If you consider yourself a risk-taker and take a thrill in the idea of stock investment, you can try your luck in Reddit penny stocks. Volatile and speculative, these types of stocks tend to hold immense value if assessed efficiently and in the right manner.
Pre-Buying Stage:
Before diving in to invest, it is important to sit back and weigh your options. One of the most important decisions about Reddit penny stocks is the reason accounting for the rapid movement in the market. More often than not, stock prices tend to fluctuate due to an influx of new information. These insights come in the form of well-estimated guesses, half-hearted flukes, and piping new suggestions.
Another perspective to consider is the status of the Reddit penny stocks. Simply put, there are two types of penny stocks: short squeeze and meme penny. A short squeeze of penny stock occurs when sellers cause a rise in price due to a shorted stock. There is a rapid increase in the value of the stock due to a lack of supply to meet excess demand.
On the other hand, a meme penny stock has been created by a group of investors on Reddit. This particular group of investors is responsible for influencing the movement of these stocks. As the name suggests, meme stocks primarily consist of a picture or video with a caption.
With each passing day, meme stocks are gaining popularity online. It has become more of a social trend, that has risen to the ranks of high scale trending on Twitter. All these factors contribute to a change in the price of Reddit penny stocks. To get an edge in the market, you must assess these stocks in-depth and in detail.
Here is a list of four Reddit penny stocks that are popular amongst traders right now:
Tellurian Inc
An energy penny stock, Tellurian Inc has been performing well on the charts. TELL has established itself in the domain of natural gas production and marketing and infrastructure assets. It has a distinct asset settlement, which includes a 27.6 million ton per annum facility and a large pipeline in Louisiana.
All things considered; this gives Tellurian an edge over its other competitors in the energy sector. Apart from the market name, there is also an increased demand for energy, given that people are resuming their normal routine and traveling more often than they were in the pandemic.
On June 8, the company issued a notice which declared its sale and purchases partnership with Vitol Inc. A deal valued at $12 billion, this collaboration aims to deliver 3 million tons of liquified gas each year. Following this announcement, the TELL stock witnessed a significant hike in its price
Despite its price slowly returning to normal in the days after, the vast majority have come to believe in the significance and sustainability of this deal. Data figures elicited from this month have gone to show a rise of 75% in the last month and a whopping 240% over the past six months.
Keeping these facts in find, will TELL be on your to-buy list of Reddit penny stocks?
Obalon Therapeutics Inc
A biotech penny stock, Obalon Therapeutics specializes in developing and selling medical devices. Most of its products are made with the prime aim of treating obesity and other weight problems. It has come to be known for its Obalon Balloon System, devised to treat weight loss effectively.
A swallowable tablet, the product consists of an inflatable balloon interlinked with a catheter. Although complex, the product has great potential in the market as it is the first product that treats obesity in a non-invasive and cost-efficient manner.
OBLN is more of a meme stock, especially because of its social media presence and oscillating trading activity. It is by far one of the most popular Reddit penny stocks and seems to have a strong impact on traders of Reddit.
If we assess figures of OBLN stock from last month, a 280% hike can be observed in the past month, fueled by a 480% rise over six months. Although an exact reason for this price soar is unknown, a plausible reason could be its status as a meme stock.
Considering OBLN qualifies as a meme stock, it can have a significant impact on the market. Moreover, the company also has a set of weight loss products that are yet to receive public outreach and attention. Hence, these factors suggest an enhanced potential in the stocks of OBLN, which is yet to be fully discovered.
Given all these factors, will OBLN be on your list to buy?
Conformis Inc
Another biotech penny stock, Conformis Inc has outplayed its competitors in the market. Even though CFMS does not produce pharma products, it still works towards developing medical devices. These devices aren’t ordinary pieces of equipment but are a step towards changing the dynamics of the industry as a whole.
To clarify, Conformis specializes in manufacturing and developing joint replacement implants. It offers a diversified range of knee replacement products under its belt, including iTotal CR and iTotal PS. The only other alternative of these products is available in stores, which are usually expensive and ill-fitted.
Considering the aforementioned situation, Conformis has the power and ability to reform how knee replacement products are used. Despite witnessing a lull in terms of company news, Conformis has gone far and beyond to excel in its domain.
In May, it not only presented at the Canaccord Genuity Musculoskeletal conference but also participated in the Oppenheimer MedTech, Tolls, and Diagnostics Summit. In addition, over the past month, the stock has shot up by 44%. Statistics observed over the past half-year have seen an 80% rise in stocks.
Thus, given these facts, can CFMS make an appearance in your to-buy list of Reddit penny stocks?
Clearside Biomedical Inc
As the name suggests, Clearside Biomedical aims to develop products that restore clear vision for people infected with threatening eye diseases. It has a unique product portfolio, which includes CLS-AX, an axitinib-type drug.
On June 15, Clearside issued positive results from cohort 1 of a clinical trial of CLS-AX. Ever since this information was made public, the company’s shares have risen beyond 35% this month. Moreover, the company’s trading output has also risen to stand at 407% higher than the usual average.
Given the onset of these new developments, can Clearside Biomedical qualify as an interesting buy?
Are Reddit Penny Stocks worth the hustle?
In short, the answer to this question depends entirely on you. If you are willing to join the band of traders on Reddit, you can consider trying your luck in purchasing Reddit penny stocks. However, just ensure that your long- and short-term goals are aligned with your decision. Purchasing a stock is a sensitive decision. Hence, take time to understand the pros and cons for each before making a final choice.
