If you think Reddit is only a social media network, you’ve missed one of its most popular applications over the past year: a forum for stock traders. Retail investors famously used the platform to drive short squeezes, but several Reddit penny stocks have made waves on the site as well.
Understandably, if you’re a conservative investor, you might roll your eyes at the thought of getting equity market tips from Reddit. If your idea of investing involves stocking up on consumer staples and banking on their dividends, this article is not for you. Rather, it’s for those who are willing to accept the risks inherent in all Reddit penny stocks.
At the end of this write-up, there will be a warning about gambling in this wild and unpredictable sector. Nevertheless, I’m going to provide my own cautionary note. Please hear me out: when you play with penny stocks, you are on your own.
This segment is treacherous for a myriad of reasons. Fundamentally, penny stocks are tied to businesses that are usually speculative or even downright fraudulent in some cases. Additionally, a true penny stock trades in the over-the-counter market, not an exchange like the New York Stock Exchange or the Nasdaq. Therefore, volume levels are all over the map — you can be a “paper” millionaire one day and a pauper the next.
At the same time, it’s mathematically kosher to say if you catch a volume wave in your favor, you could run off with massive returns. That’s why these Reddit penny stocks are so popular right now:
- Biotricity (OTCMKTS:BTCY)
- Soligenix (NASDAQ:SNGX)
- Cognetivity Neurosciences (OTCMKTS:CGNSF)
- Tryp Therapeutics (OTCMKTS:TRYPF)
- Cannabix Technologies (OTCMKTS:BLOZF)
- Newlox Gold Ventures (OTCMKTS:NWLXF)
- Umbra Applied Technologies Group (OTCMKTS:UATG)
Before we dive in, I want to reiterate my previous point: You’re seriously playing with fire with Reddit penny stocks. I’ve seen many Redditors get burned by trades like these. Do your due diligence and more before investing in these stocks.
Reddit Penny Stocks: Biotricity (BTCY)
Biotricity is currently trading hands for a little more than $3.60. This is the most expensive name on this list, which means it’s only going to get more speculative from here. Honestly, if you didn’t heed my warning above, you may want to reconsider this space.
But if you’re ready to go, Biotricity may be one of the most credible Reddit penny stocks. The company specializes in remote biometric monitoring solutions for the medical and consumer industries. Biotricity has a significant potential market — according to a 2018 study, nearly 52% of U.S. adults suffer from at least one serious chronic condition.
Additionally, slightly more than 27% of adults had multiple chronic conditions. Naturally, monitoring their health is paramount to a continuum of care, which may include pain management solutions and telehealth services.
Not too long ago, BTCY stock hit a closing high of $4.15. Its all-time closing high is $7.60. With the stock on the rise, Reddit investors anticipate the stock could be near-term two-bagger.
Priced slightly above $1, Soligenix will be the last penny stock I mention that’s north of the dollar demarcation line.
Like Biotricity earlier, I can appreciate why some Redditors have high hopes for Soligenix. The company is focused on rare disease treatment. Its flagship therapy is HyBryte, an alternative treatment for Cutaneous T-cell lymphoma (CTCL) lesions. Common approaches to these lesions lead to serious side effects, but HyBryte’s topical ointment solution could offer a safer treatment method.
Just as importantly for SNGX stock, HyBryte has shown encouraging results and is in a phase three clinical trial. Soligenix may be on the cusp of a scientific and market breakthrough, which bodes well for the underlying equity unit.
Clearly, speculators are eyeballing the $2 level for SNGX stock — it reached a closing high of $2.75 this past year. Still, be warned that its price action is choppy.
Reddit Penny Stocks: Cognetivity Neurosciences (CGNSF)
Cognetivity Neurosciences offers a rapid cognitive analysis platform that detects the early stages of dementia using artificial intelligence. It’s a fascinating innovation — patients respond to visual imagery, then their test results are analyzed against a patient dataset to provide accurate diagnoses.
Cognetivity can be a game-changer for Alzheimer’s research. Cognitive tests have not substantially evolved for decades, hampering effective treatment. Additionally, early detection of Alzheimer’s is critical because that’s when therapy options are most effective.
The company also provides remote and routine cognitive monitoring for those who are worried about dementia. This promotes a culture of awareness and can facilitate more early care solutions.
