3 Reddit Penny Stocks to Watch Under $3
Reddit has become one of the most popular places for penny stocks investors to find trending small-caps. While the site itself has been around for years, in the past year and a half, Reddit penny stocks have begun to have an impact on actual stock prices. And as a result, many investors are turning to the site to find the best penny stocks to buy.
While it is simple to join a subreddit such as r/RedditPennyStocks or r/WallStreetBets, there is more research that should go into your strategy. Yes, making a watchlist with penny stocks found on Reddit can be beneficial, but investors need to take a deeper dive. This means looking through financials, balance sheets, rumors, and any events that may have a sizable speculative impact on a company’s share price.
It’s worth noting that when penny stocks are frequently mentioned on Reddit, they often will see a high degree of speculation. This is something that comes with the territory, especially when we consider stocks under $5. But, if speculation and high volatility align with your trading strategy, finding penny stocks on Reddit could be worth it. Considering this, let’s take a look at three penny stocks on Reddit that investors are watching right now.
3 Under $3 Reddit Penny Stocks For Your Watchlist
- Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
- Kosmos Energy Ltd. (NYSE: KOS)
- Ebang International Holdings Inc. (NASDAQ: EBON)
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
Seanergy Maritime Holdings Corp. is an industrial penny stock that has seen a sizable amount of bullish sentiment in the past year. In its YTD chart, shares of SHIP stock are up by over 100% which is no small feat. For some context, this company transports dry bulk commodities by sea via its 11 Capesize vessels. These dry bulk commodities include both iron ore and coal and several others. Its Capesize vessels can carry about 1.9 million deadweight tons which give it a large fleet capacity.
On August 11th, Seanergy announced a share repurchase plan. The company may repurchase up to $17 million of its outstanding common shares, or about 10% of the company’s market cap. The company intends to use this to improve the value of SHIP stock, by leaving fewer outstanding shares in the market. This is a common strategy when prices are low, and can result in positive sentiment from investors.
“By using our strong balance sheet and our fleet’s robust cash-flow generating capacity to reduce the number of outstanding common shares, we can increase stockholder value while maintaining sufficient liquidity reserves to take advantage of attractive market opportunities.”The Chairman and CEO of Seanergy, Stamatis Tsantanis
With this latest update in mind, will SHIP stock be on your list of penny stocks to watch?
Kosmos Energy Ltd. (NYSE: KOS)
Kosmos Energy Ltd. is an oil and gas penny stock that we have discussed several times over the past few months due to its consistent momentum. Throughout the pandemic, companies in the energy industry have seen solid investor interest. This is the result of higher energy consumption. If you’re unfamiliar with Kosmos, this company explores oil and gas along the Atlantic Margins in Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico.
On the 8th of August, Kosmos Energy released its second-quarter results for 2021. The company’s net production was 51,600 barrels of oil equivalent per day during the quarter, with sales of 66,200 barrels of oil equivalent per day. This resulted in a slight net over lift position for Kosmos Energy. These results are positive for the company and show that it is working hard to grow in the face of market adversity.
“Kosmos delivered strong free cash flow in the second quarter. Through further debt reduction and EBITDA growth, we expect leverage to continue to reduce through year-end 2021 and into 2022.”CEO of Kosmos, Andrew G. Inglis
While capital is important in any industry, when it comes to energy, it is the main source of growth. With more capital comes a greater ability to pull resources out of the ground. And in addition to this, the company’s debt reduction is a major step in the right direction for it. So, considering all of this information, will KOS make your penny stocks watchlist?
Ebang International Holdings Inc. (NASDAQ: EBON)
Ebang International Holdings Inc. is a penny stock that has had a rather interesting year. It’s not uncommon to see shares of EBON stock shoot up in double-digit percentage points during a given trading day. However, it is also not uncommon to see it do the opposite.
This is a reflection of its overall volatility and the frequency at which shares of EBON stock move. Ebang International is a company that designs, develops, and manufactures Bitcoin mining machines. Additionally, Ebang offers mining machine hosting services, which serve the blockchain and telecom industries.
In the past year, Bitcoin and the surrounding industry have both grown substantially in value. While it is one of the most volatile industries out there, the potential of everything relating to blockchain is only just being tapped by companies. And it’s worth noting that many businesses are working to get into the Bitcoin mining industry, which puts Ebang in an advantageous position.
Because of its relation to Bitcoin, EBON stock is highly correlated to the world of cryptocurrency. So, if you’re interesting in Ebang, it’s important to stay up to date with all that is happening with crypto. And while Ebang does have a sizable degree of other offerings in the tech industry, its main focus right now seems to be on Bitcoin and cryptocurrency as a whole.
After hitting a yearly high of over $11.70 per share back in March, shares have since retreated to their current levels. With all of this in mind, is EBON stock worth adding to your list of penny stocks to watch?
Are These Reddit Penny Stocks Worth It?
Reddit has become a very popular tool for penny stocks traders of all types. With so many penny stocks mentioned on the site everyday, it can be difficult to deduce which ones could be winners, and which may be the opposite.
But with careful research into every company on your penny stocks watchlist, making money with small-caps can be easier than previously imagined. Considering all of this, do you think that these Reddit penny stocks are worth it or not?