Meme Penny Stocks Are Here to Stay; 3 For Your Summer Watchlist
Free Book Preview Money-Smart Solopreneur
3 Meme Penny Stocks For Your June Watchlist
Meme penny stocks are here to stay. While it began as more or less of a joke, these small-caps have become extremely popular among all types of investors. But before we get into what they are, let’s talk about penny stocks. When investing in any stocks under $5, the first thing to know is that volatility is high. This is due to the combination of low prices and high volume. Penny stocks are not for everyone and trading them takes careful consideration and experience.
Next, it’s important to remember that having a trading education is extremely important. Because these stocks move so quickly, investors can win big or lose just as big in a matter of a few minutes or hours. This should not serve to scare you, but rather it illustrates how fast things can move when it comes to small caps.
Meme Penny Stocks; To Buy or Not to Buy?
In a market like today, we find stocks driven in many unconventional ways. In case you have been living under a rock, Reddit’s ‘wallstreetbets’ has been the root cause for major gains in many popular securities.
Blue chips like GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC) have seen tremendous growth for no reason other than being meme stocks. These companies both have an incredible bullish sentiment from retail traders, despite rather poor performance and with AMC, a high chance of bankruptcy several months ago.
The internet, and more specifically social media, has drastically changed how news is relayed. With access to international and domestic news at the touch of a button, current events have never been more accessible. This rapid stream of constant information has caused a great deal of volatility in the market. And this intense speculation is only fueled more via apps such as Robinhood. But, with the proper know-how, investing in meme penny stocks can be lucrative for some.
When considering penny stocks to buy, making a watchlist is also very important, especially in the case of meme penny stocks. Making a watchlist can help to both keep your list organized, and gauge social sentiment on a company. This can be done through reading online platforms such as Reddit and Twitter, or even reviewing what reputable news sources have to say about the recent market trends.
With large price movements, there are usually reasons that investors can find for an explanation. For instance, both GME and AMC both highly discussed on Reddit, and any trader viewing social media could see this. Rather than buying these stocks because of intrinsic value, investors wanted to bet against massive institutional short positions. The goal was intended to force large hedge funds to sell their short positions on both of these companies and caused massive losses.
Considering all of this, meme stocks are popular now and look like they could be for quite some time. While it may have begun as a trend, it remains a popular paradigm shift that could continue to affect the stock market in the future. With this in mind, let’s take a look at three meme penny stocks for your June watchlist.
3 Meme Penny Stocks To Add To Your June Watchlist
1. Cyclerion Therapeutics Inc. (NASDAQ: CYCN)
Up by around 24% at midday is Cyclerion Therapeutics Inc. While no specific news came out today, CYCN has released several updates in the past few weeks. More recently, it announced a global license agreement with Akebia Therapeutics Inc. (NASDAQ: AKBA) for the development and commercialization of praliciguat. Additionally, it is also raising around $18 million in capital through a separate private placement.
In the agreement, Cyclerion could receive as much as $225 million in milestone payments including around $15 million in the first year and a half. In total, CYCN could receive up to $585 million in payments if all long-term milestones are hit.
Peter Hecht, CEO of Cyclerion stated that “This capital, coupled with the praliciguat out-license announced today reinforces our strategic focus in CNS and will accelerate the advancement of clinical studies for CY6463 and the further development of our next generation molecule, CY3018.”
Only a week before this, CYCN announced the publication of preclinical data for its CY6463 compound for neurological disorders. Because Cyclerion as a company and as a penny stock is moving so quickly, many investors are taking note. With its rapid bullish interest and large gain today, CYCN could be an interesting addition to your watchlist.
2. MoSys Inc. (NASDAQ: MOSY)
In the past year, tech stocks have become extremely popular. This is especially true when it comes to social media-driven stocks. One example of this is MoSys, a company that operates in cybersecurity, semiconductor manufacturing, cloud networking, and more. Given the massive supply shortage for semiconductors right now, MoSys is well-positioned to see increased demand for its products.
These products can permit companies to improve operational efficiency through rapid, smart data access and efficient decision-making. It uses cutting-edge modern technologies such as new forms of cloud networking, better cybersecurity, and testing/measurement systems. With tech, we often see large and swift movements in value as new products come out and new uses are discovered for those products. Additionally, when speculative events occur, we can see equally large rises or drops in value.
On June 7th, MOSY announced a registered direct offering priced at the market. This will result in approximately $13 million in net proceeds, which will go towards working capital and general corporate purposes. One of the reasons for this offering could be the need to secure more production of its products due to the shortage mentioned above.
While it’s difficult to say for certain, investors do like to see a well-funded company. The issue of share dilution is always present with registered offerings, however, given that this is relatively small, it may not have too large of an effect. With the pricing set at $7.15 per share, MOSY stock only just breached penny stock territory last week.
While it isn’t technically a penny stock right now, the almost 140% gain in the past month alone means that this is all very recent. And, it’s worth noting that we covered MOSY stock only a few weeks ago when it was under the $5 mark. Considering this, will it be on your watchlist this month?
3. Agenus Inc. (NASDAQ: AGEN)
The next meme penny stock on this list is Agenus Inc. AGEN is a biopharmaceutical company focused on clinical-stage immuno-oncology. Current therapies in development by AGEN intend to utilize the body’s immune system to fight cancer progression.
By leveraging both innate and adaptive immunology our bodies can regulate cancer proliferation and the possibility for metastasis. This could be the difference between life and death for patients battling cancer, yet it’s worth noting that it is still a relatively new treatment in the immuno-oncology sector.
More specifically, AGEN specializes in antibody and adoptive cell therapies to further hone in on a cancerous site. These are encouraging methods of therapy due to the reduced harm they cause in the treatment of patients. By targeting areas of a specific mutation or characteristic, aggressive and more broad methods of cancer treatment like chemo and radiation can be avoided or reduced. Recently AGEN released optimistic Phase 1 and Phase 2 trials for AGEN2373 in different cancers.
“We are encouraged by the initial performance of our VISION platform both for drug discovery and potential therapeutic predictive modeling. It has the potential to bring effective treatments to patients more rapidly.
AGEN2373 continues to show no liver toxicity in the clinic, and we expect the anticipated combination trials to provide potential benefit to patients.”Steven O’Day, Chief Medical Officer of Agenus Inc.
While cancer treatment is a very large industry, the need for better and more effective treatments is always welcome. Because of this, Agenus Inc. is in a very advantageous position in the market right now. And, its positionality could remain prosperous as AGEN moves into the coming months and years. Considering all of this exciting news, will AGEN be on your penny stocks watchlist?
Which Meme Penny Stocks Are You Watching This Month?
The penny stocks on this list, while all different, show a commonality. They all share high investor sentiment and large price moves in the past few weeks. When generating a penny stock watchlist it’s important to maintain a diverse view of the market as a whole. Sectors such as technology, digital manufacturing, software, and biotechnology are all promising fields.
Because innovation occurs so quickly in these sectors, investors need to pay attention to avoid unwanted price moves. By using research as a backbone for creating a watchlist, traders can have the best chance at seeing profitability in their portfolios. With this in mind, will you be watching these meme stocks this month?