If you are thinking about CGNSF stock, you’ll probably want to make your decision quickly — shares are on a roll. Over the trailing year, share prices are up over 980%.
Tryp Therapeutics (TRYPF)
A double entendre among penny stocks if I’ve ever seen one, Tryp Therapeutics develops psilocybin-based compounds for diseases with unmet medical needs. As a quick refresher, psilocybin is a naturally-occurring psychedelic prodrug compound. In recent years, psychedelic medicines have become a hot niche in the alternative therapy market.
Typically, psilocybin is used to treat mental health conditions such as anxiety or depression. But other applications of the compound are being studied. For example, researchers at Johns Hopkins are exploring whether psilocybin can be used to treat conditions like addiction.
In Tryp Therapeutics’ case, the company is focusing on neuropsychiatric disorders. Just recently, Tryp announced a partnership with the University of Michigan to evaluate the company’s proprietary formulations.
I’ve found that psychedelic penny stocks are hit-or-miss affairs. There are some names I’ve done very well with and others I don’t even want to think about. TRYPF stock might appeal to discount divers because shares are down about 50% for the year. But is that really a good thing? I’ll let you make the call.
Reddit Penny Stocks: Cannabix Technologies (BLOZF)
Cannabix Technologies may soon make the jump to dollar-menu territory. However, BLOZF stock is currently sitting at a price around 93 cents.
Regardless of where its stock price ends up in the near term, Cannabix Technologies can offer long-term relevance. It’s compelling enough that I’m considering buying shares. While the brand name sounds like a cannabis grower, Cannabix is actually a diagnostics manufacturer. It develops breath analyzer devices to detect tetrahydrocannabinol (THC).
Cannabis is becoming a substantial component of the adult liberty space. As a result, government agencies and employers need to use tests that distinguish between recreational and THC-free medicinal marijuana usage. That’s where Cannabix comes in: its goal is to provide a quick and efficient means for these groups to detect THC in breath.
BLOZF stock is priced at a discount relative to this year’s closing high, which was a few cents shy of $2. A doubling seems well within reach, making this stock a compelling potential investment.
Newlox Gold Ventures (NWLXF)
For the final two Reddit penny stocks of this write-up, I’m going to venture deep into some highly speculative ideas. With these stocks, you really don’t want to invest a cent more than what you can comfortably afford to lose.
First up is Newlox Gold Ventures, which offers an intriguing business model on the surface. According to its website, the company “produces gold through environmental remediation by recovering residual precious metals and contaminants from historical tailings. These gold bearing tailings are the result of more than a century of inefficient artisanal and small-scale mining in Latin America.”
You might read social media posts referring to Newlox’s work as alchemy, which isn’t quite accurate. Alchemy was an ancient natural philosophy focused on converting one substance to another. Newlox, on the other hand, works with existing materials rather than creating them. Alchemy is technically possible with modern technology, but economically impractical — especially compared to this company’s methods.
Still, this is an extremely risky wager, especially when you consider the Newlox’s financial situation. Do not swing for the fences with this one.
Reddit Penny Stocks: Umbra Applied Technologies Group (UATG)
Umbra Applied Technologies Group is a newer Reddit penny stock, so I had to check what the fuss is all about. I can see why it attracted traders on the platform — priced below 2 cents, UATG stock is a longshot to shame most other longshots.
But what does the company do? Umbra Applied Technologies states on its website that its “holdings passionately represent some of the most advanced technology as it relates to alternative energy, conventional energy, medical innovation, environmental remediation, weapons systems, and compound recognition technologies.”
Personally, I find the combination intriguingly and amusingly disparate: Umbra can injure you and revive you while being environmentally responsible.
Facetiousness aside, each of its business categories are incredibly relevant. The world desperately needs alternative energy solutions. International relations have also become more tense. Indeed, we might even fight wars based on the implications of climate change. So maybe Umbra is onto something — but please, don’t bet any more than is necessary on UATG stock.
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Thomas Yeung is an expert when it comes to finding fast-paced growth opportunities on Reddit. He recommended Dogecoin before it skyrocketed over 8,000%, Ripple before it flew up more than 480% and Cardano before it soared 460%. Now, in a new report, he’s naming 17 of his favorite Reddit penny stocks. Claim your FREE COPY here!
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.