Finding penny stocks on Reddit has become a common procedure for many retail investors. Because there are so many subreddits dedicated to the stock market, it’s easy to come across trending penny stocks online. But, many investors fail to do the proper research beyond simply finding Reddit penny stocks. This involves understanding what the company does, what its financials look like, and what role it has in its specific industry.
While these are not the only questions to ask, they should help to get you on the right track. With Reddit penny stocks or any penny stocks frequently mentioned on social media, investors need to understand that volatility is extremely high. This has always been the case with small-caps, however, if we add the massive speculative effect of social media, this becomes exponentially greater. This should not serve to scare you, rather it should illustrate how to use it to your advantage.
With stocks under $5, most investors tend to hold short-term positions, hoping to see large spikes in value. And, this is a great strategy with penny stocks. However, investors can lose on trades frequently, if they don’t have a proper trading education to back them. So, learn as much as you can, and read up on everything the internet has to offer. With all of this in mind, let’s take a look at four Reddit penny stocks for your 2021 watchlist.4 Reddit Penny Stocks to Watch
- Uxin Ltd. (NASDAQ: UXIN)
- Luokung Technology Corp. (NASDAQ: LKCO)
- Asensus Surgical Inc. (NYSE: ASXC)
- American Resources Corp. (NASDAQ: AREC)
Uxin Ltd. is a penny stock that we’ve discussed many times in the past few months. This is due to both its large bullish rises in value and its underlying business model. If you have not yet heard of the company, let’s get you up to speed. Uxin operates a used car e-commerce platform that is based in China. It operates under the Uxin Used Car and Uxin Auction brands.
The latest update from the company was released back in April when it reported its third-quarter fiscal 2021 financial results. The company reported mixed results here, however, investors saw a great deal of potential in the future of the company. UXIN stock has taken a big turn since then.
Back in April when this was reported, UXIN stock was at under $2 per share. Now in June 2021, the company is at $4.90 per share on average. This means that UXIN is nearly exiting penny stock status, as a penny stock is an asset trading under $5 per share. The car market is booming right now, and there are a few reasons why that is the case.
For one, the major shortage of microprocessors globally means that the production of vehicles is taking longer than expected. In addition, many rental car agencies sold off large portions of their inventory during the pandemic due to decreased demand. Now, these agencies are again, buying up cars to keep up with the future of the travel industry.
Both of these factors have resulted in highly increased demand for both new and used cars. This could be one of the main reasons that shares of UXIN stock have increased so much in the past few months. So keeping this in mind, will it be on your penny stocks watchlist in June?2. Luokung Technology Corp. (NASDAQ: LKCO)
Luokung Technology Corp. is a tech penny stock that provides location-based services and mobile apps for long-distance travelers. Its Luokung mobile app is a content and service distribution platform that offers entertainment, travel services, e-commerce, and many other features. It also offers software development kits and application programming interfaces.
Throughout the pandemic, the demand for new and better tech has greatly increased. Because Luokung holds such a broad placement in the tech industry, many view it as a leader in its sector. And, its location-based data is a major benefit to those who use it. With more people traveling as the pandemic comes to an end, we could see greater demand for the products that LKCO makes.
The last update from Luokung came when it filed its annual Form 20-F back in May. During this time, many investors feared that LKCO could lose its NASDAQ listing due to the $1 minimum bid price requirement. Then, Luokung announced a favorable ruling that grants a preliminary injunction to allow shares to continue to be traded on the NASDAQ.
LKCO shares are up 8% on June 7th. This put it at a price of around $1.60, which is confidence-inspiring for those who feared a de-listing. While this is still a possibility, if it can maintain this bullish trajectory, we could see more positivity with LKCO stock. So will this company make it on to your list of penny stocks to watch this week?3. Asensus Surgical Inc. (NYSE: ASXC)
Asensus Surgical Inc. is a biotech penny stock that creates medical devices in the United States, Asia, and Europe. The company researches, develops, and sells medical device robotics that enhance minimally invasive surgery. Its products include the Senhance Surgical system which is a multi-port robotic surgery system allowing for up to four arms to control robotic instruments and a camera. It has a variety of other robotic products as well.
These products both improve the efficacy of common surgical procedures and the outcome of patients. Because the surgeries its robots do are quite common, the room for error can be highly mitigated. As a result, the Senhance Surgical System has become a staple for those who use it.
The company recently announced the date for its annual meeting of stockholders. This will take place on June 29th, 2021 at 11 am. There is no company-specific news that is causing ASXC stock price to go up despite its solid rise in value on June 8th. But ASXC is another penny stock that is considered a “meme stock”. A meme stock is a term given to companies frequently mentioned on social media such as Reddit and Twitter.
Discussions of certain companies can lead to quick upward or downward momentum in a given stock, often resulting in large moves with no underlying reason. Could this explain why ASXC stock is up 19% on June 7th? That is unsure, but you may want to check Reddit and other social media before investing in this penny stock for your watchlist.4. American Resources Corporation (NASDAQ: AREC)
American Resources Corporation is an industrial penny stock that has seen some ups and downs in the market recently. This company offers metallurgical coal and coal used for pulverized coal injection. These are essential steps used in the process of steel manufacturing. All of its locations are in the Central Appalachian basin of eastern Kentucky and southern West Virginia. This gives it great access to some of the most coal-rich areas of the continental U.S.
American Resources has released a few different recent updates. One comes from June 7th when it announced the pricing of a $30.1 million registered direct offering priced at the market. When this announcement was made, AREC shares fell about 11%. This is common as when a company announced an offering, investors usually fear the potential of share dilution.
While the nerves usually settle sometime later, this is an important factor to consider when making a decision. However, increased capital is always a benefit as it allows for new projects to commence and current ones to move forward. Additionally, the company also just announced that it has succeeded in achieving a 99.5% purity of a rare earth element (Neodymium) from Waste Magnets.
“Having purification technology, as part of our “Capture, Process, Purify” technology process chain, that can produce isolated rare earth elements at a 99.5% purity or greater is a game-changer for the commercialization and manufacturing of permanent magnets.”Mark Jensen, the CEO of American Resources Corp.
These magnets are in use in common products for everyday life. And because of the high demand, recycled neodymium magnets could be well worth the time and effort it takes to produce them.
With a pre-market gain of around 7% on June 8th, investors are showing bullish momentum surrounding AREC stock. While the drop in value, is a concern, many investors seem excited about the future of its rare earth recycling project. Considering this, will it be on your penny stocks watchlist?Which Reddit Penny Stocks Are You Watching?
Finding the best penny stocks on Reddit is all about knowing where to look. With so many small-caps discussed regularly on Reddit and other social media sites, it can be overwhelming. However, if investors commit to research and education, finding penny stocks to watch can be easier than previously imagined.
While investing in 2021 has not been easy, it looks like the end of the pandemic could be on the horizon. Many investors are hopeful that this could lead to bullish sentiment in the coming future. Considering this, which Reddit penny stocks are you watching?