3 Popular Reddit Biotech Stocks That You Should Avoid

Syndicated from StockNews.com:

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The Reddit community WallStreetBets, or WSB, demonstrated its power by facilitating a massive short-squeeze on GameStop (GME) earlier this year. While the limelight has yet to shift from the healthcare industry, and many stocks in that sector are witnessing steady price increases, we think speculative Reddit biotech stocks Ocugen, Inc. (OCGN), Humanigen Inc. (HGEN), and 180 Life Sciences Corp. (ATNF) should be avoided at all costs given questions about their prospects or ability to stay afloat.

The Reddit investment community WallStreetBets, or WSB, has acquired a reputation as a major market mover following the GameStop (GME) short squeeze it drove in January. A unified approach accords Reddit investors the potential to gain significantly by squeezing short sellers out of their positions on fundamentally weak stocks. However, GME’s fundamental weaknesses have caused the short squeeze to be short lived. The stock has declined 2.8% over the past month.

Regarding the healthcare sector, the Health Care Select Sector SPDR ETF’s (XLV) 19.7% returns over the past six months reflect investor optimism about the sector’s growth prospects. However, the big rally by many of the sector’s stocks over the last year has come absent investors’ increased focus on the space. Rather, some fundamentally weak stocks have rallied thanks to WSB’s actions.

So, we think speculative biotech stocks Ocugen, Inc. (OCGN), Humanigen Inc. (HGEN), and 180 Life Sciences Corp. (ATNF) that are favorites of investors on Reddit forums are best avoided now.

Ocugen, Inc. 

OCGN is a clinical stage biopharmaceutical company that is focused on developing gene therapies to treat blindness. The company’s partnership with Bharat Biotech to develop COVAXIN as a vaccine candidate for COVID-19, which was  announced in December,  made the stock a big hit in the Reddit community. Reddit group pennystocks and RobinHoodPennyStocks have been betting on OCGN to gain in double digits in 2021.

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My Stock Tips 1 week ago Member's comment

I completely disagree. I just got even more Bullish on $HGEN.

Dick Kaplan 1 week ago Member's comment

“$HGEN made its stock market debut on September 18, 2020 through a public offering of eight million shares”. The uplist to NASDAQ happened not its “stock market debut”. Does that mean that $OCGN has yet to make its “stock market debut”?

People won’t realize that this is a 3rd party article, if it was me, I’d pull it rather than risk the reputational damage. StockNews.com clearly does not have the same editorial standards or quality that TalkMarkets does.

Nicky Paterson 1 week ago Member's comment

A sell rating for ATNF. 🤡 🚨 The only argument in the “article” (if you can call it that) against ATNF is that it is “losing money per share”, and that it has poor financials 🤔 is this not a pre-revenue biotech stock? 🤔

Barry Glassman 1 week ago Member's comment

Completely disagree. $ATNF is a great buy.

Paul McGee 1 week ago Member's comment

Agreed. $ATNF has a MASSIVE growth potential. The people created Humira for god sake. A 9 billion dollar drug. And they have blockbuster one of a kind drugs In the pipeline. I didn’t even hear about this on Reddit.

I do however think #Occugen is trash. In 1 year there will be too much herd immunity. Once the need for vaccine cools off it will plummet. $OCGN.