Are These Reddit Penny Stocks Worth It or Not?
Over the past year, penny stocks and retail traders have become synonymous with one another. While this has increased the volatility of penny stocks, it has also brought in billions in new capital and higher than average volume. One of the largest catalysts for the rise of trending stocks is Reddit.
This is where many investors come together to discuss the best penny stocks to buy, which companies could have potential, and everything in between. And while it is difficult to predict which penny stocks may become Reddit penny stocks, it is easy to see the after-effects.
One thing to keep in mind as mentioned before is that when a penny stock is frequently discussed on social media, it tends to see much higher levels of volatility than usual. This is common with penny stocks, but even more so once it begins to trend. So, considering all of this, let’s take a look at three penny stocks that are popular with Reddit traders right now.
3 Reddit Penny Stocks to Watch in July 2021
- SOS Ltd. (NYSE: SOS)
- Color Star Technology Co. Ltd. (NASDAQ: CSCW)
- Citius Pharmaceuticals Inc. (NASDAQ: CTXR)
SOS Limited (NYSE: SOS)
SOS Limited is a tech penny stock that is up by as much as 78% YTD. This is a solid gain, despite shares of SOS stock dropping in the past few weeks. The company provides data mining and analysis services to insurance companies, financial corporations, medical institutions, healthcare providers, and more.
Additionally, SOS is also involved in cryptocurrency mining and blockchain-based products. One thing to keep in mind is that SOS stock is highly correlated with the price of cryptocurrency. Because it does mine crypto, it tends to be more volatile than many other penny stocks. However, it continues to show faith in the long-term future of the blockchain industry and could be worth keeping an eye on for that reason. On June 21st, SOS entered a joint venture agreement with Niagara Development and increased its blockchain operations in the U.S.
“SOS continues to increase its development of comprehensive blockchain solutions for digital trade, digital finance, and other industries.
We decided to acquire a sustainable power supply as far as possible, as we expand our blockchain operations into North America and look forward to the successful operation of the joint venture. We continue to explore the possibility of acquisition of Niagara Development, Sherman Development LLC, and Park Falls Management LLC.”The Chairman of SOS, Yandai Wang
The company has experienced a great deal of attention in the past month or so. This is partially due to its cryptocurrency ties. At one point in February, the company skyrocketed in value and even surpassed $12 per share. Now on July 15th, shares of SOS stock sit at around $2.50 per share on average. Considering its role as a blockchain penny stock, is SOS worth adding to your watchlist in July 2021?
Color Star Technology Co. Ltd. (NASDAQ: CSCW)
Color Star Technology Co. Ltd. is a penny stock that provides music education services and much more. Its Color World platform offers a curriculum on music, sports, animation, film, and several other pertinent educational needs. The program also provides celebrity lectures, concert videos, products, and more.
Color Star Technology is primarily based in the United States and China. While it is more or less an education penny stock, it has moved into the NFT market in the past few months. Although this seems like a strange direction for the company, it also believes in the long-term future of aspects related to blockchain. Only recently, Color Star began ticket sales for its Dubai concert event on July 14th. The event will take place on July 23rd, and is expected to be a very large gathering.
“The Arab region has a population of 420 million people with vast cultural and entertainment needs. Through this performance, we hope to not only promote the local entertainment industry but also gain recognition of the company in the Middle East. We invited two super influential celebrities from the region to help drive ticket sales and increase our fan base via live performances and online interaction.”The CEO of Color Star, Mr. Basil Wilson
Despite some less than stellar performance in the past week or so, shares of CSCW have increased by around 28% in the past six months. Again, due to its involvement in crypto, CSCW stock does tend to rise and fall with the price of popular cryptocurrencies. At the start of the year, this penny stock was at $0.66 per share. Now shares of CSCW are close to $1 per share on average on July 15th. With this upcoming event in mind, will CSCW stock be on your watchlist this month?
Citius Pharmaceuticals Inc. (NASDAQ: CTXR)
This next company, Citius Pharmaceuticals Inc., is a biotech penny stock with increasing popularity right now. Citius develops and commercializes critical care products such as anti-infectives, cancer treatments, prescription products, and more. Currently, it is developing Mino-Lok which is an antibiotic for those with catheter-related bloodstream infections. The company is in development with several other compounds as well.
On July 7th, Citius provided an update on its business for the first half of 2021. The company stated that it’s Phase 3 Mino-Lok trial is currently going as planned, following recommendations by the independent data monitoring committee. It states that it should have a submission for a New Drug Application in 2022 and expects to complete Phase 3 by year-end 2021 or early 2022.
“On July 1, 2021, we reported that the independent Data Monitoring Committee (DMC), following its third interim review, recommended continuing the Phase 3 trial for Mino-Lok® without modification.
This recommendation affirms that there is an important efficacy signal that merits moving forward with the trial, there are no safety concerns to warrant halting the trial, and that the full data set upon trial completion may support statistically significant superiority.”The CEO of Citius, Myron Holubiak
With this trial in full effect, will you add CTXR stock to your watchlist this year?
Reddit Penny Stocks Continue to Show Potential in 2021
With hundreds of penny stocks to choose from for your watchlist, making a concrete decision can sometimes seem difficult. However, with the right research on hand, and a commitment to finding value, any investor can be as informed as the best traders out there.
While Reddit penny stocks may be volatile, if you know when to buy and sell, it can be a profitable endeavor. Considering all of this, it’s no wonder that Reddit penny stocks continue to show potential in 2021.