Are These Reddit Penny Stocks Worth Buying in September?
Finding penny stocks on Reddit is has become an extremely popular strategy over the past few months. While any trader can find penny stocks to buy by searching Reddit, it takes a keen eye to find ones with forward value.
One thing to keep in mind is that penny stocks frequently mentioned on Reddit tend to be quite volatile. But, this volatility is something that can be taken advantage of with proper research and a commitment to a trading strategy. When it comes to finding stocks on Reddit, there are a few places to look. This includes subreddits such as r/WallStreetBets and r/RedditPennyStocks among others.
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However, these communities should be used for gathering trading ideas, rather than as a complete guide of which penny stocks to buy. With Reddit, it is easy to get caught up in both hype and FOMO, which will almost always result in losses. And because of this, putting the time into every stock on your watchlist can help you to avoid unnecessary losses. In addition to all of this, another great indicator to use is volume. This is the number of shares that trade hands on a given trading day.
Volume is often used to indicate whether a stock is popular and how much liquidity it will have. Because of this, it can help to show if a stock is trending or if it could become trending in the near future. With all of this considered, let’s take a look at three penny stocks on Reddit to take a look at in September.
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Best Reddit Penny Stocks to Watch Now
- New Gold Inc. (NYSE: NGD)
- Yamana Gold Inc. (NYSE: AUY)
- Vinco Ventures Inc. (NASDAQ: BBIG)
New Gold Inc. (NYSE: NGD)
New Gold Inc. is a gold stock that has seen solid bullish sentiment in the past few weeks. Over the last five days or so, shares of NGD stock have climbed by around 4%. While this may not seem like a lot, it is substantial considering the relative stability of gold stocks. For some context, New Gold Inc. develops and operates various mineral properties for the production of gold, silver, and copper deposits. The company’s main property is the Rainy River gold-silver mine in Canada. In addition to this, it owns the New Afton gold-copper mine in Canada.
On August 11th, the company reported its operational update for 2021. New Gold’s total revenue came in at $198 million for the quarter. Its total gold equivalent production for the quarter was 105,705. Lastly, the company’s cash position by the end of the quarter was $138 million. All of this is positive news for the company and investors alike, and, it shows that NGD is in an advantageous cash position right now.
“I am especially proud of the free cash flow generated in the quarter even at our planned lower grade. While Rainy River experienced challenges in July, the mine has reached an inflection point and I expect it to contribute meaningful free cash flow going forward.”
CEO and President of New Gold Inc., Renaud Adams
The company believes it is on track to deliver an improved second half of the year. Keeping this in mind, will you add NGD to your penny stocks watchlist?
Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is another gold stock that has seen solid bullish momentum in the past week or so. In the past six months, shares of AUY stock have climbed by a respectably stable 8.9%. And despite some less than stellar trading in June, AUY has seen several decent rises in value in the past few weeks.
Yamana’s main focus is on silver and gold production at its various properties. The company owns a variety of development stage, exploration stage, and land position properties scattered across the Americas.
The latest update from Yamana came on July 29th when it announced its second-quarter production results for 2021. The company’s adjusted net earnings for the quarter were $70.7 million or $0.07 per share. Overall, its cash flows and cash balances were stronger during the quarter over Q1 2021.
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When looking at gold stocks in general, investors should look at both the fundamentals and the current state of the gold industry. These are the best metrics to show whether a company could have potential and what time frame investors could expect returns in.
Most heavily correlated gold stocks tend to rise and fall in value with the price of gold itself. And for this reason, staying up to date on the industry will help to give you the best chance of profitability. Keeping this in mind, will AUY make your list of penny stocks to watch in 2021?
Vinco Ventures Inc. (NASDAQ: BBIG)
While BBIG stock is technically no longer a penny stock at over $7.20 per share, it was only a short while ago. In the past five days, shares of BBIG stock have shot up by over 130% bringing its YTD gain to over 480%.
This steep rise is a mixture of Reddit traders, a high percentage of shares of BBIG held short, and Vinco’s business model. To better understand this, let’s take a look at its most recent financial results, posted last week. During the second quarter of 2021, Vinco managed to complete its joint venture acquisition of Lomotif.
In addition, it reported holding as much as 80% in cash at the end of the period. While its revenue did decrease by around 47%, this is due to a steep drop in the sale of its PPE products over the quarter prior. Despite this, it did manage to increase its margins to 36% over 22% in Q2 2020.
If you’re not familiar with Vinco Ventures, it works as a selective acquisition company. Vinco’s main focus is on the acquisition of companies in the digital media and content industry, where it then works to grow and scale the businesses.
During the pandemic, the demand for digital content has increased substantially. This resulted in a major rise in the value of BBIG stock during that time. And, with Reddit traders honing in on BBIG stock right now, it could be worth giving a first or second look. Considering all of this, will it be on your watchlist or not in September 2021?
Are Reddit Penny Stocks Worth Buying or Not?
Finding penny stocks on Reddit can be both a way to make big profits and a way to make big losses. But depending on the investor, Reddit can be an invaluable resource to use to come across potentially valuable penny stocks to buy.
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Traders should keep in mind that small-caps mentioned on Reddit tend to be highly volatile. And for this reason, research will always be the most important step. Considering this, do you think that Reddit penny stocks are worth buying or not?
