7 Reddit Penny Stocks That Could Pop in April

Reddit stocks - 7 Reddit Penny Stocks That Could Pop in April

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Penny stocks that trade for less than $5 per share have their critics, but they also continue to be hugely popular with retail investors, especially folks on Reddit. This year, a number of cheap Reddit stocks have doubled, tripled or more, having been targeted by zealous investors frequenting subreddit forums like r/WallStreetBets.

While most of the gains have been short-lived, investors have nevertheless made a lot of money. Moreover, the popularity of penny stocks shows no signs of abating. Love or hate them, penny stocks are a sizable part of the market.

As such, this article takes a look at seven different Reddit penny stocks. These names could pop in April if investors bid them higher. So, here are the penny stocks you should watch this month:

  • Atari (OTCMKTS:PONGF)
  • Genius Brands (NASDAQ:GNUS)
  • 88 Energy (OTCMKTS:EEENF)
  • Seachange International (NASDAQ:SEAC)
  • Verifyme (NASDAQ:VRME)
  • Rave Restaurant Group (NASDAQ:RAVE)
  • Nokia (NYSE:NOK)

Reddit Penny Stocks for April: Atari (PONGF)

Image of two boys playing video games
Source: Shutterstock

This is your past calling. Believe it or not, Atari — the popular video-game maker from the 1980s — continues to this day, albeit in a much smaller capacity. The once-mighty company that introduced legions of fans to classic video-game titles such as Pac-Man, Frogger and Asteroids continues on today as Atari SA. The company mostly licenses the Atari trademark and produces games based on Atari’s original characters and brands.

The trip from Atari’s heyday to its current form was a rocky one — full of lawsuits, counter suits, financial distress, buyouts and re-brands. With the smoke cleared, though, today Atari is a small shell of its former self. PONGF stock trades over-the-counter, currently at $1.11. While that price is low, it’s still a 170% jump up from the Mar. 4 price of 41 cents.

However, there’s no reason for PONGF to have risen as much as it has other than the fact that Atari is the type of stock that Reddit investors love. It is a once-mighty brand that has fallen on hard times and holds a lot of nostalgia. And like other nostalgic names — such as Gamestop (NYSE:GME) and Blackberry (NYSE:BB) — Atari is one of those Reddit stocks that could be sent to the moon.

If there’s one worthy “news” item associated with Atari, it’s that the company is getting into the red-hot market for non-fungible tokens (NFTs), using its well-known characters and titles.

Genius Brands (GNUS)

An image of two young girls looking at a tablet and smiling while an adult reads in the background.
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Next up on this list of Reddit stocks, Genius Brands is an entertainment company that’s focused on creating educational programming for toddlers and young children.

Notably, the company operates the Kartoon Channel streaming platform and is currently in the process of adding new content, including shows that will star Arnold Schwarzenegger and Shaquille O’Neal. It also has a show in development based on the Roblox (NYSE:RBLX) video game. Finally, in March, Genius Brands announced a marketing deal with Disney’s (NYSE:DIS) Marvel division (Genius holds rights to the likeness of Marvel co-founder Stan Lee).

All of this activity sent GNUS stock up over 60% in March to a peak close price of $2.73. The share price has since fallen to $1.68 today, but it looks poised for another run as the company continues to develop new content and expand its streaming platform.

While this company will likely have to take on more debt and may even need to issue more stock to fund its aggressive growth, those moves are likely to be temporary. They’re also necessary in order to put Genius in a position to carve out a niche for itself in the streaming sector.

88 Energy (EEENF)

close up of oil pipelines at sunset
Source: Shutterstock

This year, the energy market is making a comeback after having a woeful 2020. As such, investors who are looking for a cheap way to gain exposure to the oil and gas sector may want to consider taking a position in 88 Energy.

This Australia-based company operates oil fields in northern Alaska. Currently, the company manages over 200,000 acres of land as part of its “Project Icewine” as well as another almost 200,000 acres for “Project Peregrine.” Moreover, EEENF stock has been garnering a lot of hype lately as several of its oil wells come online this year.

Like many penny stocks — and Reddit stocks, for that matter — 88 Energy’s share price is volatile. So far this year, EEENF stock has soared, albeit to 21 cents today. The Reddit crowd appears to like the company’s fledgling position and potential for big future growth.

