“Meme stock mania” shows no signs of slowing down. The ability of short sellers to endure pain is scrutinized quite severely by day traders pushing up the stock prices of memes like AMC (NYSE:AMC) and GME (NYSE:GME). However, while these two stocks trade for the most popular Reddit stocks, there are also plenty of penny stocks that are making waves on the captions.

Now you might be wondering if penny stocks are worth it. A penny stock refers to the shares of a small company that are trading for less than $ 5 per share.

They are not at the top of the list for value investors. Most stocks quoted in cents are traded over-the-counter. Thus, the liquidity of the shares is low.

In turn, due to low liquidity, an investor might not be able to cash out at the right time. In addition, low liquidity results in low transaction volumes. Even small transactions can have a huge impact on the price of these stocks.

Still, you’ll be amazed at how many amazing stocks are on this list. None of these companies is a Amazon (NASDAQ:AMZN) or one You’re here (NASDAQ:TSLA).

However, it was some interesting artists who caught the attention of Reddit users, who have become one of the the most powerful forces on Wall Street recently.

So, without further ado, here are seven names that have had a major impact on message boards recently.

  • Ideal (NASDAQ:IDEX)
  • Marks of genius (NASDAQ:GNUS)
  • Naked Mark (NASDAQ:NAKD)
  • Globalstar (NYSEAMERICAN:GSAT)
  • Nokia (NYSE:NOK)
  • Applied genetic technologies (NASDAQ:AGTC)

Now, let’s dive in and take a closer look at each one.

Penny Stocks to Buy: Zomedica (ZOM)

Source: Postmodern Studio / Shutterstock.com

Zomedica is a very interesting company.

A veterinary and pharmaceutical diagnostics company in the development phase, it is known for its Truforma platform, a machine allowing veterinarians to diagnose common diseases affecting canine and feline companions in the office. Thanks to the machine, healthcare professionals can bill higher fees in record time, increasing margins and reducing costs.

The company only did a sale; to Jason Berg, founder and president of Guardian Veterinary Specialists, a 29,000 square foot hospital in Brewster, New York.

The momentum of Reddit can only help a lot. To this end, he has signed an agreement with Miller Veterinary Supply, one of America’s oldest wholesalers of pet supplies to veterinarians, to market Truforma.

At the end of 2020, ZOM stock was trading at around 23 cents per share. It hit $ 2.91 per share, but is now trading under a dollar. However, if the past week is any indication, you shouldn’t treat this stock lightly.

Idenomy (IDEX)

Image of a penny held between two fingers with a white interior background

Source: Shutterstock

Considering the popularity of electric vehicle (EV) stocks starting in mid-2020, it’s no surprise that Ideanomics has made its way onto this list of penny stocks.

Analyzing the business is a difficult task. Professional wrestling scion Shane McMahon founded Ideanomics as a financial technology company in 2004. At that time, it was known as Broadband in China. Since then, much water has flowed under the bridges and IDEX has gone through several iterations, entering and exiting high growth industries at a rapid rate. This has given the company an unenviable position.

Ideanomics operates two main divisions, Mobile Energy Global and Ideanomics Capital. One helps customers access commercial electric vehicles, and the other offers fintech products.

Again, it’s important to stress that Ideanomics is not a fundamentally sound company. However, given the areas he’s investing in, Reddit users won’t be losing interest in this one anytime soon.

Penny Stocks to Buy: Genius Brands (GNUS)

An image of two young girls looking at a tablet and smiling while an adult reads in the background.

Source: Syda Productions / ShutterStock.com

CEO Andy Heyward believes Genius Brands can become the Netflix (NASDAQ:NFLX) children’s television. It is an ambitious demand. However, if a business can be successful, it should earn a substantial amount of money.

So far, Genius Brands doesn’t have the numbers. What is it about our partnerships and licensing agreements with top brands like Stan Lee, Arnold Schwarzenegger, to name a few. In fact, Schwarzenegger has signed an agreement be a “significant investor” in the child’s media business.

The company has made a habit of issuing loose press releases which inevitably lead to a rise in the share price. It’s a classic case of “Selling the sizzle, not the steak”. But in the long run, we need to see some pull on the bottom line.

Bare brand (NAKD)

Lingerie on a pink background.

Source: NazarBazar / Shutterstock.com

Reddit has acted like Santa Claus for a number of companies. However, few will be as grateful as Naked Brand. The New Zealand-based company owes its resurgence in large part to the r / WallStreetBets subreddit forum.

At this point I expected the company to back down, but in a show of power, retail investors have breathed new life into this intimate apparel retailer. Now NAKD is back in full force and has implemented a plan to turn into a digital business instead of a physical business in Australia and New Zealand.

Considering Reddit loved this penny stock even before this move, I can only imagine how much the stock can go up now that there is some semblance of history to support their ambitions.

Penny Stocks to Buy: Globalstar (GSAT)

Space SPAC Silhouettes of satellite dishes or radio antennas against the night sky

Source: vchal / Shutterstock.com

You might not have heard of Globalstar, but it is a pretty solid tech penny stock. It offers two-way voice and data devices such as mobile voice and data satellite communication products.

There are several names on a typical penny stock list that don’t offer much history. However, this is not the case with Globalstar, it provides products and services that we use in our daily life, such as personal tracking, emergency tracking and messaging solutions.

Even without the Reddit-induced price action, this is a great business to have in your wallet.

Nokia (NOK)

a background with the Nokia logo (NOK) with a mobile phone with the Nokia logo on its screen in the foreground

Source: rafapress / Shutterstock.com

Many thought Nokia’s story was over after losing its epic smartphone battle with Apple (NASDAQ:AAPL). On the contrary, the Finnish telecommunications multinational has not turned into a 5G giant.

Nokia has had its ups and downs over the past decade. New CEO Pekka Lundmark said he wanted to work against “complacency and accept the status quo. “These are bold words that bring to mind the unfortunate circumstances the multinational has had to face following the debacle of its smartphone business.

However, investors can rest easy this time around. The company is aggressively buying 5G spectrum, capital spending is healthy, and its quarterly profits are moving in the right direction as well.

Taking all this into account, NOK stock becomes one of the safest investments in the market.

Applied Genetic Technologies (AGTC)

a representation of floating molecules

Source: Shutterstock

Applied Genetic Technologies is a biotechnology company that uses a proprietary gene therapy platform producing genetic therapies for patients. It was founded in 1999 and has evolved since then.

However, Redditors recently took an interest in the company and raised the stock price to $ 9.67 a coin. As of this writing, the stock is trading below five dollars again, highlighting the dangers of investing in Reddit stocks.

On a more positive note, the company recently announced additional data of its ongoing phase 1/2 gene therapy trial in X-linked retinitis pigmentosa (XLRP). The data were positive, indicating an improved and sustained retinal sensitivity response.

Like most of Reddit’s penny stocks, AGTC is very sensitive to press releases. So you need to keep an eye on this section if you want to trade this one.

At the date of publication, Faizan Farooque did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.

Faizan Farooque is a contributing author of InvestorPlace.com and many other financial sites. Faizan has several years of stock market analysis experience and was a former data reporter at S&P Global Market Intelligence. His passion is helping the average investor make more informed decisions about their portfolio.

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