These days, it seems nothing pleases retail investors more than Reddit penny stocks. These names, many of which trade over the counter and with share prices under $5, are volatile. They are the perfect representation of high-risk, high-reward bets. Investors pile in, sometimes paying just a few cents for each share of a penny stock. If all goes well, they could see that stock go to $1, $5 or even $10.
Where does Reddit come in? Just as the subreddit r/WallStreetBets has fueled gains in names like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC), there are popular subreddits dedicated to penny stocks. R/PennyStocks boasts 1.4 million members. Posts on the social media site allow investors to swap picks, perform due diligence and brag about big gains (or big losses). They also are stirring up a frenzy on Wall Street.
Buyer, beware! This is really speculative territory. However, if you are still interested in Reddit penny stocks, here are some of the most popular names on the platform now.
Reddit Penny Stocks: 88 Energy (EEENF)
All about the company: 88 Energy (OTCMKTS:EENF) may not be the most familiar name, but shares have returned more than 2,000% year to date. The Australia-headquartered company focuses on exploration and production with projects in Alaska. These include the Project Icewine and Project Peregrine, as well as leases in Yukon that it sees as holding opportunity.
What the stock is doing today: EEENF gained almost 20% in Thursday trading!
What Reddit has to say: EEENF stock is one of the most buzzworthy Reddit penny stocks. Recent posts on the eponymous subreddit include claims that shares are “lottery tickets” and takeover rumors. Other posters are focusing on March 22 news that the company had successfully drilled a surface hole at the Merlin-1 location of its Project Peregrine zone. As a result, 88 Energy says drilling of the production hole at that well will begin immediately.
High Tide (HITIF)
All about the company: High Tide (OTCMKTS:HITIF) is a Calgary-based player in the legal cannabis market. Since its launch in 2009, the company has focused on cannabis retail, including through e-commerce offerings of cannabis accessories. It also manufactures and distributes accessories designed specifically for cannabis consumption.
What the stock is doing today: HITIF shares shed roughly 3.3% today.
What Reddit has to say: Redditors are focused on what they see as a variety of positive catalysts for HITIF stock. High Tide continues to expand its retail footprint, and it also recently shared its quarterly financial results. Another angle on r/PennyStocks focuses on its recent application to list on the Nasdaq Exchange. Can the lesser-known cannabis company boost its visibility and become a household name?
Reddit Penny Stocks: Vislink (VISL)
All about the company: Vislink Technologies (NASDAQ:VISL) is another name that spurs up attention among Reddit penny stocks. The company touts itself as a global leader in communications solutions, including for the military and for the government.
What the stock is doing today: VISL shares gained just over 5%.
What Reddit has to say: Redditors appear to have been tracking VISL stock since well before Election Day, which some saw as a catalyst for the share price. One recent catalyst included a big purchase from the U.S. Department of Defense. Vislink shared earlier in March that the DoD had purchased $4 million worth of handheld intelligence, surveillance and reconnaissance (ISR) devices.
ACCO Brands (ACCO)
All about the company: ACCO Brands (NYSE:ACCO) bills itself as one of the top suppliers of branded products for academic, consumer and business uses. These brands include Artline, Kensington, Mead, Wilson Jones and many others.
What the stock is doing today: ACCO gained just over 2.5% on Thursday.
What Reddit has to say: What about a company that makes office products like notebooks is appealing to Reddit? It appears that this company is simply one investors are watching while risk sentiment slams penny stocks. In recent weeks, fears of inflation and commentary from the Federal Reserve have had investors leaving risky and high-growth equities. ACCO stock apparently fits the bill for those who still wanted a little bit of risk.
Reddit Penny Stocks: Genius Brands (GNUS)
All about the company: Investors are likely familiar with Genius Brands (NASDAQ:GNUS), which bills itself as an emerging streaming TV play. Almost as a Netflix (NASDAQ:NFLX) for children, Genius Brands has long been captivating speculative interest. Importantly, recent announcements of Roblox (NYSE:RBLX) deals and Marvel speculation have helped GNUS stock.
What the stock is doing today: GNUS shares dipped nearly 7%.
What Reddit has to say: Like other retail investors, Redditors are bullish on all of the new partnerships for Genius Brands. As the company builds it content library and gets more recognition from names like Roblox, the hope is that GNUS stock will skyrocket.
Fujian Blue Hat (BHAT)
All about the company: Blue Hat Interactive (NASDAQ:BHAT) is a Chinese company that focuses on making augmented reality and otherwise interactive games and toys. Importantly, these entertainment offerings also include those with an educational focus. Essentially, Blue Hat connects physical toys with mobile offerings, bringing users the best of both worlds.
What the stock is doing today: BHAT stock closed higher by just over 1%.
What Reddit has to say: BHAT stock has been captivating Redditors for several months now, especially thanks to its intersection with online education. As one poster put it, this is a sympathy play for an emerging trend. This feels particularly relevant to some retail investors because of Covid-19.
Reddit Penny Stocks: WSOG (WSGF )
All about the company: WSOG (OTCMKTS:WSGF) is certainly not the most familiar company, but it is stirring up attention on Reddit. Perhaps one reason for the attention is that the company is a bit confusing. WSOG stands for the World Series of Golf, but its current business focus is on Vaycaychella, a company it acquired in January 2020. Through Vaycaychella it helps flip real estate properties for short-term rentals.
What the stock is doing today: WSGF shares closed higher by 4.5%.
What Reddit has to say: Unsurprisingly, Vaycaychella is a huge part of the reason Redditors are interested in WSGF stock. Some talk on the r/PennyStocks subreddit speculates that WSOG could one day be an Airbnb (NASDAQ:ABNB) competitor.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
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