We’re at the start of a brand new week and a whole new list of penny stocks to watch. One of the popular places that retail traders are searching is on Reddit. The social media discussion platform has become a notable hang-out for traders. That’s ever since the massive short-squeeze triggered GameStop, and others were traced to its origins on the platform. Needless to say, the word is out. Now, traders are searching for some of the most actively discussed names in the market.
However, there is something to keep in mind, especially if this is one of the reasons that brought you into the market in the first place. What is this one thing, you might ask? It’s the fact that not everything on social media is true (mind-blowing, I know). There are plenty of Redditors with real information genuinely contributing to the Reddit community.
But some use it for other means that are more deceiving to investors. We saw this most recently on Twitter, where a so-called “trusted name” by some was using their following for their own self-interests. If there’s another thing that has come to light due to all of this retail hype, it’s that social media is powerful. Word spreads like wildfire. Now organizations like the Securities & Exchange Commission have begun cracking down on bad actors.
Reddit Penny Stocks To Watch
Regardless of this, it’s never a bad idea to do your own research. If you see one of the penny stocks getting hyped up on social media, it doesn’t hurt to do some digging and understand why it’s making a move (besides the hype factor). Research the filings, recent news (if any), and basically don’t take anything for face value.
While we do our best to give some insight into trending penny stocks, it’s essential to get a full scope, and research is where that begins. With this in mind, let’s take a look at some of the trending penny stocks on Reddit. Then you can decide if they’ll be on your “buy” or “avoid” list at the start of the week.
- ConforMIS Inc. (NASDAQ: CFMS)
- Neovasc Inc. (NASDAQ: NVCN)
- Seneca Biopharma (NASDAQ: SNCA)
Since December, CFMS stock has added more than 60% in value. As a medical technology company, ConforMIS provides joint replacement systems for its patients. This includes both knee- and hip-implants that can have superior results compared to traditional joint replacement methods. One of its flagship products, known as the iTotal CR knee replacement system, has shown patients to have greater long-term satisfaction and results than off-the-shelf implants. It offers custom and personalized options.
ConforMIS recently announced that its technology is much more cost-effective than the typical implants that one would receive. Dr. Paul Manner, a joint replacement professor at the University of Washington in Seattle, stated that “we’ve been very pleased with the early outcomes for patients with the Conformis knee. Patients report that the knee feels more like a normal, healthy joint; they recover more quickly and are back to regular activity substantially faster than with traditional, off-the-shelf implants.”
This is great news for investors because it shows that ConforMIS disrupts this area of the medical tech market. In its fourth-quarter report, announced earlier in the month, CFMS brought in product revenue of $16.5 million. While this is a decrease of 16% year over year, this makes sense given the lessened demand for elective medical procedures during the pandemic.
So now that vaccines are in distribution, CFMS could see its market begin to grow. While this does depend on how quickly it can commercialize, in the meantime, CFMS could be a penny stock to watch.
Neovasc Inc. is a medical device provider. The company develops a large range of products for the cardiovascular marketplace. This includes minimally invasive transcatheter mitral valve replacements, as well as devices for the treatment of refractory angina. One of its flagship products known as the Neovasc Reducer is currently in limited availability in the U.S., but it is commercially available in Europe right now.
Its product, Tiara, for the transcatheter treatment of mitral valve disease, is in clinical trials in the U.S., Europe, Canada, and Israel. Only a week or so ago, Neovasc announced its fourth quarter and full-year 2020 results. In the report, it generated roughly $514,000 in revenue during Q4 and $1.96 million for the entire year. Additionally, it announced several milestones, such as the first Neovasc Reducer implants in France.
In December of 2020, Neovasc engaged in a $6.1 million direct registered share offering. Fred Colen, CEO of Neovasc, stated that “Neovasc continued to advance its efforts to commercialize the Reducer and further develop the Tiara devices in the fourth quarter. We are encouraged by the results of the quarter despite the impact from Covid-19. We believe there is clearly strong underlying demand for Reducer.”
While 2020 may not have been a banner year for the company, it has some big moves currently in the works for 2021. This includes a $72 million offering that it announced in February. Also, the company continues to make big strides in the European medical tech market.
Shares of Seneca Biopharma had a very active post-market session on Friday afternoon. While SNCA stock closed at $1.64 during the regular session, the penny stock climbed as high as $1.93 before the final bell rang. There weren’t any headlines hitting the PR wire. However, if you’ve been reading out articles on Seneca, you’re probably already familiar with one of the major catalysts recently.
To give you some background, if you’re unfamiliar, in December, Seneca entered into a merger agreement with Leading BioSciences, Inc. Once completed, the company will change its ticker symbol PALI and its name to Palisade Bio, Inc. The newly formed company’s main focus will be on advancing Leading’s pipeline Phase-3 ready asset, LB1148. In clinical studies, the company will evaluate LB1148’s potential to restore normal GI function following major surgery and reduce certain postoperative complications such as abdominal adhesions.
The recent momentum could be based on speculation on an event this week. March 24th marks the date of Seneca’s special shareholder meeting to vote on several approvals. This includes effecting a reverse split of common stock. According to the company, “The Seneca Board believes that analysts at many brokerage firms do not monitor the trading activity or otherwise provide coverage of lower-priced stocks and that most investment funds are reluctant to invest in lower-priced stocks.”
In light of the special meeting and Friday’s momentum, will SNCA be on your list of penny stocks to watch this week?