks that WallStreetBets won’t stop talking about.
3 Reddit Penny Stocks to Watch in 2021
- Citius Pharmaceuticals Inc. (NASDAQ: CTXR)
- Professional Diversity Network Inc. (NASDAQ: IPDN)
- Allied Esports Entertainment Inc. (NASDAQ: AESE)
Citius Pharmaceuticals Inc. (NASDAQ: CTXR)
Citius Pharmaceuticals is a biopharmaceutical company working on developing and commercializing critical care products. This includes prescription medicines such as its leading product Mino-Lok. Mino-Lok is an antibiotic lock solution in use for the treatment of patients with catheter-related bloodstream infections. This compound is in a Phase 3 pivotal trial, but it has already been granted fast-track approval by the FDA.
[Read More] 7 Penny Stocks to Watch With Crypto News Sparking a Market DipAdditionally, the company works through its subsidiary, NoveCite Inc., to provide novel proprietary mesenchymal stem cell treatments that are made from induced pluripotent cells. These can be used for acute respiratory syndromes such as ARDS as a result of Covid-19 infection. Last week, Citius reported its Q2 fiscal 2021 financial report as well as some exciting business updates. The CEO of Citius Pharmaceuticals,
“The Citius team is focused on advancing a growing pipeline of first-in-class treatment options that have the potential to transform the current standards of care for patients around the world.
We believe our near-term milestones including an upcoming meeting with the Drug Monitoring Committee for our lead product candidate, Mino-Lok, will continue to drive momentum.”
Myron Holubiak, the CEO of Citius
The company managed to raise more than $96.5 million in proceeds from several financing deals. This gave it over $103.7 million in cash by the end of the quarter. This should give it a cash runway to support its development through 2023. Considering this, will CTXR be on your list of penny stocks to watch?
Professional Diversity Network Inc. (NASDAQ: IPDN)
Up by over 12% at midday is Professional Diversity Network Inc. While you may not be familiar with the company, it is worth watching right now. For some context, let’s dive into what IPDN does. Professional Diversity is a global developer of in-person and online networks. These allow for everything from training to educational and employment services.
It operates several subsidiaries throughout the U.S. including the International Association of Women and others. Its goal is to unify underserved communities of people, empowering them to gain educational and work-related opportunities.
[Read More] Best Penny Stocks To Buy Right Now? 3 For Your May 2021 Watch ListEarlier in the week, IPDN reported its financial results for the quarter ended on March 31st, 2021. In the report, the company managed to raise its revenue by around $0.5 million. This is a 51% increase over the same period of the previous year. Additionally, it lowered its losses per share from $0.17 in the same quarter of 2020 to $0.11 this quarter. Lastly, it ended the quarter with around $2.3 million in cash on hand.
“Our PDN network had a very strong first quarter and we anticipate that the continued corporate and political awareness in terms of greater diversity recruitment and inclusion initiatives will continue to benefit the Company and in turn society as a whole.
We continue to invest in our operating segments to drive organic growth, and look to better position the financial strength of the Company for the future.”
Adam He, CEO of IPDN
Considering this and its alternative business model, will IPDN be on your penny stocks watchlist?
Allied Esports Entertainment Inc. (NASDAQ: AESE)
Allied Esports is a classic Reddit penny stock and one that is discussed frequently on the website. For some context, it is an entertainment stock, working in the field of Esports. Before its Q1 2021 results which will be posted on May 24th, let’s take a closer look at what AESE has been up to. AESE provides innovative infrastructure and live experiences to a wide range of online gaming opportunities.
This includes in-person game competitions, and the wholly-owned World Poker Tour (WPT). While the company is in a deal right now to sell the WPT business for $105 million to Element Partners LLC., this deal is not yet fully finalized. Last week, Allied Esports announced an agreement with MuxIP.
This agreement includes the distribution of hundreds of hours of content to certain OTT platforms globally. This includes content streamed from its HyperX Esports Arena Las Vegas as well as international gaming tournaments.
“The demand for high-quality esports content continues to grow exponentially as streaming platforms expand their entertainment programming and overall reach. We’re thrilled to tap into our library and introduce new viewers and fans to some of the top competitive gaming content in the world.”
Jud Hannigan, CEO of Allied Esports
Because the world of Esports has only taken off in the past few years, AESE remains an exciting opportunity for investors to capitalize on. With its sizable growth in the past year alone, Allied Esports could be worth watching moving forward.
Are These Reddit Penny Stocks Worth It or Not?
Finding the best penny stocks to buy can be challenging in this day and age. But, if you do the proper research, it can be much easier to make a watchlist. There is without a doubt a lot of movement in the stock market. However, this can be an opportunity to see gains (or losses).
[Read More] Biotech Penny Stocks Are On Fire Today, Here’s 3 to Watch Under $5At the end of the day, making a list of penny stocks to buy all comes down to you and your strategy. But, if you have the right tools in hand, it can be competitive with even the best investors’ watchlists.
