Were These Former Penny Stocks On Your Reddit Watch List This Month?
This year has brought a fresh perspective on what it means to trade the markets. Thanks to Reddit, penny stocks have grown in popularity and, in many cases, legitimacy. Who can forget the rise of GameStop stock in January as well as the recent Reddit-fueled run in May? This has also evolved to include many other current and former penny stocks that gained ground during the second quarter.
While plenty of these fall into the “reopening” category, others gained attention thanks to exposure to certain industry trends. Energy, biotech, and even cryptocurrencies became hot topics of discussion across most social media communities. You’ve also got to look at other factors at work. Government spending, the proposed infrastructure bill, and, of course, the flurry of economic data getting reported weekly have all made their marks.
Are Reddit Penny Stocks Still Hot?
Clearly, momentum is still red hot right now. This week was a clear example of that GME stock, as well as plenty of other Reddit penny stocks like Koss Corpo (NASDAQ: KOSS) surged. The initial spark that lit the fuse came as news spread on GameStop’s apparent move to jump into the NFT marketplace. The company launched a new web portal and invited gamers, engineers, designers, and thought leaders to join the team.
Once the move started in GME stock, sympathy sentiment started impacting other Reddit penny stocks. But with all of the hype surrounding some of the more “famous” names, there were a few companies that might’ve been missed. Here are 3 current and former penny stocks on Reddit that continue trading higher at the end of May.
Reddit Penny Stocks To Watch #1: GT Biopharma Inc. (NASDAQ: GTBP)
Biotech penny stocks were hot earlier this year, cooled off at the end of Q1, and have recently heated back up in May. Furthermore, this quarter has shown a clear, bullish trend in related sector ETFs like the XLV. In line with this, companies with exposure to healthcare and life sciences have also seen a jump.
GT Biopharma is one of these companies. Earlier this year, the company made the jump from the OTC to the Nasdaq, raising an initial $23.65 million in the process. Since then, the cancer treatment stock has climbed significantly higher. Since March 5th, shares have climbed from under $5 to nearly $17.50 at one point. Following a drop earlier this month, GTBP stock has managed to rebound back to levels above $16.
When it comes to traders, investors, and several analysts, the point of focus remains on GT’s TriKE treatment platform and candidates. Its lead drug GTB-3550 has shown early progress in the treatment of acute myeloid leukemia and myelodysplastic syndrome. Available results from the first 9 patients in a Phase 1/2 study demonstrated GTB-3550’s ability to reduce up to 63.7%bone marrow blast levels as well as no signs of adverse side-effects.
Anthony J. Cataldo, GT Biopharma’s Chairman and Chief Executive Officer, explained in a recent press release, “Both from efficacy and safety perspectives, our GTB-3350 TriKE™ program appears to be delivering the TriKE’s unique therapeutic potential which has been well-tolerated in all of our patients. Our differentiated approach stimulating NK cell activity reinforces our rationale to proceed with additional programs in solid tumor and hematologic cancers.”
And with analysts giving a Buy rating across the board with price targets of up to $25, GTBP stock has remained a popular one to watch this year so far.
#2: Syros Pharmaceuticals (NASDAQ: SYRS)
Sticking with the biotech trend, Syros Pharmaceuticals is also one of the more popular Reddit penny stocks to watch this month. The first quarter of the year wasn’t great for the stock. In fact, selling from Ark Investment Management, helmed by Cathi Wood, sold shares of the biotech penny stock during the first half of May. But in the second half of this month, SYRS stock mounted a recovery and has bounced back more than 30% so far.
One of the points of interest in the stock market centers around the company’s treatment pipeline of drugs targeting multiple cancers. Notably, there are several upcoming milestones to consider if SYRS is on your list of Reddit penny stocks to watch right now. Outlined in its latest earnings update, milestones are expected during the second half of 2021. These include initiating different phase studies in SY-2101 for Acute Promyelocytic Leukemia and SY-1425 in Acute Myeloid Leukemia.
What’s more, its SY-5609 could report on additional dose-escalation data in patients with breast, colorectal, lung, ovarian, and pancreatic cancers. This data may come as soon as next quarter with information derived from an ongoing Phase 1 trial of SY-5609. There will also be a planned expansion portion of the Phase 1 trial in the second half of 2021.
This week the company published a trial titled “A Trial to Learn More About a Possible Treatment for Participants with Acute Myeloid Leukemia” to ClinicalTrials. org. This was for the company’s SY-1425 treatment, specifically. According to the trial details, 95 patients are to be enrolled with the estimated study start day of May 31st, 2021.
#3: Peabody Energy Co. (NYSE: BTU)
Another popular area of the stock market today is energy. Where the “ESG stock” trend is alive and well, traditional power sources like crude oil and even coal remain in focus as the economy reopens. One of the leaders in the energy resurgence, believe it or not, is Peabody Energy. I say it this way because Peabody isn’t your typical “green energy.” It produces coal and has solidified its position in the steel-making process. Clearly, with a focus on infrastructure spending, cement, lumber, and steel are core assets.
With reopening underway, BTU stock has risen to the occasion. Late last year, the energy penny stock actually hit fresh 52-week lows of $0.80. Once the U.S. election concluded, the coal company’s shares began rising. This month BTU stock reached a high of $8.70. Some uncertainty surrounding the Biden infrastructure spending bill caused some pressure to take shares lower last week. But now that the talks seem to be heading in a good direction, infrastructure penny stocks are back on the move.
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Thursday saw BTU stock rise over 14% during the morning session. Furthermore, among all analysts covering the stock, Peabody has now managed to surpass all price targets so far. The company recently named a new CEO, James Grech, who has more than 3 decades of experience in the coal industry. While this may be timely based on strength in reopening, the big question looms whether or not coal will become a longer-term focus for the markets after things recalibrate to some normalcy.
Are Reddit Penny Stocks Worth The Hype?
Something to keep in mind whether you’re talking about Reddit penny stocks or stocks, in general, is that risk is always a factor. When you consider the level of hype, things like fundamentals can take a back seat to volatility. If you’re looking to buy penny stocks discussed on Reddit, make sure to keep this in mind.
Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP) Midam has been paid $150,000 for a period from March 1, 2021, to April 1, 2021. This compensation is payment 1 of 12 as part of a 12-month agreement between Midam Ventures LLC & GT Biopharma (GTBP), for a period from March 1, 2021, to February 28, 2022. Midam Ventures LLC expects to be paid $150,000 per month for a total of 12 months by GT Biopharma (GTBP). Midam has been paid an additional $150,000 for a period from April 2, 2021, to May 1, 2021. This compensation is payment 2 of 12 as part of the Agreement. Midam has been paid an additional $150,000 for a period from May 2, 2021, to June 1, 2021. This compensation is payment 3 of 12 as part of the Agreement. We may buy or sell additional shares of GT Biopharma (GTBP) in the open market at any time, including before, during, or after the Website and Information, to provide public dissemination of favorable Information about GT Biopharma (GTBP).