Finding penny stocks on Reddit has become a favored pastime for many investors. While it can be challenging, investing in penny stocks can also be a profitable endeavor. There are a few ways to ensure your best chance at seeing your portfolio become green.
The first and most important with penny stocks or any stocks for the matter is research. Research is what separates pro traders from those just starting. And while there isn’t any one website or information source, in particular, scouring the internet for any and all info can be beneficial.
The next step is to understand what speculative factors are impacting a given penny stock or industry. This could be news, press releases, industry-wide events, and more. Because penny stocks on Reddit tend to be even more speculative than just penny stocks alone, understanding what makes them move is incredibly important.
Lastly, investors should learn how and when to take profit. Being greedy with penny stocks will land you nowhere but in the red. And, this includes the idea of FOMO or the fear of missing out. Let’s say you see a penny stock mentioned on Reddit that has shot up substantially in only a day or two.
Many investors would try to jump in to be a part of the meteoric rise. However, this will without a doubt, result in losses. So, never trade with emotion, and always have a strategy. Considering this, let’s take a look at some of the best penny stocks on Reddit to watch right now.4 Reddit Penny Stocks to Watch in June 2021
- Cyclerion Therapeutics Inc. (NASDAQ: CYCN)
- Vislink Technologies Inc. (NASDAQ: VISL)
- China XiangtaiFood Co. Ltd. (NASDAQ: PLIN)
- Boxlight Corporation (NASDAQ: BOXL)
Cyclerion Therapeutics Inc. is a biotech penny stock that has been attracting quite a lot of attention in the past few weeks. For some context, CYCN discovers, develops, and commercializes central nervous system disease treatments and medicines. One of its candidates is CY6463 which is a CNS-penetrant, soluble guanylate cyclase stimulator. This compound is in Phase II trials to treat mitochondrial encephalomyopathy, lactic acidosis, and stroke-like episodes.
On June 4th Cyclerion released an update regarding a major licensing agreement. The company announced that it has entered an exclusive global license agreement with Akebia Therapeutics Inc. to develop and commercialize praliciguat. Akebia will be solely responsible for the development and commercialization of this compound. And, Cyclerion is eligible for up to $225 million in pre-commercial milestones, and total future milestone payments of up to $585 million. This is quite a major deal, and licensing is one of the most common ways for biotech companies to gain revenue.
The CEO of Cyclerion states, “This capital, coupled with the praliciguat out-license announced today, reinforces our strategic focus in CNS and will accelerate the advancement of clinical studies for CY6463 and the further development of our next generation molecule, CY3018.”
When the announcement was made, CYCN stock was under $3.40 per share on average. Now on June 14th, CYCN stock price is at $4.30 a share on average. This is a sizable jump in only a relatively short time frame. But, considering the size of the deal mentioned above, it makes sense. Keeping all of this recent information in mind, could CYCN make your biotech penny stock watchlist?
Vislink Technologies Inc. is a tech penny stock that we’ve covered quite a few times in the past several months. This company designs, develops, and delivers wireless communications solutions. Its products include live production devices such as high-definition communication links for managing live events and more.
Its products are offered in the U.S., South America, Europe, Asia, and other countries around the world. While the use of live broadcasting products had declined earlier in the year, many believe that this market could begin to reach pre-pandemic levels as Covid comes to an end.
A few weeks ago, Vislink reported its first-quarter 2021 financial results. Its revenue fell year over year in the first quarter, however, its net loss was significantly reduced. This sentiment is something that we’ve witnessed with many companies throughout the pandemic.
And while Q1 2021 was not ideal for many businesses, investors are looking forward to the coming quarters. Just 6 months ago VISL stock was at $1.20 per share on average. Now on June 14th, the company is at $3 per share on average. Over that time, VISL stock has shot up by around 147%, which is a sizable gain.
“In the first quarter of 2021, we started to realize revenue from projects that had been delayed or canceled because of the COVID-19 pandemic.
Among our notable wins was being selected as a project supplier to upgrade Alabama Public Television, where we will debut IP Link 3.0 in its first major deployment, as well as a U.S. Department of Defense order we received for our ruggedized and lightweight video communications equipment.”The CEO of Vislink, Carleton Miller
Considering these exciting updates and the future of Vislink, will it be on your penny stocks watchlist?China Xiangtai Food Co. Ltd. (NASDAQ: PLIN)
This next penny stock, China Xiangtai Food Co. Ltd. is a company that is frequently discussed on social media such as Reddit and Twitter. China Xiangtai is involved in the slaughtering, processing, packing, distribution, and retail of pork meat products. Its products include fresh pork, beef, lamb, chicken, duck, and rabbit meat. These products are sold domestically, where the demand for fresh meat has been driving up due to the pandemic ending. And, operations have been able to resume for the same reason.
No recent updates have been announced from China Xiangtai Food in a few months. Yet PLIN stock is up 18% in the last month. So, what’s the reason behind this gain? As mentioned before, PLIN is frequently talked about on popular subreddits like r/Wallstreetbets and r/Robinhoodpennystocks.
This could make PLIN a “meme stock” as traders like to call them. These are penny stocks that are popular among retail traders and those that are trending. While PLIN does have an interesting business model, it’s difficult to fully explain why shares have shot up by over 70% in the past six months. With this in mind, investors should keep an eye on PLIN for any future announcements or advancements.Boxlight Corporation (NASDAQ: BOXL)
Boxlight Corporation is a tech penny stock that develops, sells, and services interactive classroom solutions. Its products, targeted at the K-12 education market, include projectors, interactive displays, touch projectors, and more.
One of its products, MimioMobile is a software accessory for creating instructional lessons and activities from teacher to student. During the pandemic, the demand for digital learning products has jumped tremendously. And, with kids going back to school now, it could continue to rise. Boxlight is a major supplier of these products and remains one of the leaders in the edu-tech market.
One recent advancement made by Boxlight was on June 9th when the company won the “Classroom Technology Innovation of the Year” award. This award was given out at the 2021 EdTech Breakthrough Awards Program.
“It is an honor to be recognized by EdTech Breakthrough for this prestigious award. When we went into designing MimioConnect, it was solely because our teachers and students are moving deeper into a digital world where efficiency, ease-of-use, and adaptability are needed.”The VP of Software Development at Boxlight, Darin Beamish
While this in itself is not a major deal for the company, it should help in the notoriety of Boxlight as well as the confirmation of its technology as innovative and groundbreaking.
Shares of BOXL are climbing in several recent trading sessions. In the past month, BOXL stock has shot up by over 14% and in the past six months by over 60%. This is quite a sizable gain and is a reflection of the post-pandemic demand increase for its products. Considering this, Boxlight could be an interesting addition to your list of penny stocks to watch.Which Reddit Penny Stocks Are On Your Watchlist?
Making a watchlist full of penny stocks frequently mentioned on Reddit can be difficult. With so many moving parts, it can be tough to keep track. But, constantly looking over the news and understanding which penny stocks are moving can be a great way to stay ahead.
While there is no one strategy that’s better than another, having a strategy will always be in your favor. Additionally, trading off of fundamentals and principles will always get you further than trading with emotion. Considering all of this, which Reddit penny stocks are on your watchlist?