Reddit Penny Stocks to Buy? 3 Small-Caps For Your Summer Watchlist

6 min readJun 3, 2021

3 Hot Penny Stocks on Reddit For Summer 2021

As Summer comes on fast, penny stocks are heating up. While typically, the Summer is a time when the market slows down in volume, access to trading platforms like Robinhood could mean that this is a thing of the past. And, with the major influence of Reddit on penny stocks, investors can only hope that volume remains incredibly high.

In the past few days, we witnessed another rise in value for AMC Entertainment Holdings Inc. ( NYSE: AMC). This is due to the sway of Reddit and more specifically WallStreetBets. These traders aim to beat out large institutional short positions, and invest on emotions rather than fundamentals. While this can be a good strategy, sitting on the sidelines and finding the most talked about penny stocks on Reddit can be another good strategy.

But as always, do your own research. There are hundreds if not thousands of penny stocks out there. And, only a handful offer true value to investors. Because of this, it’s easy to come across penny stocks that may look good in the short term, but have no value in the long game.

And, the influence of social media makes these stocks move extremely quickly. This can result in both big gains and big losses. But, most of the time, investors will hop on board due to the fear of missing out or FOMO.

While trading penny stocks doesn’t take a doctorate in economics, it is wise to educate yourself on how to trade. This is the best way to avoid losing money and to make potentially winning buys and sells. With this in mind, let’s take a look at three Reddit penny stocks for your Summer 2021 watchlist.

3 Penny Stocks on Reddit to Watch in Summer 2021

Zomedica Corp. (NYSE: ZOM)
Globalstar Inc. (NYSE: GSAT)
Atossa Therapeutics Inc. (NASDAQ: ATOS)

Zomedica Corp. (NYSE: ZOM)

Zomedica Corp. is a veterinary health company aimed at producing animal-focused tech products. It focuses on the unmet needs of clinical veterinarians and the animals that they serve. Its products are developed mainly for companion animals, which has become a huge market during the pandemic.

Its main product TRUFORMA, is currently being developed as a breakthrough to diagnosing common animal conditions. Specifically, it acts as a diagnostic biosensor platform for the detection of thyroid disorders in cats and dogs.

Zomedica also has a collaboration agreement with Celsee Inc. to develop and commercialize liquid biopsy assays and related consumables. The goal here is to detect cancer in companion animals. On May 12 th, investors got a large update from Zomedica. Only a few weeks ago, it reported its first quarter financials for the 2021 year.

“Our first product, TRUFORMA®, now is on the market and we are building out our direct sales organization to reach our customers; we are working hard with Qorvo Biotechnologies, our technology partner, to complete additional assays to complement the initial three that are currently available to customers; and we have cash and cash equivalents of more than $250 million to support our commercialization efforts and our product and corporate growth plans.”
Robert Cohen, the CEO of Zomedica

While these financial results did help out, ZOM stock then fell shortly after. But now, investors are witnessing another rally with ZOM stock. From May 27 to June 3 rd, ZOM stock has reached as high as over $1 per share. While right now it has settled at $0.97 per share, investors are hopeful for future momentum. With all of this in mind, will ZOM make it on to your penny stocks watchlist?

Globalstar Inc. (NYSE: GSAT)

Globalstar Inc. is a tech penny stock that provides mobile satellite services. The company offers two-way voice and data devices such as mobile voice and data satellite communications products.

These are in use for a variety of applications including recreation, safety, emergency preparation, and much more. The company also sells SPOT consumer retail products. These products include personal tracking, emergency location, and messaging solutions. Additionally, its SPOT Trace product is an anti-theft and asset tracking device.

GSAT has had a solid month with a lot of price action to keep track of. In the past few days however, we’ve witnessed positive momentum with Globalstar. It all started around May 6 th when the company released its first quarter 2021 results.

CEO Dave Kagan stated, “We expected to return to pre-COVID sales levels by the second half of this year and that expectation proved to be conservative. Our sales pipeline remains robust and diverse and we’re excited to see this recent momentum.”

On June 3 rd, GSAT stock is up more than 5.65%. While shares shot down by over 20% on June 2nd, this could be the result of a short term correction. In regard to today’s gain, there is no direct company specific news that is causing this to happen. Despite this sizable dip, its current volume is still more than double its average. Considering this, will GSAT make it on your list of penny stocks to watch?

Atossa Therapeutics Inc. (NASDAQ: ATOS)

This next biotech penny stock, Atossa Therapeutics Inc., is a company we discuss quite frequently. This is due to its large market movements on a regular basis. But what exactly does Atossa Therapeutics do? ATOS is a clinical-stage biotech penny stock that discovers and develops medicines for oncology and infectious diseases. One of its main programs is Endoxifen which is an active metabolite of tamoxifen. Currently Endoxifen is in Phase II clinical trials to treat and prevent breast cancer.

It also has AT-301 which is a proprietary drug candidate for nasal administration in patients diagnosed with COVID-19. Atossa is also developing AT-H201 which is a drug candidate to improve lung function in those with COVID-19. Its COVID related developments are certainly a contributing factor to ATOS stock’s recent gains in the market.

The company released its first quarter financial results on May 14 th which gave a lot of insight to where it stands right now. It also provided several updates on the majority of its clinical programs. This includes an update on its Endoxifen Phase 2 open-label clinical study. If administered in the window of opportunity between diagnosis of breast cancer and surgery, the results could be much greater than without it. Based on the positive results from this study, we could see acceleration of this program in the United States.

“We are diligently moving our existing programs forward, while actively exploring the possibility for strategic expansion into other areas where we might see near-term milestones and results. We look forward to continuing to update our stockholders on these opportunities as they develop.”
The CEO of Atossa, Steven Quay

Considering this, ATOS could be a candidate for your penny stocks watchlist.

Which Penny Stocks Are You watching This Summer?

As we move further into the Summer, investors are hopeful about the future of the stock market. While trading in the past few months has been less than ideal, there are a lot of positive factors that could occur on the horizon. This includes the potential end of Covid, economic recovery, and a major worldwide reopening.

Considering this, finding the best penny stocks should involve thorough research and a commitment to investigating a company to the best of your ability. But, with so much at play right now, only time will tell how the market will move in the near future and beyond.

Originally published at Penny Stocks on June 3, 2021.