Reddit Penny Stocks to Buy? 3 to Watch As DogeCoin Goes to the Moon

3 Reddit Penny Stocks For Your May Watchlist 

Reddit penny stocks are some of the most trending companies in the market. You might be wondering what exactly this term means and how it applies to penny stocks overall. Reddit, the popular social media website, has communities of traders that come together to discuss their ideas on different companies. 

In the past, this has been little more than a forum for ideation. However, when the GameStop Corp. GME fiasco occurred a few months ago, we saw the fundamentals of the stock market change forever. Now, there is an influx of new retail traders buying penny stocks on Robinhood or other non-institutional brokerages. This is in no way a bad thing, and if anything it has helped to flood the market with billions in new capital. 

And, it's worth noting that the list of penny stocks on Reddit is always changing. This is because traders continue to find hot penny stocks, where they then spread the word about whether or not to invest.

While finding penny stocks on Reddit is not a great way to make a watchlist, it can help to inspire you. We covered how to make a penny stock watchlist last week, and that is a valuable resource that you should use. 

In addition, the famed meme cryptocurrency, DogeCoin has continued to rise over the past few weeks. While it is very volatile, the rise of the value of DogeCoin has a sizable effect on the attention paid to penny stocks. Considering all of this, let's take a look at three Reddit penny stocks to watch as DogeCoin goes to the moon. 

3 Reddit Penny Stocks to Watch 

1. SunLink Health Systems Inc. SSY 
2. Atossa Therapeutics Inc. ATOS 
3. American Shared Hospital Services AMS

SunLink Health Systems Inc. SSY 

While no company-specific news came out on May 5th, shares of the healthcare company posted over 20% in gains by EOD. For some context, SunLink Health Systems owns several subsidiaries that operate healthcare properties in the Southeast U.S. Its strategy is based on connecting the needs of patients with what healthcare professionals can offer.

During the pandemic, the company has seen an increased demand for its services. This makes sense given that we are in the midst of a healthcare crisis. Last month, SunLink announced a $2 million expansion plan for its subsidiary, Trace Regional Hospital. The goal with this is to expand and completely renovate the hospital to keep up with current demand. 

“Our major capital expenditures are being undertaken in a manner that minimizes disruption in our medical center services and are expected to be completed by June 30th, 2021.

They are being paid out of Trace's cash on hand and reflect our commitment to the quality of and access to healthcare services in the Houston community and Chickasaw County and our confidence in the growth potential of the Northeast Mississippi area." 

Sheila Brockman, CEO of Trace Regional Hospital

With this expansion underway, it looks like SunLink is well-positioned to continue innovating in what it can offer its patients and employees. So, while nothing new is specifically sparking today's gain, SSY stock could be worth watching in the future. 

Atossa Therapeutics Inc. ATOS 

Another decent after-hours gainer is ATOS stock. Atossa Therapeutics is a biotech company, working on both oncology and infectious disease-related treatments. Its flagship compound right now, Endoxifen has already received a "Safe to Proceed" letter from the FDA indicating that the company can move forward with planned trials. Only a few weeks ago, it announced that it has begun treating ovarian cancer patients with Endoxifen, with results expected in the coming months. 

"The patient has recurrent ovarian cancer and did not tolerate tamoxifen, which is sometimes prescribed for ovarian cancer as well as breast cancer. The patient recently underwent functional molecular genomic testing using 3D tumor organoid cultures grown in the laboratory from the patient's tumor to help determine potential therapies."

Steven Quay, M.D., the CEO of Atossa Therapeutics

In addition to this, Quay will be presenting in a Panel at Cello Health's Cancer Progress Virtual Conference on May 6th. 

If all that isn't enough, Atossa is also working on a compound known as AT-301, which is a nasal spray for treating Covid-19 at home. There are currently no treatments that act similarly, making this a big deal for both Atossa and investors.

To embark on these endeavors, Atossa also is raising around $50 million through a registered at-the-market direct offering. With biotech funding is always an area of concern. However, it is comforting to know that Atossa has the capital needed to expand. Considering all of these updates, is ATOS a penny stock to watch?

American Shared Hospital Services AMS 

One of the biggest gainers of the day on May 5th is American Shared Hospital. By the end of the day shares of AMS stock had pushed up by over 80%. This includes the after-hours gain of 50.42%. So why did American Shared Hospital Services push up so much today? Well, there isn't a clear answer for this however, we can look at other information to try and deduce why. 

Only a day earlier, AMS stock received a bullish score from the Stock Sentiment Indicator at InvestorsObserver. While analyst ratings are not always a major contributing factor, they can help to determine what direction a penny stock could go in. During the trading day, we saw all types of biotech and healthcare stocks push up dramatically. And, only a few weeks ago, American Shared Hospital Services announced a $22 million debt refinancing deal as well as a new strategic banking relationship with Fifth Third Bank. 

“This milestone transaction with Fifth Third Bank will enable AMS to realize substantial savings from the refinancing of our existing debt, and at the same time, provide us with incremental capital to accelerate the growth of our business.

The transaction immediately lowers our cost of capital and provides ample financial resources to increase our capacity for additional projects through a more diversified business model." So, while there isn't a concrete reason explaining why AMS stock shot up today, it could be a correlative gain, or simply the result of the bulls making a big move. 

CEO of AMS, Ray Stachowiak

Are These Penny Stocks Worth It?

At the end of the day, finding the right stocks to buy all comes down to your investing style. However, it does take a careful mix of research and understanding market moves to have the best chance at seeing profitability. While this is not a be-all-end-all list of penny stocks to watch, it should help to give some inspiration. Considering all of this, are these penny stocks worth it?