Reddit Stocks That Are Waking Up In April 2021

Reddit stocks have become synonymous with the retail trading community. Whether we're talking about GameStop (GME) or Tilray (TLRY), mom and pop traders are rallying together behind public companies in 2021. Thanks to the pandemic, we saw millions of new traders come into the stock market looking to make money. Obviously, furloughs and layoffs have started to subside. Even with people going back to work, it hasn't stopped people from trading stocks. This could be one of the reasons we've seen lighter volumes. 

reddit stocks to buy or should you avoid them

The reopening has begun, which means a new work/trade balance is likely playing a role right now. Does this mean markets are dead? Well, obviously, that hasn't been the case. Even with the lighter volumes, major indexes are sleepily trading higher. The S&P ETF (SPY) went on a 13 day run without having a red close. Even with the pause on April 14th, the move ensued on the 15th with another new all-time high. Other indexes like the NASDAQ and Dow followed suit. Looking at the corresponding ETFs (DIA) and (QQQ), you can clearly see this strength.

Where Are Reddit Traders Looking Right Now?

Where are retail traders looking right now? Tech and healthcare have played their roles this week. Both the SPDR Tech (XLK) and Healthcare (XLV) ETFs have surged. Thanks to Coinbase's (COIN) IPO, eyes were back on tech in a big way on Wednesday, helping lift markets briefly. You can also see biotech taking a page out of the broader market's book. The Nasdaq Biotech ETF (IBB) has now gone on a 3-day win-streak bouncing from Monday's test of the 200-day moving average at $145.67.  

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IBB Biotech ETF Reddit Stocks

IPOs this week, like COIN, have put a focus back on emerging businesses. TuSimple Holdings (TSP), an autonomous vehicle company debuts on April 15th along with eSports Technologies Inc. (EBET) and AppLovin (APP). So, tech could be a big point of interest right now as far as Reddit stocks are concerned. You've also got to look at some of the cheaper names in the stock market today. Reddit penny stocks have played their own role in the rise of the retail investor. These have been trending hand-in-hand with the "Robinhood penny stocks" trend we saw grow last year. However you define it, retail traders remain a benchmark to reference, and social media plays its part in that.

Reddit Penny Stocks To Watch Right Now

Many of these Reddit penny stocks are more akin to the sh*tcoins of the cryptocurrency space. Traders seem to be focused on the earliest of early-stage companies. Some of them haven't reported an update in over 2 years. Others have questionable information that has been reported over time. Needless to say, it's good to be aware of them, and either know which penny stocks to buy or which you'd want to avoid for fear of too much volatility. Take, for instance, Regen BioPharma Inc. (RGBP) and its preferred listing (RGBPP). The company itself hasn't put out a formal press release in years. Yet the penny stock is up over 4,900% this year. At one point, shares of RGBP stock traded as high as $0.0819. While this might not be a "high price" to most traders, that price marked a move of nearly 10,000% for the year. 

So why is RGBP moving so vigorously right now? It has come down to a little bit of rumor that has evidently been confirmed recently by filings posted on OTC Markets. On March 25th, the company posted an 8K showing that a new Chairman, CEO, President, Secretary, Treasurer, David Koos, was appointed. Koos was actually the company's President dating back to 2013, served as CFO of the company as early as 2012, and has a history working with a few biotechs. Corresponding filings via 8Ks would follow during the weeks to follow, one of which showed the company entering into an agreement with Oncology Pharma to license exclusive rights to pancreatic cancer treatment for a 15-year term. The final catalyst that has come to light was a filing that showed the company "is in the process of preparing financial statements to get audited, reviewed, and ultimately get caught up with nearly 2 years worth of financials. These events are what Reddit traders have circulated while shares of RGBP have traded hundreds of millions of shares per day.

On the flip side, you've got companies that are listed on major exchanges like the Nasdaq gaining ground among retail traders. Travena (TRVN), for instance, saw its shares pop on April 15th thanks to news of a recent poster presentation. The company focuses on central nervous system disorders and their lead treatment, OLINVYK injection, for postoperative pain. Mark Demitrack, M.D., Senior Vice President and Chief Medical Officer of  Trevena, Inc.  “These models form a critical component of the comprehensive product dossier for OLINVYK, and I am pleased to have this opportunity to share these compelling cost offset findings with key hospital stakeholders.” 

These comments appear to have gotten retail traders more excited about TRVN after weeks of trading lower. 

Are Reddit Penny Stocks Worth The Risk?

Here's the thing about retail traders: they're traders. Those a bit more novice may not be well equipped for high volatility. Regen, for instance, is still off its 2021 highs by 50%. Had you purchased shares a few days ago, hoping for shares to go higher, your position value has been crushed. That's even in light of a seemingly "good day" on Thursday. Similarly, Travena is also far off of its 2021 highs. GameStop, Tilray, Koss Corp. (KOSS), Express (EXPR), etc., which were all designated as "Reddit stocks" this year, are all trading much lower than where they were during the initial "pump". So if you are going to trade these retail-driven meme stocks, I'd suggest having a strong handle on trading riskier names first. 

Disclosure: None. 

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Adam Reynolds 3 years ago Member's comment

Are you specifically talking about Wall Street Bets on Reddit? Or were you looking at Reddit in general? What are some other good reddit groups to look at for stock picking?

Small Cap Reporter 3 years ago Contributor's comment

not just wall street bets. There are many subreddits.

William K. 3 years ago Member's comment

Interesting and educational. I had wondered about the risk involved with some of those really cheap stocks. Now I understand a bit more. Thanks.