3 Reddit Penny Stocks to Watch in October 2021
While the trend of Reddit penny stocks may have only started in the last year and a half, it’s clear that it’s not going anywhere anytime soon. And as a result, those who invest in penny stocks are constantly browsing Reddit for the best stocks to buy. If you’re new to the scene, there’s a few things to know.
For one, penny stocks on Reddit tend to be some of the most volatile out there. We’ve all seen the gains of companies like GameStop Corp. (NYSE: GME), AMC Entertainment Holdings Inc, (NYSE: AMC), and more recently, Camber Energy Inc. (NYSE: CEI).
And as a result, it’s clear that price movement is a reflection of speculation over intrinsic value. So before investing in penny stocks on Reddit, it would be prudent to have a thorough understanding of your own tolerance for risk. This will help to ensure that you are comfortable with all of the stocks on your penny stocks watchlist.
Next, just because a penny stock is on Reddit, does not mean that it is worth buying. Rather, investors should take it a step further and do all the research they can on a given stock. This involves looking at balance sheets, press releases, upcoming events, and speculative news relating to the company or industry. All of this data will help you to have the best chance at making gains with penny stocks. So, with all of that in mind, here are three penny stocks on Reddit to watch right now.
3 Reddit Penny Stocks For Your Watchlist Right Now
IAMGOLD Corporation (NYSE: IAG)
IAMGOLD is a mining penny stock that managed to climb by over 4.3% by EOD on October 6th. This company searches for, develops, and operates gold mining properties. IAMGOLD’s main mining locations are in the Americas and West Africa. These provide it with a wide range of options to keep production up. IAMGOLD is the owner of the Rosebel mine, the Essakane mine, the Westwood mine, and the Diakha-Siribaya to name a few.
In early August, IAMGOLD reported its second quarter 2021 financial results. This was a challenging period for IAMGOLD, which is still recovering from the pandemic and economic difficulties of the previous year and a half. IAMGOLD’s revenue decreased from quarter to quarter and year to year. Gross profit and adjusted EBITDA both decreased as well. During the most recent quarter, it recorded a net loss which is not ideal for investors to consider. However, given the economic situation we are in, it makes sense that IAG would be seeing some financial troubles in this period.
“The second quarter of 2021 was challenging primarily because production from our Rosebel mine was unexpectedly adversely affected by unusually heavy rains and an increase in COVID-19 cases in Suriname, in addition to difficult industrial relations.”
The President and CEO of IAMGOLD Gordon Stothart
Despite this bad news, IAG stock is going up in the market right now. So, with all of this in mind, will IAG enter your list of penny stocks to watch?
Meten Holding Group Ltd. (NASDAQ: METX)
Meten Holding Group Ltd. is a Chinese educational company that managed to climb by over 8% during trading on October 6th. For some context, the company provides adult and junior English language training for students and professionals alike. Meten’s services are offered under the brand names of Likeshuo, ABC, and Meten. The company had 105 learning facilities and 13 franchised learning centers as of December 31, 2020.
Early last month, Meten announced the launch of a new project to establish a blockchain and cryptocurrency business. The goal, according to the company, was to establish itself as a new benchmark among innovative businesses. The corporation is considering purchasing mining equipment and NFT assets to put into operation. Right now, the cryptocurrency industry is heating up. And with Bitcoin and DogeCoin rising in value, many investors are paying attention to crypto penny stocks.
“Our New Business Initiative will be built upon the traction we are already seeing in our past research and preparation of blockchain and cryptocurrency business. After in-depth research and exploration in the crypto world, with the resources and talents of the Company, we are committed to building a professional team to explore the blockchain and cryptocurrency business while maintaining our core adult ELT business.”
The CEO of Meten, Alan Peng
On October 6th, METX stock is up 8.33% in the market as mentioned previously. With this new info in mind, will METX be on your penny stock watchlist?
Yamana Gold Inc. (NYSE: AUY)
By EOD on October 6th, shares of AUY stock had climbed by over 3%. While this may not sound like a lot, it is substantial considering the low volatility that gold stocks typically see. If you’re not familiar, Yamana Gold Inc. is a precious metals manufacturing company. Yamana’s primary focus is on the production of silver and gold at several locations. The company owns land in various stages of development, as well as exploratory projects and other holdings. Yamana Gold’s assets are all based in North and South America.
Moving forward, the company will be reporting its third-quarter results on October 28th after the market close. The release of these results will be followed by a conference call and webcast the following day. It will be interesting to see how this upcoming release of financials affects the company after this date. Currently, the gold industry is heating up as investors work to avoid inflation in the U.S. So, companies like AUY could be worth watching. In anticipation of this event, will AUY stock make your October watchlist?
Which Reddit Penny Stocks Are You Buying in 2021?
Finding the best Reddit penny stocks all comes down to knowing where to look. While it may seem simple enough to invest simply because a stock is mentioned on Reddit, it should always go a step further. This means that investors should take the time to research an individual stock and the industry that it is in.
[Read More] Hot Penny Stocks That Are Trending in 2021
Having the right research by your side will always help to put you a step ahead of the competition. And when it comes to investing, the more information you have, the better chance there is at making money with penny stocks. Considering all of this, which Reddit penny stocks are you buying in 2021?