These Penny Stocks Are Gaining Momentum From Retail Traders
Robinhood penny stocks are some of the most trending small-caps we’ve seen this year. But, to understand why, we have to go a level deeper. If you’re not familiar with the terms Reddit penny stocks or Hodl, these have become popular terminology over the past year or two.
On one hand, Reddit penny stocks comes from the large trading communities on Reddit. This includes r/WallStreetBets, r/Redditpennystocks, and more. On these forums, investors come together and discuss which stocks they’re watching, sentiment about the industry, and anything pertaining to the stock market.
Reddit has become an extremely popular place for traders to communicate and congregate. It is also responsible for the large uptick with AMC Entertainment Holdings Inc. (NYSE: AMC), GameStop Corp., (NYSE: GME), and Blackberry Ltd. (NYSE: BB). All three of these stocks shot up in the triple digit percentage points over the course of only a few months. Considering the massive speculation surrounding penny stocks on Reddit, it can be a volatile place to make a watchlist.
The next term, Hodl, stands for ‘hold on for deal life’, and is a colloquial term coined on Reddit. This relates to traders holding positions in either small-caps, blue chips, or cryptocurrencies, regardless of if they go down substantially or not. This has become a popular term as the massive spikes and drops in value result in investors holding on for deal life. So, with a great deal of recent momentum with AMC stock, is now the time to Hodl these penny stocks or not?
4 Robinhood Penny Stocks to Hodl or Not to Hodl
- Torchlight Energy Resources Inc. (NASDAQ: TRCH)
- Genius Brands International Inc. (NASDAQ: GNUS)
- Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV)
- Denison Mines Corp. (NYSE: DNN)
1. Torchlight Energy Resources Inc. (NASDAQ: TRCH)
While no company specific news came out today, shares of TRCH stock are up by around 13%. Although this gain could be attributed to the larger gains we’ve witnessed across energy penny stocks, we may have to dig a little deeper. Torchlight Energy Resources is a Texas based oil and gas exploration and production company. It operates out of Plano, Texas where it acquires and develops domestic oil fields.
These oil fields are primarily located in West and Central Texas where the Permian Basin is based. Much of the bullish sentiment surrounding TRCH stock right now is based on its business combination with Metamaterial Inc. While the two have little in common, most investors see this as an easy way for Metamaterial to gain a NASDAQ listing without undergoing an IPO. Its worth noting that this business combination has been underway for months now, and investors are still waiting on updates.
But, an agreement between the two companies states that they must have a shareholder meeting by June 11th, 2021. So, this could be one of the reasons that TRCH stock is sparking upward today. So, a play for Torchlight is most likely a bet on the business combination mentioned above, and the potential of the two companies in the long term. Considering this, will TRCH be on your penny stocks watchlist?
2. Genius Brands International Inc. (NASDAQ: GNUS)
Genius Brands International is an interesting penny stock that develops, produces, and markets branded children’s entertainment products. Additionally, it has a large portfolio of entertainment properties and licenses including Stan Lee’s Superhero Kindergarten, Shaq’s Garage, and more.
Throughout the pandemic, the demand for content has increased dramatically. This makes sense given that so many people we’re stuck at home for over a year. And now, as we enter the summer, it’s likely that more kids will be at home watching television once again. Last week, the company announced that it would present at the Gabelli Funds 13th Annual Broadcasting & Entertainment Symposium.
Andy Hayward, CEO of Genius Brands states that “We are honored to have been invited to present at this elite conference, which includes many of the premier global entertainment companies such as ViacomCBS, The E.W. Scripps Company, Nextstar Media Group and others. We look forward to providing an update on key initiatives and value drivers.”
This conference is important for investors to consider as it allows for an insight into a company’s future events and happenings. Since mid-May, shares of GNUS stock have shot up by over 40%. This is a solid indication of bullish sentiment from investors. While it’s unknown how long this will continue, for now, GNUS could be worth adding to your watchlist.
3. Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV)
Up by a solid 10% at midday on June 7thy is HOFV stock. Hall of Fame is a penny stock that we’ve been covering for months due to its constant innovations and large intraday price movements. For those unfamiliar, HOFV is as its name suggests, an entertainment company working in the athletics niche. It operates football-inspired resorts and leverages the Pro Football Hall of Fame partnership it holds.
Additionally, it owns the Hall of Fame Village, which is a sports, entertainment, and media destination with a focus on football. While many large daily gains go unnoticed, today, HOFV stock shot up off of some big news. Early on in trading, it announced that it has been added to the Russell 3000 Index, effective after market open on June 28th.
“We are honored to be included in the Russell 3000 index with future membership intro the small-cap Russell 2000 Index.
We are proud of how we are building a world-class resort and sports entertainment company and being listed as part of the Russell Indexes is a testament to all of the work that the team has put in.
Since becoming a publicly traded company last summer, we have strategically been building upon our three business verticals.”CEO of HOFV, Michael Crawford
All of this shows that HOFV stock is working hard to continue growing because of its role in both the sports and entertainment market, many believe that HOFV is well positioned for the future. Considering this, will it be on your list of penny stocks to watch?
4. Denison Mines Corp. (NYSE: DNN)
Up by around 3.6% at midday is Denison Mines Corp. While no company specific news came out on June 7th, we did see many uranium penny stocks push up in value. Uranium is considered a renewable energy source, while it albeit, has gotten a bad name in the past few decades. Despite this, it remains one of the most environmentally friendly and energy efficient ways to produce power. The main pull for DNN stock right now is its 90% owned Wheeler River Project in Canada.
Much of the Wheeler River Project is still very early on in development. However, the company states that this mine overall should have extremely low costs. It’s also worth considering that Denison Mines expects one of the locations in this mine to be operational by 2025 with the second coming by 2030. Because of this, a lot of money is going toward getting these operations up and running as soon as possible.
So, many traders are betting on the long term future of DNN as well as the potential of its short term gains. Considering this, Denison Mines still looks quite attractive with its large placement in the uranium industry. Whether it’s worth adding to your watchlist however, is up to you.
Which Robinhood Penny Stocks Are You Watching?
While many investors choose to buy penny stocks on Robinhood, it is not the only choice out there. But, Robinhood does offer zero commission trades and an easy to use platform. And for those investors on Reddit or other retail traders, accessibility and ease of use outweighs the need for advanced charting software (which Robinhood doesn’t offer).
In 2021, investing in penny stocks is not the easiest. With so much going on, it can seem like a minefield at times. However, with the right research and a commitment to education, buying and selling penny stocks can be easier than previously imagined.