Hot Penny Stocks To Add To Your Watch List This Week
One of the more popular outlets for a conversation about penny stocks has been Reddit this year. If you look back at January of this year, you’ll remember that this phenomenon saw its starting point. Initially, GameStop (NYSE: GME) triggered the whole trend. Traders flocked to subReddits like r/WallStreetBets, r/PennyStocks, and even r/RedditPennyStocks for information.
While I won’t advocate for only getting your DD from social media, there’s something to say about it this year. Hoards of traders and new investors sought out the next meme stock to rocket. Soon these subReddits saw their numbers grow, and moving into the rest of the year, Reddit has become a favored place to gain insight and get a temperature on social sentiment. There’s even a brand new ETF that focuses on these types of social media-fueled meme stocks.
According to VanEck, its Vectors® Social Sentiment ETF (NYSE: BUZZ) “seeks to track, as closely as possible, before fees and expenses, the price and yield performance of the BUZZ NextGen AI US Sentiment Leaders Index (BUZZTR), which is intended to track the performance of the 75 large-cap U.S. stocks which exhibit the highest degree of positive investor sentiment and bullish perception based on content aggregated from online sources including social media, news articles, blog posts, and other alternative datasets.”
But it hasn’t only been public companies in focus. Cryptocurrency has also gained attention. One of these popular coins is, of course, Dogecoin. Not only are social media users flocking to the Shiba Inu-themed token, but celebrities are also supporting its progress as well. Everyone from Mark Cuban to Snoop Dogg have voiced their sentiment on the meme coin. While it initially began as a joke, it’s not started to gain some real-world utility.
Dogecoin, Penny Stocks, & Going To The Moon
Not only have the Dallas Mavericks and Oakland Athletics started taking payment in Dogecoin, but the cryptocurrency could also be literally going to the moon. This weekend, Elon Musk’s SpaceX announced that it would launch the “DOGE-1 Mission to the Moon” in the first quarter of 2022. The kicker is that the company will accept Dogecoin as payment.
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Tom Ochinero, SpaceX VP of Commercial Sales, said in a statement that DOGE-1 “will demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce.”
DOGE-1 will fly a 40kg cube satellite as a payload on a Falcon 9 rocket. According to Geometric Energy Corporation, who first announced the Dogecoin-funded mission, this payload “will obtain lunar-spatial intelligence from sensors and cameras on-board with integrated communications and computational systems.”
Further supporting the initiative, Tesla (NASDAQ: TSLA) and SpaceX CEO Elon Musk tweeted, “SpaceX is going to put a literal Dogecoin on the literal moon.”
This was a much different tone than the self-proclaimed “Dogefather” took on Saturday Night Live. Though brief, Musk’s comments triggered a sell-off in Dogecoin shortly after the show aired. Needless to say, we’ve seen momentum building in higher-risk stocks when things like “meme coins” begin to experience volatility. In light of this, there could be a few related penny stocks to watch this week.
Reddit Penny Stocks To Watch Right Now
American Battery Metals (OTC: ABML)
Hertz Global Holdings (OTC: HTZGQ)
Harvest Health & Recreation (OTC: HRVSF)
American Battery metals (OTC: ABML)
Electric vehicle stocks have been a big focus for traders over the last several quarters. The incoming and now current President of the United States, Joe Biden, set out several initiatives focusing on renewable and clean energy. Among them included more support for things like electric vehicles. The recent chip shortage has also played its part in the government pushing for more access to speed up the production of EVs. With that has come plenty of attention on related stocks.
American Battery Metals is one of the companies we’ve discussed in the past related to this industry. The company has a lithium-ion battery recycling technology and has worked on expanding its extraction facility this year. Late last month, American Battery submitted 3 new permit applications to the City of Fernley and the Nevada Division of Environmental protection to advance the permitting and construction process for its lithium battery recycling pilot plant.
Following this, the company entered into a contract for purchasing 8 acres of land in Sparks, Nevada. This latest land acquisition should provide American Battery with more opportunities for building facilities required to store and recycle lithium batteries. “Our new property is ideally located in the Tahoe-Reno Industrial Center that provides ample transportation infrastructure important for our business,” stated Chief Resources Officer Scott Jolcover in a May 6th PR.
Given the excitement surrounding EV penny stocks right now, ABML could be one to watch after this latest development.
Hertz Global Holdings (OTC: HTZGQ)
Hertz has mounted an interim comeback this month. The company famous for its saying, “Hertz, we’ll pick you up,” had a pick-up of its own. Shares have been rallying for the last few weeks in anticipation of the company’s bankruptcy outcome.
Last week, more details came to light. This was after Hertz determined its revised reorganization proposal was a superior proposal. This came from affiliates of Knighthead, Certares, and Apollo. This week could be an important one in light of this latest information. If the current plan sponsors tell Hertz that they intend to make a counteroffer, then there could be an auction on May 10th.
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Ahead of this potential catalyst, Hertz has reported first-quarter financial results for 2021. The quarter saw the company closing on the sale of all the assets of its Donlen vehicle leasing and fleet management business. This came to a total value of $891 million. CEO Paul Stone explained that “We are actively engaged with potential plan sponsor groups which we anticipate will deliver a robust recovery for creditors and shareholders. We remain on track to emerge in June and are poised to do so with more efficient operations and a stronger balance sheet for the future.”
The latest trend in Hertz stock and reopening momentum could be put the penny stock on watch this week.
Harvest Health & Recreation (OTC: HRVSF)
Another one of the emerging trends in the stock market right now stems from marijuana stocks. With the U.S. coming closer to full legalization, the multi-state operators or “MSOs” remain a bigger focus right now. What’s more, this coming week will also see earnings reports from several top cannabis producers in North America. Given this as the backdrop, marijuana penny stocks, in general, could be on the watch list right now.
As far as Harvest Health goes, a few things are going on right now. Last week, the company announced that it finally settled with the Pennsylvania Department of Health. This was regarding its grower processor permittee, AGRiMED Industries LLC. The Office of Medical Marijuana and AGRiMED reached a settlement concerning its operations. The deal allows for a conditional renewal of AGRiMED’s permit and increased production of medical marijuana in Southwestern PA.
This agreement came just a few days after Harvest opened its 7th dispensary in Florida, Olympia Heights. This adds to its growing Florida footprint. The company has locations in Gainesville, Jacksonville, Kissimmee, Longwood, North Port, and Tallahassee. Harvest’s products range from edibles & flower to concentrates and even topicals. The company also has locations in Arizona, California, Maryland, in addition to Florida & Pennsylvania. With a growing footprint and more attention on legalized cannabis in the U.S., Harvest could be one of the lower-priced marijuana stocks to watch.
Are Reddit Penny Stocks Your Best Bet?
I’ll reiterate my initial thought. Getting 100% of your information from Reddit may not be the best way to “research” penny stocks. But, at the very least, it could give you some insight into what “main street” is thinking about certain companies. At the end of the day, it’s you who’s choosing to sell or buy penny stocks. With that in mind, it’s important to have as much usable information as possible.