Are These 3 Reddit Penny Stocks on Your Watchlist?
Over the past year, the popularity of Reddit penny stocks has increased dramatically. If you’re unfamiliar, this is a group of penny stocks that are frequently mentioned across the social media website Reddit.
And, if you don’t know what Reddit is, it is a site dedicated to small communities or Subreddits as they are colloquially known. These groups can be focused on anything from penny stocks to cat videos and everything in between. In the past year or so, investors have come together on Subreddits such as r/Redditpenny stocks and r/Wallstreetbets to find the best penny stocks to buy. This has resulted in stocks such as GME stock or AMC stock, shooting up in triple or even quadruple-digit percentage points in only a short time frame.
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While it can be tempting to invest in any penny stocks mentioned on Reddit, it’s important to consider that they can be extremely volatile. So, understand what your threshold for risk is, and use that to your advantage. In addition, understand the company you plan to invest in, and what their business model is. With all of this in mind, let’s take a look at three penny stocks on Reddit that you might not know about.
3 Reddit Penny Stocks to Watch Right Now
- Aegon N.V. (NYSE: AEG)
- BRF S.A. (NYSE: BRFS)
- Mustang Bio Inc. (NASDAQ: MBIO)
Aegon N.V. (NYSE: AEG)
Aegon N.V. is a penny stock that is performing well in the market today. For some context, Aegon is a provider of financial services, insurance, pensions, and asset management in several countries around the world. Also offered by Aegon are savings products such as retirement plan services and more. This broadness means that AEG stock is subject to the ups and downs of the financial industry and world markets. Because of this, prospective investors should keep a close eye on geopolitical events to understand where Aegon could go.
On August 11th, the company reported its second-quarter results for 2021. In the report, the company stated that it achieved a net result of EUR 849 million, and an increase in its operating result of around 62% over Q2 2020. These are encouraging numbers and show that Aegon is working hard to grow despite current market conditions.
“I am encouraged by the steady progress we have made on our strategic and financial transformation in the second quarter of 2021. Economic recovery – aided by increased vaccination rates – supported our results.”
The CEO of Aegon N.V. Lard Friese
If we consider these financial results and the potential economic recovery on the horizon, we see that AEG could have some potential in the future. So, after this recent announcement, will you add AEG to your penny stocks watchlist?
BRF S.A. (NYSE: BRFS)
Since early May, shares of BRFS stock have climbed by around 12%. And, after reaching a high of almost $6 in mid-June, the recent correction shows that BRFS is gaining more bullish traction right now. If you’re not familiar with BRF S.A., the company produces and slaughters poultry and pork in Brazil and several other countries around the world. In addition to this, it produces and sells fresh meat, pasta, margarine, and other products. Its meat products include frozen whole and cut chicken, turkey meat, sausages, and more.
On August 12th, the company reported a $45.68 million net loss for the second quarter. While this may seem substantial however it is reflective of the cyclical nature of the food industry. The cause of this is the result of higher grain prices and the pandemic impacting the pork and chicken processors. Despite this, BRF was able to increase its sales volumes and prices in its home market. However, several executives from the company reiterated that it is a challenging environment in the Brazilian food market right now.
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High grain prices mentioned above in combination with higher fuel prices mean that BRF is working hard to continue growing in the long term. For this reason, investors may want to keep an eye on any pandemic-related events in Brazil if BRFS stock is a part of your portfolio. However, keeping this info in mind, is BRFS a contender for your list of penny stocks to watch?
Mustang Bio Inc. (NASDAQ: MBIO)
Mustang Bio Inc. is a biotech corporation that makes cell and gene therapies to treat cancer, tumors, and genetic diseases. Right now, the company is developing MB-107 and MB-207 which are both gene therapy treatments for X-linked severe combined immunodeficiency conditions.
X-linked severe combined immunodeficiency is a rare immune system condition where people do not live beyond infancy without being treated. Because there is a large clinically unmet need, Mustang Bio sees a chance to help solve this devastating illness. And as a result, it has become a big name in this relatively niche drug market.
On August 12th, Mustang Bio announced a collaboration with Mayo Clinic on Novel CAR T Technology. CAR T is also referred to as chimeric antigen receptor engineered T cell therapies. This announcement was very exciting for this biotech corporation.
“The potential use of this technology to facilitate how these treatments are delivered to patients can lead to earlier treatment post-diagnosis, and using an off-the-shelf therapy may reduce the cost of care, all of which would help bring more innovative treatments to a broader base of patients in need.”
Mustang Bio’s President and CEO, Manuel Litchman
Because of its broad pipeline of compounds, Mustang Bio continues to be an interesting choice among penny stocks investors. And with a 6 month high of $3, it does look like MBIO could have potential. But, it is worth considering that MBIO stock can be highly speculative and volatile. So, based on this information, will MBIO make your biotech penny stock watchlist?
Why Investors Like Penny Stocks on Reddit
Finding penny stocks on Reddit can either be a great way to make money, or an even better way to make quick losses. But, it all depends on what type of trader you are, and whether or not you have the experience to make money with penny stocks.
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However, with so much going on in the stock market, it can be challenging to find the best penny stocks to buy. And with careful research on hand, there’s a reason that so many investors like finding penny stocks on Reddit