How far 88 Energy can ultimately go remains to be seen. However, favorable market conditions and positive movement on its oil operations bode well for a possible run up in the share price during April.

Seachange International (SEAC)

Two pairs of feet in socks in front of a television set
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On Mar. 29, software company Seachange International saw its share price catapult 102% higher to $2.08. Of course, that spike was short-lived and SEAC stock is now trading at $1.44. However, there is reason to expect this penny stock to climb again. A provider of video products, online advertising and software, the company is getting some traction when it comes to sales of its various products, notably its Seachange Adrenalin multi-screen video platform.

Part of the reason for the recent price spike was that Seachange announced it had signed a multi-million dollar contract with a sizable broadband service provider, though it declined to name the company. On Apr. 1, though, SEAC stock took a hit after issuing an additional 10.3 million shares of common stock priced at $1.85 each.

That share issue raised just over $19 million for Seachange International, though. What’s more, the share price — while a bit knocked — has managed to hold around the $1.50 level. That’s an encouraging sign for investors, especially if interested in Reddit stocks.

Verifyme (VRME)

A person holding a tablet with a key lock hologram floating above it. Represents cybersecurity.
Source: Shutterstock

The black market for counterfeit goods is a real and serious problem. In fact, one 2019 report issued by the Organisation for Economic Co-operation and Development (OECD) pegged the value of imported fake goods at $509 billion worldwide. The OECD further said that the trade in fake goods now accounts for 3.3% and growing of world trade.

Enter Verifyme. This company helps its customers protect their supply chain with software that roots out and helps prevent the counterfeiting of various products.

Back in early February, VRME stock reached a high of $6.40 and briefly moved out of penny-stock territory. However, the share price has since moved back down to just above $4 a share, at $4.29 today. Investors clicked the “sell” button after Verifyme released its full-year results in late March.

While 2020 was a difficult year for the company, though, much of its problems were a result of the pandemic, which slowed sales of its technology. Plus, on a positive note, Verifyme’s revenues grew 40% in 2020 compared to 2019. So, the economic reopening should lead to brighter days ahead for this pick of the Reddit stocks.

Rave Restaurant Group (RAVE)

A pepperoni pizza with a slice cut out sitting on a wooden tray
Source: Brent Hofacker / Shutterstock.com

People love pizza in good times and bad. That has certainly remained true during the era of Covid-19.

As such, Rave Restaurant Group — which owns, operates and licenses pizza restaurant franchises under its “Pie Five” and “Pizza Inn” brands — fared okay over the past year. In 2020, people were locked down and ordering delivery. Now, though, the company is poised to do even better as the economy reopens and people start dining out again.

In its latest quarterly results, Rave Restaurant reported net income of $102,000. Not huge, but substantially higher than the net income of $14,000 it reported in the prior-year period. Moreover, Rave’s cash balance of $6.3 million looks to be enough to get the company through the rest of the pandemic tunnel and out the other side later this year.

RAVE stock has had a rocky start to 2021, but it is up 53% YTD at $1.39 per share. And, unlike many other penny stocks, RAVE has held onto its gains over the past three months. That makes this possible pick of the Reddit stocks compelling.

Nokia (NOK)

a backdrop featuring the Nokia (NOK) logo with a mobile phone featuring the Nokia logo on its screen in the foreground
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Last on this list of Reddit stocks, Nokia is another once-high-flying technology name that has fallen from grace.

Once one of the leading cell-phone makers in the world, Nokia has become a favorite target of retail investors today who are bidding up the stock as a way to play the rollout of 5G wireless around the world. This is because Nokia now makes telecom equipment and infrastructure that enables 5G networks to operate effectively, helping build out 5G across Europe and as far away as China.

While some analysts continue to criticize Nokia for its market share and execution, claiming the company is falling behind competitors, there are signs that the ship is being righted at this once-dominant tech giant. For instance, Nokia has appointed a new CEO, Pekka Lundmark, who announced a new strategy for the company back in October. Lundmark has promised to invest “whatever it takes to win in 5G” this year and beyond.

NOK stock has been pumped up as much as $9.79 in 2021 but currently trades at just above $4 per share. That’s the same level it was at in early December 2020.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


Article printed from InvestorPlace Media, https://investorplace.com/2021/04/reddit-stocks-penny-stocks-that-could-pop-in-april/.

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