3 Top Penny Stocks To Watch As Redditors Buy The Dip
Popular penny stocks on Reddit today. Are they a buy?
Even though the stock market is trading lower, there are still plenty of opportunities to make money. You just need to know where to look. What some retail traders are doing right now is looking for hype and popularity on social media.
There are multiple ways to find the most active penny stocks today. One way is to look at trading volume, especially compared with other days. If a certain day has higher than average daily volume for particular penny stocks, that can indicate something is going on.
Another indicator currently popular among penny stocks traders is to look at social media outlets like Reddit and Twitter. Often, many people talking about the stock on social will drive momentum. That can increase the overall popularity of a specific company more than usual. This is important because it provides the trader with a two-front approach to penny stock trading: increased awareness and active social media debate.
A third way of tracking popular penny stocks is to monitor social media mentions, in general. Since so many active traders use Reddit, there’s a strong chance that they’ll post about newly trending companies such as the day’s top penny stocks before they become popular on mainstream websites.
This can also drive up the trading momentum because so many more people are using social media in general. Today we look at a handful of top penny stocks Redditors decided to buy as the market dips. The question for you: are they worth the hype or should you run in the other direction?
Reddit Penny Stocks To Buy [or avoid]
- Splash Beverage Group Inc. (NYSE: SBEV)
- ReTo Eco-Solutions (NASDAQ: RETO)
- RedHill Biopharma (NASDAQ: RDHL)
Splash Beverage Group Inc. (NYSE: SBEV)
One of the hottest penny stocks this week is Splash Beverage Group. The initial catalyst came on Tuesday after one of the biggest updates from the company to date. Splash Beverage received authorization to sell its TapouT performance drink in 47 Walmart (NYSE: WMT) stores in Florida.
The beverage company owns a portfolio of leading alcoholic and non-alcoholic brands ranging from single-serve wine (Copa di Vino) to its TapouT performance drink. With early-stage brand development as its mission, this latest win in dozens of Walmart stores was a big catalyst to start 2022 on a high note.
Over the last 4 sessions, SBEV stock has surged from around $1 to highs of $1.99. The additional chatter on social media seems to have maintained the hot streak with SBEV stock hitting those highs on Thursday.
ReTo Eco-Solutions (NASDAQ: RETO)
When it comes to actively traded penny stocks today, ReTo Eco-Solutions is on the hotlist. Since mid-December, shares of RETO stock managed to climb from lows of $0.75 to over $1.80 this year, so far. At the center of attention is ReTo’s technology platform offering solutions for ecological improvement for its clients.
This year, all eyes are on the company’s latest pending acquisition. ReTo entered into a deal with Hainan REIT Mingde Investment Holding to buy 100% of the company. Ultimately, this acquisition would give ReTo the 61.55% equity interest of Yile IoT Technology that REIT Mingde holds. Yile is a tech company developing Internet of Things technologies for auto rental, ride-sharing, and logistics in China.
“We are excited about the acquisition of REIT Mingde as we believe this transaction will enable us to integrate Yile IoT’s technologies into ReTo and accelerate the upgrade and growth of ReTo’s business. With the support of IoT technologies, ReTo strives to become a technology-driven provider of services for ecological and environmental protection industries, and increase value for our shareholders,” said Hengfang Li, CEO of ReTo.
RedHill Biopharma (NASDAQ: RDHL)
A recent name on the list of hot penny stocks today is RedHill Biopharma. Shares surged on Thursday thanks to new data revealed following an analysis of its Phase 2/3 study in COVID patients. Specifically, the company’s drug candidate, opaganib improved the median time to viral RNA clearance by at least 4 days. With the update announced mid-session, traders continue digesting the news as RDHL stock has headed higher.
“Opaganib is the first oral novel drug candidate to demonstrate SARS-CoV-2 viral RNA clearance in hospitalized patients with severe COVID-19 pneumonia. It also provides the first clinical demonstration of opaganib’s potential antiviral activity, supporting the 62% reduction in mortality seen in the post-hoc analysis of a large subset of patients from the Phase 2/3 study,” said Dr. Mark Levitt, RedHill’s Chief Scientific Officer.
The company also said that it was in discussions with multiple regulatory agencies regarding potential pathways to approval. In light of the latest development and on the heels of its recent licensing deal for another treatment (Talicia) in the UAE, RDHL stock has gained some attention from retail traders today.
Should You Buy The Dip Or Wait?
When it comes to trading stocks, in general, timing the market isn’t as easy as it might sound. Because of this, having an actual strategy in place is crucial. Layout your possible entry and exit targets and determine how you want to go about your trade. Also observing certain trends and catalysts should play a role.
Is a stock moving because of news or is social media hype the only driving force? What are traders speculating on that has made them bearish or bullish on a given penny stock? These are just a few of the questions to have answers for prior to making your trade decision. The goal is to make money and in doing so, set yourself up for success with the best tools and information possible.
New to Trading Penny Stocks?
If you’re new to trading penny stocks, we’ve got some introductory content for you to use:
- Penny Stocks Definition & 3 Trading Strategies To Master In 2022
- Is The Stock Market Open Today: Trading Hours You Need To Know
- How To Make Money With Penny Stocks In a Down Market
- Penny Stocks & 5 Stats To Know If You’re Trading Or Investing In 2021
- Best Penny Stock Brokers For Trading & Investing In 2021
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