Top Reddit Penny Stocks to Watch in 2021
Looking at the top penny stocks to buy on Reddit can be a great strategy in 2021. However, it’s worth noting that the highly speculative nature of all penny stocks tends to be even greater when we add in the social media factor. But, if speculation and volatility are what you’re after, these penny stocks could be right for you.
One thing to consider is what exactly is affecting the stocks movement. Did a new piece of news come out? Is a balance sheet on the horizon? These are important questions to ask yourself that will help to determine the right point to buy or sell penny stocks.
The next thing to consider is its status as either a short squeeze penny stock or a meme penny stock. These two terms are not new, however they have come into play in 2021. On one hand, short squeeze penny stocks are those that many investors are betting against.
This is something we saw with AMC stock, GME stock, and BB stock this year. But, just because a penny stock is highly shorted, does not mean that it will rise meteorically like the three stocks mentioned above. A meme penny stock on the other hand is one that is highly talked about on social media.
This could be due to large social sentiment, an emotional connection to it, or just the fact that it is flat out trending. While all of these items will play a role in the price of a penny stock, knowing which one has the most impact will put you ahead of the competition. All things considered, here are four penny stocks that Reddit traders are buying right now.
4 Reddit Penny Stocks to Watch Right Now
- Tellurian Inc. (NASDAQ: TELL)
- Obalon Therapeutics Inc. (NASDAQ: OBLN)
- Conformis Inc. (NASDAQ: CFMS)
- Clearside Biomedical Inc. (NASDAQ: CLSD)
Tellurian Inc. (NASDAQ: TELL)
Tellurian Inc. is a popular energy penny stock that is performing well this week. TELL actively develops its portfolio of natural gas production, liquefied natural gas marketing, and infrastructure assets. Its assets include a 27.6 million tons per annum LNG terminal facility and a pipeline in Louisiana. Currently Tellurian owns 9,373 net acres of natural gas production assets.
This is quite a large amount, and puts Tellurian at the forefront of the energy industry. As the pandemic comes to an end, the demand for energy is increasing substantially. This makes sense given that more people are traveling via planes and cars, adding to the greater demand for fuel. Additionally, the world is still relatively in the early stages of reopening, meaning that the potential could still be on the horizon.
On June 8th the company announced that it has entered a sale and purchase agreement with Vitol Inc. This agreement is to deliver 3 million tons of liquefied natural gas every year over a 10 year period. This deal has been valued at around $12 billion in revenue over this time.
“Tellurian continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want. Vitol expressed interest in the development of Driftwood early on, and it is fulfilling to finalize this agreement with the world’s largest independent trader of energy.”The President and CEO of Tellurian, Octavio Simoes
When the announcement was made, TELL stock understandably soared. Although its price did correct in the days following, many believe in the long term potential of this deal and Tellurian. In the past month, shares of TELL have shot up by over 75% and in the past six months by over 240%. Considering this, will TELL stock be on your watchlist this year?
Obalon Therapeutics Inc. (NASDAQ: OBLN)
Obalon Therapeutics is a biotech penny stock that we’ve discussed frequently over the past few months. For those unfamiliar, it develops and commercializes medical devices. Its integrated medical products are aimed at treating obesity and other weight loss needs.
Its flagship product known as the Obalon Balloon System is designed to provide weight loss in a non-invasive way. It is a swallowable capsule that contains an inflatable balloon attached to a micro-catheter. This is a breakthrough product as current methods of obesity treatment are relatively invasive and cost prohibitive.
OBLN can be considered a “meme stock” based on its trading activity and high mentioned across social media. OBLN stock is mentioned frequently on Reddit through communities like r/Robinhoodpennystocks and r/pennystocks. This means that it has achieved a high popularity status among retail traders.
It’s hard to pinpoint exactly why OBLN stock is up by over 280% in the past month and over 480% in the past six months. However, we could attribute some of this bullish momentum to its status as a meme stock. While this alone is not a reason to add OBLN to your buy list, it could be a factor to consider. Additionally, its weight loss products are not yet fully commercialized, meaning that there could be some long term potential left to be discovered.
Another explanation for its recent movement is the recently completed merger with ReShape Lifesciences. As of today, the merged company now known as ReShape Lifesciences Inc. will trade on the NASDAQ Capital Market beginning on June 16th. This is exciting, and has investors hopeful about the future of the company. So will OBLN stock make your penny stock watchlist this month?
Conformis Inc. (NASDAQ: CFMS)
Conformis Inc. is another biotech penny stock showing high market performance lately. While CFMS is not a producer of pharmaceuticals like other biotech companions, it is focused on medical devices. These devices are regarded as being game changers in its respective industry. For some context, Conformis produces, develops, manufactures, and sells joint replacement implants.
It offers a variety of personalized knee replacement products, such as iTotal CR and iTotal PS. Right now, the alternative to its products are off-the-shelf implants. These are expensive, and often ill-fitting. With its personalized approach, CFMS has the potential to change the way that knee and joint replacement products are used. Conformis has not reported any company specific news recently. But this does not mean the company has been up to nothing.
On May 20th it presented at the Canaccord Genuity Musculoskeletal conference. On May 26th, Conformis presented at the Oppenheimer MedTech, Tolls & Diagnostics Summit. Despite its lack of recent company-specific news, CFMS does show a lot of potential as a biotech penny stock to watch.
This is due to both its groundbreaking products, issued patents/patents pending, and the future potential of its technology. However, in the past month, Conformis stock has shot up by over 44% and in the past six months, by over 80%. With all of this in mind, CFMS could be an interesting candidate for your penny stocks watchlist.
Clearside Biomedical Inc. (NASDAQ: CLSD)
Following an exciting announcement made recently, shares of CLSD stock have shot up by over 26% in the past five days. But before we dive into this update, let’s look at what this company does. Clearside Biomedical is a company developing and delivering treatments for the restoration and preservation of vision for people with serious eye diseases. One of its products, CLS-AX, is an axitinib-type drug for suprachoroidal injection in Phase I/2a clinical trial.
On June 15th, Clearside released positive safety results from cohort 1 of OASIS Phase 1/2a clinical trial of CLS-AX. This is what has caused shares of the company to rise more than 35% at one point during the trading day on June 15th. The company’s trading volume also stood around 407% higher than its average. In the past month, shares of CLSD stock are up by over 63% despite its small correction on June 16th.
“We are very encouraged by the Cohort 1 results of the OASIS trial and we are immediately beginning Cohort 2 enrollment as planned. The initial data from Cohort 1 clearly achieved our safety and tolerability endpoints.
While still early and recognizing there are a limited number of patients, we believe the Cohort 1 data supports our hypothesis that the combination of targeted and compartmentalized suprachoroidal delivery and the potent pan-VEGF attributes of axitinib may facilitate an effective treatment option for patients suffering from wet AMD.”The Chief Medical Officer and Chief Development Officer at CLSD Thomas A. Ciulla
With these recent advancements in mind, CLSD could be an interesting candidate for your list of penny stocks to watch.
Are Reddit Penny Stocks Worth Buying?
The short answer to this is that it all depends on your strategy. If volatility is what you’re after, buying penny stocks because you found them on Reddit could be a viable option. However, if you’re looking to make short term advancements in your portfolio, it may not be the best choice.
Investing in penny stocks is all about knowing what type of trader you are. And for that reason, considering your investment and portfolio goals will always be a major benefit. So what do you think, are Reddit penny stocks worth buying?